CML HealthCare Income Fund said Friday it will buy American Radiology Services Inc., a diagnostic medical imaging firm, for a cash consideration of $151-million.
Canada's CML expects the purchase to contribute $142-million in revenue in fiscal 2007.
Baltimore, Maryland-based ARS operates 15 fixed-site multi-modality and two single-modality outpatient centres in Maryland and Delaware, and provides radiologist coverage to 11 hospitals in Maryland.
Mississauga, Ontario-based CML, which provides laboratory testing and medical imaging services, said the takeover "provides a tremendous platform for continued growth that supports the execution of our overall strategy."
The deal, underwritten by a $450-million credit facility from Toronto-Dominion Bank, is expected to close in the first quarter of 2008.
The deal follows a failed late-summer bid by CML for Medisys Health Group Income Fund, whose controlling shareholder rejected the hostile bid of $9 a Medisys unit.