Global market

2016 so far has seen 135 deals in the medical equipment and supplies sector.

Deal volume

The 2016 global market has started brightly, with a 31% increase in the number of deals on the 103 deals we saw in the first five months of 2015. Of these 37% have been cross-border transactions, roughly the same as during the same period last year. 2015 saw 235 deals with a total value of €42.3bn, a 22% fall on the year before. On a like-for-like basis, the past 12 months have seen less deals and a lower value than the preceding 12.

During 2015, the US again was the most prolific acquirer with 47% of closed transactions, but this is lower than the 53% we saw in 2014, suggesting there is a gradual shifting away from a US centric medical device market. The UK represents 10% of deal volume followed by Sweden and Germany with 6%, and France with 4%.

We see a similar story when we look at target nations with the US leading the way with 46% of completed deals in 2015, followed by the UK with 11% and Germany with 6%.

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Top 10 largest transactions

Interestingly, only one of these mega deals – the acquisition of patient monitoring products manufacturer Mindray Medical by Excelsior Union – involved a financial investor which, for the purposes of this report, we define as either private equity, other investors or restructuring funds.

Global financial investor deals

Investor confidence remains stable with deals involving financial investors slightly ahead of the previous 12 months. This continues the trend of strong financial investor interest in the medical equipment and supplies sector, while more than half of the most recent deals involved US targets.

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Segment breakdown

The general equipment and supplies segment continues to lead, accounting for 30% of deals in the last 12 months, a similar percentage to the previous 12 months. This is followed by patient monitoring equipment and therapies with 13% of deal volumes and disposable equipment and supplies also with 13%.

The orthopaedic implants, orthotics and prosthetics sector remains strong, following on from last year’s acquisitions of Arthrocare Corporation by Smith & Nephew for €1.1bn, and of Biomet by Zimmer Holdings for €10.1bn.

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