Private equity firm Affinity Equity Partners has successfully acquired Western Radiology, a radiology provider with eight locations in Perth. The acquisition marks a significant strategic move, as Lumus Imaging, which is backed by Affinity, has positioned itself to enhance its national presence in the medical imaging sector.
This development comes after Crescent Capital Partners had been in discussions to acquire Western Radiology, which specializes in CT and DEXA scans, X-rays, MRIs, ultrasounds, and angiograms. Insiders have indicated that Crescent’s exclusivity in negotiations lapsed, allowing Affinity to step in and finalize the deal over the weekend.
With Western Radiology now part of its portfolio, Lumus Imaging can extend its reach across Australia, filling a previously underserved area in Western Australia. This expansion is expected to bolster Lumus’s ability to secure national contracts, enhancing its competitive stance in the radiology market.
Founded in 2011, Western Radiology employs approximately 18 medical professionals specializing in radiology and cardiology. Lumus Imaging is already one of the largest providers of diagnostic imaging services in the country, operating around 150 sites and employing over 2,000 diagnostic staff.
The acquisition was led by Dr. Phil Lucas, the chief executive of Lumus, alongside Affinity’s dealmakers. Since acquiring the business from ASX-listed Healius in May 2023, Lumus has seen a revenue increase of 30%, surpassing $650 million. This growth aligns with Affinity’s strategy to expand and improve Lumus’s network of clinics while considering further acquisitions.
To facilitate this growth, Western Radiology’s shareholders had engaged KPMG to assist in marketing the business, highlighting the increasing interest from major players in the medical imaging sector. The successful acquisition by Affinity demonstrates a robust appetite for investment in healthcare services, particularly in regions where there is potential for expansion.
As the landscape of radiology continues to evolve, the strategic positioning of Lumus Imaging through this acquisition suggests a commitment to enhancing healthcare access and services across Australia.
