Hong Kong-based Affinity Equity Partners has agreed to acquire Lumus Imaging from Australia-listed laboratory services provider Healius for A$965 million (around $658 million), making it Australia’s fourth-largest private equity deal this year.
Lumus Imaging offers diagnostic imaging services across 150 sites in Australia and employs around 2,000 people. This latest deal represents a multiple of around 25.4x FY 2024 EBITDA.
PE deals have stalled in Australia in recent years amid high interest rates and a challenging exit landscape. Only $18 billion was transacted so far this year, which is equivalent to half of the deal value in 2023. Deal count has also been in decline with fewer than 200 PE deals happening this year.
In particular, PE buyouts have seen the most decline while growth deals have remained relatively resilient. Buyout transactions took up 32% of all PE deals in Q1, down from 66% in 2023, while growth equity remained steady at around 14%, according to PitchBook’s Australia and New Zealand Private Capital Breakdown.
The largest deal this year was Global Infrastructure Partners and Mubadala‘s $4.2 billion growth investment in fertilizer provider Perdaman. Abu Dhabi Investment Authority and HPS Investment Partners’ $1.5 billion acquisition of PSC Insurance has been 2024’s largest PE buyout.
Healthcare has been an attractive sector for investors in Australia due to it being highly regulated with substantial government funding. Australia’s high-quality medical institutions, diverse population and expert data quality make it a popular spot for clinical trials. However, overseas expansion can prove challenging to the founders.
Ultrasound scan
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