Private equity firm Stonepeak reportedly walks away from $1.9B radiology group acquisition
New York-based private equity firm Stonepeak has reportedly ended negotiations over a potential $1.9 billion (USD) acquisition of a large radiology group.
The Financial Review first reported news of the potential deal May 4, claiming Stonepeak was “inches” from adding the I-MED Radiology Network to its portfolio. Currently owned by PE firm Permira, I-MED is Australia’s largest private radiology provider, which recently entered the U.S. by buying San Diego-based teleradiology outfit StatRad.
Now another local news outlet, The Australian, claims anonymous sources say Stonepeak is abandoning the deal. Reportedly, Permira and Stonepeak had agreed on a price, but the transaction was still subject to due diligence and did not advance further.
Potentially impacting the sale: Six of I-MED’s sites are co-located with Healthscope private hospitals, which is in receivership after grappling with high debt and rental costs, The Australian said May 27.
Permira acquired I-MED for nearly $805 million in 2018. The company now operates over 250 clinics across Australia and New Zealand, performing 5 million procedures annually and employing 475 radiologists, according to LinkedIn. It’s currently on track to make about $862 million in revenue and almost $147 million in earnings before interest, taxes, depreciation and amortization, the Financial Review estimated last month.
Read more from The Australian (subscription required).
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.