Healius announces sale of Lumus Imaging to Affinity Equity Partners

Healius Limited (ASX:HLS) has entered into a binding agreement to sell its Lumus Imaging subsidiary to Affinity Equity Partners for an enterprise value of $965 million. The completion of the sale is anticipated to occur in the first quarter of CY2025, subject to the satisfaction of certain conditions. The proceeds from the sale will be utilized to reduce debt, support strategic execution in Pathology, and return cash to shareholders.

Executive Commentary on the Transaction

The sale of Lumus is a positive outcome for Healius shareholders, our 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. As a clinically driven, large-scale Pathology business, Healius delivers critical diagnostic services to millions of Australians each year, and we are excited by the opportunities to grow and improve the business.

Summary of Healius' Transaction and Outlook

Healius has finalized the sale of its Lumus Imaging subsidiary to Affinity Equity Partners for an enterprise value of $965 million. The completion of the sale is expected in the first quarter of CY2025, subject to certain conditions. The proceeds from the sale will be used to reduce debt, support strategic execution in Pathology, and return cash to shareholders. Following the sale, Healius will continue to focus on its Pathology services in Australia and the growing bioanalytical laboratory services business, Agilex. The divestment of Lumus is not expected to have any negative impact on the operations or earnings of Healius' remaining businesses. Healius plans to streamline its corporate cost base and make material reductions in head office, infrastructure, and other costs. The company anticipates a significantly improved balance sheet and lower capital expenditure requirements. Healius intends to prioritize the distribution of surplus proceeds to shareholders in a tax-efficient manner. The Board and Management of Healius believe that this Transaction is in the best interests of all shareholders.