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Healius sells Lumus Imaging for $965M

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Healius (ASX:HLS) announced the sale of its subsidiary Lumus Imaging to funds advised by Affinity Equity Partners.

The transaction values Lumus at an enterprise value of $965 million on a cash, debt, and equipment-lease-free basis.

Healius expects net cash proceeds to exceed $800 million after repayment of equipment leases and transaction costs.

The sale follows a strategic review aimed at maximising shareholder value and ensuring a sustainable capital structure to support future growth.

"The sale of Lumus highlights our commitment to enhancing shareholder value and streamlining our business operations," said Paul Anderson, CEO and Managing Director of Healius.

Healius will remain a leading provider of pathology services in Australia, with a clear strategy to improve the volume and quality of its pathology revenue.

The company also announced plans to reduce its corporate cost base, including head office and infrastructure costs, following the divestment.

The transaction is subject to customary conditions and approval by the Foreign Investment Review Board, with completion expected in the first quarter of 2025.

To ensure a smooth transition, Healius will provide Lumus with various transitional services.

Upon completion, Healius aims to refinance its debt facilities, enhance its pathology operations, and distribute surplus proceeds to shareholders in a tax-efficient manner.

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