Snapshot of the UK Healthcare market 2012

Date

Despite the continuing economic uncertainty, the healthcare market remained a rich source of M&A activity last year. In 2012 we saw 134 transactions with trade buyers being the most active investor by deal volume, totalling 112.

The health and social care segment continued to attract the most attention because of the high returns it has shown in the past with 83 deals in total.

January saw the completion of 12 deals in the UK healthcare market. An interesting announcement was August Equity’s acquisition of fostering provider; Compass Services. August has also committed £18m to this platform for buy and build purposes. The fostering market is a more cost effective solution for the government, with annual spend 4-5 times cheaper than children’s homes.

Deals

Aura Healthcare acquired Immix Health for an undisclosed amount. Aura Healthcare is a healthcare IT company. Immix Health supplies IT systems to the healthcare sector.

Medipass Healthcare acquired Healthcare Technologies International’s (HTI) UK medical equipment services for an undisclosed amount. Medipass is a managed equipment services provider. HTI is specialises in cancer care provision.

Bright Future Care Ltd acquired Cornerstones for an undisclosed amount. Bright Future Care is a newly formed company set up to acquire Cornerstones, a provider of specialist residential placements for young people with complex needs and learning difficulties.

Galapagos NV acquired Cangenix Ltd for a consideration of £1.4m. Galapagos is a biotechnology company specialising in the discovery and development of small molecule and antibody therapies. Cangenix is a gene-to-structure biotech company.

Horizon Care Ltd acquired Educare Adolescent Services Ltd with the backing of NBGI Private Equity for an undisclosed amount. Horizon Care provides residential child care for young people aged 10–18. Educare Adolescent Services Ltd is a specialist care and education provider.

August Equity acquired fostering provider Compass Services for Children Group for a consideration of £18m.

Holt Green Residential Homes Ltd acquired Willow Lodge for an undisclosed amount. Holt Green operates residential homes. Willow Lodge is a residential care home operator.

Country Court Care acquired two nursing homes from Red Rose Care Homes for an undisclosed amount. Country Court Care is an elderly care home operator.

Optegra Ltd acquired Memira’s two German eye surgery clinics for an undisclosed amount. Optegra is an ophthalmic service provider, backed by buy and build firm Moonray Healthcare.

Health Care REIT acquired five UK elderly care homes from Arcapita Bank for an undisclosed amount. Health Care REIT is a real estate investment trust.

Plas Newydd Care Ltd acquired Mumbles Care Home for an undisclosed amount. Plas Newydd Care is a residential care company. Mumbles is an elderly residential care home operator.

2IL Orthopaedics Ltd acquired Corin Group for an undisclosed amount. 2IL Orthopaedics is a newly formed company, consisting of a consortium mainly of investors including IP Investimenti & Partecipazioni S.r.l, Hunt Capital S.A and closed-end fund IDeA Opportunity Fund I. Corin Group designs, manufacturers and sells orthopaedic products.