USDL sells Texas centers

In a move that effectively ends U.S. Diagnostic’s activities in Texas, the imaging center chain divested its facilities in the state last month in two transactions valued at more than $23 million. USDL sought to divest the Texas centers because of their poor financial performance, according to Joseph Paul, president and CEO. Sale proceeds will reduce the company’s debt and overhead expenses for 1999 and increase its working capital, Paul said.

The company sold six centers in Houston to Dr. Mohammad Athari for $11.7 million. Four remaining Houston centers and four San Antonio facilities were sold to United Radiology Associates for $11.7 million. United Radiology Associates is run by USDL chairman Dr. L.E. Richey, who resigned from the post as a result of the transaction. He will, however, will continue to serve as an advisor to the company.