Jardine Matheson's I-MED Acquisition Could Boost Growth

Jardine Matheson Acquires I-MED Radiology Network for $2.4 Billion

Jardine Matheson's $2.4 billion acquisition of I-MED Radiology Network is likely to boost the target's growth potential, according to S&P Global Ratings. Jardine appears willing to spend on expansion and explore new markets, which should benefit I-MED.

Growth Expectations

S&P expects I-MED to achieve 10%-15% annual EBITDA growth within Jardine's portfolio, in line with I-MED's reported 12% EBITDA growth over the five years to end-June last year.

Growth drivers include organic growth in Australia and New Zealand's medical-imaging market and network expansion in these markets.

Jardine's Strategy

S&P expects Jardine to continue exploring potential deals, as it retains the ability to sell assets to fund acquisitions. Its Singapore-listed shares fell 4.0% to $65.28.