Two firms act on day hospital network acquisition

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A listed healthcare company has agreed to buy a day hospital network spanning New South Wales, Queensland, and Western Australia.

Herbert Smith Freehills acted for Primary Health Care Ltd, which has signed a binding agreement to acquire Montserrat Day Hospitals.

Montserrat, which operates seven specialist day hospitals and haematology and oncology clinics, was counselled by Cooper Grace Ward.

The acquisition is expected to be completed in November. Primary has agreed to pay $75m up front, and $20m no earlier than 1 July 2019, subject to conditions. Further earn-outs may be payable for a total consideration of up to $138.5m.

Cooper Grace Ward’s team was led by partner Charles Sweeney. Partner Clinton Jackson, special counsel Andrew Corkhill, lawyers Adelaide Hayes and Nick Ward, and graduate David Lee Lewes also provided expert advice.

Montserrat has been a long-standing client, the firm said.