MONASH IVF GROUP LIMITED — M&A Activity 2014

Dec 7, 2014

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**ASX/Media

Release**

08 December 2014

**Monash

IVF Group Acquires Fer:lity East business in Sydney**

Monash IVF Group (ASX: MVF), a leading provider of Assisted ReproducIve Services and womens imaging services in Australia and Malaysia, today announced that it has acquired the FerIlity East business in Bondi JuncIon, Sydney, NSW.

FerIlity East has been providing FerIlity and IVF services since 2006 and has a growing niche offering of Donor Gamete Programmes. FerIlity East brings two further IVF specialist Doctors into the MVF network, Dr Joel Bernstein (the founder of FerIlity East) and Dr Jenny Cook.

FerIlity East has been acquired by Monash IVF for $3 million on a debt free cash free basis (plus an amount of $500,000 subject to meeIng performance hurdles). FerIlity East currently generates around 700 paIent treatments per annum with revenues of circa $5 million annually. The acquisiIon of FerIlity East will be immediately earnings accreIve. The purchase price will be funded from a mixture of bank debt and internal cash resources.

Strategically this acquisiIon represents a further expansion of MVF’s footprint in the full service segment of the IVF market in Australia and a complementary offering to MVF’s exisIng two Sydney businesses Next GeneraIon FerIlity and the low-­‐intervenIon “BUMP IVF” clinic. The demographic profile of FerIlity East’s paIent base is consistent with Monash IVF’s, with an average paIent age of approximately 38 years.

Monash IVF Group Chief ExecuIve Officer James Thiedeman said: “FerIlity East is a well-­‐established business with the type of paIent base we have grown and supported in our other markets for many years. We are delighted welcome FerIlity East to the Monash IVF Group.”

“This is the first acquisiIon we have completed since our ASX-­‐lisIng in 2014. Strategically, it aligns with our focus in FY15 to enhance our growth profile by capturing accreIve, targeted expansion opportuniIes.”

FerIlity East Medical Director Dr Joel Bernstein said “Since 2006, we have worked Irelessly to build FerIlity East into the successful business it is today. We believe that now is the right Ime to join a larger IVF business to allow us to conInue to provide the best possible services and results to paIents. We have a deep respect for Monash given its history as one of the pioneers in assisted reproducIon and we are delighted to be joining the Monash Group. We believe the sale to Monash will provide enhanced opportuniIes for our staff and, more importantly, an expanded range of services to our valued paIents.”

-­‐ENDS-­‐

**Investor

and Media Enquiries, contact:**

JusIn Kirkwood +61 2 9231 5600 or +61 411 251 324 JusIn@kirkwoods.com.au