Medical Services Company Novolog, Which has been on a rapid buying spree for several years, announced today another acquisition. Novolog You will acquire control, 55%, of the Ein Tal eye clinics, for about NIS 32 million. Novolog was traded this morning at a value of NIS 1.49 billion.
Ein Tal operates a specialist clinic in the field of ophthalmology in Tel Aviv, which employs about 60 doctors, who also perform various types of eye surgeries at the center, as well as imaging services and other eye treatments. In addition, Ein Tal owns 50% of Ein Tal Hadassah, a network of laser eye surgery clinics that includes six branches.
In 2017, Harel Insurance Company purchased 20% of Ein Tal for NIS 6 million, ie at a value of NIS 30 million, compared to a value of NIS 58 million in the current transaction. Harel had an option to increase its stake to 50% within a few years, but it seems that it has given up the option in a way that allows the current deal.
Ein Tal was founded in 1984 by the late Michael Blumenthal (spouse of former MK Naomi Blumenthal). The center was acquired in the early 2000s by the brothers Prof. Ehud Asia, an ophthalmologist, and Hilik Asia, a former CEO of the Export Institute, who are used as the medical director and CEO of the company, respectively.
Novolog, owned by founder Ehud Pozis (26%), large institutions (Phoenix, Migdal and Harel – around 12% each), and Murray Arkin (8%), and managed by Iran Taos, was listed on the stock exchange in March 2017 and has since recorded a return of 77%, with the bulk of the increase occurring during 2020. In the past year the stock has more or less remained in place.
The company’s main growth occurred mainly through acquisitions. The most notable acquisitions made by Novolog recently were the control (51%) of Gastromed, a center for specialists in gastrointestinal diseases. Novolog paid NIS 25.2 million for the company. This year Novolog also made its first acquisition abroad, 20% of the remote medical company from the German Flex for $ 5.6 million.
In its latest presentation to investors, Novolog noted that it will continue to make purchases in Israel and abroad, and is now fulfilling its promise.
In the third quarter of 2021, the company’s revenues grew by 13% compared to the same period last year, to NIS 329 million. In the first nine months of 2021 compared to the corresponding period, the company recorded a growth of 6.7%, to revenues of NIS 955 million. The growth in revenue is due both to the acquisition of new activities and to the improvement of existing activities. The gross profit for the three months accounted for about 11% of revenues, similar to the corresponding period, while the gross profit for the nine months was 5.11%. Novolog earned NIS 5.11 million in the quarter, compared to NIS 7.9 million in the corresponding period, and in the entire period, recorded a net profit of NIS 2.36 million, compared to NIS 2.32 million in the first nine months of last year. These results indicate continued and steady growth in Novolog’s activity.
Novolog estimates that in 2021 as a whole, it will record EBITDA of NIS 100 million and operating profit of NIS 64 million. In the meantime, the company has met its forecasts.