Health Care Deal News: Spotlight on Medical Devices- July 2012

Most of the medical device acquisitions in June were relatively small and with no disclosed prices.  A few of the exceptions included a little consolidation in the spinal care area, with New Jersey-based Precision Spine, Inc. purchasing Mississippi-based Spinal USA for $72 million, which also included Precision Medical Mississippi.  Precision Spine has been growing at 30% annually.  Combined, the companies hope to lower the cost of care, especially for the growing elderly market.

The Cooper Companies (NYSE: COO) is buying Denmark-based Origio (Oslo: ORO) for approximately $189 million.  Origio is a global, in-vitro fertilization (IVF) company aimed at making IVF treatment safer and more efficient. It had 2011 revenues and EBITDA of $65 million and $9.8 million, respectively.  This acquisition will help COO in its expansion into Scandinavia as well as its commitment to women’s health.  The price represents a 72.8% premium to the prior-day share price of Origio.  UBS and DNB Markets provided financial advice on the transaction.

And in the largest transaction of the month, but probably the least technical in terms of the products, Montagu Private Equity is selling its portfolio company, BSN. The target is based in Germany and makes medical bandages and plaster casts with annual revenues and EBITDA of approximately $829 million and $298 million, respectively.  Sweden-based EQT VI is paying $2.2 billion and plans to invest in BSN’s core business and expand it geographically into Asia and Latin America.  Goldman Sachs ran the auction of BSN..................Want to read more? Click here for a free trial to The Health Care M&A Information Source and download the current issue today