DirectMed Imaging Acquires Richardson Healthcare

Rhea-AI Summary

DirectMed Imaging has acquired Richardson Healthcare's Fort Mill, SC operation, a division of Richardson Electronics (NASDAQ: RELL). The acquisition strengthens DirectMed's position as the leading Canon/Toshiba aftermarket parts supplier and expands its MRI and CT parts expertise.

Key aspects of the deal include: DirectMed becoming the exclusive global distributor for Richardson Electronics' repaired Siemens Straton Z, MX, and MXP CT X-ray tubes, as well as the ALTA750 and ALTA 750G CT X-ray tubes. The company will also enter the Canon/Toshiba CT training market for engineers and biomedical professionals.

This marks DirectMed's sixth acquisition, adding to their inventory of over 100,000 parts. The company, backed by Frazier Healthcare Partners, will leverage Richardson's X-ray tube manufacturing infrastructure and engineering expertise to enhance their service offerings.

Positive

• Becomes exclusive global distributor for multiple CT X-ray tube lines
• Expands into Canon/Toshiba CT training market
• Gains access to Richardson's manufacturing infrastructure and engineering talent
• Strengthens market position in Canon/Toshiba aftermarket parts
• Increases inventory breadth and technical expertise

Negative

• None.

Insights

Financial Industry Analyst

This strategic acquisition marks a significant consolidation in the medical imaging aftermarket sector, with several key implications for investors and market dynamics.

The deal's structure reveals DirectMed's aggressive expansion strategy, marking their sixth acquisition in recent years. For Richardson Electronics (RELL), this divestiture of their healthcare division's Fort Mill operations suggests a strategic pivot, potentially streamlining their business model to focus on their core competencies in power grid solutions and green energy products.

Three critical aspects deserve investor attention:

• The transfer of exclusive global distribution rights for Siemens Straton Z, MX, MXP CT X-ray tubes and ALTA750 series positions DirectMed as a dominant player in the aftermarket imaging parts sector
• The integration of Richardson's CT X-ray tube manufacturing infrastructure and engineering talent significantly enhances DirectMed's vertical integration capabilities
• The backing of Frazier Healthcare Partners, with their $11 billion capital raise history, suggests potential for further strategic acquisitions and market consolidation

The medical imaging aftermarket sector is experiencing increased demand for cost-effective maintenance solutions as healthcare providers seek to extend equipment life cycles and optimize operational costs. This transaction aligns with these market trends, potentially creating a more efficient supply chain for critical imaging components.

For RELL investors, while the immediate financial impact remains undisclosed, this divestiture could streamline operations and provide capital for reinvestment in their remaining business segments, which generate approximately 50% of their products from their manufacturing facilities in LaFox, Marlborough and Donaueschingen.

The Acquisition of a Majority of Richardson Healthcare Strengthens DirectMed Imaging’s Position as the Leading Canon/Toshiba Aftermarket Parts Supplier

SAN DIEGO--(BUSINESS WIRE)-- DirectMed Imaging, a leading supplier of aftermarket medical imaging parts, systems, and training, today announces the acquisition of Richardson Healthcare’s Fort Mill, SC operation. Richardson Healthcare is a division of Richardson Electronics (NASDAQ: RELL).

DirectMed’s acquisition expands its Canon/Toshiba MRI and CT parts expertise and inventory breadth. The purchase also allows DirectMed to enter the Canon/Toshiba CT training market for engineers and biomedical professionals, as well as become the exclusive global distributor for Richardson Electronics repaired Siemens Straton Z, MX, and MXP CT X-ray tubes. Additionally, DirectMed will now be the exclusive global distributor for the ALTA750 and ALTA 750G CT X-ray tubes.

DirectMed’s customers will benefit from Richardson Electronics’ world-class X-ray tube manufacturing infrastructure, engineering talent, and expertise that repairs Siemens X-ray tubes, a highly-valued offering in the marketplace.

