Allied Healthcare International Inc. purchases BiJu Limited

Allied Healthcare International Inc., a leading homecare provider of health and social care in the United Kingdom and Ireland, announced Tuesday that its U.K. subsidiary, Allied Healthcare Group Limited, has acquired the entire issued share capital of BiJu Limited.

Allied expects this acquisition to be accretive to its earnings. Allied has acquired BiJu for maximum total consideration of £1.6 million ($2.6 million). Initial consideration of £1.28 million ($2.1 million) was paid on completion of the transaction and was funded through Allied's cash on hand.

Additional consideration of £0.32 million ($0.5 million) could become payable after 12 months depending on the level of gross profit generated in the business during the next 12-month period equating to a pro forma earnings before interest, tax, depreciation and amortization of £0.37 million ($0.61 million).

BiJu supplies homecare services to clients throughout Lancashire and operates from Lancaster. Established in 1991 by Bill and Julie Evans, BiJu is one of the Social Service Directorate Preferred Providers and has been awarded 3 stars (Graded Excellent) by the care industry's regulatory body Care Quality Commission.

BiJu also holds the Investors in People (IIP) award. BiJu supplies a comprehensive range of care services, including rehabilitation, physical disabilities, sensory impairment and extra care sheltered housing projects.

Sandy Young, Chief Executive Officer of Allied, commented that the BiJu acquisition is in line with the Company’s strategy of expanding Allied's geographic footprint and enhancing value for its shareholders. The transaction will provide the Company with an enlarged market position within the County of Lancashire in the North West of England as well as a platform to expand across Lancashire, said Young.
 
Mr. Young reiterated that BiJu is a high quality business recognized for a diverse range of high quality care services. The company has also successfully developed and grown its Self Directed Support services, which is now the preferred route for commissioning by the Local Authority, he said.

Mr. Young noted his delight to welcome the BiJu employees into the Allied Healthcare Group and to build upon Allied’s companies' strengths.

Allied Healthcare International Inc. is a leading homecare provider of health and social care in the United Kingdom and Ireland. Allied operates a community-based network of approximately 120 branches with the capacity to provide carers (known as home health aides in the U.S.), nurses, and specialized medical personnel to locations covering approximately 90% of the U.K. population.

10th May 2011