Healthcare sector comment – August 2012

Date

August saw the completion of 16 transactions. One deal that stood out this month was Cinven’s acquisition of speciality pharmaceutical company Mercury Pharma in a £465m secondary buyout from HgCapital. The business has operations in the UK, Ireland and India and sells generic niche and branded pharmaceuticals to retail pharmacies and hospitals. The market will continue to consolidate as pressure mounts on healthcare systems to save costs and companies like Mercury Pharma are able to work with payers to help ease this pressure.

Deals

Apex Medical Ltd acquired Westmeria Healthcare Ltd for £6m. Apex Medical is a medical repair company specializing in dental veterinary and podiatry sectors, specialists in pressure vessel inspection x-ray inspection and autoclave repairs. Westmeria Healthcare specialise in pressure relieving systems & are available on a retail or rental basis.

Christchurch Court Holdings Ltd acquired Woodlands Respite Care Centre for an undisclosed amount. Christchurch Court Holdings is a company that offers specialised care and supported living for people recovering from an acquired brain injury. Woodlands Respite Care Centre offers respite care for individuals with multiple sclerosis.

Becton Dickinson And Company acquired Sirigen Group Limited for an undisclosed amount. Becton Dickinson and Company is a medical equipment company that manufactures and sells medical devices, instrument systems and reagents. Sirigen Group is a life science developer.

Busy Bees Childcare Ltd acquired Just Learning Ltd for an undisclosed amount. Busy Bees is a day care nursery provider. Just Learning is a nursery schools operator.

Medicanimal Ltd acquired Petmeds Ltd for an undisclosed amount. Medicanimal is an online retailer of veterinary products. Petmeds is an online animal medicines retailer.

Cinven acquired Mercury Pharma Group Ltd for a consideration of £465m. Mercury Pharma Group is a pharmaceutical company selling niche prescription pharmaceuticals and non-prescription medicines.

August Equity LLP acquired Seafields Fostering Ltd for a consideration of £5m. Seafields Fostering is a fostering company that finds safe, loving and nurturing homes for vunerable children and young people.

Usl Pharma International Uk Ltd acquired Proximagen Group for a consideration of £222m. Usl Pharma International Uk is a pharmaceutical company focused on market expansion in women’s health, dermatology, and cardiology. Proximagen Group is a company that specialises in the development and commercialisation of novel therapeutics for diseases of the central nervous system.

Teleflex Inc acquired Intavent Direct Ltd‘s LMA branded laryngeal mask supraglottic airway and other products in the UK, Ireland and Channel Islands for an undisclosed amount. Teleflex are a global provider of medical devices used in critical care and surgery. Intavent Direct is an airway device business.

City and Country Healthcare Group Ltd acquired Help At Home (Egerton Lodge) Ltd for an undisclosed amount. City and Country Healthcare Group is a provider of home care and support services. Help At Home (Egerton Lodge) is a UK-based domiciliary care company.

Care UK Ltd acquired Whitwood Care Ltd for an undisclosed amount. Care UK is one of the UK’s leading independent providers of health and social care services. Whitwood Care is a UK-based residential care home operator.

Glaxosmithkline PLC acquired Human Genome Sciences Inc. for a consideration of £1.9bn. Glaxosmithkline is a multinational pharmaceutical, biologics, vaccines and consumer healthcare company. Human Genome Sciences is a pharmaceutical company with the mission to predict, prevent, detect, treat and cure disease.

The Co-operative Childcare Ltd acquired 3 Nurseries from Wolverhampton College Ltd for an undisclosed amount. The Co-operative Childcare is a leading ethical childcare, nursery and preschool provider.

Alliance Pharma PLC acquired Astrazeneca UK Ltd‘s Paludrine, Avloclor And Savarine Antimalarial Brands for a consideration of £5.2m. Alliance Pharma is a UK-based specialty pharmaceutical company selling a range of acquired and licensed mature niche medicines. Astrazenca is company dedicated to the discovery of novel drug candidates in the anti-infective area.

Shareholders purchased Silence Therapeutics Plc for a consideration of £4.5m. Silence Therapeutics are a pharmaceutical research and development company.

Sanctuary Housing Association acquired Lnt Group Ltd‘s 5 Operational Care Homes for an undisclosed amount. Sanctuary Housing provides general rented, sheltered and home ownership accommodation across England and Scotland. Lnt Group operates 5 businesses over healthcare, construction, engineering, chemicals, automotive and software sectors.