Advent Sells American Radiology

Advent International has completed its $151 million sale of American Radiology Services Inc. to CML HealthCare Income Fund (TSX: CLC.UN). ARS is a Baltimore-based provider of diagnostic medical imaging services. It was founded in February 1997, and recapped in March 2003 by Advent, company management, Johns Hopkins University and a physicians association that provides the staffing of radiologists at ARS sites.




Advent International Corporation, one of the world's leading global buyout firms, has recently entered into a definitive agreement to sell American Radiology Services, Inc. (ARS), a leading provider of fully-integrated diagnostic medical imaging services based in Baltimore, Maryland, to CML HealthCare Income Fund (TSX:CLC.UN) in a $151 million buyout. 


ARS was founded in February 1997 when four Maryland radiology practices merged to form ARS, with The Johns Hopkins University and The Johns Hopkins Health System Corporation (collectively “Johns Hopkins”) participating as a shareholder and strategic partner. In March 2003, Advent led a recapitalization of ARS by management, along with Johns Hopkins and American Radiology Associates, P.A. (ARA), the physicians association that provides the staffing of radiologists at ARS sites.


Advent's investment supported the development of further value creation opportunities for the business. These included dedicating the majority of ARS's strategic growth initiatives to expanding its fixed-site operations, especially for higher technology modalities (MRI, CT, PET/CT and nuclear medicine), and the expansion of primary or secondary reading services via ARS's teleradiology network to 25 hospitals across seven states in the U.S.


Today, ARS, in conjunction with Johns Hopkins, is one of the largest providers of medical imaging services in the U.S. by volume, performing approximately 2.2 million medical imaging scans per year. The company operates 15 fixed-site multi-modality and two single-modality outpatient centers in Maryland and Delaware and provides radiologist coverage to 11 hospitals in Maryland.


The business represents a robust and profitable growth platform. Opportunities lie in both attractive market fundamentals (the U.S. diagnostic imaging industry is expected to grow to $110 billion in 2009) and the scale of the consolidation opportunity presented by a market served by over four thousand freestanding imaging centers.


 “We have greatly enjoyed working with our partners over the past five years to create a leading provider of fully-integrated diagnostic imaging services,” said Bob Taylor, the Advent managing partner who led the investment. “The exceptionally strong management team at ARS, the affiliation and support from Johns Hopkins and the dedication of the ARA physician group have collectively driven the commitment to quality, patient care, technology, leadership and operational best practices.”


Advent has been investing in the healthcare industry for 20 years and has funded over 25 businesses in the sector worldwide. In addition to ARS, selected investments include: Managed Healthcare Associates, the leading U.S. group purchasing organization for long-term-care pharmacies, acquired by GTCR and subsequently sold to Diamond Castle Holdings; Long Term Care Group, the leading U.S. provider of outsourced administration to the long-term-care insurance sector; Casa Reha, a leading German nursing home group; Delft Instruments, an international group of companies with leading positions in medical and industrial electronics; Aviagen, the world's leading meat poultry breeding company, acquired by The Erich Wesjohann Group; Terapia, Romania's largest independent generic pharmaceuticals manufacturer, acquired by Ranbaxy Laboratories; and Viatris, a branded pharmaceuticals manufacturer, acquired by Meda.


UBS acted as M&A advisor for Advent, and Pepper Hamilton LLP served as Advent's legal counsel for the transaction.


About Advent International

Founded in 1984, Advent International is one of the world's leading global buyout firms, with offices in 15 countries on four continents. A driving force in international private equity for more than two decades, Advent has built an unparalleled global platform of over 100 investment professionals across Western and Central Europe, North America, Latin America and Asia. The firm focuses on cross-border, strategic restructuring and growth opportunities in five core sectors, employing a highly active ownership approach to drive earnings improvements in portfolio companies. Since inception, Advent has raised $12 billion in private equity capital and completed more than 200 buyout and private equity transactions valued at over $35 billion in 35 countries. For more information, visit