Life Healthcare to sell LMI business to focus on core services

SOUTH AFRICA – Life Healthcare Group, through its UK-based subsidiary Life Medical Group Limited (LMGL), has agreed to sell its entire stake in Life Molecular Imaging (LMI) to Lantheus Radiopharmaceuticals UK Limited, a subsidiary of Lantheus Holdings Inc.

The deal, valued at up to US $750 million (ZAR 13.9 billion), includes an upfront payment of US $350 million (ZAR 6.475 billion) and potential earnouts of up to US $400 million (ZAR 7.4 billion) based on future sales milestones through 2034.

After settling obligations, Life Healthcare expects net proceeds of approximately US $200 million (ZAR 3.7 billion) from the upfront payment, which it plans to return to shareholders, pending approvals.

LMI, a subsidiary of Life Healthcare, specializes in molecular imaging technology used for early detection of diseases such as Alzheimer’s and cancer.

Over the years, it has played a key role in advancing diagnostic imaging solutions. However, Life Healthcare believes selling LMI will allow it to direct more resources toward expanding its hospital network, investing in cutting-edge medical technology, and improving patient care services.

Peter Wharton-Hood, Chief Executive of Life Healthcare Group, stated, “This proposed transaction presents a significant opportunity for our shareholders to immediately unlock considerable value in LMI.

By realizing a premium over LMI’s estimated value reflected in our share price, shareholders can expect a highly attractive return on this investment. Moreover, this transaction mitigates the execution risks associated with LMI’s business plan by partnering with a credible partner.”

Life Healthcare has been actively reshaping its business strategy, including divesting from non-core assets.

The planned disposal of LMI follows the company’s previous decision to focus more on hospital care and patient-centered services.

“Life Healthcare is not a long-term owner of LMI. Lantheus, with its radiopharmaceutical expertise, can maximize LMI’s potential. Life Healthcare will benefit from future growth through earnouts and retain rights to LMI products in Africa,” said Wharton-Hood.

Life Healthcare operates hospitals and healthcare facilities across South Africa and other international markets.

The company has emphasized that selling LMI will not affect its commitment to providing high-quality healthcare. Instead, it will help the group allocate funds to areas where it can make the most impact.

The healthcare industry is evolving rapidly, with hospitals and medical service providers adapting to new challenges, including increased demand for specialized care, advanced medical technology, and digital healthcare solutions.