Healthcare Sector Comment – April 2013

Date

April saw the completion of 12 deals in the UK healthcare market. An interesting announcement this month was Bridgepoint’s acquisition of Oasis Healthcare, from private equity firm Duke Street Capital, for £185m. Oasis, which was founded in 1996, operates over 200 dentals practices across England, Wales and Northern Ireland and offers both NHS and private dental care services. The Company is looking to diversify its service offerings and set up some new practices as well as buying existing properties. The dental market is still highly fragmented and ripe for consolidation as corporates only own 10% of the market.

Another interesting announcement this month was Bupa’s acquisition of LUX MED Group, the largest private healthcare provider in Poland from private equity firm Mid Europa Partners, for a consideration of £325.5m. Bupa recently sold £500m worth of bonds in order to fund part of this acquisition. The deals marks Bupa’s entry into Poland, one of the most attractive markets in Central and Eastern Europe due to the size of its population, rising levels of disposable income and long-term growth potential.

Deals

Source BioScience plc, the genetic analysis and diagnostics company, acquired Inverclyde Biologicals Ltd, for a consideration of £1.3m. Inverclyde Biologicals is a UK-based blood group serology reagent manufacturer.

Argos Soditic France SAS, alongside the management team, acquired Natural Distribution (Holdings) Ltd, the UK-based health food supplement online retailer, for an undisclosed amount.

Mears Group plc acquired Independent Living Services (ILS) Ltd, for a consideration of £22.5m. Mears Group is a listed UK-based social housing maintenance company. ILS provides home nursing services to around 3,400 patients and over 40% of its work is in providing higher acuity care.

Springfield Homecare Services Ltd, the domiciliary care business part of Springfield Healthcare Group and backed by the Business Growth Fund (BGF), acquired Positive Life Choices Ltd, for an undisclosed amount. Positive Life Choices is a home healthcare company.

The Carlyle Group, in partnership with Palamon Capital Partners, acquired the healthcare support services provider dbg for an undisclosed amount.

Bayfield & Bartlam Optical Ltd acquired Patterson Opticians, for an undisclosed amount. Bayfield & Bartlam and Patterson are both UK-based opticians’ operators.

Bupa acquired LUX MED Group, from private equity firm Mid Europa Partners, for a consideration of £325.5m. Bupa is a UK-based health insurance and healthcare services provider. LUX MED is the largest private healthcare provider in Poland.

Four Seasons Health Care Ltd acquired Optimum Care Ltd, from Graphite Capital, for an undisclosed amount. Four Seasons, is a UK-based owner and operator of care centres, hospitals, and nursing homes. Optimum Care is a UK-based company engaged in providing home and care services to elderly residents.

Care UK acquired Living Ambitions Ltd, for an undisclosed amount. Care UK is a provider of health and social care services. Living Ambitions is a UK-based home support service provider offering support services to adults with learning disabilities.

Pets at Home Ltd acquired Vets4Pets Ltd, for a consideration of £30m. Pets at Home is a UK-based retailer of pet foods and products. Vets4Pets is a Channel Islands based company that offers veterinary care for pets.

Livingbridge acquired a minority stake in Create Health, the UK-based fertility clinic business, for a consideration of £5m.

Bridgepoint acquired Oasis Healthcare Ltd, for a consideration of £185m. Oasis Healthcare is a UK-based company providing dental services.