Healthcare sector comment – December 2012

Date

Interserve acquires Advantage Healthcare Ltd.

December saw the completion of 13 deals in the UK Healthcare market. An interesting announcement this month was Interserve’s acquisition of Advantage Healthcare Ltd for £26.5m. The transaction was valued at c.0.67x sales and 8.8x EBITDA. The acquisition expands Interserve’s public sector service proposition in the UK. This widens Interserve’s access to the £10bn community healthcare market by offering a range of healthcare services at home. It was rumoured they were an under bidder for Enara that was recently acquired by Mitie, and they will continue to look at further acquisition in the home care market.

Another interesting announcement this month was DCC plc acquisition of Kent Pharmaceuticals for £58m. The transaction was valued at 0.8x sales and 6.7x EBITDA. Kent Pharma is involved in the development, manufacture, sales, marketing and distribution of generic pharmaceuticals for British, Irish and International markets. The acquisition of Kent Pharma is in line with DCC Healthcare’s stated strategy for the development of its pharma business. Over time the enhanced pharma regulatory and business development capability will also create opportunities for sales development in other geographic markets, in particular within the EU and in the Middle East and North Africa region. Furthermore, the combined business will provide a strong platform for further product in-licensing and bolt on acquisition opportunities.

Deals

Smith & Nephew plc acquired Healthpoint Biotherapeutics for a consideration of £480.4m. Smith & Nephew is a global medical technology company. Healthpoint Biotherapeutics is a Texas-based biotherapeutics manufacturer.

Mytime Mend acquired MEND (Mind, Education, Nutrition, Do it!) for an undisclosed amount. Mytime Mend, a subsidiary of Mytime Active is a social enterprise that manages leisure services. MEND is a healthy lifestyle provider.

DCC plc acquired Kent Pharmaceuticals for a consideration of £58m. DCC is an Irish diversified investments group. Kent Pharmaceuticals is a pharmaceutical company specialising in manufacturing, importing and supplying quality generic pharmaceuticals.

Interserve Ltd acquired Advantage Healthcare Ltd for a consideration of £26.5m. Interserve is a support services and construction company. Advantage Healthcare is a provider of health care and social care workers to the home.

Bunzl plc acquired Atlas Health Care Pty Ltd for an undisclosed amount. Bunzl is a multinational distribution and outsourcing company. Atlas Health Care is an Australia-based medical equipment and pharmaceutical products wholesaler.

Halma plc acquired Microsurgical Technology Inc for a consideration of £60.5m. Halma plc is group of technology companies that makes products for hazard detection and life protection. Microsurgical Technology is a Washington-based ophthalmic surgical products manufacturer.

Aspirations Ltd acquired The Leaving Care Company Ltd for an undisclosed amount. Aspirations, part of the August Equity group, is a community care services provider specialising in supporting individuals with complex and challenging behaviour. The Leaving Care Company provides sustainable housing and accommodation support services for vulnerable young people throughout the UK.