Oxford Instruments plc Acquires Medical Imaging Resources, Inc.
Oxford Instruments plc, a leading provider of high technology tools and systems for industry and research, today announces the acquisition of Medical Imaging Resources, Inc. (MIR).
Founded in 1990 in Ann Arbor Michigan by CEO John Vartanian, MIR specialises in the build, lease and service of mobile medical imaging labs ("mobiles").
The mobile labs are built in MIR's factory, with Magnetic Resonance Imaging (MRI) and Computed Tomography (CT) systems from Siemens, GE, Philips and Toshiba. These are leased to customers across the USA. MIR is also responsible for servicing its mobiles. Customers include hospitals and clinics that need additional capacity or that wish to trial MRI or CT machines without committing to the infrastructure and cost associated with a permanent unit.
MIR will form a part of OIHealthcare, within the Group's Service sector, which already services GE MRI and CT machines in the USA. There are a number of synergies with OIHealthcare:
- This will be a significant step to making OIHealthcare a multi-skilled independent service provider able to support large individual service contracts;
- Access to OIHealthcare's parts and its purchasing power for complete systems will lower MIR's operating costs;
- There will be overheads savings in those areas where duplication is eliminated;
- MIR currently sub-contracts a significant portion of the service work for its mobiles. OIHealthcare staff are located in numerous states and once trained will take over the work and will be able to bring the margin in-house.
Consideration, which will be satisfied from existing facilities, comprises $10.4 million (c. £6.8 million) on completion followed by a further $10.1 million (c. £6.6 million) earn-out payable one year later. MIR has approximately $3.0 million (c. £2.0 million) net debt at completion.
In the year to 31 December 2014, MIR had sales of $16.6 million (c. £10.8 million), profit before tax of $2.8 million (c. £1.8 million) and EBITDA of $5.6 million (c. £3.6 million). At 31 December 2014, MIR had gross assets of $9.4 million (c. £6.1 million).