(Bloomberg) -- Healius Ltd. agreed to sell its Lumus imaging unit to a private equity group for A$965 million ($657 million), as the loss-making Australian medical diagnostics company focuses on its pathology business.
The sale to Affinity Equity Partners represents a multiple of 25.4 times full-year earnings before interest and taxes, and will result in more than A$800 million in net proceeds after post-transaction adjustments and costs, Sydney-based Healius said in a statement Monday.
The owner of Agilex Biolabs, Dorevitch Pathology and IQ Pathology services reported net losses for the past two years. The sale, slated to close by March 2025, will alleviate balance sheet pressures and “provide Healius with both the resources and time to continue to improve our pathology operations and the scope to return cash to shareholders,” Managing Director Paul Anderson said.
The sale was announced before the start of trading on the Australian stock exchange. Healius shares have declined 1.5% this year.
The transaction is subject to approval by Australia’s Foreign Investment Review Board. UBS Securities Australia Ltd. was the financial adviser to Healius and Herbert Smith Freehills provided legal advice.
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