A consortium led by Swedish private equity firm EQT is in the final stage of talks to buy Australia’s I-MED, the radiology group said on Tuesday, in a deal that could be worth more than A$400 million (US$360.70 million).
Canadian pension fund the Caisse de dépôt et placement du Québec and Singapore’s GIC will be investing with EQT in Australia’s biggest radiology provider, the company said.
I-MED, which runs 200 clinics across Australia and provides radiology services including X-ray and ultrasound, is currently held by over 20 owners – largely hedge funds – including Anchorage Capital Group and Fortress Investment Group, an I-MED spokesman said.
The company reported A$79 million in earnings before interest, tax, depreciation and amortisation (EBITDA) for full year 2013.
Listed companies in the same industry are currently trading at an enterprise value of 11 times EBITDA, according to Thomson Reuters data.
I-MED declined to give details on the deal value, but local media said the deal could be worth more than A$400 million.
The company expects the deal to be completed by the end of June.
Anchorage and Fortress, both based in the United States, were not available for comment. EQT could not be reached for comment either.
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