Radiology Partners acquiring 3 new practices with $300M in additional debt
One of the largest radiology practices in the country is getting even bigger by adding three new practices, according to Moody’s Investors Service.
Radiology Partners is taking on $300 million in debt to fuel the acquisition, adding the amount to $1.3 billion already drawn on its term loan that’s due in July 2025. The El Segundo, California-based imaging giant is obtaining three unnamed practices located in Alaska, Florida and its home state, Moody’s said Aug. 6.
In addition, Rad Partners is adding $140 million to its revolving credit line (now at $440 million total) to “align with the expanded scale of its business.” The company declined to share further details about the acquirees, issuing a brief statement Monday.
“As a physician-led and physician-owned practice, our mission is to transform radiology. We are appreciative of our financial partners who help support our goal,” Richard Heller, MD, associate chief medical officer, communications and health policy, told Radiology Business.
Moody’s estimated Rad Partners’ debt to earnings — before interest, taxes, depreciation and amortization — ratio at 8 times as of March 31. With new contributions from the three acquired groups, Moody’s expects the practice’s leverage to remain flat in the near term.
Radiology Partners bills itself as the specialty’s largest U.S. practice, employing more than 2,800 radiologists across 33 states and 3,400 sites. Three private equity firms hold a 62% ownership share of the group, with radiologists making up the balance. Management is projecting $2.3 billion in revenues for 2021, including funds from practices acquired as part of the $885 million Mednax deal.
Editor's note: An earlier version of this story misstated the location of one of the three acquired practices. They are in California, Alaska and Florida.
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.