Dubai Alliance Purchases Alliance Medical
Last week, Dubai International Capital announced their plans to acquire Alliance Medical. The deal amounts to $1.25 billion and was financed by Dresdner Kleinwort and Bank of Scotland, as described by the Financial Times.
Alliance Medical is the largest provider of diagnostic imaging in Europe. The company was purchased by Bridgeport in 2001, while still a moderately sized organization serving the United Kingdom. Since that time, the company has grown significantly through over 15 acquisitions. Bridgeport reports that this growth fostered income generation over four times their initial investment.
Last year, Alliance Medical had significant revenues generated through the operation of over 190 mobile and fixed scanning units, including CT and MRI equipment. The organization also owns PET scanners. Mobile scanners are usually housed in trucks operated on hospital campuses, such as in a parking lot.
The growth of Alliance is secondary to broader use of third-party scanning equipment by private hospitals across Europe. This approach is being implemented to reduce the amount of time patients must wait before undergoing scans, which can also halt treatment delivery.
This is the first acquisition of Dubai International in the healthcare market, which was launched in 2004. The company has recently completed three different significantly sized acquisitions in Europe, including purchase of the Doncasters defence engineering group and the Travelodge hotels operator.
November 12, 2007 Related topics: Imaging, Mergers & Acquisitions, Corporate Financials, Radiology