Private equity firm says acquisition of imaging services provider creates 2nd largest such company in the US
Private equity firm Atlantic Street Capital is acquiring Brown’s Medical Imaging, which it labels as the largest independent provider of radiology services and solutions in the Midwest. Combined with its previous purchase of Prestige Medical Imaging in 2021, ASC believes it has created the No. 2 national presence in the industry.
Based in Omaha, Nebraska, and founded in 1995, Brown’s Medical Imaging provides radiology practices and hospitals with equipment, servicing, maintenance and support. Along with imaging, it also specializes in orthopedics, pulmonology, urology and urgent care.
“Our business was founded on the basis of providing the highest level of expert service to our local customers—irrespective of size; and for over 28 years we have lived up to that purpose,” President Chad Brown said in an Oct. 18 announcement. “With the added support of Atlantic Street Capital, who have invested in businesses similar to ours, we will continue to grow while delivering best-in-class radiology solutions and services to new and existing customers.”
ASC Managing Partner Peter Shabecoff, JD, said the firm will explore ways to broaden Brown’s geographic footprint. It will also look to identify “select acquisitions” to enhance Brown’s suite of products and services. Chad Brown will continue leading the business, along with other members of the management team, while working closely with newly appointed ASC Medical Imaging Platform CEO Larry Hicks.
Atlantic Street Capital previously acquired Newburgh, New York-based Prestige Medical Imaging in September 2021. The private equity firm plans to eventually integrate the two companies into one cohesive entity.
“We will ultimately bring PMI and Brown's together at the appropriate time to create the second largest independent provider of medical imaging service and solutions in the U.S.,” Hicks said in the announcement. “In the meantime, we will collaborate to identify key learnings that allow us to provide higher quality service for our customers and optimize our territorial service delivery for efficiency.”
The deal is the latest in a series of consolidation moves in the imaging parts and services space. Last month, NMS Capital-backed DirectMed Parts & Service announced it was acquiring competitor Technical Prospects. And in May, Siemens Healthineers announced it was banding together with hospital giant CommonSpirit Health to purchase Block Imaging, a Holt, Michigan-headquartered provider of refurbished medical equipment, servicing and parts.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.