Australia's Healius to sell diagnostic imaging arm to Affinity for $657 million (updated)

Healius

23/09/2024 24:22

(Adds details and background in paragraphs 2-5)
       Sept 23 (Reuters) - Australia's Healius  HLS.AX  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)

 (Reporting by Rajasik Mukherjee and Sherin Sunny in Bengaluru;
Editing by Lisa Shumaker and Jamie Freed)
 ((Sherin.Sunny@thomsonreuters.com;))