Sydney, Australia-based Quadrant Private Equity is selling Qscan Group Holdings, a comprehensive diagnostic medical imaging and interventional practice with multiple clinics in South-East Queensland and additional clinics throughout Australia. The buyers are Infratil Limited, a New Zealand investment firm focused on a variety of industries, including renewable energy and social infrastructure, and Morrison & Co Growth Infrastructure Fund, a leading alternative asset manager.
Infratil is acquiring a 60% stake in Qscan for AUD $330 million, and Morrison & Co will acquire an additional 15% for AUD $82.5 million. The price comes out to around U.S. $294 million. Qscan Group is expected to have EBITDA of roughly U.S. $40.34 million. The existing doctor and management shareholders will retain ownership of at least 25% of Qscan.
According to The Australian Review, which first caught wind of the deal, Ramsay Health Care (OTCMKTS: RMYHY) was also bidding for Qscan, which owns more than 70 radiology clinics in Australia.
This is not the first deal for a radiology practice to come out of the Oceania region this year, according to search results in the HealthCareMandA.com Deal Database. In August, I-MED Radiology Network, a portfolio company of Permira, acquired Sydney-based Alfred Medical Imaging for an undisclosed sum. Alfred Imaging is an independently owned and operated radiology group founded by radiologists from the RPA Hospital in 2005. This acquisition will increase I-MED’s footprint in New South Wales, particularly in Sydney’s inner west market.
However, regardless of region, radiology groups seem to be popular targets this year. You might recall in early September the $885 million acquisition of MEDNAX Radiology Solutions by Radiology Partners Inc., a portfolio company of New Enterprise Associates. MEDNAX, Inc. (NYSE: MD) was the seller in that deal.
