Akumin Inc. Acquires 11 Diagnostic Centers in Florida for US$25 million
News Provided by Akumin Inc. / Aug 15, 2018. 8:56am ET
August 15, 2018 – Toronto, ON – Akumin Inc. (TSX: AKU.U) (“Akumin” or the “Corporation”) announced today it has acquired 11 freestanding, outpatient diagnostic imaging centers operated by Rose Radiology Centers, Inc. in the Tampa Bay Area, Florida as well as a new center expected to commence operations by the end of this quarter. The purchase price was US$25 million, paid in cash, and is subject to certain customary post-closing adjustments.
As previously announced, the acquisition of these centers is expected to add approximately US$27.5 million of revenue and approximately US$4.8 million of EBITDA, based on the last twelve month period ended March 31, 2018. Manuel Rose, M.D., former owner and president of Rose Radiology Centers, Inc., has entered into an employment agreement at closing to continue to support the centers as a radiologist and a senior business advisor.
“The acquisition of these profitable Rose Radiology centers with a long-standing reputation for service excellence, built over the past two decades by Dr. Rose, represents an opportunity for Akumin to continue our growth in Florida’s west coast where we already operate four centers acquired in May 2018,” said Riadh Zine, President and Chief Executive Officer of Akumin. “With this transaction, we will operate 16 imaging centers in Florida’s west coast, bringing our total complement in Florida to 40 centers. This transaction is another example of the execution of our growth strategy of identifying and closing targeted acquisitions in core geographic markets.”
Akumin is a leading provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States with a network of 89 owned and/or operated imaging centers located in Florida, Texas, Pennsylvania, Delaware, Illinois and Kansas. By combining our clinical expertise with the latest advances in technology and information systems, our centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and may reduce unnecessary invasive procedures, minimizing the cost and amount of care for patients. Our imaging procedures include MRI, CT, positron emission tomography (PET), ultrasound, diagnostic radiology (X-ray), mammography, and other interventional procedures.
Certain information in this press release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Akumin as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the “Risk Factors” section of our Annual Information Form available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect Akumin; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this press release are made as of the date of this press release, and Akumin expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Akumin Inc.
For further information: Riadh Zine, President and Chief Executive Officer, 416-613-1391