Optima Health PLC on Monday said it has agreed to buy occupational health and wellness service provider PAM Healthcare Ltd for around £100 million.
The Sheffield, England-based occupational health services provider said completion of the acquisition is only conditional on clearance from the Irish foreign direct investment scheme, which it expects to receive within 90 days.
The acquisition on a debt-free, cash-free basis will mark an exit for UK private equity investor Lloyds Development Capital Ltd.
The acquisition will be financed through new committed secured debt facilities of £70 million with banking partners HSBC Holdings PLC and Barclays PLC.
It will also be financed with a £30 million unsecured short-term bridge facility provided by Deacon Street Partners Ltd, which is controlled by substantial shareholder Michael Ashcroft.
Optima Health intends to repay the bridge facility through an underwritten open offer of £35 million, which will be made available to shareholders at 175 pence per share. The firm plans to launch the open offer as soon as practicable after completion.
The deal is expected to be accretive to adjusted earnings per share following the first financial year after completion, rising to over 25% by the third financial year. It is expected to bring revenue and cost efficiency synergies of around £1.5 million in the first year, rising to £5 million per year from the third year.
PAM generated revenue for £66.6 million in 2025, with a three-year compound annual growth rate of 16%. The firm reported adjusted earnings before interest, tax, depreciation and amortisation of £8.2 million for the year.
‘This transformational acquisition underscores our intent in delivering our stated strategic objectives and cements Optima’s position in its attractive and growing market. The acquisition of PAM is highly complementary and synergistic for Optima and has been a high priority target for a number of years,’ said Optima Health Chief Executive Officer Jonathan Thomas.
‘With our strong track record for delivering bolt on acquisitions and our excellent market dynamics, the board and I are very confident about our future growth trajectory. We are delighted to announce the acquisition of PAM, and we look forward to welcoming PAM colleagues and customers when the deal completes.’
Shares in Optima Health closed down 3.8% at 205.00p in London on Monday.
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