Healthcare sector comment: Cosmetic surgery

The global cosmetic surgery market is reported to be worth $21.97bn (€18.8bn) by the end of 2023, and projected to grow at a CAGR of ~7.8% during 2017-20231.

This market growth is driven by the rising desire to look youthful. A key driver behind this is the exposure of social media, enhanced photos and the ‘perfect image’ publicity that this brings. Another contributing factor is, in recent years, the increase in the number of males undergoing cosmetic procedures, which has increased by over 300% in the last 20 years2.

Countries experiencing the highest levels of activity in cosmetic surgery include the US, Brazil, Japan, Italy, and Mexico, accounting for 41.4% of the world’s cosmetic procedures3. The demand for cosmetic surgery is also rife in other areas of the world, with half a million Chinese medical tourists currently traveling abroad for cosmetic treatments. Medical tourism is also booming in Central and Eastern Europe, with patients from Germany, the UK and Nordic countries travelling outbound to undergo cosmetic treatments that can be completed in just one day, and are attracted by competitive prices – two to three times lower than in their home countries.

Croatia is fast establishing itself as a hot medical tourism destination, with many Croatian companies clustering together to create an alliance, collaborating to gain in sales and marketing synergies, to achieve a target growth of around 10-15%.

We can expect to see further M&A as cosmetic surgery continues to be an attractive sector within healthcare services, particularly with businesses looking to expand their surgery offerings.

Over the past year we have seen the cosmetic surgery market become active in M&A. Below is selection of deals we have observed over the past 12 months:

Inland Real Estate Acquisitions Inc the US based acquirer of commercial real estate has acquired Surgical Hospital of Oklahoma, the US based provider of surgeries including plastic and cosmetic surgery

Lancy Medical Management Co Ltd the China based provider of healthcare management services has agreed to acquire Shaanxi Gonice Medical Aesthetic Hospital Co., Ltd the China based provider of plastic surgery for €34.1m

Avista Inc the South Korea based company has agreed to acquire Mojelim Co Ltd, the South Korea based provider of plastic surgery and cosmetic surgery services for €20.9m

Guizhou Li Mei Kang Medical Holding Co., Ltd the China based surgery provider has acquired Guangzhou Li Mei Kang Medical Plastic Surgery Outpatient Co., Ltd, the China based plastic surgery services provider

Platinum Dermatology Partners the US based practise management services provider for dermatology groups has acquired the US based Centre for Dermatology and Plastic Surgery

KKR & Co L.P the US based private equity firm has acquired Laser Clinics Australia Pty, the Australian based provider of non-surgical cosmetic treatments for €430.6m

MultiCare Health System Inc the US based not-for-profit healthcare company completed the acquisition of Spokane Washington Hospital Company LLC, the US hospital that provides cosmetic surgery services for €398.7m

Healthe Care Australia Pty Ltd the Australia based private hospital operator completed the acquisition of Pulse Health Limited, the Australia based providers of surgery, including plastic surgery, for €107.4m

Total Face Group Ltd the Australia based provider of non-invasive, non-surgical cosmetic treatments has acquired Lindwill Pty Ltd, the Australia based cosmetic clinic operator

NMC Health Plc the UK based provider of healthcare services has agreed to acquire CosmeSurge Clinics LLC, the UAE based provider of cosmetic surgery Services for €138.7m

1The Cosmetic Surgery Market Forecasts by Revenue, Trends, Share, Demand by 2023

2(BusinessWire) – Cosmetic Surgery – Market Trends and Forecasts: Technavio

3More than skin deep: Global cosmetic surgery industry booming

 

Medical Equipment & Supplies

WW Medical and Healthcare Holdings Corporation the US based medical devices business has acquired Argon Medical Devices Holdings Inc, the US based surgical and medical devices company

Baxter International Inc the US based provider of healthcare products has agreed to acquire RECOTHROM Thrombin Topical and PREVELEAK Surgical Sealant of Mallinckrodt Public Limited Company, the UK based providers of wound care products for €154.5m

Magnum Capital Industrial Partners the Spain based private equity firm has acquired INDIBA SA, the Spain based manufacturer of medical and aesthetics equipment for €60.0m

Guerbet SA the France based medical imaging product provider has acquired Accurate Medical Therapeutics Ltd, the Israel based provider of micro catheter products for €57.0m

DNA Link Inc the South Korea based biotechnology research company has completed the acquisition of L&C Bio Inc, the South Korea based medical and orthopaedic devices manufacturer for €2.7m

