Australian Audiology Expansion Continues
Listed healthcare provider, Abano Healthcare Group, has confirmed its commitment to its Australian audiology expansion strategy with the purchase of a further four clinics, bringing the number of Bay Audio clinics in Queensland to 19.
The acquisition of The Advanced Hearing Specialists in Queensland will increase Bay Audio’s current year Australian revenue, and sets the scene for the rollout of the Bay Audio model into other major Australian states.
Advanced Hearing Specialists operate four clinics in the Gold Coast area, and the business is expected to contribute approximately NZ$2 million to the turnover of Bay Audio.
Managing director of Abano, Alan Clarke, said: “Our Australian strategy is to establish a critical mass of profitable clinics in Queensland, through both acquisition as well as the setting up of new clinics. This approach, together with establishing the infrastructure to support the brand for expansion across other Australian states, is a low-risk and relatively low-cost strategy, but with significant potential returns both financially and in the ability to leverage the Bay Audiology platform.
“We have the management ability, the market insights and experience and the support of major multinational audiology manufacturers behind this current expansion programme.
“So far we have invested in commercial infrastructure and a very well developed marketing campaign, resulting in one off investment costs to date, including this acquisition, of approximately $4.5 million.
“The acquisition of this well recognised audiology practice gives Bay Audio an immediate geographical presence on the Gold Coast, and extends the business’ footprint in Queensland. We now have 19 clinics, making Bay Audio the fastest growing provider in the region.”
Alan Clarke continued: “The audiology business is impressive. It is very well run by experienced professionals who have significant experience in the profession, industry and in international markets. In particular, we have a depth of operational experience in the Australian market, through our senior Australian audiologists, including Bay Audio’s Australian general manager, as well as Bay’s executive chairman, Peter Hutson who lived, practiced and owned audiology clinics in Australia in the early 1990’s.”
Bay Audio entered the audiology market in Australia with the acquisition and start up of four clinics in January 2007. The network has since expanded to 19 clinics in the Queensland area with a number of other opportunities under review.