UPDATE 2-Centric Health to buy Lifemark Health for C$280 mln; shares jump

Fri May 6, 2011 11:53am EDT

* Deal includes $135 mln cash component

* Centric to also acquire Alaris' stake in Lifemark

* Co says syndicate of banks to provide $195 mln credit facility

* Shares rise 15 pct (Adds deal details, CEO comments)

By Abhiram Nandakumar

BANGALORE, May 6 (Reuters) - Diversified healthcare company Centric Health Corp is to buy Lifemark Health Ltd Partnership for about C$280 million ($289.5 million) in a cash-and-stock deal to expand its footprint in the Canadian healthcare industry.

Shares of Centric soared nearly 15 percent to C$1.78 on Friday morning on the Toronto Stock Exchange.

Centric Health's Chief Executive Daniel Carriere said more deals were in the pipeline.

"Bottomline is that we are expecting to move ahead aggressively with a fairly comprehensive acquisition schedule," he told Reuters by phone.

The deal for Lifemark, a rehabilitation and physiotherapy services provider, includes a cash component of about C$135 million and C$60 million in Centric shares at C$1.28 apiece, which is a 17 percent discount to the stock's Thursday closing price.

Lifemark's partner Alaris Royalty Corp will be paid C$65 million for its stake in the company. Centric will also hold an option to buy the remaining stake for $65.5 million two years after the deal closes.

Alaris, which said the deal values its stake in Lifemark at C$130.5 million, will continue to get C$6.75 million annually in preferred distributions. The Calgary, Alberta-based alternative financier had originally paid C$74 million for its stake.

Centric will also assume about C$20 million in earnout obligations and future debt for acquisitions that Lifemark had already been considering, which Carriere expects will be inked in the next few months.

Centric also said a syndicate of banks has agreed to provide secured credit lines for $195 million for the acquisition. The deal will leave Centric with a debt of about C$155 million. ($1 = 0.967 Canadian Dollars) (Reporting by Abhiram Nandakumar in Bangalore; Editing by Sriraj Kalluvila)

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