Neoss Limited the UK based medical devices company has acquired Arc Solutions AB, the Sweden based manufacturer of medical products

LivaNova plc the UK based medical device manufacturer has acquired CardiacAssist, the US based medical device company for €201.5m

Stryker Corporation the US based medical technology company has completed the acquisition of Entellus medical Inc, the US based provider of equipment for minimally invasive treatment for €562.7m

 

Health & Social Care

Sienna Senior Living the Canada based provider of senior living and long term care has agreed to acquire a Portfolio of 10 seniors assets based in Ontario Canada, for €300.3m

NMC Health plc the UK based provider of healthcare services, has acquired the remaining 49% stake in Fakih IVF LLC, the UAE based fertility clinic operator for €171.2m

MFC Nueterra Holding Company, LLC, the US based provider of healthcare services has acquired Seven Ambulatory Surgical Centres of Meridian Surgical Partners, LLC, based in the US for €72.2m

NorthWest Healthcare Properties Real Estate Investment Trust the Canada based REIT business has agreed to acquire three medical office properties in Berlin and Hamburg and two post-acute care hospitals, for €82.8m

Addus HealthCare Inc. the US based the healthcare services company has agreed to acquire Ambercare Corporation, the US based homecare and hospice care services provider for €32.8m

Alliance Physical Therapy Management LLC the US based rehabilitation services provider has acquired Agility Health LLC, the US based rehabilitation services company for €36.3m

Sabra Health Care REIT Inc the US based REIT company has acquired two skilled nursing/transitional care facilities, in the US for €34.8m

Montreux Healthcare Fund the Switzerland based real estate investment fund has acquired Active Assistance Limited, from UK private equity firm August Equity LLP

Nordic Capital the Sweden based private equity firm has acquired 3 dental clinic companies, two from Hesira group Limited, owned by Oaktree Capital, based in Switzerland and the Netherlands, for c€480m. In addition to this Nordic Capital plan to combine these companies with two German dental clinic operators in a separate transaction worth c€100m. The dental operators include Dental Partner Holding GmbH, which owns 38 laboratories in Germany and Norway, and SFE Beteiligungsgesellschaft GmbH, which owns the Zahnstation GmbH chain in Germany.

Holland Venture Management the Netherlands based private equity firm has acquired Mauritsklinieken Holding B.V., the Netherlands based dermatology specialist, which is expected to expand by 5-8 clinics next year

Bastide Le Confort Médical SA the France based firm which markets medical and paramedical equipment, has acquired Baywater Healthcare Ltd, the UK based homecare services provider

 

Pharmaceutical and Biotechnology

Sanofi the France based manufacturer of therapeutic products has agreed to acquire Bioverativ Inc, the US based biotechnology company focused on the treatment of blood disorders for € 9,007.9m

Celgene Corporation the US based biopharmaceutical company has agreed to acquire Juno therapeutics Inc, the US based developer of cell based cancer immunotherapies for €7,634.6m

Varian Medical systems Inc the US based manufacturer of cancer treatment products has agreed to acquire Sirtex Medical Limited, the Australia based provider of oncology treatments for €972.3m

Takeda Pharmaceutical Company Limited the Japan based pharmaceuticals company has agreed to acquire TiGenix NV, the Belgium based developer of pharmaceutical products for €493.7m

Dechra Pharmaceutical Company Plc the UK based veterinary pharmaceuticals business has acquired AST Farma B.V. and Le Vet Beheer B.V., the Netherlands based manufacture of health products for animals for €299.0m

Novartis Groupe France SA the France based pharmaceuticals company has acquired Advanced Accelerator Applications SA, the France based radiopharmaceutical company for €2,997.6m

Kolmar Korea Co Ltd the South Korea based cosmetic products company has agreed to acquire CJ HealthCare Corp, the South Korea based pharmaceutical vaccine developer for €989.4m

CVC Capital Partners the UK based private equity firm has acquired Teva Pharmaceutical Industries Ltd’s contraception, fertility, menopause and osteoporosis products businesses for €588.3m

DCC Health & Beauty Solutions Ltd the UK based contract manufacturing company has acquired Elite One Source Nutritional Services Inc, the US based supplement contract manufacturer for €40.7m

Guangdong Jiaying Pharmaceutical Co., Ltd the China based medical research company has agreed to acquire Guiyang Dechang Xiang Pharmaceutical Co., Ltd, the China based provider of medicines for €64.1m