Abano adds to its stable

Listed healthcare investor and operator Abano Healthcare Group has added footcare to its stable with the purchase of Orthotic Centre NZ.

Abano will pay $4.5 million for a 70 per cent stake in the business next month and will acquire the balance in July 2008.

Orthotic Centre is the country's biggest supplier of orthotic services, with revenues of more than $5 million a year. The business handles about 30,000 clients a year.

It was established in 1991 by John Clark, and has a staff of 40.

Since selling its stake in retirement business ElderCare to Macquarie Group for $63.5 million in July, managing director Alan Clarke said Abano had switched its focus to "less capital intensive", higher return investments.

It has investments in dental, diagnostics and rehabilitation and recently announced a move into audiology, through the purchase of 70 per cent of Bay Audiology.

Abano completed a $10 million share buyback last month, acquiring one ordinary share for every six shares held for $2.20 a share.

Meanwhile, Eric Watson's Cullen investments has halved its stake in Abano. Cullen sold 945,700 shares into the share buyback, releasing $2 million.

- NZPA