InvoCare share price rises on acquisitions announcement

The InvoCare Ltd (ASX: IVC) share price is one to watch in early trade after two new acquisitions from the Aussie funeral operator.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The InvoCare Limited (ASX: IVC) share price is one to watch this morning after the company's latest acquisition update.

What did InvoCare announce this morning?

The Aussie funeral company has entered into 2 separate sales agreements for business on the southern New South Wales coast.

InvoCare will acquire the business and assets of Batemans Bay and Moruya District Funerals as well as Broulee Memorial Gardens. The company expects to complete the purchases by the end of November.

The InvoCare share price has already lifted 1.48% in early trade to $13.68 per share.

Batemans Bay & Moruya District Funerals operates from 3 locations in Batemans Bay, Moruya and Narooma. The company performed over 400 funerals every year with annual revenue of $3 million.

Broulee Memorial Gardens performs 380 cremations per year including chapel services and memorialisation.

There was no dollar amount provided by InvoCare in the announcement regarding acquisition cost.

Where is the InvoCare share price headed this morning?

InvoCare shareholders have reacted to the news in early trade this morning, with the company's share price lifting 1.48% at time of writing. Acquirers' shares often trade heavily in the period after announcing an acquisition and this could be the case even with the smaller targets.

The company's shares also closed 0.97% higher on Monday at $13.48 per share as the S&P/ASX 200 Index (INDEXASX: XJO) hit a 3-month high.

How has the InvoCare share price performed this year?

The InvoCare share price has rocketed more than 32% higher so far this year to significantly outperform the ASX 200.

The Aussie funeral home operator has also managed to outpace fellow ASX competitor Propel Funeral Partners Ltd (ASX: PFP). The Propel share price is up 21.12% so far this year as the ASX Healthcare sector has had a strong 2019 performance.

Foolish takeaway

I'd expect to see continued movement from the InvoCare share price during morning trade following this acquisition news.

InvoCare is currently trading at a 36x earnings multiple with a tidy 2.71% net dividend yield.

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended InvoCare Limited and Propel Funeral Partners Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

2 All Ords ASX healthcare shares making BIG moves on quarterly updates

These two ASX healthcare companies are seeing heavy trading on Thursday.

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

'Trading at a discount': Why now is the time to buy CSL shares

This investing expert says CSL shares now represent an appealing buying opportunity.

Read more »

woman testing substance in laboratory dish, csl share price
Healthcare Shares

Here's what could impact CSL shares from the biotech's AGM

The biotech giant's leadership had plenty to say.

Read more »

Man with a sleep apnoea mask on whilst sleeping.
Healthcare Shares

Why this fundie is backing ResMed shares in FY25

There's plenty more upside, this fund says.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Healthcare Shares

ResMed shares jump 8% on stellar start to FY25

This high-quality company continues to deliver the goods.

Read more »

Senior woman with caregiver in the garden
Healthcare Shares

A 'golden era' is coming for these ASX healthcare shares

Here's why Blackwattle Partners sees tailwinds ahead for one particular category of healthcare shares.

Read more »

Two lab workers fist pump each other.
Healthcare Shares

Guess which ASX 200 healthcare stock is rising on big FDA news

Some big news is giving this stock a major lift on Thursday.

Read more »