U.S. Diagnostic, Steel Partners sign stock deal

Radiology services firm U.S. Diagnostic has signed an agreement with Steel Partners II that allows Steel Partners to purchase up to 45% of U.S. Diagnostic’s voting stock without prior board approval. Steel Partners already owns approximately 15% of U.S. Diagnostic’s stock.

The move comes as West Palm Beach, FL-based U.S. Diagnostic seeks to bolster its business. In the first three quarters of 1999, the company sold its underperforming facilities in Texas (SCAN 3/3/99) and fell from its first place position in the imaging center market to third, according to a report by SMG Marketing Group of Chicago (SCAN 1/19/00).