Healthcare Sector Comment – December 2016

Transaction activity is booming in the elderly residential care market. This is being driven on by the availability of cheap debt, an increasingly ageing population, rising demand for specialist care for conditions such as dementia, and reablement care.

In the last month alone we have seen the following transactions:
• Second Spring Healthcare Investments acquired a portfolio of 64 skilled nursing facilities from Welltower Inc., the listed US real estate investment trust, for €990m.
• AIM Group Holding Limited bought a portfolio of three senior living communities in areas surrounding Washington D.C. and Atlanta, for €104m.
• SHA Housing Limited purchased a €30m portfolio of supported living assets from Topland Group.

Clearwater International’s French team have recently completed deals in the care home sector, including having advised Colisée Group on the acquisitions of elderly home care providers, Bien à la Maison and Nouvel Horizon Services. They have also advised Primonial REIM, the French real estate investment trust on the acquisition of Gecina’s healthcare division of 74 clinics and nursing homes.


A taste of deals in November

Medical Equipment & Supplies

CooperSurgical, Inc., the US-based manufacturer of medical instruments, devices and disposables, with a focus on women’s healthcare and minimally invasive surgery acquired the in-vitro fertilisation segment (Wallace product line) of Smiths Medical, Inc., the US-based manufacturer of infusion therapy devices, for €157m.

Surgical Innovations Group plc, the UK-listed manufacturer of minimally invasive surgery devices acquired the laparoscopic instruments business of Surgical Dynamics Ltd, the UK-based manufacturer of surgical instruments.

Boston Scientific Corporation, the listed US manufacturer of medical devices for use in various interventional medical specialties acquired the gynecology and urology portfolio of Distal Access, LLC, the US-based manufacturer of guidewires, catheters and controllers.

Bruker Energy & Supercon Technologies, Inc., the US-based developer of superconducting materials and devices acquired Oxford Instruments Superconducting Wire LLC, the US-based supplier of superconducting wire for use in MRI scanners and other medical and scientific applications, for €17m.

Brooks Automation, Inc., the listed US-based provider of automation, vacuum and instrumentation solutions acquired Cool Lab, LLC, US-based manufacturer of equipment for the cooling and freezing of lab samples, for €13m.


Health & Social Care

Mainstreet Health Investments Inc., the listed Canadian developer of healthcare properties acquired four transitional care properties in Texas and Kansas, for €63m.

National Health Investors Inc., the listed US real estate investment trust acquired Shoreline Life Care LLC, the US-based operator of retirement communities, for €67m.

Renaissance Care (Scotland) Ltd., the UK-based provider of residential care for the elderly acquired a 58-bed care home in Whitecraigs from Four Seasons Health Care Limited, the UK-based operator of care homes.

Bright Horizons Family Solutions Inc., the listed US provider of day care and early education for children acquired Asquith Nurseries Limited, the UK-based provider of premium childcare and education for under-fives, for €189m.

LeMaitre Vascular, Inc., the US-based manufacturer of devices for vascular surgeons and interventional radiologists acquired Restore Flow Allografts, LLC, the US-based company engaged in providing research for restorative transplantation of donated human tissue, for €16m.

Wolters Kluwer Health, Inc., the US-based provider of information and business intelligence acquired Emmi Solutions, LLC, the US-based provider of patient engagement technology solutions to healthcare organisations, for €152m.


Pharmaceuticals & Biotechnology

WuXi PharmaTech, the China-based pharmaceutical, biotechnology, and medical device research and development services provider acquired Jiangsu Safe Pharmaceutical Co., Ltd, the China-based pharmaceutical company engaged in manufacturing capsules, tablets, creams and suppositories, for €8m.

Bionical Limited, the UK-based provider of clinical, commercial and communications services acquired Emas Pharma Limited, the UK-based provider of pharmaceutical development and clinical research services.

Partners Group Holding AG, the Switzerland-based private equity firm acquired a majority stake in PCI Pharma Services, the US-based provider of analytical, formulation development, clinical trial supply, commercial manufacturing and packaging, supply chain management, storage and distribution services.

Novartis AG, the listed Switzerland-based developer of human health care, consumer health, agribusiness and animal health products acquired Selexys Pharmaceuticals Corporation, the US-based developer of drugs to treat inflammatory and thrombotic diseases, for €627m.

Allergan plc, the US-listed, Ireland-based developer of branded pharmaceutical products acquired Chase Pharmaceuticals Corporation, Inc., the US-based developer of medications for the treatment of neurologic and psychiatric diseases, for €118m.

Metalmark Capital LLC, the US-based private equity firm acquired a majority stake in Premier Research Group plc, the UK-based provider of clinical trials and support services to pharmaceutical companies.

Ergomed plc, the listed UK-based contract clinical research services provider acquired European Pharminvent Services, s.r.o., the Czech Republic-based provider of pharmacovigilance, pharmaceuticals risk management, regulatory science and clinical development, for €5m.