Healthcare sector comment – February 2013

Dato

February saw the completion of 13 deals in the UK healthcare market. An interesting announcement was Perrigo’s acquisition of Rosemont Pharmaceuticals for £180m consideration. Rosemont, a specialty and generic prescription pharmaceutical company, with a portfolio of more than 90 products, focuses on oral liquid medicines for patients who have difficulty in swallowing tablets and capsules. The firm supplies its products through hospitals, wholesalers and retail pharmacies. In 2012, Rosemont recorded revenue of £40 million valuing the transaction at 4.5x sales. Perrigo, which has been acquisitive lately, anticipates the Rosemont transaction is in line with their strategy to enhance their global footprint.

Deals

City & County Healthcare Group Ltd acquired ISS Healthcare Ltd for an undisclosed amount. City & County is one of the UK’s largest domiciliary care businesses. ISS Healthcare is a domiciliary care provider.

Bunzl plc acquired McNeil Surgical Pty Ltd for an undisclosed amount. Bunzl is a company engaged in providing value added distribution and outsourcing services. McNeil Surgical is an Australia-based company engaged in the sale of healthcare consumables and equipment to aged care facilities, hospitals and medical centres. The transaction was valued at 4.5x sales.

Oakdeane Investments Ltd acquired The Health Centre, the UK-based health centre operator, for an undisclosed amount.

GE Capital and Barclays provided £6m to Hospedia, a provider of point of care systems in healthcare, including media, information, and clinical support software and infrastructure services.

Care UK acquired UK Specialist Hospitals Ltd for a consideration of £70m. Care UK is a provider of health and social care services. UKSH is a leading edge independent sector healthcare company with a first class record of achieving quality, innovation and efficiency in providing healthcare to both NHS and private patients.

Hikma Pharmaceuticals plc, the multinational pharmaceutical group, acquired Egyptian Company for Pharmaceuticals & Chemical Industries for a consideration of approx. £13.6m.

Sogeval SA acquired Alstoe Ltd for an undisclosed amount. Sogeval, part of the Sofiproteol Group, is a France-based veterinary drug company that develops, produces, and markets veterinary products under its own brands and for third-party companies. Alstoe is a UK-based animal healthcare products wholesaler.

Perrigo Company acquired Rosemont Pharmaceuticals for a consideration of £180m. Perrigo is a US-based company that manufactures and markets over-the-counter drugs. UK-based Rosemont is a speciality and generic prescription pharmaceutical company focused on the manufacturing and marketing of oral liquid formulations.

Grovepoint Capital LLP acquired Algatechnologies Ltd for a consideration of £32m. Algatechnologies is an Israel-based biotechnology company engaged in the production of natural astaxanthin for nutraceuticals and food applications.

Albion Ventures invested £2m in healthcare software firm MyMeds&Me, a provider of a web-based platform for product complaints and medical information for pharmaceutical companies.

Primary Health Properties plc acquired an undisclosed newly incorporated single purpose company that has entered into a contract for a purpose built medical centre in Worcester, for a consideration of £4.5m.

Palatine Private Equity made an undisclosed investment in UK private medical insurance broker Chase Templeton.

Angiodynamics Inc. acquired Microsulis Medical Ltd for a consideration of £10.1m. Angiodynamics is a US-based provider of innovative, minimally invasive medical devices for vascular access, surgery, peripheral vascular disease and oncology. Mircosulis Medical is a UK specialist medical device company providing solutions in microwave ablation.