MEDNAX, Inc. (NYSE: MD) announced its second major sale of 2020 last week. After divesting its anesthesiology group, American Anesthesiology, Inc., to North American Partners in Anesthesia for $50 million in May, the physician-led health care organization has decided to sell MEDNAX Radiology Solutions as well. Radiology Partners Inc. (RP), a portfolio company of New Enterprise Associates, is buying the subsidiary for $885 million.
MEDNAX Radiology Solutions consists of more than 300 onsite radiologists who primarily serve patients in Connecticut, Florida, Nevada, Tennessee and Texas, and more than 500 teleradiologists, who serve patients in all 50 states. Its physicians interpret 11.8 million exams annually.
When finalized, the acquisition is expected to add more than 800 radiologists to RP’s existing practice of 1,600 radiologists. The combination of RP and MEDNAX Radiology Solutions brings together two of the top radiology leaders and teams in the U.S.
As of September 1, 2020, MEDNAX had total debt of $1.75 billion, consisting solely of its senior notes, and cash on hand of approximately $260 million, resulting in net debt of approximately $1.49 billion. That is down from the net debt it had in June of $1.62 billion. The transaction is expected to close during the fourth quarter of 2020.
For its part, RP has been growing pretty rapidly through acquisitions, according to a search of the data in Deal Search Online. This is RP’s first acquisition in 2020, but in 2019, the physician group added five practices into its network, including Greensboro Radiology (68 physicians) in Greensboro, North Carolina, and Northside Radiology Associates (66 physicians) in Atlanta, Georgia.
