Healthcare sector comment – December 2011

Dato

GSK continues to shed it’s OTC consumer brands.

A deal that stood out this month was the announcement that GSK sold 17 of its OTC consumer brands to Prestige Brands Inc. The brands being divested include BC, Goody’s, Beano, Ecotrin, Fiber Choice, Tagamet and Gaviscon, and generated sales of £134 million in 2010 and £98 million in the first nine months of 2011. In early 2011 GSK announced that it wanted to shed approximately 10 percent of its consumer portfolio in order to focus more on emerging markets and concentrate on larger priority healthcare brands.

Another interesting outbound deal this month was the announcement that UK based Advanced Medical Solutions Group (AMS) acquired Germany based Resorba from Brockhaus Private Equity, for a cash consideration of €63.8m on a debt free and cash free basis. AMS is a UK supplier and manufacturer of medical equipment and wound care products. Resorba is engaged in the development, production and distribution of surgical sutures and collagen products for all surgical disciplines in hospitals and private practices. Resorba reported revenues of €20.1m and EBITDA of €7.2m for the year ended 31 December 2010. This acquisition will enhance AMS’s product portfolio with complimentary technology to be supplied into the operating rooms and will enable them to enter new markets and increase their operations.

Deals

JM McGill Ltd has acquired Knollbeck Pharmacy for an undisclosed amount. JM McGill is a Yorkshire based pharmacy. Knollbeck Pharmacy is a Barnsley based pharmacy.

Prestige Brands Holdings Inc has acquired GlaxoSmithKline Plc’s 17 OTC consumer brands for a consideration of £426m. Prestige Brands is a US based company providing and distributing over-the-counter household and healthcare products. GlaxoSmithKline is a research based pharmaceutical and healthcare provider.

Alliance Pharmaceuticals Ltd has acquired Ferndale Pharmaceuticals Ltd’s Quinoderm and Ceanel brands for a consideration of £1.5m. Alliance Pharmaceuticals is a wholesaler of pharmaceutical products. Ferndale Pharmaceuticals is a provider of skincare and topical therapeutic products; Quinoderm is a treatment for acne and Ceanel is a treatment for psoriasis.

Barentz Europe B.V. has acquired Forum Products Ltd for an undisclosed amount. Barentz Europe is a Netherlands-based company engaged in the purchase, marketing, logistics, and distribution of raw materials for food, pharmaceutical, animal nutrition, and industrial applications. Forum Products is a provider of pharmaceutical, fine chemicals, animal nutrition, animal health, food ingredients and functional foods and supplements.

Independent Vetcare Ltd has acquired Berry House Ltd for an undisclosed amount. Independent Vetcare, backed by August Equity is a veterinary group formed through the merger of Advanced Vetcare Ltd and Rowe Veterinary Group. Berry House is a provider of veterinary services.

The Air Ambulance Service has acquired The Children’s Air Ambulance for an undisclosed amount. The Air Ambulance Service is an association of ambulances. The Children’s Air Ambulance is a bespoke helicopter transfer company.