Medical Resources buys three centers

July 9, 1997

Medical Resources reported last week that it has aquired three imaging centers in New York City for $5.4 million in cash and stock and the assumption of $5.3 million in debt. The combined annual revenues of the centers is $7 million, and the acquisition

Medical Resources reported last week that it has aquired three imaging centers in New York City for $5.4 million in cash and stock and the assumption of $5.3 million in debt. The combined annual revenues of the centers is $7 million, and the acquisition brings to 82 the number of centers operated by the company.

In other news, the company last month raised $26 million through an issue of senior notes to a group of insurance companies led by John Hancock Mutual Life Insurance. The Hackensack, NJ, company said it would use proceeds from the issue to fund acquisitions and for general corporate purposes. The placement brings the total amount that Medical Resources has raised this year through investment-grade senior note issues to $78 million.

In other Medical Resources news, the company acquired a controlling interest in a multimodality imaging center in midtown Manhattan. Medical Resources paid $1 million for the stake in the center, which is located within a state-of-the art medical suite to be opened by a private physician group this fall. The center is also the company's first joint venture with a physician practice management company.