Onex in C$225m diagnostic imaging deal

The private equity arm of the Canadian conglomerate will take an 84 percent equity interest in Center for Diagnostic Imaging.

Onex Partners, the private equity division of Toronto-based conglomerate Onex Corporation, has agreed to buy Center for Diagnostic Imaging (CDI) in a transaction worth C$225 million ($184 million; €144 million).

Onex will invest approximately C$93 million in equity, giving it an 84 percent stake in the company, according to a statement, with management, the founder and physician shareholders keeping the rest.

CDI, headquartered in Minneapolis, provides diagnostic and therapeutic radiology services. The company operates 31 diagnostic imaging centers in nine markets in the US, and reported annual revenues of more than C$125 million.

Onex Partners is a $2.2 billion private equity fund established by Onex Corporation. Onex Partners provides capital for new Onex-sponsored acquisitions not related to Onex' Corp.’s existing operating companies. Onex Corp. has committed $525 million to Onex Partners, making it a 25 percent limited partner.

Onex Partners made blockbuster news back in June, when along with Oaktree Capital Management, announced its intention to sell the firms’ stake in Loews Cineplex Entertainment to a private equity consortium consisting of Bain Capital, The Carlyle Group and Spectrum Equity Investors for C$2 billion ($1.5 billion, €1.2 billion). Loews is the world’s third largest cinema chain.