23 June 2020
Rutherford Health plc
£55m Development Framework Agreement with Equitix
Rutherford Health plc (the "Company" or "Group" or "Rutherford") is delighted to announce that it has entered into a £55m development framework agreement ("DFA") with Equitix Limited ("Equitix"), a leading investor, developer and long-term fund manager of core infrastructure assets in the UK and Europe.
Under the terms of the agreement, Rutherford and Equitix will establish up to five new diagnostic facilities in the UK, to provide diagnostic services to the NHS and to private patients.
Equitix will have the exclusive right to provide funding to establish special purpose vehicles ("SPV") to construct and own the diagnostic centres which will be operated by Rutherford Infrastructures Limited (RIL) (a wholly owned subsidiary of the Company). Rutherford Diagnostics Limited (RD), also a wholly-owned subsidiary of the Company, will provide diagnostic services.
The DFA covers the development of the first five Rutherford diagnostics centres with an estimated value of approximately £55 million. Under the terms of the DFA, Equitix will have a right of first refusal in respect of the development and funding of a further five centres beyond the initial five. Beyond those ten centres RD, RIL and Equitix have agreed to examine mutually beneficial options for continuing to work together to develop further diagnostic clinical services.
The company has already reached agreement with an NHS Trust in England to create the first facility and a further announcement will be released once a SPV has been created under the agreement with Equitix.
Establishment of each SPV under the terms of the DFA is subject to the agreement of both Rutherford and Equitix and is subject to the collaboration with local NHS Trusts for a period of ten years under terms to be agreed on a case by case basis. Each centre will provide a variety of diagnostics services to NHS and private patients including Positron Emission Tomography-Computed Tomography, Magnetic Resonance Imaging, Computed Tomography, Ultrasound, Endoscopy, X-Ray and other relevant diagnostic services.
Equitix is a leading investor, developer and long-term fund manager of core infrastructure and energy-efficiency assets in the UK. Equitix has over £6bn of assets under management. It has invested in healthcare assets since its inception in 2007 and healthcare is now its largest sector for investment, representing over 39% of its total portfolio. Further information can be found at https://equitix.co.uk/.
Craven Street Capital Limited acted as financial adviser to Rutherford Health PLC and Rutherford Diagnostics Limited.
Mike Moran, Rutherford's CEO, commented: "We are delighted to have signed this agreement with Equitix. The demand for diagnostic capability in the NHS, and private sector, has increased significantly over the last five years with demand outstripping supply year on year. The DFA with Equitix will enable Rutherford Diagnostics to meet the rising demand for diagnostic clinical services".
Geoff Jackson, Chief Executive Officer of Equitix, commented: "We are very pleased to work in partnership with Rutherford to provide the financing for these diagnostic centres. We have demonstrated a strong track record in our ownership and management of healthcare assets, particularly in this time of crisis where we have been working to support NHS staff on the front-line and, as such, we are pleased to be further consolidating our capabilities and adding these assets to our institutional investment portfolios."
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
The directors of Rutherford Health plc accept responsibility for this announcement.