At least three parties competing for the Healius diagnostic imaging business are preparing to lob their final offers this week, with questions starting to emerge over whether the company will achieve the $700m price tag earlier anticipated for the business.
DataRoom understands that Pacific Equity Partners, advised by Stanton Road Partners and Bank of America, TPG Capital, which has been working with consultant Bain and Company, and the Morgan Stanley-advised IFM made it through to round two.
Final bids were due on Monday, but the time line has been extended to this Thursday.
After the final bids have landed, the opportunity for due diligence will be offered in the UBS-advised competition.
Expectations are that offers will be close to $700m, but may fall slightly below that number as the business faces industry challenges linked to rising staff costs and the need for future investment as Healius makes capital spending on its pathology a priority.
Healius is selling its Lumus Imaging unit to drive down its debt and fund its pathology arm, despite the imaging operation being the stronger performer.
It last year raised $187m through Barrenjoey and has since refinanced.
Before delivering its full year result on August 21, Healius issued a profit downgrade after improving pathology volumes for the half year were offset by lower-than-expected average fees due to the softer GP market and general inflation pressures.
Lumus Imaging is the nation’s third-largest diagnostic imaging operation behind Sonic and Permira’s I-MED.
Healius’s Lumus Imaging earnings before interest, tax, depreciation and amortisation over the next year are forecast to be $60m-$70m.
Diagnostic imaging is attractive to private equity, with artificial intelligence expected to create upside.
Healius now expects underlying EBITDA for the 2024 fiscal year to be between $345m and $350m, and underlying EBIT to be between $60m and $65m.
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