The long-term care (LTC) products market is currently attracting attention. Drive Medical – the UK-based subsidiary of Medical Depot Inc., a manufacturer of durable medical equipment backed by private equity firm Ferrer Freeman & Company – made its fourth acquisition in 18 months in this space with the purchase of DeVilbiss Healthcare. These deals will create a worldwide leader in respiratory, sleep and durable medical products. Drive Medical’s previous deals in the space include:
- the acquisition of Specialised Orthotic Services Ltd (SOS), a manufacturer and distributor of specialised seating and mobility products;
- the purchase of the Days Healthcare Products business of Patterson Medical Ltd, which manufactures healthcare products for the elderly; and
- the acquisition of Park House Healthcare, a pressure area care equipment, hospital beds and moving & handling equipment supplier.
Other recent deals in the long-term care products market include private equity company Nordic Capital’s acquisition of US-based Sunrise Medical, and French multinational industrial company Air Liquide’s acquisition of Ireland-based Baywater Healthcare.
All these deals reflect the interest in LTC products to meet the growing market which is serving the needs of the ageing population. The long-term funding model is under financial pressure, with many questions about how governments will pay for LTC. Any technology or products that can support LTC solutions cost effectively will be attractive to investors and trade buyers, and the space will see continued interest over the next 12-18 months.
Clearwater International has experience in this market, having previously advised NASDAQ-listed Prism Medical on the sale of its UK subsidiary, Prism Medical UK, to UK private equity firm LDC.
Health and social care
UAE-based hospital company NMC Health acquired Americare Group, the UAE-based home health care provider, for a consideration of €30m.
HICL Infrastructure Company Ltd, the LSE-listed investment firm, acquired a 50% stake in the Southmead Hospital PFI Project from Carillion plc for a consideration of €179m. The project is a £430m, 35-year agreement to design, build, finance, operate and maintain an 800-bed hospital.
PAI Partners, the France-based private equity firm, acquired Geriatros S.A.U., the Spain-based company that manages more than 40 retirement homes and day centres, from Magnum Capital Industrial Partners for an estimated consideration of €300m.
UK operator of veterinary centres Willows Veterinary Centre and Referral Service, a portfolio company of UK private equity firm Sovereign Capital Partners, acquired North Downs Specialist Referrals (NDSR) for an undisclosed amount. NDSR is a UK-based specialist, multidiscipline, veterinary referral centre for small animals.
G Square Capital-backed Tracscare, the UK-based provider of care for adults with challenging or complex needs, acquired Brookdale Care for an undisclosed amount. Based in the UK, Brookdale Care provides secure rehabilitation, residential and supported living services for people with autism, mental health conditions and learning disabilities.
Adent Cliniques Dentaires Groupe acquired Cliniques Dentaires de Geneve (CDG) for an undisclosed amount. Adent is part of the Hesira Group, a pan-European dental clinics operator. CDG operates three large dental clinics in Switzerland.
Générale de Santé SA completed the acquisition of Ramsay Sante SA, the France-based private hospital operator, for a consideration of €291m. Générale de Santé operates a network of private hospitals and clinics in France and Italy.
Australia-based radiotherapy provider GenesisCare bought Cancer Partners UK from Apposite Capital for an undisclosed amount. Cancer Partners UK provides cancer care for patients.
US-based investment firms Formation Capital and Safanad acquired Extendicare Health Services for a consideration of €701m. Extendicare Health Services owns and operates health care centres that provide post-acute and long-term nursing care and short-term rehabilitation services.
Pharma & Biotech
Netherlands-based private equity firm Mentha Capital B.V. acquired a majority stake in PharmaVize NV, a Belgium-based company engaged in providing pharmaceutical development services, for an undisclosed amount.
US-based private equity firm Trilantic Capital Partners acquired Doppel Farmaceutici Srl, the Italy-based company engaged in pharmaceutical research, development, formulation, manufacturing and packaging, for an undisclosed amount.
Albany Molecular Research Inc. (AMRI) acquired Gadea Grupo Farmaceutico S.L., a Spain-based manufacturer of active pharmaceutical ingredients and related products, for a consideration of €161m. AMRI is a US-based contract research and manufacturing organisation.
UK investment company Woodford Investment Management, Ireland-based investment firm Malin Corporation, US-based pharmaceutical company Eli Lilly and Company Limited, and US-based healthcare focused investment management firm RTW Investments acquired an undisclosed stake in Immunocore Limited, the UK-based biotechnology company, for a consideration of €293m.
Amdipharm Mercury Company Limited (AMCo) acquired Boucher & Muir Pty Ltd, an Australia-based company offering biological, pharmaceuticals products and medical supplies, for an undisclosed amount. AMCo is a UK-based pharmaceutical company.
Quantum Pharma plc, the UK-based company engaged in the manufacture of niche medicines, acquired NuPharm Group, the UK manufacturer of pharmaceutical products, for a consideration of €20m.
French private equity firm Cathay Capital Private Equity, along with the management of Cenexi SAS (the France-based company engaged in contract manufacturing of pharmaceutical products), acquired the company in a MBO transaction for an undisclosed amount.
NYSE-listed healthcare services company Cardinal Health, Inc. acquired The Harvard Drug Group (THDC) from Court Square Capital Partners for a consideration of €1bn. Based in the US, THDC distributes generic pharmaceuticals, over-the-counter medications and related products to retail, institutional and alternate care customers.
Medical Equipment & Supplies
NYSE-listed medical device manufacturer Mindray Medical International Ltd acquired a 49% stake in China-based Wuhan Dragonbio Surgical Implant Co., Ltd, a surgical implant manufacturer, for a consideration of €132m.
Integra LifeSciences Holdings Corporation acquired TEI Medical Inc., a US collagen-based biologic devices manufacturer, for a consideration of €91m, and TEI Biosciences, a US manufacturer of devices used for a broad spectrum of soft tissue repair and regeneration applications, for a consideration of €189m. US-based Integra LifeSciences Corporation manufactures devices used in neurosurgery and orthopaedic surgery.
LSE-listed Smith & Nephew acquired DC LLC, a manufacturer of mid-tier trauma products, and DeOst LLC, a manufacturer of orthopaedic medical equipment, for undisclosed amounts. Both companies are based in Russia. Smith & Nephew is a UK-based medical device company specialising in advanced wound management and surgical devices for orthopaedic reconstruction, sports medicine and trauma.
RoundTable Healthcare Partners, the US-based private equity firm, acquired TIDI Products, a US-based manufacturer and distributor of single-use infection prevention products, for an undisclosed amount.
Vygon SA acquired Perouse Medical SAS, a France-based manufacturer of devices for cardiovascular surgery, oncology, and interventional imaging. Based in France, Vygon manufactures single-use medical and surgical products.
UK-based manufacturer of durable medical equipment Drive Medical Limited, a subsidiary of Medical Depot Inc., acquired DeVilbiss Healthcare LLC, the US-based manufacturer of respiratory and sleep products.
Addtech Life Science AB, a Sweden-based company engaged in selling consumable supplies, diagnostics equipment and process & analysis equipment, acquired Fenno Medical Oy, a Finland-based distributor of medical and laboratory products, for an undisclosed amount.