Listed Australasian infrastructure asset manager Infratil is buying between 50.1% and 60% of diagnostic imaging business Pacific Radiology for up to NZ$350m (€209m).

Pacific Radiology is the largest private diagnostic imaging service provider in New Zealand, operating 46 clinics in the South Island and lower North Island.

Infratil, managed by Morrison & Co, said upon completion of the transaction, the existing doctor shareholders and management would hold between 40% and 49.9% of Pacific Radiology.

Infratil CEO, Jason Boyes, said the Pacific Radiology acquisition, if completed, sat well with Infratil’s other high-performing, high-quality assets, and built on its investment last year in Qscan, a diagnostic imaging business in Australia.

“When we outlined the company’s strategic direction in February, healthcare was identified as a sector of considerable opportunity,” he said.

“Diagnostic imaging is an essential services industry, offering a combination of defensive characteristics and structural long-term growth.”

Boyes said: “We also see this as an opportunity to scale Infratil’s investment in Qscan Group, and to create a meaningful Australasian healthcare platform with potential synergies and adjacent opportunities.

The chairman of Pacific Radiology Group, Adrian Balasingam, said that, as a long-term shareholder, Infratil would add value to the group’s ongoing plan to expand its services.

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