Healius (ASX:HLS) is selling Lumus Imaging in a $965 million deal to pay down debt and ‘return cash to shareholders’.

While subject to Foreign Investment Review Board (FIRB) approvals, the sale to Asian private equity firm, Affinity Equity Partners, is on a cash, debt and equipment-lease free basis, with net proceeds at about $800 million.

17x FY24 EBITDA

Healius reported the transaction – to be finalised early 2025 – represented a multiple of 17 times FY2024 EBITDA and 25.4 FY2024 EBIT.

Healius’ Managing Director & CEO Paul Anderson said it was good for shareholders, staff, patients and referrers.

“The sale will provide Healius with both the resources and time to continue to improve our pathology operations and the scope to return cash to shareholders,” Mr Anderson said.

“Healius delivers critical diagnostic services to millions of Australians each year, and we are excited by the opportunities to grow and improve the business.”

Meanwhile, Affinity Equity Partners Managing Director Mark Chudek said Lumus aligned to ‘Affinity’s commitment of investing in high quality companies that have significant growth potential’.

“Healthcare is a key investment area for Affinity, and we aim to support companies with the resources they need to expand, serve more patients and deliver improved services to all stakeholders – including Lumus Imaging’s referrers and hospital clients,” he said.

“We are thrilled to be partnering with Lumus Imaging’s doctors, healthcare professionals, support staff and management team as we invest further in the business and help drive its growth as it embarks on the next chapter as a standalone entity.”

Healius said the sale of Lumus Imaging followed a review of its structure and assets earlier in the year and would ‘alleviate balance sheet pressures’.

The company would continue providing pathology services in Australia, growing its bioanalytical laboratory services business, Agilex.

It claims the divestment of Lumus ‘is not expected to have any negative impact on the operations or earnings of Healius’ remaining businesses’.

The sale is not subject to finance.

Healius closed trade on Friday at $1.61.