Canadian image center operator CML HealthCare has inked two separate agreements to sell its U.S. medical imaging centers to RadNet and the Johns Hopkins Health System Corporation for a total of $51.5 million. The deals mark the company's exit from the U.S. medical imaging market.
With the exception of two imaging centers being sold to Johns Hopkins, all of CML's medical imaging operations were acquired by RadNet for total consideration of $42.9 million. The amount includes $28.2 million in cash, a $9 million note, and $5.7 million in capital lease obligations assumed by RadNet. The transaction closed on November 7.
The Johns Hopkins agreement provides for the sale of certain assets related to two imaging centers in Maryland for $8.6 million in cash. This deal is subject to certain closing conditions, and CML expects that proceeds from the sale will be received in the first quarter of 2012.
CML said it would use the approximately $34 million in net cash proceeds it receives to reduce its net debt. In addition, Kent Wentzell, senior vice president of U.S. operations, will return to CML as senior vice president of imaging operations.
