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news.Diagnostic firm RadNet has signed a definitive agreement to purchase substantially all of the assets of Papastavros' Associates Medical Imaging and related entities for $18.0 million in cash plus the assumption of approximately $3.6 million of debt. The acquisition and related real estate sale are expected to close in December 2007.
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The cash purchase price includes the purchase of certain real estate assets utilized by the business which will be sold simultaneously with the closing of the transaction to a third party at its then appraised value, estimated to be between $11.5 million and $12.5 million.
RadNet has agreed to lease the real estate from the new owner on a long-term basis. The cash purchase price (not including the separately acquired real estate) will be funded by a portion of the previously announced $25 million incremental term loan provided by GE Healthcare Financial Services in August 2007.
Dr Howard Berger, president and CEO of RadNet, said: “This acquisition is consistent with our disciplined strategy for growth. We are entering a new market through the acquisition of an entrenched leader. Papastavros fits our model perfectly. It is a full-service freestanding outpatient operator whose centers have a presence across Delaware. We intend to use the Papastavros assets as a platform to pursue other opportunities for growth in this and neighboring markets.”