Healthcare recruiter Healthcare Locums’ (HCL) new acquisitions are a sign of its confidence in the healthcare sector and the government’s commitment to continue to safeguard front-line resources from public sector cuts, according to Kate Bleasdale, executive deputy chairman  of HCL.

HCL has entered into conditional agreements to acquire the entire issued share capital of UK specialist nursing and healthcare staffing locum business Orion, the business and assets of Australian medical staffing business LML and, subject to shareholder approval, the business and assets of specialist nursing locum recruiter Redwood Health.

Bleasdale told Recruiter: “These acquisitions demonstrate our confidence in the NHS and the government’s commitment to fund front-line resources.  There are huge demographic forces at play that require concerted investment in health professional staffing. The acquisitions also reflect our significant commitment to our international markets which are expanding at a fast pace.”

HCL is placing of 7,333,334 new ordinary shares at a placing price of 150p per share to raise funds of £11m before expenses, subject to admission to trading on the Stock Exchange.

The proceeds of the placing shall be used to finance the acquisitions of Orion and Australian medical staffing business LML Business. 

Meanwhile, Redwood Health is being acquired for an initial consideration of £5m together with potential payments of up to a further £1.65m to be paid dependent on the future performance of the business. This acquisition is subject to shareholder approval and the provision of the appropriate debt finance and requires the approval of shareholders pursuant to section 190 of the Companies Act due to the fact that Bleasdale’s husband, John Cariss, owns 99% of the ultimate shareholder of Redwood, Cardale Investments.