Monash buys imaging practice in Sydney

Monash buys imaging practice in Sydney. Monash IVF (MVF, Add, price Target A$2.01) has announced a further expansion of its domestic women's imaging and diagnostics network with the acquisition of Sydney Ultrasound for Women (SUFW). SUFW a specialist womens imaging business in NSW, operating ten practices in the Sydney metropolitan area and generated A$19m in revenue and performed 57,500 scans in 2014. The acquisition of SUFW will complement the existing Monash Ultrasound for Women business in Victoria and Monash IVF Group's focus on womens health. SUFW has been acquired for a total consideration of $30.1 million (A$24.1m in cash and A$6m in shares). This will increase the gearing from 61% to 76%, interest cover remains comfortable at 6.1x (was 7.9x)..We will update forecasts once we have more details from conference call. We know from our modelling of CApitol Health EBITDA margins for imaging are around 20%. So that implies an EBITDA multiple of 7.8x, which is broadly in line with recent acquisitions.