Quadrant Private Equity is to acquire an undisclosed value majority stake in medical imaging network Carlisle Health.
Carlisle, which is currently owned by management and its radiologists, operates 24 clinics from Rockhampton to Wollongong. The company employs around 500 staff including 70 radiologists. Carlisle was founded in 2018 with a single clinic on the NSW Central Coast and an objective to consolidate, streamline and modernise diagnostic imaging businesses.
Announcing Quadrant’s investment, Carlisle founder and director Jason Nagy said: “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.”
The deal will include debt funding from Metrics Credit Partners and QIC.
Quadrant managing partner and co-head of the Sydney-based firm’s buyout strategy, Gareth Woodbridge, said: “Carlisle is a strong platform with a reputation for delivering quality care for patients, supported by leading radiologists. We look forward to supporting Carlisle by leveraging our extensive healthcare and specific radiology experience.”
Woodbridge, investment director Andrew Gale and associate director Harry Waller, are to represent Quadrant on the Carlisle board.
Carlisle was advised on the transaction by corporate advisory firm Allier Capital and legal firms Jones Day and Piper Alderman. Quadrant was advised by corporate advisory firm Stanton Road Partners, legal firm King & Wood Mallesons and accountancy firm PwC.
In May, it was reported Allier Capital was running a sale process for Carlisle in response to the business receiving acquisition interest. Allier managing director Trent Roberts then described Carlisle as one of the country’s fastest growing radiology businesses with annual earnings of around $20 million on revenue of more than $100 million.
Quadrant was previously an investor in medical imaging business Qscan which it sold to infrastructure investors Infratil (ASX: IFT) and Infratil’s founding business, New Zealand-based Morrison, for about $730 million in 2020.
Image: Carlisle Health provides medical imaging services at 24 clinics.