Life Healthcare buys UK firm for R10.4bn
Imaging company Alliance Medical Group operates in eight European markets, but analyst says deal looks expensive
Private hospital group Life Healthcare is forging ahead with its plans to expand its business beyond South African shores, announcing on Wednesday that it had agreed to acquire the UK-based imaging company Alliance Medical Group for as much as R10.4bn. Alliance provides imaging technology such as MRI and PET-CT scans in eight European markets, and is the leading provider in the UK, Ireland and Italy. The deal diversified Life Healthcare on geographical and operational levels, and would enable it to take advantage of growth opportunities beyond acute hospital services, CEO Andre Meyer said. Life Healthcare’s South African business had already branched out into oncology, mental health, renal dialysis and acute rehabilitation services, and there was growing demand for these kinds of services in its Indian and Polish operations too, he said. The domestic hospital market had limited growth opportunities, Meyer said, partly due to the slowing economy. "For the first time in 10 years the ...
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