Healthcare sector comment – January 2012


An interesting number of private equity deals were announced this month with Graphite Capital acquiring National Fostering Agency and the MBO of Quotient Bioresearch Ltd, funded by TA Associates. There is continued interest from investors in the pharmaceutical outsourcing and social care sub-sectors.

One deal that stood out this month was the joint venture between Smith and Nephew and Essex Woodlands, a specialist healthcare venture capital firm. The new entity will be called Bioventus LLC, which will be 51% owned by Essex Woodlands and 49% by Smith & Nephew. The purpose of the company will be to develop the biologics and clinical therapies business, and for Smith & Nephew to retain access to the orthobiologics pipeline. In addition to its shareholding, Smith & Nephew will receive around £63 million cash, which will be used to reduce borrowing, and a £102 million 5-year note from Bioventus.


The MBO Team acquired Assura LIFT Holdings Ltd for an undisclosed amount. Assura LIFT Holdings, part of Assura Group, is a LIFT investor.

Nuffield Health Ltd acquired Greens Health & Fitness for an undisclosed amount. Nuffield Health provides medical, wellbeing and fitness services. Greens Health & Fitness is a provider of fitness centres.

Graphite Capital LLP acquired National Fostering Agency (NFA) from Sovereign Capital for an undisclosed amount. NFA is a provider of fostering placements for children and works with local authorities and UK foster carers.

Essex Woodlands acquired a majority stake in the biologics and clinical therapies division of Smith & Nephew Plc for an initial cash consideration of £63m. Essex Woodlands is a healthcare venture capital firm. Smith & Nephew manufacture, research and develop medical devices in the fields of orthopaedics, wound management and endoscopy.

Canute International Medical Services (CIMS) acquired Lundy Healthcare Ltd for an undisclosed amount. CIMS, a subsidiary of the Canute Group, is a logistical service provider for operators of mobile medical units, as well as a specialist ‘turn-key’ solutions provider for diagnostic imaging departments. Lundy Healthcare is a provider of medical imaging equipment.

TGH Investments Ltd acquired STT Condigi Holding AB for an undisclosed amount. TGH Investments is a company engaged in the development, manufacture, marketing, installation, servicing and monitoring of community alarms. STT Condigi Holding AB is a Sweden-based elderly care products manufacturer.

TA Associates funded the MBO of Quotient Bioresearch Ltd for an undisclosed amount. Quotient Research is a drug discovery and development company.

Xenetic Biosciences Plc (formerly known as Lipoxen Plc) acquired SymbioTec GmbH for a consideration of £8.8m. Xenetic Biosciences is a company engaged in the development of drug and vaccine delivery systems and proprietary products in the fields of protein drugs, vaccines and oncology. SymbioTec is a Germany-based cancer treatments developer.

Drive Medical Ltd acquired Mountway Holdings Ltd for an undisclosed amount. Drive Medical is a manufacturer and distributor of durable medical equipment in the home healthcare, medical/surgical and rehabilitation markets. Mountway Holdings is a toilet and pillow lift manufacturer.

Quindell Portfolio Plc acquired Mobile Doctors Group Plc for a consideration of £3.3m. Quindell Portfolio is a brand extension company with solutions in consultancy, software and technology-enabled outsourcing. Mobile Doctors Group is a provider of medical evidence services.

Vycor Medical Inc acquired Sight Science Ltd for an undisclosed amount. Vycor Medical, the subsidiary of NovaVision Inc, is a medical device company engaged in targeting solutions in neurosurgery. Sight Science is a neuro-eye therapy support company.

Avacta Group Plc acquired Aptuscan Ltd for a consideration of £1.5m. Avacta Group is engaged in research, development and production of rapid response detection devices for the biopharmaceutical, clinical diagnostics, homeland security and defence markets using biophysical technology. Aptuscan is engaged in developing unique binding agents for the diagnosis and treatment of disease.

P&C Care Ltd acquired Ivy Nursing Home and The Mount Nursing Home for undisclosed amounts. P&C Care is a care home provider. Ivy Nursing Home and The Mount Nursing Home are nursing homes.

Aspen Healthcare Ltd acquired Claremont Hospital for a consideration of £15m. Aspen Healthcare is an operator of hospitals. Claremont Hospital is a UK-based hospital.

Henry Schein Inc acquired Veterinary Instrumentation Ltd for an undisclosed amount. Henry Schein is a provider of health care products and services to office-based practitioners. Veterinary Instrumentation is a veterinary product manufacturer.