Healthcare sector comment – October 2012

Dato

Mitie Group acquires Enara.

October saw the completion of 7 deals. An interesting announcement this month was Mitie Group Plc’s acquisition of Enara Group Limited, for £110.8 million. The transaction was valued at an estimated 1.2x sales and 9-10x EBITDA. Enara is the fourth largest provider of home care services in the UK and will give Mitie a scalable platform to compete in the growing outsourced health and social care sector. We predict you will see more outsourcing companies entering this sector through acquisitions over the next 12 months.

Deals

Johnson Matthey Investments Ltd acquired Tracerco Asia Sdn Bhd for a consideration of £1.2m. Tracerco Asia is a Malaysia-based patented nucleonic instruments provider.

Alliance Pharmaceuticals Ltd acquired Opus Group Holdings Ltd for a consideration of £9.5m. Alliance Pharmaceuticals is a subsidiary of Alliance Pharma which is a pharmaceutical company. Opus Group is a stoma care products wholesaler.

The Co-Operative Bank provided management with debt to support the acquisition of Surepharm Services Ltd. Surepharm Services is a UK-based contract pharmaceutical products manufacturer. The MBO was led by managing director Mr Julian Richardson, new finance director Mr Julian America and directors Mr Andrew Ingley and Mr Andrew Corbett.

Cinven Ltd and the management team of Amdipharm plc acquired the business for a consideration of £367m. Amdipharm is a niche pharmaceuticals business.

Mitie Group plc acquired Enara Group Ltd from August Equity LLP for a consideration of £110.8m. Mitie Group is a home care company. Enara Group provides care to people who require support due to illness, disability or infirmity in their own homes.

Diversified Agency Services (DAS) acquired Chameleon Communications International Ltd for an undisclosed amount. DAS manages holdings in a variety of marketing disciplines, including customer relationship management, public relations and specialty communications. Chameleon Communications is a medical communications company providing services to the pharmaceutical, biotech and medical device industries.

Housing Options merged with The Association For Supported Living Ltd. Housing Options is a housing membership society. The Association for Supported Living is a supported living membership society. The combined company is to be known as Housing and Support Alliance.