The $2.4bn Australian listed healthcare provider Healius is believed to be rethinking its strategy and staging an exit from its day surgery business while it looks to consolidate the radiology space.
Gresham is understood to have been hired for a sale process of its
Montserrat day surgery business.
It is understood that the investment bank is busy preparing documents for a process to begin.
Healius purchased the Montserrat group of seven day surgeries in 2018 for $138.5m but some believe that the business now may command a price of about $500m.
Healius has said that day hospitals are challenged with economic, technological and regulatory tailwinds, although it remains a major player in what is a fragmented industry and the business has experienced strong growth since its acquisition.
Plenty of buyers exist for such assets.
One of them is Australian listed health insurer Medibank which has been investing in the space while private equity firms have also been key buyers of such businesses.
In March, Healius sold its Adora Fertility business for $30.5m to Liverpool Partners, which has just also purchased IVF provider Genea IVF and Fertility Clinics for $215m excluding debt.
While delivering its half year results in February, Healius reported a 62.8 per cent increase in its half year net profit to $245.6m as pathology testing amid the pandemic fuelled earnings.
It operates in day hospitals, pathology and radiology and said while delivering its half year results in February that it wants to invest in digital applications to improve service.
It was using the proceeds from the sale of its medical centres division in 2020 to invest in technology as well as reduce its debt.
For the six months to December, the Healius day centre unit generated $8.4m of earnings before interest, tax, depreciation and amortisation, down 19 per cent on the previous corresponding period.
Healius said its flagship Westside Private in Queensland day hospital revenue increased 24 per cent and the unit was well placed for a rebound in demand from a backlog in elective surgery.
The company is also pursuing acquisitions and the understanding around the market is that Healuis has its eye on opportunities in the radiology space.
Its radiology or imaging unit generated a 9.5 per cent lift in its EBITDA for the six months to December to $42.5m.
Sources say that other radiology providers are consolidating the market with acquisitions of smaller groups to develop more resilience over tougher trading conditions that have emerged since the global pandemic.
Healius has been a takeover target before with Jangho launching a $2bn bid for the business four years ago followed by Partners Group at the start of 2020.
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