Healthcare Sector Comment – August 2013

Date

August saw the completion of 9 deals in the UK healthcare market. A noticeable deal was Caledonia Investments’ acquisition of Choice Care Group for £86m, which was valued at 9.7x EBITDA multiple. The Choice Care Group, which was owned by Sovereign Capital, comprises of Choice Holdings, Truecare Holdings and Choice Pathways. This investment was in line with Caledonia’s long-term strategy to invest in high quality specialist care homes.

This month also saw STADA Arzneimittel acquire Thornton & Ross Limited for £221m, which was valued at 3.3x sales multiple. The acquisition establishes a foothold for STADA in the UK, whilst also supporting long-term growth objectives as its international business activities continue to focus on strengthening presence in the area of branded products for self-medication.

Deals

The British United Provident Association Ltd (BUPA) acquired Richmond Care Villages Holdings Ltd for an undisclosed amount. BUPA is a UK healthcare organisation. Richmond is a UK retirement living village operator.

STADA Arzneimittel AG acquired Thornton & Ross Ltd for a total consideration of £221m. STADA is a German pharmaceutical company. Thornton is a pharmaceuticals and healthcare products developer and manufacturer.

Priory Group Ltd acquired Mount Eveswell for an undisclosed amount. The Priory Group is a UK independent provider of mental health care facilities. Mount Eveswell is a UK brain injury rehabilitation home operator.

Christchurch Court Holdings Ltd acquired Hunters Moor Residential Ltd for an undisclosed amount. Christchurch is a UK neurological rehabilitation business. Hunters Moor is a UK neuro-rehabilitation care centre operator.

Caledonia Investments plc acquired Choice Care Group for a total consideration of £86m. Choice Care Group is a UK specialist care homes provider.

Health Care REIT Inc acquired Willowbrook Healthcare Ltd for an undisclosed amount. Health Care REIT is a US real estate investment trust. Willowbrook is a UK elderly care home network operator.

Elysian Capital I Fund backed the management buy-out of Accelyon Ltd for an undisclosed amount. Elysian Capital is a UK Private equity fund. Accelyon is a UK company specialising in supplying brachytherapy seeds and associated accessories and equipment.

Oxford PharmaGenesis Ltd has been acquired by its Management Team for an undisclosed amount. Oxford is a UK provider of medical communications consultancy services.

Specsavers Optical Group Ltd acquired Healthcall Optical Services Ltd for an undisclosed amount. Specsavers is a UK retail chain that offers optician services, eyeglasses, contact lenses and hearing aids. Healthcall is a UK mobile optical company.