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CML HealthCare Income Fund to Purchase American Radiology Services, Inc.
Toronto Stock Exchange Symbol: CLC.UN MISSISSAUGA, ON, Dec. 21 /CNW/ - CML HealthCare Income Fund...
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[{"type":"text","content":"\n\n\n\nToronto Stock Exchange Symbol: CLC.UN\n\n\nMISSISSAUGA, ON, Dec. 21 /CNW/ - CML HealthCare Income Fund (the "Fund"\nor "CML HealthCare") (TSX:CLC.UN), today announced that it has entered into a\ndefinitive agreement to acquire American Radiology Services, Inc. ("ARS"), a\nleading provider of fully-integrated diagnostic medical imaging services based\nin Baltimore, Maryland. ARS, in conjunction with The Johns Hopkins University\nand The Johns Hopkins Health System Corporation (collectively "Johns\nHopkins"), is one of the largest providers of medical imaging services in the\nU.S. by volume, performing approximately 2.2 million medical imaging scans per\nyear. ARS operates 15 fixed-site multi-modality and two single-modality\noutpatient centers in Maryland and Delaware and provides radiologist coverage\nto 11 hospitals in Maryland. Through its operating division, American\nRadiology Solutions, ARS also provides primary or secondary reading services\nvia its teleradiology network to 25 hospitals across seven states in the U.S.\nThe acquisition is expected to be immediately accretive to the Fund's\ndistributable cash(1). The transaction is expected to close in the first\nquarter of 2008, subject to customary closing conditions.\n\n\nThe anticipated annualized revenue contribution resulting from the\nacquisition of ARS, as well as the cash consideration paid, are included in\nthe following summary:\n\n\nNumber of Clinics: 17 in Maryland and Delaware\n\nHospital Contracts: 11 in Maryland\n\nTeleradiology Contracts: 25 across seven states\n\nModalities: Magnetic Resonance Imaging ("MRI"), Computed\n Tomography ("CT"), Positron Emission\n Tomography ("PET"), PET/CT, Nuclear Medicine,\n Bone Densitometry ("DEXA"), Mammography,\n Ultrasound, X-ray, Fluoroscopy\n\nRevenues: US$142 million(x)\n(Fiscal 2007 estimate)\n\nConsideration: US$151 million(xx)\n(approx. cash)\n\n(x) In accordance with U.S. GAAP. Please refer to cautionary language\n concerning forward-looking statements on page 3 of this news\n release.\n(xx) For 100% ownership, inclusive of debt, but exclusive of\n acquisition costs and other post-closing adjustments which may be\n material.\n\n\nCML HealthCare is inviting ARS senior management, Johns Hopkins and\nradiologists associated with A...