“DirectMed has spent five years making strategic investments and now six acquisitions that bring our customers excellence in inventory and service,” said Brad de Koning, DirectMed Imaging CEO. “Richardson Healthcare has built an impressive CT X-ray tube, training, and parts business. We are excited to have their expertise, solutions, and inventory under our roof and to strengthen our Canon/Toshiba aftermarket parts offerings.”

“Hospitals and service organizations cannot waste time when their engineers need parts or support to keep mission-critical diagnostic imaging machines up and running,” said Tanner LoRusso, Chief Commercial Officer for DirectMed Imaging. “Our customers have come to know us as a dependable partner to help solve their most difficult needs quickly and efficiently. The acquisition of Richardson Healthcare is the latest milestone of DirectMed’s to invest in the needs of our customers’.”

"We recognize that our customers operate in an industry where efficiency and cost-savings are intertwined with quality patient care,” said Nicholas Richardson, Richardson Healthcare global senior sales and business operations manager. “By joining the DirectMed family, we are creating more enhanced, innovative, and compelling solutions for new and existing clients. Together, we can deliver a level of expertise and inventory that neither brand could have achieved on its own.”

DirectMed is backed by private equity firm Frazier Healthcare Partners.

About DirectMed Imaging:

DirectMed Imaging is a leading aftermarket diagnostic imaging parts, systems, and service provider. With over 100,000 parts in stock, the company repairs, supports, and sells GE, Siemens, Philips, and Canon/Toshiba MRI, CT, and X-ray parts to healthcare networks, imaging centers, and independent service organizations (“ISOs”) around the world. DirectMed also owns LBN Medical ApS, based in Aalborg, Denmark, a leading reseller of aftermarket medical imaging equipment and parts to customers around the world; and ScanMed, LLC, a leader in MRI coil design, manufacture, and repair. For more information, visit www.directmedimaging.com.

About Frazier Healthcare Partners:

Founded in 1991, Frazier Healthcare Partners is a private equity firm focused exclusively on the healthcare industry. Since its inception, Frazier has raised over $11 billion of capital for private funds and co-investment opportunities and has invested in more than 200 companies over 33 years. Frazier has a philosophy of partnering with strong management teams while leveraging its internal operating resources and network to build exceptional companies. Frazier is headquartered in Seattle, WA, with an office in New York City (opening June 2025), and invests broadly across the U.S., Canada, and Europe. For more information about Frazier, visit www.frazierhealthcare.com.

About Richardson Electronics:

Richardson Electronics is a global manufacturer of engineered solutions, green energy products, power grid and microwave tubes, and related consumables; power conversion and RF and microwave components, including green energy solutions; high-value replacement parts, tubes, and service training for diagnostic imaging equipment; and customized display solutions. Approximately 50% of its products are manufactured in LaFox, Illinois, Marlborough, Massachusetts, or Donaueschingen, Germany, or by one of its manufacturing partners throughout the world. They serve customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250124591575/en/

DirectMed Imaging Contact:

Kurtis Waddell

Growth Marketing Manager

kwaddell@directmedimaging.com

Source: DirectMed Imaging

FAQ

What are the key benefits of DirectMed's acquisition of Richardson Healthcare for RELL shareholders?

The acquisition allows DirectMed to become the exclusive global distributor for Richardson Electronics' repaired Siemens CT X-ray tubes and ALTA750 series, expanding their market reach and technical capabilities.

How many acquisitions has DirectMed completed with the Richardson Healthcare deal?

This is DirectMed's sixth acquisition, part of their five-year strategic investment plan to expand their inventory and service excellence.

What new markets will DirectMed enter through the Richardson Healthcare acquisition?

DirectMed will enter the Canon/Toshiba CT training market for engineers and biomedical professionals, while also expanding their Canon/Toshiba MRI and CT parts expertise.

What specific product lines does DirectMed gain distribution rights to from RELL?

DirectMed gains exclusive global distribution rights for the Siemens Straton Z, MX, and MXP CT X-ray tubes, as well as the ALTA750 and ALTA 750G CT X-ray tubes.