Medical specialists cash in on $150 million Hamilton Radiology sale

Two Waikato radiology businesses have been sold in a deal said to be worth more than $150m. Photo / 123RF

Two of this country's largest private radiology clinics have been bought by an Australian company in a deal said to be worth more than $150 million.

Waikato-based Hamilton Radiology and Midland MRI have both been purchased by I-MED Radiology, Australia's largest medical imaging network that is owned by British private equity firm Permira.

The sale was announced quietly late last year and Companies Office records show the transaction went ahead on March 4.

The deal represents a lucrative payout for the more than 20 radiologist shareholders who previously owned the two companies, however neither firm would comment on the sale price.

A spokesperson for I-MED referred the Herald to a brief statement on the acquisition in November that noted the two businesses operated 17 clinics across the North Island, led by a team of 25 experienced radiologists.

When Hamilton Radiology was first put up for sale last October, sources told the Herald the business had been valued at about $150m, comparable with previous deals of the same size.

Hamilton Radiology was set up in 1923 and now provides general radiography, mammography and fluoroscopy procedures, as well as musculoskeletal, pregnancy and other ultrasounds.

Midland MRI provides Magnetic Resonance Imaging (MRI) services to patients from across the Waikato at three Hamilton locations.

I-MED chief executive Dr Shrey Viranna said the two businesses were a strong cultural and organisational fit with I-Med.

"The acquisition is consistent with our objective of acquiring culturally aligned businesses which will enhance and extend I-MED's leading radiology network."

I-MED, which was acquired by Permira in 2018 for A$1.3 billion, last year secured an extra A$1.01b loan from its bank lenders to enable it to pursue acquisitions.

The deal to acquire Hamilton Radiology and MRI Midland follows a spate of deals in the diagnostic imaging sector.

NZX listed Infratil, and its manager Morrison & Co, have been most active, snapping up Australia's QScan and New Zealand's Pacific Radiology in successive deals.

Infratil in December 2020 paid A$289.6m ($313m) for 56.2 per cent of Qscan, with Morrison & Co acquiring 14.1 per cent for A$72.4m.

Infratil last year paid $313.6m for about 56 per cent of Pacific Radiology.

The company also last year partnered with Auckland Radiology Group, investing $30-60m for at least 50.1 per cent of the business.