Monash buys imaging practice in Sydney

Scott Power

Morgans

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.


Scott Power
Scott Power
Senior Analyst
Morgans

Senior Analyst at Morgans covering healthcare, life science, telecommunications, technology and media. I've spent the last twenty years investing in and researching emerging companies and have developed a wide network of contacts across these...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.