Healthcare sector comment – Sept 2012

Date

September saw the completion of 10 deals. An interesting announcement this month was Alliance Boots acquisition of a 12% stake in Nanjing Pharmaceutical, the fifth largest pharmaceutical wholesaler in China. The decision to acquire a stake in Nanjing Pharmaceutical is indicative of Alliance’s determination to bolster its presence in the lucrative Chinese market, having already secured a joint venture with Guangzhou Pharmaceuticals, the sixth largest pharmaceutical wholesaler in China. Nanjing Pharmaceutical is an attractive proposition for Alliance, since the company is listed on the Shanghai Stock Exchange and enjoyed sales of £2 billion last year. Alliance Boots is aiming at 20-30 % of the distribution market in China.

Another interesting announcement this month was Advent’s full public offer for Mediq. Mediq is an international provider of medical devices and pharmaceuticals via three distribution channels: directly to people’s homes; hospitals and other care institutions; and via Mediq’s 226 pharmacies. We will keep a close eye on the progress of this proposed transaction.

Deals

Innisfree Group Ltd acquired Central Nottinghamshire Hospitals (Holdings) Ltd for an undisclosed amount. Innisfree Group is an infrastructure investment company. Central Nottinghamshire Hospitals is a hospital construction company.

Quindell Portfolio Plc acquired Overland Health Ltd for a consideration of £14m. Quindell Portfolio is a provider of sector leading expertise in software, consulting and technology enabled outsourcing in its key markets; insurance, telecommunications and their related sectors. Overland Health is a rehabilitation centre operator.

Illumina Inc. acquired Bluegnome Ltd for an undisclosed amount. Illumina develops innovative array-based solutions for DNA, RNA, and protein analysis. Bluegnome is a UK-based genetic software developer.

Priory Group acquired High Quality Lifestyles Ltd for an undisclosed amount. Priory Group is a provider of acute mental health care, secure and step down services, specialist education, complex care and neuro-rehabilitation services, fostering and care homes. High Quality Lifestyles is a UK-based company that provide specialist care to people with learning disabilities and autism.

Alliance Boots acquired a 12% stake in Nanjing Pharmaceutical Ltd for a consideration of £55m. Alliance Boots is a company engaged in pharmacy-led health and beauty retailing and pharmaceutical wholesaling. Nanjing Pharmaceutical is a listed China-based pharmaceutical company.

Metric Capital Partners LLP backed management and acquired Kedleston UK Limited for an undisclosed amount. Kedleston is engaged in provision of care, education and support services for children with emotional, behavioural and learning disabilities.

City and County Healthcare Group Ltd acquired Conard Care Services Ltd for an undisclosed amount. City and Country Healthcare is a provider of home care and support services. Conrad Care Services is a home care company.

St George’s Veterinary Group Ltd acquired Cornerstone Veterinary Centre‘s Perton-based clinic for an undisclosed amount.

Elder Homes Group acquired Basford Hurst Ltd‘s residential care home in Cheddleton for an undisclosed amount. Elder Homes is a company that provides retirement housing.

Benchmark Holdings Ltd acquired Novartis Animal Health vaccine manufacturing plant in Braintree for an undisclosed amount. Novartis Animal Health produces licensed veterinary vaccines for Novartis and other major pharmaceutical companies.

Fitzroy Support acquired Searchlight Workshops for an undisclosed amount. Fitzroy Support is a national charity that helps people with learning disabilities to live more independently. Searchlight Workshops is a UK-based charity services provider for the learning disabled.