Healthcare sector comment – June 2012

Date

June saw the completion of 17 transactions.

One deal that stood out this month was Accord Group’s acquisition of Nottingham-based Direct Health Group in a deal which will lead to the creation of 2,000 jobs over the next three years. This is a natural extension to Accord’s health and social care business, and will see the housing group double its health and social care turnover, and providing around 3.5 million hours of home-based and residential care each year.

Also this month, private equity firm Bowmark Capital acquired Care Fertility Group, one of Britain’s largest IVF clinics, from General Healthcare Group for an estimated £60m. It is likely that General Healthcare Group, a UK private hospital operator, would use some of the sale proceeds to pay down its net debt, which stands at £2.3 billion.

Deals

Heritage Care Ltd acquired Home Support Staffordshire Ltd for an undisclosed amount. Heritage Care is a charity providing care and support. Home Support Staffordshire is a personal care and practical support services company.

Abingdon Health Ltd acquired Forsite Diagnostics Ltd for an undisclosed amount. Abingdon Health is a specialist medical diagnostics company. Forsite Diagnostics is a lateral flow diagnostics manufacturer.

United Drug Plc acquired Watermeadow Medical Ltd for a consideration of £13m. United Drug is a healthcare services company specialising in the areas of healthcare supply chain, sales & marketing and medical packaging. Watermeadow Medical is a medical communications company.

Arriva Plc acquired Ambuline Ltd for an undisclosed amount. Arriva is a transport services organisation. Ambuline is an ambulance services company.

McCann Healthcare Worldwide acquired Double Helix Bio-Technology Development Ltd for an undisclosed amount. McCann Healthcare is a company engaged in healthcare communications network. Double Helix Bio-Technology Development is a global provider of market research and market access services to the pharmaceutical and medical device industries.

Bowmark Capital LLP acquired Care Fertility Group Ltd for an estimated consideration of £60m. Care Fertility Group is a company engaged in providing fertility treatment, genetic diagnosis, screening techniques and associated fertility preservation procedures.

Accord Group acquired Direct Health Group Ltd for an undisclosed amount. Direct Health Group is a home care company. Accord Group is a provider of housing and health and social care.

Optegra UK Ltd acquired Prospect Eye Clinic Ltd for an undisclosed amount. Optegra is an eye hospital group. Prospect Eye Clinic is an eye clinic.

The European Bank for Reconstruction and Development, UFG Private Equity and CapMan Plc acquired KDL Group for an undisclosed amount. KDL Group is a company specialised in medical laboratory diagnostics.

Systagenix Wound Management Ltd acquired the assets of O2 Insights Inc for an undisclosed amount. Systagenix Wound Management is a provider of wound care products. O2 Insights is a wound care diagnostic system developer.

OMERS Private Equity Inc acquired Lifeways Community Care Ltd for a consideration of £210m. OMERS Private Equity is a private equity firm. Lifeways Community Care is a provider of supported living services for adults with learning disabilities.

BHSF Group Ltd acquired Abbott Burke Associates Ltd for an undisclosed amount. BHSF Group is a not-for-profit health insurer. Abbott Burke Associates is an occupational health company.

Dhais Plc acquired its hearing and mobility store in Staines, UK for a consideration of £0.6m. Dhais is a marketer and retailer of hearing and mobility products.

CareFusion Corporation acquired UK Medical Ltd for an undisclosed amount. CareFusion is a healthcare company providing products in medication management, respiratory care and infection prevention. UK Medical is a medical product wholesaler.

Sectra AB acquired Burnbank Systems Ltd and its subsidiary Burnbank Healthsystems Ltd for a consideration of £8m. Sectra is a provider of medical systems and secure communication systems. Burnbank Systems is an IT support company and Burnbank Healthsystems is a healthcare software developer.

GE Healthcare Ltd acquired XPRO Sistemas Ltda for an undisclosed amount. GE Healthcare is a provider of medical technologies and services. XPRO Sistemas Ltda is an interventional X-ray equipment manufacturer company.

ConvaTec Inc acquired Trio Healthcare International Ltd for an undisclosed amount. ConvaTec is a provider of ostomy care and advanced wound care products and services. Trio Healthcare is a manufacturer of accessory products for ostomy care.