Medical Resources to buy 10 centers

May 28, 1997

Medical Resources continues to generate momentum in the consolidating imaging center industry. The Hackensack, NJ, company this month announced that it plans to add another 10 centers to its burgeoning network by acquiring the assets of Capstone

Medical Resources continues to generate momentum in the consolidating imaging center industry. The Hackensack, NJ, company this month announced that it plans to add another 10 centers to its burgeoning network by acquiring the assets of Capstone Management Group.

Acquiring the Capstone centers will add to the critical mass Medical Resources is building in the northeast. Nine of the Capstone centers are in that region, with another facility located in Ohio. The centers have combined annual revenues of $12 million.

Medical Resources agreed to pay $10 million in cash and common stock for the centers, and to assume Capstone debt. The Capstone acquisition would bring the number of centers in the Medical Resources network to 76.

Medical Resources this month also released its financial results for the first quarter of 1997 (end-March). Thanks to its acquisition spree, revenues boomed to $40.6 million, up 125% compared with $18 million in the first quarter of 1996. The company posted net income of $3.6 million, compared with $1.3 million in the same period a year ago. In addition to the growth generated by acquisitions, same-center sales increased 14%, according to president and COO William Farrell.

In other Medical Resources news, the company this month finalized its acquisition of ATI Centers and bought two imaging centers in Maryland that operate open MRI scanners.