InSight Health Services Corp.'s acquisition and expansion plans are on a roll again.
The medical imaging center owner and operator on Feb. 13 proposed the purchase of 22 medical imaging facilities in California, Arizona, Texas, Kansas, Pennsylvania and Virginia from Cardinal Health Inc. Cardinal Health acquired the centers through its January 2003 acquisition of Syncor International Corp.
InSight values the stock transaction at $48.3 million. Approximately $35.6 million will be paid directly to Cardinal, while the remaining $12.7 million is set for the payment of debt and transaction costs. The companies expect to complete the acquisition by March 31.
If and when the 22 centers and some 300 employees become part of InSight, President and CEO Steven T. Plochocki said the company will expand to approximately 2,300 employees, 114 fixed-site imaging centers and 117 mobile facilities in 33 states.
InSight CFO Brian G. Drazba said the 22 centers will contribute approximately $4 million of EBITDA (earnings before interest, taxes, depreciation and amortization) to Insight's coffers for the quarter ending June 30.
This agreement is the second such transaction between InSight and Cardinal Health in less than a year. In April 2003, InSight purchased from Cardinal Health 13 medical imaging centers - also former Syncor International properties - located in the greater Los Angeles and southern California region. That deal increased InSight's presence in the southern California market to 25 medical imaging facilities.
In July 2003, InSight bought 14 MRI units, four positron emission tomography (PET) units and one lithotripsy unit from CDL Medical Technologies Inc.'s mobile imaging business. The mobile systems operated in nine states in the eastern United States. CDL is based in Wexford, Pa.