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Healius Limited (ASX:HLS) has announced plans to divest Lumus Imaging for a substantial sum of $965 million. The deal, which is set to pay down debt and generate returns for investors, is being executed with Affinity Equity Partners, an Asian private equity firm. This transaction is subject to approval by the Foreign Investment Review Board (FIRB). Once finalized, it is anticipated to result in net proceeds of approximately $800 million, structured on a cash, debt, and equipment-lease-free basis.
Transaction Valuation
The deal values Lumus Imaging at 17 times its forecasted FY2024 EBITDA and 25.4 times its FY2024 EBIT, underscoring the strategic significance of this divestment. The finalization is expected in early 2025, marking a critical step for Healius as it reorganizes its assets.
CEO Perspective
According to Paul Anderson, Managing Director and CEO of Healius, this transaction provides the company with the necessary financial resources to strengthen its balance sheet while enhancing operational efficiency. He also emphasized the importance of this move in continuing to enhance Healius' core pathology business and maintain its leadership in the healthcare diagnostics sector.
Focus on Pathology and Future Growth
Healius continues to focus on its core competency, which includes the provision of essential diagnostic services to millions of Australians. The company is also advancing its bioanalytical laboratory services through its Agilex business. The divestment of Lumus Imaging aligns with a broader restructuring strategy, intended to streamline operations and strengthen financial standing without disrupting the company’s ongoing service capabilities.
Affinity Equity Partners’ Investment Strategy
Affinity Equity Partners' Managing Director, Mark Chudek, expressed confidence in Lumus Imaging's growth potential. Healthcare has been a priority sector for Affinity, with a focus on investing in businesses poised for expansion and innovation. The firm’s aim is to support Lumus Imaging in enhancing its services to stakeholders, including referrers, hospital clients, and healthcare professionals.
This acquisition highlights Affinity’s long-term commitment to supporting healthcare companies with strategic growth potential. As a result, Lumus Imaging is expected to benefit from further investments and operational improvements under new ownership.
Healius’ Business Strategy
Healius’ decision to sell Lumus Imaging follows a comprehensive review of its corporate structure and assets. The company is now better positioned to address financial pressures on its balance sheet and focus on its core pathology and laboratory services. The divestment is not expected to impact the earnings or operational performance of Healius' remaining business units.
This transaction reflects Healius’ ongoing strategy to optimize its business portfolio, support future growth, and maintain a competitive edge in Australia's healthcare diagnostics sector.
