RadNet Inc. managing to augment acquisition strategy: largest U.S. imaging center operator will run 20-site New Jersey chain.PRIMEDEX Health Systems Inc. last year became the nation's largest operator of medical imaging centers by acquiring a major competitor and changing its name to RadNet Inc. Now the Los Angeles-based owner of more than 140 imaging centers is branching out into managing centers for other owners. RadNet announced Aug. 31 that a subsidiary that had been managing two centers has agreed to manage Nudic Open MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. of America, a New Jersey-based chain of 20 centers that had gone into foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. but is now being operated by a new entity. RadNet Chief Executive Howard Berger said the deal offers his company a potentially lucrative profit center at facilities that otherwise wouldn't fit its acquisition strategy. The Nudic centers are scattered among 12 states and offer only MRI imaging, whereas RadNet facilities generally offer several types of imaging and are geographically clustered for improved synergies. "It's not that we're going out looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. these deals, but people who have these kind of distressed assets have been approaching us for our expertise," Berger said. [ILLUSTRATION OMITTED] RadNet continues to add to its own chain, last week acquiring Valley Imaging Centers, a three-facility chain in Victorville, for $3.3 million plus assumption of $1.2 million in debt. "This acquisition is consistent with our strategy of being the largest outpatient player in our operating markets," said Berger, noting his company already had one center in the fast-growing San Bernardino San Bernardino, city, United States San Bernardino (săn bûr'nədē`nō), city (1990 pop. 164,164), seat of San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1854. County city. The deal was financed from a recently amended credit facility that RadNet negotiated with GE Healthcare GE Healthcare is a $18 billion (USD) unit of General Electric (GE). It employs more than 46,000 people worldwide and is headquartered in Chalfont St. Giles, Buckinghamshire, United Kingdom. GE Healthcare is the first GE business segment headquartered outside the United States. Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . The company boosted its revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. by $10 million to $55 million, and increased an outstanding term loan by $25 million to a total $250 million. The improved access to credit should handle RadNet's acquisition strategy for quite some time. But Berger admitted the financing had less favorable terms than the company had wanted because of the current liquidity crisis. GE was unable to refinance the existing loan on better terms when it had trouble syndicating parts of it on the secondary market. |
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