pathology business aqisition - just out

IMMEDIATE RELEASE
Pathology Business Acquisition
16 September 2010
Healthcare group, Stirling Products Limited (ASX:STI) advises that the Company
has conditionally acquired the business and assets of Halcion Pty Ltd (Halcion),
Australias fastest growing pathology business.
The acquisition Heads of Agreement provides for payment of a total $3,305,000,
with an 80% interest in Halcion to be acquired in consideration of $2,645,000 and
to be settled through the issue of 264.5 million shares in the Company. The
acquisition of the balance 20% interest held through a co-operative is subject to
the co-operative in a meeting in accordance with their constitution agreeing to
accept a further 66 million shares in consideration of the balance $660,000.
The acquisition is effective as of today, however, is still subject to
ongoing due diligence to be completed within 30 days and also to the issue of the
consideration shares which is subject to approval by the Companys
shareholders. Therefore, for the acquisition to be fully ratified and confirmed,
these two latter conditions require to be met and if not satisfied, then the
acquisition is subject to reversion to the Halcion interests. Stirling Products
advises that it will provide for the resolutions requiring its shareholder approval to
be incorporated within the Companys forthcoming AGM.
Halcion is headquartered in Sydney where it commenced operations three years
ago managing and operating a national pathology business with laboratory
services. Today, Halcion manages over 40 employees and 20 contractors
nationally and operates profitably with the pathology business currently
generating revenues of approximately $7.5 million per annum.
It is expected that Stirling Products will be able to substantially contribute to the
Halcion business growth through its established industry relationships, as well as
through its national exposure to the pharmacy industry.
Mr Con Kostakis, a founder and director of Halcion, stated: We very much look
forward to the next phase of Halcions business growth through Stirling Products,
as well as for our shareholders to collectively be taking a significant position in a
Company that we believe has incredible opportunity, particularly with its e-health
TeleMedCare business and pulmonary drug delivery platform. Further, Stirlings
industry interests and national pharmacy representation will complement our
growth strategy that we are targeting to double by December 2011.
Stirling Products Managing Director, Mr Peter Boonen, added: The Halcion
acquisition further expands Stirling as an integrated healthcare group and
importantly, will contribute to the Companys ongoing establishment of significant
early revenues. Opportunities within the Australian pathology business sector,
which has been undergoing major recent regulatory change, are very limited with
the industry being currently dominated by just three major players. Halcion is
already well established and profitable within this environment. We look forward
to welcoming and working with their dedicated executive team who we have no
doubt can also contribute to our overall continued corporate and business
development.
The Company will advise the market further as the acquisition conditions are
satisfied.
For further information see www.stirlingproducts.net or contact:
Peter Boonen
Managing Director
Stirling Products Limited
Ph: +61 2 9299 9270
E: [email protected]
For all Investor Relations inquiries please contact:
James Moses
Mandate Corporate
Ph: +61 420 991 574
E: [email protected]