RH Bell Hospital is a 31-bed private psychiatric hospital situated in Krugersdorp. It was founded in 1994 as a fully acute care facility and was acquired by Netcare in 2004. After the acquisition by Netcare, Bell hospital was converted to a specialist psychiatric hospital.
While it is a specialist psychiatric hospital, it also offers the following services:
- Independent radiology services;
- General practitioner services;
- Dental services;
- Ear, nose and throat services (ENT); and
- Orthopaedic services.
The acquisition represents a strategic opportunity for RH Bophelo to acquire a 100% stake in a psychiatric facility servicing Johannesburg and enables RH Bophelo to further expand the reach of its hospital network. Furthermore, the acquisition provides RH Bophelo with, inter alia, the following:
- Quick access into an established facility that has a solid foundation and has referring psychiatric doctors already associated with the hospital;
- The investment will improve the hospital’s quality, capacity and service offering, and in so doing the residents’ ability to access quality healthcare as set out in RH Bophelo’s mandate;
- An opportunity to invest alongside doctors who have a strong patient base in the Krugersdorp area and are incentivised to grow the hospital; and
- Combined with RH Bophelo’s previous acquisitions, RH Bophelo believes that it will be able to extract efficiencies from the operation, leading to additional cost savings and earnings growth.
- The Company acquired the hospital for R55.2 million
- The acquisition was for 100% of
- Equipment for R1.6 million; and
- Property for R53.6 million.
- Assets represent a historic P/E of 2.3x.