Allied Work Force set to acquire Panacea

Allied Work Force set to acquire Panacea Healthcare Limited

Allied Work Force Group (AWF) has entered into a conditional agreement to acquire specialist healthcare provider Panacea Healthcare Limited.

Panacea has provided ACC funded home and community support services certified care for the disabled and elderly and companionship and nursing services in the Auckland and Central North Island areas during the past 30 years.

AWF Managing Director Simon Hull says the group’s move into the healthcare sector comes after significant research into potential growth areas for the company.

“Forecasts for the healthcare sector, especially considering New Zealand’s aging population, show high future demand,” he says. “At the same time, workforce challenges have been identified by the Government as a major future issue for the sector.

“AWF is an experienced employer and market leader in the supply of people. The group has diversified to meet demand for workers across a growing range of sectors. Healthcare will fit into the group nicely.”

AWF will operate a separate governance structure for Panacea and Mr Hull says while AWF is acquiring 100% of Panacea it will operate as a partnership with the existing management.

Trish Neal, the major shareholder and current Managing Director of Panacea, will become Executive Director during the next 12 months and current Executive Director Jan Hilder will become Managing Director. Both are well known in the healthcare sector and Trish Neal has just been re-elected to the executive of the NZ Home Healthcare Organisation, for which she has been National Chairwoman for the past four years.

Mr Hull says on current earnings Panacea will be immediately earning accretive for AWF in the financial year to March 31 2011.

Trish Neal says the structure proposed for Panacea within the AWF Group ensures the same high standards Panacea is recognised for, through measurements including Home and Community Support Sector Standards and ACC Services Audits, will be maintained.

“The partnership with AWF future proofs Panacea against pressures to find staff as demand grows from both an aging population and an aging healthcare workforce,” Trish Neal says. “With our operational systems remaining in place it will really be business as usual.”

A further announcement will be made when the conditions of the sale have been met.

ENDS

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