Paragon Care's Merger Announcement

Paragon Care Limited (ASX: $PGC) has announced a transformative merger with CH2 Holdings Pty Ltd (CH2), creating a leading healthcare wholesaler, distributor, and manufacturer operating across the Asia Pacific region. The merger is expected to result in combined estimated FY24 pro-forma revenues of $3.3 billion and EBITDA of $93 million. The proposed merger is subject to the approval of ParagonCare shareholders and is expected to be held in late May 2024.

Executive Commentary on Merger

The merger with CH2 Holdings Pty Ltd marks a significant milestone for Paragon Care, positioning us as a leading player in the healthcare industry across the Asia Pacific region. This strategic move will enable us to expand our reach and capabilities, providing innovative supply chain solutions and enhancing our offerings to better serve the healthcare sector. We are confident that the merger will create substantial synergies and cost efficiencies, driving value for our shareholders and strengthening our position in the market.

Summary of Merger Announcement

Paragon Care Limited's announcement of a transformative merger with CH2 Holdings Pty Ltd signifies a strategic shift towards becoming a leading healthcare wholesaler, distributor, and manufacturer in the Asia Pacific region. The merger is expected to generate combined estimated FY24 pro-forma revenues of $3.3 billion and EBITDA of $93 million, subject to shareholder approval. The proposed merger aims to expand Paragon Care's presence in healthcare wholesaling and distribution networks across Australia, New Zealand, and Asia, creating significant synergies and cost efficiencies. The appointment of David Collins as Chief Executive Officer and Managing Director reflects the company's commitment to driving growth and value creation. The merger is poised to enhance Paragon Care's competitive position and deliver long-term benefits to stakeholders, pending regulatory approvals and shareholder consent.