Global private equity giants Blackstone and Affinity have emerged as parties eager to buy one of the country’s largest private radiology providers, I-Med Radiology Network, which is up for sale through Morgan Stanley.
Both Blackstone and Affinity are said to be among the collection of buyout firms preparing to make a first round bid for the company by the beginning of next month in what is largely thought to be a shootout among sponsors.
Sonic Healthcare has opted to stay on the sidelines, according to sources, with the company eager to focus on pathology and likely to face competition concerns.
Other sponsors thought to be entering the competition are Pacific Equity Partners, and potentially Carlyle and TPG Capital.
I-Med is owned by northern European private equity firm EQT, which had earlier tried to float the company through Macquarie Capital, Goldman Sachs and Rothschild.
Back then, the suggestion was that the group was worth about $1 billion and sources around the market say that it will likely achieve a price just under ten times its annual earnings.
I-Med employs 250 radiologists and operates globally. In contrast, its recently listed local rival, Integral Diagnostics (IDX), operates only in Australia.
When moves to float the business were in play two years ago, prospective investors were told the company generated annual revenue of $550m.
Private equity groups are circling one of the largest private acquisition opportunities in the Australian healthcare space at a time when industry executives are gathering in Melbourne this week for the Australian Private Equity and Venture Capital Association Conference.
Around 400 guests will hear from keynote US institutional investors and other guests including Bill Evans from Westpac.
While the sessions are tipped to be well attended, the highlight for most is expected to be the Wednesday night cocktail party and Thursday night’s AVCAL gala awards dinner.
