MediTek parent to concentrate on aerospace Imaging services chain U.S. Diagnostic Labs is about to get evenbigger. The fast-growing West Palm Beach, FL, company has reachedan agreement to acquire center firm MediTek Health from that
Imaging services chain U.S. Diagnostic Labs is about to get evenbigger. The fast-growing West Palm Beach, FL, company has reachedan agreement to acquire center firm MediTek Health from that company'sparent, Heico of Hollywood, FL. Heico said it is selling MediTekto concentrate on its growing aerospace business.
When the deal is completed, it will bring to 43 the total numberof centers owned by U.S. Diagnostic Labs, which has been on acenter acquisition spree for the past year (SCAN 5/22/96). MediTekowns 16 centers, primarily in the Southeast and New Jersey. USDLhas agreed to pay $23 million for MediTek: $13 million in cashand $10 million in a five-year convertible note.
USDL was attracted to MediTek because of the company's historyof profitable operation even while the center industry was slumping,according to Jeffrey Goffman, USDL's chairman and CEO.
"MediTek is one of the few publicly traded companies thathas had good management, a good track record, and has been profitable,"Goffman said. "They have been running a business very well,just as we have."
USDL is also interested in retaining key MediTek executives,Goffman said. MediTek president Joseph Paul will become presidentof USDL, replacing Dr. Robert Burke, a neuroradiologist who willstep down from that position to manage USDL's medical affairs.MediTek's CFO, Andrew Shaw, will become USDL's CFO, a positionnow held by Goffman.
Goffman sees other synergies in the deal, in particular throughthe combination of USDL and MediTek centers in certain geographicareas. For example, MediTek will add eight Florida centers toUSDL's growing position in that state, as well as three in Atlanta,where USDL has one center.
In addition, MediTek will add expertise in developing imagingcenters that are joint ventures with hospitals. MediTek has sixsuch joint ventures, while USDL has only two.
To acquire MediTek, USDL will use the proceeds from a $57.5million debenture issued in March. The company plans to continueits frenzied pace of acquisitions, according to Goffman, and hopesto own 70 to 100 imaging centers by the end of the year.
"There is a good chance that we will continue to makeacquisitions at this rate," Goffman said.