Affinity Equity Partners has successfully negotiated an increase in debt facilities for Lumus Imaging, following a remarkable 40 percent growth in EBITDA over the past nine months. This growth comes after Affinity carved out the radiology business from ASX-listed Healius for a total of $965 million.
As part of the new agreement, Lumus has secured an additional $150 million on top of its existing $515 million debt facility. The financing has been underwritten by Amsterdam-based ING Bank, which also provided funding for the acquisition last year. This deal includes a repricing of the original takeover financing, which will decrease by 0.25 percent starting in May 2025. At the time of the acquisition, the financing was set at 375 basis points above swap rates, corresponding to a gearing of approximately 4.5 times over five years.
Lumus Imaging has significantly reduced its debt since the acquisition, allowing for lower borrowing costs in this latest financing arrangement. The enhanced liquidity is expected to enable Affinity to pursue bolt-on acquisitions for Lumus and to upgrade its existing network of facilities. Over the past twelve months, Lumus has already completed two acquisitions: In Focus Radiology in Newcastle and Western Radiology in Perth, which was finalized just before Christmas.
In March 2024, Affinity won the auction for Lumus Imaging with its competitive bid of $965 million. At that time, Lumus was recognized as one of the largest providers of medical imaging services in Australia, operating 120 clinics and employing 150 radiologists along with a total workforce of 1,400 staff. Affinity valued Lumus at 17 times earnings, a transaction that catalyzed increased activity within the sector.
The strategic move to bolster Lumus’s financial standing reflects Affinity’s confidence in the ongoing growth potential of the radiology market. As Lumus Imaging continues to expand its services and footprint, it stands poised to leverage its enhanced financial capabilities effectively, positioning itself as a leader in medical imaging across Australia.
