I think the angle is to be able to refer more specialised work to the Brisbane clinics. I would definitely consider this a poor acquisition if it doesn't grow profits in future years. My understanding of the acquisition strategy is to choose very carefully the sellers. A lot will come down to the judgement on 1300 Smiles MD and acquisitions team.
Based on past history they have good judgement. If you ask me the deploying of cash is not as sinister as you make it out to be. 12% is a lot better than a bank account.
ONT Price at posting:
$6.00 Sentiment: None Disclosure: Held