Healthcare Sector Comment – September 2011

Date

A significant deal this month was the announcement that Silverfleet Capital Partners has backed the secondary management buyout of Aesica Pharmaceuticals Ltd from previous investors Lloyds Development Capital. Aesica is one of the top 12 pharmaceutical contract manufacturers globally, and forecasts turnover in excess of EUR 180m for 2011. Global outsourcing of pharmaceutical manufacturing was worth USD 44bn in 2010 and is forecast to grow at c.7% per annum for the foreseeable future.

August Equity’s buy and build platform Lifeways Community Care has completed a further trio of acquisitions. Lifeways has acquired the Independent Living Alliance and Natural Networks, two companies which provide supported living services to people with mental health needs and learning disabilities, as well as specialist community care service The SLC Group from Livingbridge.

Over the last two months we continue to see that the majority of private equity investments were bolt on acquisitions for existing buy and build platforms rather than new investments as investors continue to be selective.

Deals

Silverfleet Capital Partners has backed the management buy-out of Aesica Pharmaceuticals Ltd for an undisclosed amount. Aesica is a manufacturer and supplier of active pharmaceutical ingredients, formulations and custom synthesis solutions.

HCA has acquired corporate healthcare specialist Roodlane Medical for an undisclosed amount. HCA provides independent private hospital services covering the London region. Roodlane provides occupational health, corporate wellness and health screening.

Ark Home Healthcare Ltd has acquired six of Anchor Trust’s home care operations for an undisclosed amount. Ark Home Healthcare backed by private equity partners Ashridge Capital and Core Capital is engaged in providing domiciliary care services.

Maria Mallaband Care Group Ltd has acquired Southern Cross Healthcare Group Plc’s 35 care homes for an undisclosed amount. Maria Mallaband Care group is a provider of nursing and residential care for the elderly. Southern Cross Healthcare Group is a care home operator.

Optima Consumer Health Ltd has acquired Trust William Ltd for an undisclosed amount. Optima Consumer Health manufactures and markets a range of high quality health food supplements and cosmetics and is a wholly owned subsidiary of William Ransom and Son Holdings Plc. Trust William is an online health supplement retailer.

Abcam Plc has acquired Ascent Scientific Ltd for a consideration of £10m. Abcam is engaged in the development, marketing and distribution of antibodies and related products. Ascent Scientific is a biochemical company engaged in production and distribution of receptor ligands for use by academic researchers.

Lifeways Community Care Ltd has acquired Support Options Ltd for an undisclosed amount. Lifeways Community Care is a specialist services provider for people with diverse and complex needs. Support Options is a provider of home care services.

Celtic Pharma Holdings Advisors LLP has acquired Pro Bono Bio Ltd for an undisclosed amount. Celtic Pharma Holdings Advisors LLP is a provider of private equity investment services. Pro Bono Bio is a pharmaceuticals manufacturer and wholesaler.

Enara Group Ltd has acquired Colvin Nursing Agency Ltd and Longacre Homecare Services Ltd for an undisclosed amount. Enara Group is a provider of home care services. Colvin Nursing Agency and Longacre Homecare Services Ltd are a provider of nursing, personal and domiciliary care.

Lablogic Systems Ltd has acquired Southern Scientific Ltd for an undisclosed amount. Lablogic Systems is a LIMS and chromatography data systems supplier to the pharmaceutical, agrochemical and nuclear/PET industries. Southern Scientific is a provider of radiation measurement, detection and analytical systems, manufacturer and wholesaler for the nuclear industry.

Advanced Childcare Ltd has acquired Clifford House Ltd for a consideration of £10m. Advanced Childcare is a provider of residential care, education and fostering for children and young people with behavioural, emotional and social difficulties. Clifford House is a provider of residential care services for children.

The Capita Group Plc has acquired Insurance Medical Group Ltd for an undisclosed amount. The Capita Group is a provider of management consultancy services. Insurance Medical Group is a provider of medico legal reporting, diagnostics, proactive physiotherapy and treatment services.

Lifeways Community Care Ltd has acquired The SLC Group Ltd for an undisclosed amount. Lifeways Community Care is a specialist services provider for people with diverse and complex needs. The SLC Group provides support to people with complex needs, including individuals with learning disabilities, autism, challenging behaviour, mental health issues and acquired brain injuries.

Ingemino Ltd has acquired YorkTest Laboratories Ltd for an undisclosed amount. Ingemino is a newly formed firm dealing in services in the testing and laboratory sectors, with the support of Close Brothers Private Equity. YorkTest Laboratories is a firm dealing in food intolerance diagnostic testing.

Spire Healthcare Ltd has acquired Lifescan Ltd for a consideration of £1.4m. Spire Healthcare is a provider of private healthcare. Lifescan is a CT health check services company.

Fostering Solutions Ltd has acquired Pathway Care Ltd for an undisclosed amount. Fostering Solutions is an independent fostering agency and is part of Acorn Education and Care. Pathway Care is a fostering and social services company.

Atlas Copco AB has acquired the medical gas solutions business of Penlon Ltd for an undisclosed amount. Atlas Copco is an industrial group providing compressors, construction and mining equipment, power tools and assembly systems. Penlon is an anaesthesia equipment manufacturer and wholesaler.

Lifeways Community Care Ltd has acquired The Independent Living Alliance Ltd for an undisclosed amount. Lifeways Community Care is a specialist services provider for people with diverse and complex needs. The Independent Living Alliance is a home care services provider.

Ipca Laboratories Ltd has acquired Onyx Scientific Ltd for a consideration of £5m. Ipca Laboratories is a Indian based pharmaceutical company. Onyx Scientific is a pharmaceutical service company that specializes in chemistry outsourcing and supply an array of chemistry research and development services.

Mears Group Plc has acquired Choices Community Care Ltd for a consideration of £7m. Mears Group is a provider of outsourced business activities to the public and private sectors. Choices Community Care Services is a provider of services to individuals with learning disabilities.

Kenexa Corporation has acquired The Ashbourne Group Ltd for an undisclosed amount. Kenexa Corporation operates in recruiting, hiring, training, and employee management solutions. The Ashbourne Group is a HR and business occupational psychology consultancy.

Intertek Group Plc has acquired Food Analytical Laboratories Ltd for a consideration of £6m. Intertek Group is a provider of testing, inspection and certification of products, commodities and systems. Food Analytical Laboratories is a food testing laboratory which provides chemical and microbiological services for food producers.

Casterbridge Nurseries Ltd has acquired Springfield Lodge Day Nursery Ltd for an undisclosed amount. Casterbridge Nurseries and Springfield Lodge Day nursery is a childcare services provider.

Computer Sciences Corporation has acquired iSoft Ltd for a consideration of £117m. Computer Sciences Corporation is an information technology and business services company. iSoft is a healthcare information technology solutions provider.