A key trend we’ve been following at Clearwater International is the increase in the number of dental practice deals, with 28 worldwide deals already this year. The UK dental market is still very fragmented and we expect to see further consolidation over the next 12 months with dental platforms being used to build larger corporate dental practices.
We also believe that there will be an increase in European deal activity, demonstrated recently by newly formed dental company Hesira who acquired Swiss dental business Adent Cliniques Dentaires Holding SA (‘Adent’). Hesira, who is looking to build a pan-European group of high quality dental clinics, has presence in the Netherlands, Poland and now Switzerland, taking the total number of dental clinics to 28.
Also this month, Singapore-listed Q&M Dental Group enlarged its presence in China through the acquisition of a 60% stake in Aoxin Stomatology Group, an owner and operator of dental clinics, for a consideration of €13.3m. Q&M, who also has presence in Singapore and Malaysia, adds another three dental hospitals and three dental clinics with “ready-made stage and presence” to its holding in China.
This is a space that Clearwater International knows well, previously advising UK private equity firm Synova Capital on its acquisition of the Dental Buying Group (“DBG”), the UK’s leading provider of dental products and services.
Health & Social Care Deals
Hesira Group Ltd acquired Swiss dental chain Adent Cliniques Dentaires Holding SA from Swiss Equity Capital Partners SA for an undisclosed amount. Hesira Group is a new UK dental company founded by the ex-CEO of Oasis Healthcare, Malcolm Hughes.
Moonray Healthcare-owned Optegra, the UK-based eye hospital operator, acquired New Vision Eye Clinic for an undisclosed amount. New Vision is a specialist eye hospital based in China.
Bridges Ventures LLP’s portfolio company Alina Homecare Ltd acquired a homecare services provider, based in the Midlands, UK, for an undisclosed amount. Alina Homecare is a UK based care provider.
Groupe Sinoué, the French mental healthcare specialist, acquired Florence Nightingale Hospitals, the UK subsidiary of Sweden-based European healthcare provider Capio Groupe, for an undisclosed amount. Florence Nightingale Hospitals operates the Capio Nightingale Hospital, an independent mental healthcare facility in London, UK.
US private equity firm Summit Partners acquired Independent Vetcare (IVC) from August Equity, for a reported consideration of €125m. IVC is a group of 114 veterinary practices located throughout the UK.
Target Healthcare REIT, a specialist investor in high quality, purpose-built UK care homes and other healthcare assets, acquired four specialist care bungalows and three care homes from Zest Investment Group for €25.7m.
Care Fertility Group Ltd acquired The South East Fertility Clinic Ltd (SEFC) for an undisclosed amount. Care Fertility, a portfolio company of Bowmark Capital LLP, is a UK-based provider of fertility services. SEFC is a UK-based fertility clinic operator.
Acadia Healthcare Company Inc acquired UK mental healthcare provider Partnerships in Care (PiC) for a consideration of approximately €485m. Based in the US, Acadia Healthcare provides in-patient behavioural healthcare services.
Pharma & Biotech Deals
Packaging Coordinators Inc acquired Penn Pharmaceuticals Services Ltd, a UK-based pharmaceuticals manufacturer, for a reported consideration of €159.5m. Packaging Coordinators is a global leading packaging services provider based in the US.
4D Pharma plc acquired The Microbiota Company Ltd, an irritable bowel syndrome patented bacteria research and development firm, for a consideration of €2.55m. 4D Pharma is a UK pharmaceutical company.
Bridgepoint Development Capital, the UK-based private equity arm of Bridgepoint Capital Ltd, acquired Phlexglobal Ltd for a consideration of €52.8m. Phlexglobal, based in the UK, provides technology-enabled document management solutions and other support services to the global clinical research market.
Chiltern International Ltd acquired Ockham Development Group Inc for an undisclosed amount. Chiltern and Ockham are both full-service contract research organisations (CROs) based in the UK and the US respectively. Post-acquisition, both companies will merge their operations.
UK pharmaceutical group Hikma Pharmaceuticals plc acquired the assets of Bedford Laboratories, a US generic injectables business, for a consideration of approximately €224.2m. The assets acquired included a large product portfolio and a R&D and business development pipeline.
Concept Life Sciences, a newly formed international scientific laboratory and consultancy business, created with backing from private equity firm Equistone Partners, acquired three companies: Peakdale Molecular Ltd, a UK-based drug discovery firm; Resource & Environmental Consultants Ltd, a UK-based environmental consulting firm; and Scientific Analysis Laboratories Ltd, a UK-based scientific laboratory services firm, for a combined consideration of approximately €74.7m.
ReproCELL Inc acquired Reinnervate Ltd, a UK cell growth research and development services company, for a consideration of €3.3m. ReproCELL, based in Japan, develops diverse products with an underlying theme that focuses on stem cell technology.
Actavis Inc, the Irish pharmaceutical company, acquired Forest Laboratories Inc for a reported consideration of €18.3bn. Forest is a US-based manufacturer and wholesaler of prescription pharmaceuticals.
Medical Equipment & Supplies Deals
Merz Pharmaceuticals GmbH acquired Ulthera Inc, a US-based therapeutic ultrasound platform technology-based medical devices manufacturer, for a reported €448m. Merz is a pharmaceutical company based in Germany.
SunTech Medical Inc, a US supplier of clinical grade blood pressure monitoring products and technologies, acquired King’s College London’s central blood pressure technology as well as the assets of UK-based Centron Diagnostics Ltd, including the clinically-validated cBP301 Central Blood Pressure Monitor, for an undisclosed amount.
Medtronic Inc, the US medical technology company, acquired Visualase Inc for a consideration of approximately €78.4m. Visualase is a US developer and marketer of MRI-guided laser and image-guided system for minimally invasive neurosurgeries.
Progility plc acquired Starkstrom Group Ltd for a consideration of €12.2m. Progility is a project management services provider based in the UK. Starkstrom Group is the holding company of Starkstrom Ltd, a UK-based project management services’ company specialising in manufacturing and supplying medical infrastructure equipment for operating theatres and intensive care units.
ViaLogy plc acquired Premaitha Health Ltd, a molecular diagnostics tests developer based in the UK, in a reverse takeover deal valued at €13.2m. The enlarged business has been re-named Premaitha Health plc and is listed on the London Stock Exchange’s trading platform, AIM.
Medivators BV, the Netherlands-based subsidiary of Cantel Medical Corp, acquired PuriCore International Ltd for a consideration of €20m. Medivators is a provider of infection prevention and control products and services. PuriCore International is the UK endoscopy business of PuriCore plc.