Life Healthcare Group, through its wholly owned UK subsidiary, Life Medical Group Limited (LMGL), has signed binding agreements to sell 100% of the issued share capital of LMI Limited and its subsidiaries, collectively known as Life Molecular Imaging (LMI).
The buyer, Lantheus Neurology UK Limited, is a wholly owned subsidiary of Lantheus Holdings Inc. This strategic transaction marks a significant milestone for Life Healthcare Group.
The total purchase consideration for the transaction is $750 million (R13.9 billion), which includes an upfront payment of $350 million and additional earnouts totaling $400 million, contingent on achieving future sales milestones for LMI products through 2034.
Life Healthcare estimates that the net proceeds from the upfront payment, after settling the LMI Management Scheme, Piramal Payment, and transaction costs, will amount to approximately $200 million (R3.7 billion).
Subject to the necessary approvals, Life Healthcare plans to return the net proceeds to its shareholders.
Peter Wharton-Hood, Chief Executive of Life Healthcare Group, highlighted the value this transaction brings, stating: “This proposed transaction presents a significant opportunity for our shareholders to unlock immediate value in LMI. By achieving a premium over LMI’s estimated value as reflected in our share price, shareholders stand to gain an attractive return on their investment. Additionally, this transaction reduces the execution risks associated with LMI’s business plan by transitioning ownership to a credible and experienced partner.”
Wharton-Hood further explained the strategic rationale, saying: “Life Healthcare is not a natural long-term owner of LMI. Lantheus, with its extensive experience in nuclear medicine, is well-positioned to unlock the full potential of LMI’s R&D capabilities and its product pipeline. Life Healthcare will continue to benefit from LMI’s future growth through earnouts while retaining the rights to manufacture, commercialize, and distribute LMI products in Africa.”
The transaction remains subject to the fulfillment or waiver of customary conditions and is expected to conclude in 2025.
Following the completion of the transaction, Life Healthcare will focus on strengthening its position as a leading diversified healthcare provider in southern Africa.
The company aims to leverage its integrated care model and capitalize on profit-sharing opportunities through the LMI earnouts, ensuring sustainable growth and value creation.
