J.W. Childs Associates, a Boston-based private equity firm, and The Halifax Group, a private equity firm with offices in Washington, D.C., Fort Worth, Texas, Los Angeles and Raleigh, N.C., this month agreed to purchase InSight Health Services Corp., a public company in the health sector.
InSight Health is a diagnostic imaging business that services managed care entities and hospitals in 28 states.
The company’s common stockholders will receive $18 per share, according to the agreement, reportedly bringing the transaction value to about $255.7 million.
The deal, though contingent on financing and shareholder approval, is expected to be financed with equity from Halifax Capital Partners and J.W. Childs Equity Partners II with senior and high yield debt provided by Bank of America and UBS Warburg.
The Carlyle Group, General Electric Co. and GE Fund own approximately 67% of the company’s outstanding shares and have agreed to vote in favor of the merger, according to a company statement.
When the deal closes, J.W. Childs and The Halifax Group will jointly own nearly 100% of the company. J.W. Childs will have a controlling interest and management will take a minority stake. The deal is expected to close in late September or early October.
David Dupree, a managing director at The Halifax Group, said the new owners will allow the company to continue its current growth strategy. “If you look at the company’s latest 10-K, it will show you that they have done numerous acquisitions over the last four years,” he said. “We will continue the same plan that the company is following.”