Healthcare Sector Comment – June 2014

Date

May saw the completion of some very high profile acquisitions in the global healthcare market. An interesting deal saw Oasis Healthcare strengthen its position as the UK’s largest provider of private dental care and a major provider to the NHS with the acquisition of Apex Dental Care, for an undisclosed amount. Apex has 31 practices located across the UK and offers a wide range of care options to their patients. The deal closely follows the acquisition of Smiles Dental in April 2014 and increases Oasis’ network of UK practices to 310 sites, which provide dental services to over 3 million patients.

One of the largest deals this month was Smith & Nephew’s (S&N) acquisition of ArthroCare Corporation for €1.1bn. S&N will use their global footprint to drive substantial new revenue growth from introducing ArthroCare’s sports medicine repair products to new customers and markets. This will significantly strengthen S&N’s portfolio, whilst a strong combined new product pipeline and R&D expertise will accelerate delivery of future innovation.

 

Health & Social Care Deals

Maj Invest Equity acquired Godt Smil Holding ApS for an undisclosed amount. Godt Smil is a Denmark-based dental clinic operator.

CPB Mental Health Services acquired Association for Mental Health Septimània SL for an undisclosed amount. CPB is a Spanish operator of psychiatric and psychological hospitals. Association for Mental Health Septimània SL is a mental health hospital operator, also based in Spain.

The MBO team acquired LR Bater Opticians’ Morrison-based branch for an undisclosed amount. Bater is a UK-based optician services company.

Target Healthcare REIT acquired three care homes for a consideration of €17m. The properties are UK purpose-built residential care homes.

Babcock International Group plc acquired Avincis Mission Critical Services Ltd for approx. €2bn. Babcock is a UK-based engineering support services company. Avincis is a UK-based provider of aerial transportation services for operations such as medical emergency, civil protection, search and rescue and other mission critical services.

Bridge Ventures acquired Alina Homecare for an undisclosed amount. Alina is a UK-based domiciliary care services company.

Photomedex Inc acquired LCA-Vision Inc for a consideration of €77m. US-based Photomedex is a leader in the dermatology market, committed to the Science of Skin Health in disease management and skin rejuvenation. LCA-Vision is a US-based laser eye surgery clinic operator.

Mears Group plc acquired Careline CC Ltd for an undisclosed amount. Mears is a UK-based provider of home care and support services. Careline is a home and community care services provider, based in the UK.

Primecare acquired Prime Care Agency for an undisclosed amount. Primecare is a UK-based provider of primary health care services. Primary Care Agency is a UK-based domiciliary care staffing company.

MEDNAX Inc acquired Anesthesia and Pain Management Group LLC for an undisclosed amount. MEDNAX is a provider of neonatal, maternal-foetal and paediatric subspecialty services, based in the US. Anesthesia and Pain Management Group is a US-based company providing ambulatory anesthesia and pain management services for outpatient procedures.

 

Pharma & Biotech Deals

Fresenius Kabi AG acquired Novafarma Industria Farmaceutica Ltd for a consideration of €100m. Based in Germany, Fresenius Kabi is a company that develops, manufactures and markets pharmaceuticals and medical devices. Novafarma Industria Farmaceutica is based in Brazil: the company is engaged in the development and supply of medicines.

Chemo Group acquired GH Genhelix SA for a consideration of €10m. Chemo Group is a Spanish healthcare corporation engaged both in the chemical and pharmaceutical industry. GH Genhelix is a biotech company, also based in Spain.

Shire plc acquired Lumena Pharmaceuticals Inc for a consideration of €189m. Shire is a biopharmaceutical company, based in Ireland. Lumena is a US-based biotechnology company that develops treatments for metabolic diseases.

ICON plc acquired Aptiv Solutions Inc for a consideration of €105m. ICON is an Ireland-based provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries. Aptiv is a US-based clinical research company engaged in providing supporting services for clinical trials for biopharmaceutical and medical device companies.

A group of leading life sciences venture capitalists – consisting of Novartis Venture Fund (Switzerland), Novo Ventures (Denmark) and Versant Ventures (USA) – acquired an undisclosed stake in Anokion SA for €27m. Anokion is a biotechnology company based in Switzerland that develops solutions for antigen-specific immune tolerance.

Huntingdon Life Sciences acquired Harlan Laboratories Inc for an undisclosed amount. Huntingdon is a UK-based provider of essential non-clinical contract research services to the pharmaceutical, crop protection and chemical industries. Harlan is a US-based provider of essential pre-clinical and non-clinical contract research.

 

Medical Equipment & Supplies Deals

Opko Health Inc acquired Inspiro Medical Ltd for an undisclosed amount. Opko Health is a multinational pharmaceutical and diagnostics company, based in the US. Inspiro Medical is a dry powder inhaler manufacturer, based in Israel.

Droege International Group AG acquired Hoffrichter GmbH for an undisclosed amount. Droege International is a consulting and investment company, based in Germany. Hoffrichter is a Germany-based respiration therapy device developer.

Drive Medical Ltd acquired Patterson Medical Ltd’s Days Healthcare products business for an undisclosed amount. Drive Medical is a UK-based manufacturer and distributor of durable medical equipment for the home healthcare, medical/surgical and rehabilitation markets. Days Healthcare is a manufacturer of healthcare products for the elderly, also based in the UK.

Cardinal Health Inc acquired AccessClosure Inc for approx. €233m. Based in the US, Cardinal Health specialises in the distribution of pharmaceuticals and medical products. AccessClosure is a US-based extravascular closure medical device manufacturer.

Advanced Instruments Inc acquired Vitech Scientific Ltd for an undisclosed amount. Advanced Instruments is a leading supplier of instrumentation for clinical, pharmaceutical, biotechnology, microbiology and food laboratories, based in the US. Vitech Scientific is a UK-based scientific pathological equipment wholesaler.