Abano Acquires Greenlane Imaging

Abano Healthcare Group has today announced the acquisition of a second radiology business, Greenlane Imaging, adding to Abano’s existing radiology business, Ascot Radiology.

Greenlane Imaging is a small single modality CT company located within Greenlane Hospital and has revenues of $1.4m. Over 50 percent of this revenue is for private referrals, mostly for cardiac and thoracic diagnosis. In addition to this, Greenlane Imaging operates a fixed price three year contract for the Auckland District Health Board.

In line with Abano’s policy of equity involvement of clinicians, Abano will own an 80 percent share of this entity while the vendors, Dr David Rogers and Dr David Milne, will continue to hold the remaining 20 percent.

Abano Healthcare also currently holds 40 percent of Ascot Radiology, with an option to acquire a further 40 percent of Ascot Radiology by 31 May 2007, bringing Abano’s ownership up to 80 percent, with the remaining equity held by Dr Rogers and Dr Milne.
Following the exercising of this option, it is the intention that Greenlane Imaging will become a subsidiary of Ascot Radiology and will be operated as a satellite clinic.

As previously advised, the board then plans to introduce several new associate Radiologists, who will join the two founding partners, in an equity partnership with Abano. Abano would then reduce to a shareholding of approximately 75 percent.

Managing director of Abano Healthcare, Mr Alan Clarke, said: “Radiology is a sector which we have been involved in for eighteen months. The model and business is working well and we believe it has the potential to double in size over the next three years”.

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Abano acquires Greenlane Imaging 28 Feb 07