Healthcare Sector Comment – January 2015

Date

It is estimated that the ageing population will substantially increase the global demand for dental implants in the coming years and as a result the market is predicted to reach a value of around €6.8bn by 2020 – with Europe (in particular the UK, France and Germany) representing the fastest growing market.

An interesting deal in the space this month saw NYSE-listed Danaher Corporation complete its previously announced €1.7bn acquisition of Swiss dental implant and prosthetic manufacturer Nobel Biocare Holding AG. By combining Nobel Biocare’s expertise in digital prosthetics, implants and software solutions with their own knowledge in 3D imaging, intraoral scanning and digital restoration solutions, Danaher are able to build a strong platform for future growth. The transaction also gives Danaher the leading position in the dental implant market alongside organisations like Straumann AG.

The dental space is an area that Clearwater International knows well having previously advised Synova Capital on their acquisition of the Dental Buying Group (“DBG”), the UK’s leading provider of dental products and services.

 

Health & Social Care Deals

UK-listed healthcare software provider EMIS Group plc acquired Medical Imaging UK and MIDRSS, UK- and Ireland-based companies which provide diabetic eye screening and ophthalmology imaging services, for a consideration of €12.1m.

Valens Clinics Walenstadtberg Rehabilitation Centre, the Switzerland-based operator of rehabilitation centres, acquired Rheinburg-Klinik AG, a Swiss operator of rehabilitation centres and hospitals, for an undisclosed amount.

LSE-listed technology firm Servelec Group acquired UK social care case management software provider Corelogic, for a consideration of €29.5m.

Air Liquide SA, a France-based supplier of industrial gases, acquired a portion of the business of the ARAIR Group, a France-based home healthcare service provider, for an estimated €40m.

Australia-based fertility services provider Monash IVF Group acquired Fertility East, a company that operates fertility and IVF clinics in Australia, for a consideration of €2.4m.

Cambian Group acquired Woodleigh Care, a UK-based company that provides care for adults with learning disabilities, for a consideration of €79.9m. Cambian is a provider of specialist care services for children and adults in the UK. The transaction was valued at 9.3x EBITDA.

Advent International Corporation’s UK portfolio company The Priory Group acquired CastleCare Group, the UK-based provider of residential care placements, from Baird Capital Partners for an undisclosed amount. Priory provides a range of acute and secure mental health, neuro-rehabilitation and specialist educational services.

Vision Express (UK) Ltd, part of Europe’s largest optical retail group GrandVision, acquired all 19 optician practices of Conlons & Sons (Opticians) Ltd, the UK-based optician services provider, for an undisclosed amount. The purchase takes the total number of UK and Irish practices owned by Vision Express up to 389 sites.

New Zealand stock exchange listed company Green Cross Health Ltd acquired New Zealand-based home healthcare services provider Access HomeHealth Ltd, for a consideration of €11.5m. Green Cross Health operates around 300 pharmacies under the Life Pharmacy and Unichem brands.

 

Pharma & Biotech Deals

Tailwind Capital Partners LLC, the US private equity firm, acquired Diamondback Drugs LLC from Sheridan Legacy Group LLC for an undisclosed amount. Diamondback Drugs is a US-based speciality veterinary pharmaceuticals wholesaler.

American pharmaceutical company Merck & Co. Inc. acquired Oncoethix SA, the Switzerland-based oncology research developer, for a consideration of €305.3m.

Abbott Laboratories acquired GardenKhils OOO, the holding company that owns a controlling interest in Russian Federation-based pharmaceuticals manufacturer Veropharm OAO, for a consideration of €464.2m. Abbott is an American pharmaceutical and healthcare company.

Midatech Pharma plc acquired UK biopharmaceutical drug delivery company Q Chip Ltd for an undisclosed amount. AIM-listed Midatech Pharma is a nanomedicine company.

India-based generic pharmaceutical company Aurobindo Pharma Ltd acquired Natrol Inc. for a consideration of €106.5m, via its US subsidiary. Natrol is a US-based dietary supplements manufacturer.

NYSE-listed pharmaceutical corporation Pfizer Inc. acquired the commercial vaccines business of Baxter International Inc., the US-based pharmaceuticals manufacturer, for a consideration of €474.8m. The portfolio that was acquired consists of NeisVac-C and FSME-IMMUN/TicoVac. Pfizer also acquired Wyeth Ltd, an India-based pharmaceuticals and drugs manufacturer, for a consideration of €218.5m.

Australian biotechnology company Actinogen Ltd acquired Corticrine Ltd, a spin-out company from the Edinburgh BioQuarter, for an undisclosed amount. Corticrine is a mid-stage pharmaceutical research company.

 

Medical Equipment & Supplies Deals

UK moving, handling and bathing specialist Prism Medical UK acquired The Mobility Equipment Company (TMEC) for an undisclosed amount. UK-based TMEC is a supplier of a range of mobility equipment for the disabled.

Spain-based orthopaedic company Orliman SL acquired SM Europe Sarl (Soft Medical Europe), a France-based manufacturer and marketer of non-invasive braces and supports, for an undisclosed amount.

Danaher Corp, the US-listed science and technology company, acquired Swiss-listed dental focused medical devices company Nobel Biocare Holding AG, for a consideration of €1.7bn.

Dutch private equity house H2 Equity Partners acquired NRS Healthcare from UK mid-market private equity firm LDC for an undisclosed amount. NRS is a UK-based supplier of mobility equipment and disability aids for independent daily living.

Synergetics USA Inc., the NASDAQ-listed medical device company, acquired Sterimedix Ltd, the UK-based single-use ophthalmic devices manufacturer, for a consideration of €10.9m.

Norway-based private equity firm Credo Partners AS acquired Made For Movement Group AS (MFMG), for an undisclosed amount. MFMG is a Norway-based provider of medical devices for people with severe movement disorders.

ALPHAEON Corporation acquired Clarion Medical Technologies Inc., a Canada-based aesthetic, ophthalmic and surgical products wholesaler, for a consideration of €42.5m. ALPHAEON is a US healthcare company that develops and markets products and services to promote patient wellness, beauty and performance.