HealthSouth selling diagnostics unit |
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Thu, 19 Apr 2007 20:09
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BIRMINGHAM, Ala. (AP) - Rehabilitation chain HealthSouth Corp. on Thursday said it has agreed to sell its diagnostic division to Los Angeles-based private equity firm Gores Group for about $47.5 million.The transaction, which is expected to be completed by the end of June or early in the third quarter, is subject to regulatory approval. Proceeds from the sale will be used to repay long-term debt, said Jay Grinney, HealthSouth president and chief executive.The diagnostic division includes a network of 54 centers in 19 states and the District of Columbia, 80 percent of which offer a combination of outpatient diagnostic imaging services, including magnetic resonance imaging and X-ray.Grinney said the diagnostic sale, along with other agreements to divest its three ambulatory divisions, are part of HealthSouth's plan to reposition itself 'as a post-acute health care provider, focusing on inpatient rehabilitative services.'HealthSouth also said it made $20.5 million in cash in the last year through the sales of a number of individual diagnostic imaging facilities, as well as various equipment and assets owned by the division.Shares of HealthSouth dipped 16 cents to $20.30 in afternoon trading on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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DISREGARD: HealthSouth diagnostics plan 