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This article is from the Australian Financial Review. Click here for the original article.
Chris Hadley’s Quadrant Private Equity has signed on the bottom line to acquire Carlisle Health, a 24-strong radiology network stretching across Australia’s east coast, a month after Street Talk first revealed its attempts to woo its doctors.
The $10 billion private equity firm will partner with Carlisle Health’s existing radiologist shareholders and management to support the company’s next stage of growth. This includes looking seriously at the acquisition pipeline to scale the platform beyond 500 staff and 70-plus radiologists.
Carlisle has already made several bolt-on acquisitions, including Exact Radiology and Dr Glenn and Partners.
Street Talk understands the deal was agreed bilaterally and has put a $200 million enterprise value on Carlisle Health. Metrics Credit Partners and QIC have tipped in debt funding.
“The partnership will support further investments in existing clinics, the opening of new clinics, the introduction of new complex modalities, as well as fund additional acquisitions,” Carlisle founder and director Jason Nagy said, commenting on the deal.
Quadrant is no stranger to a good deal in radiology. It sold Qscan to ASX-listed Infratil and New Zealand infrastructure investor Morrison for about $730 million in 2020. That deal tripled investors’ money and recorded a 40 per cent internal rate of return in just three years. In healthcare, Quadrant has also put funds into Icon Cancer Care, Virtus Health, Estia Health, Partnered Health, Cancer Care Associates and Evolution Surgical over the years.
This column first reported in May that Carlisle, owned by 50-odd shareholders including doctors and high-net-worth individuals, had mandated boutique corporate adviser Allier Capital to shop the business following inbound interest. Managing director Trent Roberts pitched it as one of the country’s fastest-growing radiology operators, with $20 million on the earnings line and more than $100 million in annual revenue.
Carlisle was advised by Allier Capital, Jones Day and Piper Alderman. Quadrant had Stanton Road Partners, King & Wood Mallesons and PwC in its corner. It will name managing director Gareth Woodbridge to the Carlisle board alongside investment director Andrew Gale and associate director Harry Waller. Woodbridge, who last year oversaw the deal to acquire a stake in property valuation services providers Herron Todd White, led the Carlisle investment.
The transaction is expected to be completed next month.