LOS ANGELES, Jan. 2, 2013 (GLOBE NEWSWIRE) -- RadNet, Inc. (Nasdaq:RDNT), a national leader in providing high-quality, cost-effective, fixed-site outpatient diagnostic imaging services through a network of 236 owned and operated outpatient imaging centers, today reported effective December 31 st, 2012 it acquired Lenox Hill Radiology of Manhattan, New York for approximately $30.3 million, which includes the assumption of approximately $1.2 million of debt.
Lenox Hill has been an operator in the New York City market for 25 years. The cluster of centers includes its flagship Lenox Hill Radiology multimodality facility at 61 East 77 th Street, between Park and Madison Avenues. Lenox Hill also wholly owns and operates multimodality facilities at 202 East 70 th Street (Regency Medical Imaging) and 240 Madison Avenue (Madison Avenue Medical Imaging) as well as several satellite routine imaging facilities throughout Manhattan. In addition to its wholly owned facilities, Lenox Hill has an interest in Park West Radiology at 315 West 57 th Street, near Columbus Circle, and several outsourced business and professional reading arrangements in Staten Island, Brooklyn and Long Beach, New York. The Lenox Hill operations should add approximately $40 million of revenue to RadNet on an annualized basis.
Dr. Howard Berger, President and Chief Executive Officer of RadNet noted, "We are delighted to complete our first transaction in Manhattan. With existing contiguous market presence in Northern New Jersey and the surrounding New York markets of Rockland County, Westchester County and Brooklyn, the borough of Manhattan is a logical extension for RadNet. Characterized by a significant and dense patient population exceeding 1.6 million, a favorable mix of insurance carriers and a limited number of entrenched outpatient, non-hospital-affiliated imaging center competitors, we believe Manhattan is an attractive market for us.""Furthermore, we believe Lenox Hill represents the best platform for RadNet in Manhattan from which to grow. Since 1988, Lenox Hill has operated well-recognized facilities with loyal clientele, has contracted with an affiliated group of premier subspecialist radiologists and has enjoyed an excellent reputation for providing quality medical services. We warmly welcome the valued physicians and employees of Lenox Hill Radiology, and look forward to sharing best practices amongst our two companies," added Dr. Berger.
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