HSF acts for Healius Limited on $965m sale of Lumus Imaging to Affinity Equity Partners

Herbert Smith Freehills (HSF) has advised Healius Limited on the sale of Lumus Imaging to funds managed by Affinity Equity Partners for an enterprise value of $965m on a cash, debt, and equipment-lease free basis.

The parties expect to complete this Australian healthcare M&A transaction in the first quarter of the 2024 calendar year, subject to the satisfaction of all conditions precedent, according to a news release from HSF.

Corporate M&A partners Bradley Russell (Sydney), Natalie Bryce (Brisbane), and Nicole Pedler (Sydney) led the transaction. The core team included senior associate Caitlin Walker (Brisbane); executive counsel Daniel Johnson (Sydney); and solicitors Raymond Sun (Sydney); Daniel Oey (Sydney); Saskia Gude (Brisbane); and Kate Bartkowski (Brisbane).

“We are delighted to have supported Healius over the last 4 years as it has reshaped its core business through the divestments of its medical centres and dental centres business in 2020, its IVF business (Adora Fertility) in 2022, its day hospitals business (Montserrat) in 2023, and now Lumus Imaging,” Russell said in the news release.

Deal team leaders

“We are fortunate to enjoy a very collaborative working relationship with the Healius legal and M&A teams led by John Natal and Paula Stokes respectively,” Russell said in HSF’s news release. At Healius, Natal is general counsel, while Stokes is general manager for finance.

Russell’s practice involves assisting private providers of health and aged care services on negotiated acquisitions, mergers, joint ventures, and regulatory matters.

“Diagnostic imaging is experiencing strong deal flow, with the return of indexation and the pending deregulation of MRI funding, combined with tailwinds from increasing demand and service complexity,” Bryce said in the news release. “HSF has market leading experience in this critical sector and we were delighted to help deliver this result for Healius.”

Bryce is HSF’s sector lead partner for healthcare. She handles aged care matters and private M&A transactions. Her government advisory practice includes undertaking reviews of legislation, scoping studies, and conducting strategic reviews.

“We are proud to have worked closely with Healius on this important healthcare business carveout,” Pedler said in the news release. “The transaction reflects our M&A team’s strength in supporting our clients to achieve their strategic goals.”

Pedler focuses on public and private M&A and equity capital markets transactions. She helps clients structure, negotiate, and execute strategic corporate transactions. She advises on domestic and cross-border transactions in the areas of financial services and infrastructure.