EQT confirms acquisition of Australia's I-Med

Financial details were not disclosed by previous reports put the deal at around A$400 million ($360 million).

The transaction is EQT's first in Australia and its second Asian investment via the EQT Mid Market fund, which reached a final close of EUR1.1 billion ($1.48 billion) in January.

I-Med was previously held by a 25-strong group of investors led by US hedge funds Anchorage Capital and Fortis Investment. The consortium took control of I-Med from CVC Capital Partners in 2011 through a debt-for-equity swap after the firm's debts ballooned to $900 million.

Allegro Funds then led a A$240 million ($216 million) corporate restructuring and refinancing of the company's debt in November in a deal with a local bank consortium and Morgan Stanley. At that point the company was approached by EQT.

Established in 2000, I-Med offers various diagnostics imaging services including x-ray, MRI and ultrasound. It operates 200 clinics covering major metropolitan areas and significant parts of rural and regional Australia. The company claims more than 4 million procedures are performed annually by its 300 radiologists, 50 nuclear medicine physicians, and 3,500 staff.

I-Med has an estimated market value of about A$600 million with revenues of A$515 million for the 2013 financial year. Meanwhile, EBITDA grew to A$80 million during the same period, up from A$54 million the previous year.

EQT plans to support the company's continued growth in Australia whiel potentially eyeing other Asian markets.

"I-MED, with its high quality and comprehensive service offering, as well as its unique network and scale, is a very impressive company poised to take the next step in its development," said Simon Griffiths, a partner at EQT Partner and investment advisor to EQT Mid Market. "EQT Mid Market looks forward to using its extensive experience in the sector in order to support management in developing and expanding the business,"

Other healthcare investments by EQT include Southeast Asian aged care provider Econ Healthcare, Finnish private hospital operator Terveystalo and dental chain Swiss Smile.

The one other Asia investment made via EQT Mid Market fund - which focuses on middle market buyouts and growth equity investments in Greater China, Southeast Asia and Northern Europe - is China F&B Group, the Chinese franchise operator of international restaurant chains Dairy Queen and Papa John's Pizza.

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• Topics
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• EQT Partners
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• healthcare
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