American Shared Hospital Services has agreed to sell its Gamma Knife and radiation therapy services business in Turkey to Euromedic. No financial terms were disclosed for the transaction, which is expected to be completed on June 10, 2014. Euromedic is backed by Ares Life Sciences and Montagu Private Equity.
SAN FRANCISCO–(BUSINESS WIRE)–AMERICAN SHARED HOSPITAL SERVICES (NYSE MKT:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, announced today that it has entered into an agreement to sell its Gamma Knife and radiation therapy services business in Turkey to Euromedic Cancer Treatment Centers BV (Euromedic). The transaction is subject to standard closing conditions, and is expected to close on June 10, 2014. Payment to AMS will be in the form of cash, which predominantly will be used to pay down debt associated with the Turkish operations. Additionally, AMS is eligible for an earn-out based on future revenue from the two Gamma Knife units and one Image Guided Radiation Therapy (IGRT) unit AMS currently operates in Istanbul and Adana, Turkey. Additional terms of the transaction were not disclosed.
“While we were pleased by the performance of our Gamma Knife and IGRT business in Turkey since we entered the market in 2011, we have decided to focus our management and financial resources on the development of our far larger domestic Gamma Knife business and our exciting growth opportunity in proton therapy. We are glad that Euromedic will continue providing Gamma Knife and IGRT services in Turkey, which we believe is a market with considerable potential. This is why we anticipate that the earn-out portion of the transaction may generate considerable returns for AMS over the next few years,” said AMS Chairman and Chief Executive Officer Ernest A. Bates, M.D.
American Shared Hospital Services provides turnkey technology solutions for advanced radiosurgical and radiation therapy services. AMS is the world leader in providing Gamma Knife radiosurgery equipment, a non-invasive treatment for malignant and benign brain tumors, vascular malformations and trigeminal neuralgia (facial pain). The Company also offers the latest IGRT and IMRT systems, as well as its proprietary Operating Room for the 21st CenturySM concept. AMS owns a common stock investment in Mevion Medical Systems, Inc., developer of the compact MEVION S250 Proton Therapy System.
Euromedic is one of the largest healthcare investors and operators through Private Public Partnerships (PPP) in Europe. The company performs best-in-class radiological diagnostic, clinical laboratory and cancer care services in 145 wholly-owned medical centers. The company is continually growing and driving treatment delivery to areas where none yet exists.
Euromedic International is a Dutch holding company that employs more than 3,000 medical professionals. The company operates diagnostic, clinical laboratory and cancer care (radiotherapy) centers in Poland, Hungary, Romania, Bosnia and Herzegovina, Croatia, Greece, Italy, Turkey, the Czech Republic, Ireland, Switzerland, Lithuania, Bulgaria and Portugal. Euromedic activities are divided into three divisions – Euromedic Diagnostics, which operates diagnostic centers, Euromedic Cancer Care Centres, which provide state-of-the-art comprehensive cancer treatment services, and Euromedic Labs, which provide high-quality laboratory investigations. Euromedic is audited by E&Y and its centers operate strictly according to the globally accepted standard – ISO 9001. Visit www.euromedic.com for more information.
The Company’s shareholders
Euromedic’s success is due to its commitment to using the best technology available, employing the best local experts in their field, and ultimately doing the best for the patient. However, it is also due to exemplary corporate governance. The shareholders of Euromedic are among the largest private equity groups in the world and, together with Euromedic management, drive the success and growth of the company.
Ares Life Sciences (Ares) is a Jersey-based investment partnership established in 2008 with the backing of the Bertarelli family. Ares focuses its investment activities exclusively on revenue-generating life sciences companies, primarily in Europe, with the presence or capacity to expand internationally. In the life sciences sector, Ares’ main interest is in biotechnology, pharmaceuticals, medical technology and healthcare services. Ares is advised by a team of experienced life science and investment executives. Visit www.areslifesciences.com for more information.
Montagu Private Equity is one of Europe’s leading private equity firms. Founded in 1968, Montagu can look back on more than 40 years’ experience, investing in more than 400 transactions. Montagu has a strong track record of supporting portfolio companies, dedicating significant resource to management teams, as well as providing additional capital expenditure to fund further growth. Montagu also has considerable expertise in helping businesses to accelerate their growth in their home markets, as well as to internationalise and expand their customer base. This approach has led to real growth across Montagu’s portfolio. The firm has assets under management of €3.3 billion. Montagu invests in businesses that operate in stable markets across Europe with transaction values ranging from approximately €100 million to €1 billion. Visit www.montagu.com for more information.