Australia’s Healius said on Monday it would sell its diagnostic imaging arm Lumus Imaging to private equity firm Affinity Equity Partners for an enterprise value of A$965 million ($657 million).
Healius started a formal process in March to explore options for a sale of Lumus as part of a strategic review after the country’s competition regulator rejected its $1 billion takeover by Australian Clinical Labs ACL.AX last year.
Proceeds from the sale are expected to be used to reduce debt, with surplus cash to be distributed to Healius shareholders in a tax-effective manner, the company said.
The deal is expected to be completed in the first quarter of 2025 following all necessary approvals, including from Australia’s Foreign Investment Review Board.
Healius has a network of pathology laboratories and diagnostic imaging centres across Australia. Affinity is an Asian private equity group with $14 billion of assets and funds under management, according to its website.
($1 = 1.4689 Australian dollars)
Reuters