Bankers are anticipating another deal in the hot health care sector as J.W. Childs Associates and The Halifax Group get set to acquire InSight Health Services for $200 million, with an additional $200 million debt assumption. Bankers said UBS Warburg and Banc of America Securities are likely to have the inside track on the deal, after working on the sale of the Newport Beach, Calif.-based firm. Calls to Halifax and J.W. Childs were not returned. Repeated calls to Thomas Croal, executive v.p. and cfo of InSight, were also not returned.
UBS advised InSight, and B of A worked with the private equity shops. The acquisition is expected to close in the fall. One banker commented that InSight is a solid company and that a number of firms demonstrated an interest in acquiring the business. A potential structure, amount and timing of a deal could not be determined. InSight provides diagnostic imaging and information, treatment and related management services.
According to Capital DATA Loanware, InSight has two lines of credit with B of A: a $150 million, six-year deal arranged in 1998 and a $58.7 million facility signed at the end of 1999. The $150 million credit breaks down into a $75 million revolver and a $75 million term loan priced at LIBOR plus 1 3/4%.