It has been a quiet start to 2016 with seven deals, totalling a value of €85.3m.
Trade buyers were the most active group in 2015, with financial investors completing three deals, the same as the previous year.
Despite the fact the market is awash with cash, there is a scarcity of high quality medical equipment and supplies assets available in the consolidated market. When assets do come to market, there has been high levels of competition between potential investors.
A recent private equity deal, which Clearwater International advised on, saw Maven Capital Partners acquire Westfield Medical Limited, a provider of sterilisation barrier products to the healthcare and industrial sectors. The management buyout allows the business to increase production and expand its international presence.
Clearwater also advised private equity firm NorthEdge Capital Partners on the acquisition of Direct Healthcare Services Ltd, a provider of pressure area care products. In another deal Palatine Private Equity acquired Vernacare Ltd, an infection control products manufacturer. Clearwater advised on the deal which helps accelerate the company’s move into overseas markets.
Read more about these deals:
- Cantel Medical Corporation, the US listed provider of infection prevention and control products, acquired Medical Innovations Group Holdings Ltd, the endoscopic, surgical and mobile medical accessories products manufacturer, for €71m.
- CooperSurgical Inc., the US-based provider of medical instruments, devices, and disposables with a focus on women’s health care and minimally invasive surgery, acquired Research Instruments Ltd, a manufacturer and supplier of in-vitro fertilization (IVF) medical devices and systems, for €47m.
- Judges Scientific Plc, the UK AIM-listed manufacturer of scientific instruments acquired CoolLED Ltd, a manufacturer of LED illumination systems for researchers and clinicians, for €6m. The acquisition will help Judges Scientific to increase its earnings and to strengthen its position in the UK market.
- VWR International LLC, the listed USbased distributor of laboratory supplies and equipment acquired Therapak Corporation, the US-based supplier of diagnostic test kits and Therapak Pharma Services Limited, the UK-based supplier of pre-packaged convenience kits and procedure packs.
- Praxair Inc., the listed US gas producer and seller acquired NOxBOX Ltd, the UK-based inhaled gas delivery and monitoring medical equipment manufacturer.
Now we have narrowly decided to exit the EU, the impact of this decision in the short term will create some uncertainty in the capital markets. In reality the medium term impact on the vast majority of businesses will be neutral. The demand for medical equipment and supplies is not set to dampen throughout Europe and will continue to attract both financial investors and strategic buyer interest.