Healthcare sector comment – February 2012

Date

Steady M&A activity in February.

February saw the completion of 15 transactions, a repeat of the level of activity in January. One deal that stood out this month was Vitruvian Partners’ acquisition of Healthcare at Home, a provider of clinical homecare services, medicine management and pharmaceutical delivery. With the increased level of care moving into the community, enabling patients to be treated at home rather than in hospital or at their GP, demand for these types of services will grow significantly and we will see further transactions.

Another significant transaction was the announcement that Capita will acquire Aviva’s occupational health business. Capita’s backing will provide support, scale and focus so the business can maximise its market share and the range of services it offers to new clients. The occupational health market is a sector where we will see further consolidation, as some of these businesses seek to expand their client base and provide other bolt-on and adjacent services.

Deals

Tunstall Group Ltd acquired STT Condigi AB for an undisclosed amount. Tunstall Group is a provider of telecare and telehealth solutions. STT Condigi is a Sweden-based supplier of elderly care solutions.

Certara LP acquired Simcyp Ltd for an undisclosed amount. Certara is a provider of a broad spectrum of software products and services, with special focus on supporting translational approaches to drug development. Simcyp is a population-based pharmacokinetic modelling and simulation software developer.

Enara Group Ltd acquired Freedom SocialCare Recruitment Ltd, Rise and Shine Care Ltd and Croft Community Services Ltd, for undisclosed amounts. Enara Group is a home care service provider. Freedom SocialCare Recruitment is a care service recruitment company. Rise and Shine Care and Croft Community Services are home care providers.

Orchid Orthopedic Solutions acquired Sandvik Medical Solutions Ltd for an undisclosed amount. Orchid Orthopedic Solutions is a provider of contract design and manufacturing solutions for orthopaedic, dental, and cardiovascular markets. Sandvik Medical Solutions is a manufacturer of medical implants and instruments for orthopaedic and dental applications.

Nuffield Health acquired BMI Healthcare Ltd’s Oxford Clinic for an undisclosed amount. Nuffield Health is a provider of medical, wellbeing and fitness services to consumers, private hospital patients and employers. BMI Healthcare is a hospital operator specialising in orthopaedic care.

Dental Buying Group Ltd acquired TAG Medical Ltd for an undisclosed amount. Dental Buying Group is a provider and developer of dental specific services and products. TAG Medical is a provider of testing and calibration services for the medical industry.

City and County Healthcare Group Ltd acquired Sage Care Ltd for an undisclosed amount. City and County Healthcare Group is a domiciliary care provider. Sage Care is provider of care and support at home to people with a range of needs and abilities.

Ockham Development Group Inc acquired Nexus Oncology Ltd for an undisclosed amount. Ockham Development Group is a contract research organisation providing global clinical research and strategic development services to pharmaceutical and biotechnology companies. Nexus Oncology is an oncology drug developer.

Active Assistance Ltd acquired Neural Pathways Ltd for an undisclosed amount. Active Assistance is a company engaged in care provision for physically disabled people, specialising in supporting those with a high level of spinal cord injury, together with training services. Neural Pathways is a provider of neurological therapy services.

Doughty Hanson & Co acquired USP Hospitales for a consideration of £298m. Doughty Hanson is a private equity firm. USP Hospitales is a Spain-based hospital operator.

Biochrom Ltd acquired AHN Biotechnologie GmbH for an undisclosed amount. Biochrom is a company engaged in the development, manufacture and marketing of scientific instruments, medical and laboratory equipment and associated chemicals. AHN Biotechnologie is a Germany-based disposable laboratory plastic supply manufacturer.

Mr Tamby Seeneevassen acquired Afton Court Ltd for an undisclosed amount. Afton Court is a residential care home.

Barco NV acquired JAOtech Ltd for an undisclosed amount. Barco is a company company engaged in the design and development of visualization solutions. JAOtech is a patient bedside computer manufacturer.

Canon Europe Ltd acquired Delft Diagnostic Imaging B.V. for an undisclosed amount. Canon is a developer of imaging and information technology solutions. Delft Diagnostic Imaging is a Netherlands-based developer of medical software solutions.

Vitruvian Partners, Hutton Collins Partners and other existing investors acquired Healthcare at Home Ltd for an undisclosed amount. Healthcare at Home is a provider of healthcare services for patients in their own homes.