One of the biggest claims management companies in the UK has brought a major rehabilitation provider on board as it bids to buy up a complete range of accident-related services.
National Accident Helpline Group PLC (NAHL) has conditionally agreed to buy the entire share capital of Bush & Company, which arranges rehabilitation, expert witnesses and injury case management.
NAHL said it will place more than 4m new shares in the company to raise a total of £14.2m to part-fund the deal.
The remainder will be funded through existing cash resources and loan facilities. Net debt after the deal is completed is expected to be around £9.7m.
Russell Atkinson (pictured), chief executive of NAHL, said purchases such as this are a key part of the growth plan to ‘extend the reach’ of the company.
The company said its new acquisition will help to broaden relationships with law firms on its panel by introducing them to a linked provider.
NAHL, floated on the London Stock Exchange last year, has an established history of matching potential clients with law firms. This latest acquisition suggests the company now wants to extend that mission and cater for every service required after an accident.
Bush & Company, headquartered in Northamptonshire, undertakes assessments following accidents resulting in disabilities such as spinal cord injuries, acquired brain injuries, amputation, orthopaedic injuries and visual impairment.
It also provides assessment and case management services to clients who have conditions arising from medical negligence such as cerebral palsy, Erb's palsy, abdominal injuries and orthopaedic injuries. The company recorded £8.9m turnover in 2014/15 and operating profit of £3m.
Last month, NAHL reported pre-tax profits up by 18.72% in the six months to 30 June, on turnover up 15% to £25.4m. New acquisition Fitzalan Partners, bought in February this year, contributed £1.5m to the group’s revenue.
The value of NAHL shares rose almost 2% this morning on news of the latest purchase.
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