RBC's view on the latest acquisitionCRH completes first acquisition in Louisiana; size in line with recent purchases Our view: Earlier today, CRH announced the acquisition of a 100% interest in a Louisiana-based anesthesia practice. The practice has estimated annual revenues of ~US$3.5MM and we estimate CRH acquired the business for ~5.5x EBITDA to shareholders on estimated EBITDA to shareholders of ~US$1.5MM. Our price target remains at C$4.50 after accounting for acquisition effects. Key points: CRH acquires Louisiana anesthesia practice. This morning, CRH announced the acquisition of an anesthesia practice in Shreveport, Louisiana ("Shreveport"), its first acquisition in the state. CRH will acquire 100% of the practice from an existing O'Regan customer. Shreveport has estimated annual revenues of $3.5MM. Terms of transaction not disclosed; we estimate 5.5x EBITDA to SH multiple. Although the terms of the acquisition were not announced, we believe the transaction multiple is in line with prior guidance of ~5.0-5.5x EBITDA and estimate the practice was acquired for ~$8.3MM (5.5x EBITDA to SH of ~$1.5MM; ~43% EBITDA margin). Positive over the long-term. We believe management must continue making acquisitions to offset the impact of lower CMS reimbursement rates this year. In that regard, we view this morning's deal favourably. This is the company's first acquisition since September 2017 and appears largely consistent with management commentary that indicated the bulk of 2018 transactions would be completed over Q2 and Q3. We anticipate heightened focus on deal metrics, which are generally not provided until quarterly reporting, as investors look to assess the multiple paid relative to site-specific characteristics including, but not limited to, the payor mix. Focus should remain on upcoming quarters. The shares have given back the strength that was seen following the release of Q4/17 results. In our view, the reaction is not particularly surprising as we believe investors will look to gauge the impact that rate pressures (CMS cuts, commercial payors coming in-network) will have on operations through the next few quarters and the company's ability to grow procedures organically. Additionally, we believe investors may also look towards the 2019 Proposed Physician Fee Schedule (likely in July) to ensure that no further reimbursement rate cuts are proposed. Price target remains at C$4.50 following model updates. We maintain our price target of C$4.50 following the acquisition. Our 2018 estimated revenues increase to $103.9MM ($101.8MM previously), while EBITDA to SH rises to $30.8MM ($30.0MM previously).