Lumexa using IPO for diagnostics roll-up
Lumexa Imaging filed for a circa US$400m Nasdaq IPO late Monday that will allow the medical imaging chain to repay debt used to build its national footprint.
Barclays, JP Morgan and Jefferies are joint bookrunners.
The company was formed in 2018 when Welsh Carson Anderson & Stowe merged with Charlotte Radiology, which provided the foundation for a series of roll-up acquisitions of small regional medical imaging businesses.
Lumexa now ranks among the largest US providers of diagnostic imaging services with a network of 184 centres across 13 states.
The company reported US$166m of adjusted Ebitda as revenues grew by 7.8% to US$755m in the nine months ended September 30.
Proceeds will be used to repay some of the US$1.2bn of debt used to fund acquisitions.
The company is targeting US$800m–$825m of debt on a post-IPO basis, slashing leverage from roughly four times adjusted Ebitda to a more manageable three multiple.