Healthcare sector comment – June 2013

Date

June saw the completion of 13 deals in the UK healthcare market. An interesting deal was Lyceum Capital’s acquisition of CuroCare, the provider of support to individuals with learning disabilities, mental health needs and challenging behaviours. The company has developed 10 purpose-built care units with a total of 68 beds which serve over 35 local authorities and NHS bodies across London and the Home Counties. CuroCare’s aim is to rehabilitate and support individuals to fully participate in, and be part of, their local community. The specialist care market will continue to grow as legislation, public policy and health commissioners favour community-based care in delivering the best outcomes for service users in the long-term.

This month also saw Techne Corporation’s agreement to acquire Bionostics Holdings Ltd and its subsidiary Bionostics Inc., for a consideration of £67m. Techne is a US manufacturer of haematology controls and biotechnology products for research and diagnostics. Bionostics is a UK in-vitro diagnostic control devices developer and manufacturer. The transaction is expected to be valued at 3.5x sales and 11x EBITDA.

Deals

AstraZeneca PLC acquired Pearl Therapeutics Inc for a consideration of c£740m. AstraZeneca is a UK pharmaceutical and biologics company. Pearl Therapeutics is a US chronic respiratory diseases therapies manufacturer.

Judges Scientific PLC acquired Scientifica Ltd for a consideration of £13m. Judges Scientific specialises in the design and production of scientific instruments. Scientifica is a UK electrophysiology equipment manufacturer.

NVM Private Equity Ltd backed the management buy-out of Kirton Group, the UK manufacturer and supplier of specialist seating and other products for the elderly and disabled, for a consideration of £6m. The transaction was valued at 0.8x sales and 14.3x EBITDA.

Accel KKR LLC acquired a minority stake in Zinc Ahead Ltd, the UK company engaged in providing marketing compliance solutions for the life sciences industry, for an undisclosed amount.

The Halifax Group backed the management buy-out of Envision Pharma Ltd, the UK medical and scientific communications company, for an undisclosed amount.

Country Court Care Homes Ltd acquired Summer Lane Nursing Home for an undisclosed amount. County Court and Summer Lane are both UK care home operators.

Gracewell Healthcare Ltd acquired Shelbourne Senior Living care village for an undisclosed amount. Gracewell Healthcare and Shelbourne Senior Living are both UK care home operators.

NVM Private Equity Ltd backed the management buy-out of Cleveland Biotech Ltd, a UK environmentally friendly biological waste treatment fermented bacteria products developer and manufacturer, for a total consideration of £4.4m.

Speed Medical Examination Services Ltd acquired Medical-Legal Appointments Ltd for an undisclosed amount. Speed Medical is a provider of medical reports and rehabilitation services. Medical-Legal Appointments is a UK medical reporting company.

Zambon Company SpA acquired Profile Pharma Ltd for an undisclosed amount. Zambon Company is an Italian multinational pharmaceutical and chemical company. Profile Pharma is a UK pharmaceutical products manufacturer and wholesaler.

Lyceum Capital Partners LLP acquired an undisclosed stake in Curocare Ltd, the UK provider of residential care to individuals with learning disabilities, mental health needs and challenging behaviour, for a consideration of £25m.

Fishawack Communications Ltd acquired Archimed Medical Communications AG for a consideration of £6m. Fishawack Communications is a UK medical communications agency. Archimed Medical Communications is a Switzerland health care communications company.

V Group International Ltd acquired Wallace Cameron for an undisclosed amount. V Group is a full process supplier to all sectors of the new car market. Wallace Cameron Ltd is a UK first aid products, pharmaceutical products and toiletries wholesaler.