Australian digital imaging company Capitol Health Limited announced the acquisitions of Eastern Radiology Services and Sydney Radiology this week.
These acquisitions help Australia's only publicly traded provider of diagnostic imaging services boost its presence in New South Wales, a presence that was already on the rise after its acquisition of NSW-based Southern Radiology last December.
Capitol Health referred to the deal with Southern as a “launch pad into the largest DI market in Australia” at the time, and these two acquisitions show that the company was just getting started in the NSW area.
“Capitol continues its expansion in the New South Wales market with targets that will add shareholder value,” John Conidi, Capitol Health managing director, said in a press release. “Both Eastern and Sydney are high quality businesses with strong radiologists and specialist expertise. The businesses have generated strong revenue growth and high margins which we believe we can enhance. These sites are strategic in nature and complement the recently-acquired Southern network.”
Conidi also makes it sound like Capitol Health isn’t done making moves.
“We will look to add further clinics to the network on selective basis utilizing the existing debt headroom we have,” Conidi said.
The two companies were acquired for $30 million (just over $24 million in U.S. dollars). Their combined revenue for the 2014 fiscal year was $13 million ($10.4 million in U.S. dollars).
Capitol Health anticipates the acquisitions to be final by July 1.
A recent column in Radiology Business Journal provided perspective on mergers and acquisitions in the U.S. corporate radiology market.