Healius shares gain on Lumus Imaging sale
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More news: Shares in Healius gained after the pathology company announced the sale of Lumus Imaging to funds managed by Affinity Equity Partners for an enterprise value of $965 million.
Healius shares lifted 1.4% to $1.63 by 11am AEST, having shed more than 25% since the start of the year.
Healius sells Lumus Imaging to Affinity Equity Partners
The news: Healthcare services provider Healius has agreed to sell its Lumus Imaging subsidiary to funds managed by Asian private equity firm Affinity Equity Partners, for an enterprise value of $965 million.
The numbers: Healius said the sale is expected to result in net transaction proceeds of $835 million after the repayment of equipment leases and any closing adjustments and in excess of $800 million post transaction fees, separation costs and other fees.
The context: The Sydney-based healthcare group noted that the deal remains subject to customary conditions, including approval by the Foreign Investment Review Board. The proceeds from the sale will be used to refinance and right-size the Healius' debt facilities, it said.
The company flagged that the divestment of Lumus is not expected to have any negative impact on the operations or earnings of Healius' remaining businesses.
Healius announced that it had put its diagnostic imaging unit Lumus Imaging on the market earlier this year, following a strategic review of the company's structure and assets.
What they said: "The sale will provide Healius with both the resources and time to continue to improve our pathology operations and the scope to return cash to shareholders," said Healius managing director and CEO Paul Anderson.
"As a clinically drive, large-scale pathology business, Healius delivers critical diagnostic services to millions of Australians each year, and we are excited by the opportunities to grow and improve the business."
Affinity Equity Partners managing director Mark Chudek said: "Lumus Imaging is an exceptional business which aligns to Affinity's commitment of investing in high-quality companies that have significant growth potential".
"Healthcare is a key investment area for Affinity, and we aim to support companies with the resources they need to expand, serve more patients and deliver improved services to all stakeholders — including Lumus Imaging's referrers and hospital clients," he said.
The source: ASX announcement
