US market

So far there have been 79 deals in 2016 with a total value of €7.3bn.

In terms of both the number and value of deals, the US remains the most active market for M&A. There has been a 76% increase in the number of deals so far in 2016 compared with the same period a year earlier.

In 2015 the US saw 109 deals with a combined value of €36.1bn, so on this run rate 2016 could surpass last year’s deal volume.

Despite renewed economic confidence, financial investor interest in US medical equipment and supplies companies has been steady in 2016. At this rate, we are on track to see a similar number of deals to 2015, which saw 15 deals.

One of the largest financial investor deals of 2015 saw Madison Dearborn, the US private equity firm, acquire Patterson Medical Supply Inc. from Patterson Companies, Inc., for €645m. The company provides rehabilitation, assistive, and splitting products to hospitals, long-term care facilities and clinics. Madison Dearborn plan to expand Patterson Medical both in the US and internationally. The sale helped Patterson Companies Inc. to pay off the debt from its acquisition of Animal Health International in 2015, and focus on its core dental and animal divisions.

Medical Equipment and Supplies Report 2016 – US market Image

Recent transactions

  • Thermo Fisher Scientific, Inc. (NYSE:TMO), acquired Affymetrix Inc., the US-based manufacturer of life sciences and molecular diagnostics products, for €1bn. The acquisition enables Thermo Fisher to expand its antibody portfolio, thereby strengthening its position in biosciences.
  • Medtronic Plc, the US-listed manufacturer of device-based medical therapies acquired Twelve Inc., a developer of devices for the treatment of chronic cardiovascular diseases, for €401m.
  • Edwards Lifesciences Corp., the structural heart disease device manufacturer, acquired CardiAQ Valve Technologies Inc., a specialist in heart valve replacement, for €359m.
  • Abbott Laboratories acquired the remaining 90% stake in Tendyne Holdings Inc., a specialist in transcatheter mitral valve replacement, for €352m.
  • Allergan Plc acquired AqueSys Inc., a developer of surgical products for the treatment of glaucoma, for €269m. The acquisition adds XEN45, a soft shunt used in minimally invasive glaucoma surgeries to Allergan’s portfolio.

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