DJ Rutherford Health PLC GBP55m Development Framework Agreement with Equitix
RNS Number : 7730Q
Rutherford Health PLC
23 June 2020
23 June 2020
RUTHERFORD HEALTH PLC
GBP55M DEVELOPMENT FRAMEWORK AGREEMENT WITH EQUITIX
Rutherford Health plc (the "Company" or "Group" or "Rutherford") is delighted to announce that it has entered into a GBP55m 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 of 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 GBP55 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 GBP6bn 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.
Rutherford Health plc Michael Moran, Chief Executive Officer Tel: +44 (0) 16 3381 0661 Grant Thornton (Corporate Adviser) Tel: +44 (0) 20 7383 5100 Colin Aaronson / Niall McDonald Media House International 07788 414 856 or 0207 710 0020 Ramsay Smith firstname.lastname@example.org
About Rutherford Health plc
Rutherford Health plc is at the vanguard of advancing cancer care. Developing and building a network of oncology centres across the UK known as the Rutherford Cancer Centres, offering a comprehensive range of cancer treatments to patients.
The first centre in Newport, South Wales, was the first in the UK to offer high energy proton therapy. In addition, each centre also offers radiotherapy, chemotherapy, immunotherapy, diagnostic imaging and supportive care services.
As well as the Rutherford Cancer Centre South Wales, Rutherford Health plc (formerly known as Proton Partners International Limited) has opened two further centres - the Rutherford Cancer Centre North East in Northumberland and the Rutherford Cancer Centre Thames Valley in Reading, with proton therapy now available in both. Construction of a fourth site in Liverpool, the Rutherford Cancer Centre North West, is now complete and will open this summer.
Rutherford Health plc has partnered with world-leading healthcare technology providers to equip each centre with the very latest and innovative technology, including IBA, Philips and Elekta.
Rutherford Health plc was founded in 2015 by Mike Moran MBE and UK and international cancer experts, including Professor Edward Karol Sikora, former head of the World Health Organisation's cancer programme.
Equitix is a leading investor, developer and long-term fund manager of core infrastructure and energy-efficiency assets in the UK and Europe. Equitix has raised GBP6 billion of equity, including managed accounts, and is governed by six senior investment professionals with more than 120 years of public-sector industry experience between them.
Investment strategy for the funds focuses on small to mid-sized infrastructure projects located in the UK and Europe across a wide range of sectors but with a focus on social infrastructure and renewable energy. Equitix seeks to hold assets for the life of all its core funds.
With over 280 core infrastructure projects acquired since the firm's inception in 2007, Equitix has institutionalised its distinctive approach to infrastructure investing and has demonstrated a predictable rate of deployment for over ten years.
Equitix has established a strong reputation as a leading developer, trusted partner, operator and fiduciary fund manager.
Equitix is majority owned by TFG Asset Management L.P., a diversified alternative asset management business that owns majority and minority private equity stakes in asset management companies. Approximately 25% of the economic interests in the Equitix group is owned by Equitix's management team. TFG Asset Management is part of Tetragon Financial Group Limited, a closed-ended investment company that is traded on Euronext in Amsterdam N.V. and on the Specialist Fund Segment of the main market of the London Stock Exchange.
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(END) Dow Jones Newswires
June 23, 2020 03:30 ET (07:30 GMT)