Infratil to partner with Bay Radiology
Infratil Limited (“Infratil”) today announced the further expansion of its diagnostic imaging business, which sees Bay Radiology Limited (“Bay Radiology”) join Pacific Radiology Group (“Pacific Radiology”) and Auckland Radiology Group (“Auckland Radiology”) as part of the broader platform.
Bay Radiology is the largest private radiology provider in the Bay of Plenty region, operating eight strategically located clinics and employing 16 radiologists. The combined nation-wide platform consists of 70 clinics and employs 141 radiologists.
Infratil CEO Jason Boyes said specialist healthcare services are a major focus for Infratil, alongside its expanding investments in renewable energy, communications and digital infrastructure, and retirement facilities.
“Last year, Infratil took a majority stake in Qscan Group, a large Australian radiology business. This year has seen our investments into three similar businesses in New Zealand. These acquisitions create an opportunity to create a meaningful Australasian healthcare platform of scale with a number of potential synergies.
“The investment outlook for healthcare is very positive, benefitting from the long-term tailwinds of an ageing demographic and increasing healthcare expenditure.”
On completion of the acquisition, Infratil will own approximately 50.8% of the combined platform, contributing $32.5m for this acquisition, with the balance held by Bay Radiology doctors, and existing shareholders. The Bay Radiology doctors have reinvested a significant portion of their sales proceeds into the equity of the combined entity, similar to the processes followed by the doctors in the Pacific Radiology and Auckland Radiology transactions earlier this year.
As the majority investor, Infratil will have governance rights consistent with its shareholding and, together with the Bay Radiology doctors, will be able to drive the continued development and growth of the combined business.
Managing Partner of Bay Radiology Dr Logan Fletcher said the agreement is positive for radiology services in the Bay of Plenty.
“We will go from being a business with 16 radiologists to one with the ability to collaborate closely with 141 radiologists across a range of sub specialities. This will bring real benefits of scale for our patients, referrers and funders. We have high regard for our colleagues at Pacific Radiology and Auckland Radiology and look forward to further growth opportunities which will result from this partnership.”
Any enquiries should be directed to:
Mark Flesher, Investor Relations, Infratil Limited