Healius Nets $822M from Lumus Imaging Sale, Declares $300M Special Dividend
Healius Limited has completed the $822 million cash sale of Lumus Imaging to Affinity Equity Partners, setting the stage for a strategic refocus on pathology and a substantial special dividend payout.
- Sale of Lumus Imaging completed for $822 million cash proceeds
- Enterprise value of the transaction at $965 million
- Healius to pay a fully franked special dividend of approximately $300 million
- Focus shifts to core pathology services and operational simplification
- Transitional services to Lumus Imaging provided for up to 18 months
Strategic Divestment Completed
Healius Limited (ASX: HLS) has officially closed the sale of its Lumus Imaging business to funds managed by Affinity Equity Partners, receiving $822 million in cash proceeds. This transaction, which values Lumus Imaging at an enterprise value of $965 million after adjustments, marks a significant milestone in Healius’ ongoing portfolio reshaping.
The sale proceeds are expected to net over $800 million after transaction fees, separation costs, and other expenses, providing Healius with a substantial capital injection. This capital boost is set to strengthen the company’s balance sheet and enable a sharper focus on its core pathology services, a sector where Healius has long established its leadership.
Special Dividend and Shareholder Returns
In a move welcomed by shareholders, Healius announced plans to distribute approximately $300 million as a fully franked special dividend, equating to around 41.3 cents per share. Details of the dividend payment are expected to be released in the week commencing 5 May 2025, signaling a direct return of value to investors following the divestment.
Paul Anderson, Healius’ Managing Director and CEO, emphasized that the sale not only resets the company’s financial position but also simplifies its operational structure. This simplification is anticipated to streamline the corporate cost base, allowing Healius to deliver enhanced services to patients and referrers within its pathology business.
Transition and Future Outlook
To ensure a smooth transition for Lumus Imaging and its patients, Healius will continue to provide a range of transitional services, including IT support, on commercial arm’s-length terms for up to 18 months. This arrangement aims to maintain continuity and operational stability as Lumus embarks on its new chapter under Affinity’s ownership.
Dr Phil Lucas, who led Lumus’ management team, along with the radiologists and staff, received commendations from Healius for their contributions. The company expressed best wishes for Lumus as it operates independently moving forward.
Looking ahead, Healius’ strategic pivot towards pathology positions it to capitalize on growth opportunities in this specialty healthcare segment. The capital freed from the sale provides flexibility for investment and potential future acquisitions, while the dividend payout underscores a commitment to shareholder value.
Bottom Line?
Healius’ divestment of Lumus Imaging marks a decisive step towards a leaner, pathology-focused future backed by strong shareholder returns.
Questions in the middle?
- How will Healius deploy the remaining capital to accelerate its pathology strategy?
- What operational risks might arise from the transitional service agreement with Lumus Imaging?
- Could the sale prompt further portfolio rationalization or acquisitions in healthcare?