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Investors Buy Near-Majority Stake in Alliance Medical

Alliance Imaging Inc., the Anaheim medical diagnostic services provider, said Monday a pair of investors bought a combined 49.7% stake in the company.

Funds managed by Oaktree Capital Management LLC of Los Angeles and New York-based MTS Health Investors LLC bought about 24.5 million shares of Alliance from Kohlberg Kravis Roberts & Co. for $153.1 million.

When the deal’s complete, Kohlberg Kravis Roberts, which had been Alliance’s majority shareholder for seven years, will own less than 3%. The deal is scheduled to close July 1, subject to regulatory and lender approval.

Oaktree and MTS also agreed to what’s called a “standstill” arrangement, under which they aren’t allowed to raise their combined stake in Alliance above 49.9% without the consent of a majority of Alliance’s independent directors.

After the deal closes, three of Alliance’s directors affiliated with Kohlberg Kravis Roberts will resign and three nominees of Oaktree and MTS will join the company’s board.

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