Positive diagnosis: Capitol acquires 90% stake in Fowler Simmons Radiology

Clarendon Lawyers is pleased to have advised Capitol Health Limited (ASX: CAJ) (Capitol) on its acquisition of 90% of the Fowler Simmons Radiology business (FSR).  Co-founder Shaun Fowler will retain a 10% ownership interest in FSR which Capitol has the option to acquire in three years. 

Capitol, a long-term client of the firm, is an ASX listed provider of diagnostic imaging services to the Australian healthcare market. FSR is a leading musculoskeletal radiology practice operating out of Adelaide, with strong connections in the orthopaedic, sports medicine and occupational medicine communities. The acquisition of FSR provides a platform for Capitol to expand its diagnostic imaging services network into South Australia. Shaun Fowler, a highly regarded radiologist, will continue to be involved in the FSR business for at least five years. 

The acquisition completed on 28 February 2020 and was effected by way of a share purchase, with consideration satisfied by a combination of cash and the issue of scrip in Capitol. 

The Clarendons team was led by Director, Alex Bean who was assisted by Lawyer, Ayesha Singh. 

Mr Bean congratulated Capitol on the acquisition: “We were thrilled to assist Capitol with its acquisition of Fowler Simmons Radiology. The transaction marks an exciting opportunity for Capitol to expand its business into a new territory and we look forward to seeing business continue to excel as a market leader in South Australia under Capitol’s ownership.”

Capitol was assisted by EY and Boutique Corporate Advisory on the financial and taxation aspects of the transaction respectively. The owners of the FSR business were advised by WRP Legal & Advisory.