Carlisle Health snaps up rival radiologist; monitors for sale symptoms

afr.com:

Carlisle Health is scanning for more radiologists. Street Talk understands the healthcare roll-up has agreed terms to add a sizeable bolt-on acquisition to its fast-growing portfolio of radiologist clinics, just five months after it snapped up Exact Radiology.

Now under its wing: Dr Glenn and Partners and its three New South Wales clinics in Kogarah, Wollongong and Rockdale, delivering services like x-rays, MRIs, CTs and ultrasounds.

Sources who spoke to Street Talk reckon Carlisle Health, led by the same team as the former Alfred Imaging team and backed by high-net-worth overseas investors, will add a handful more practices before seeking to sell the group to trade or private equity in 2024.

Carlisle Health operates radiology services in Queensland and NSW. 

The Glenn and Partners acquisition brings Carlisle Health’s portfolio to 25 doctors across 22 practices. The business makes about $100 million at the revenue line, sources said. The roll-up is understood be profitable to the tune of $15 million to $20 million.

The radiology sector has been a hotbed of M&A activity over the past five years. Advent Partners bought a majority stake in Imaging Associates in 2021 and Integral Diagnostics acquired Queensland’s Peloton Radiology in February last year. Then, in December, IFM Investors and UniSuper paid $800 million to buy a majority stake in PRP Diagnostics from Crescent Capital, which nearly doubled its money.

Medical roll-ups make good money and have proved to be a happy hunting ground for private equity in fields like dentistry, radiology and IVF. The Growth Fund’s Ekera Dental is on the block via boutique M&A house Allier Capital and is understood to make around $14 million at the earnings line.

But getting the model