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

In one of the largest transactions of the month, Medtronic Inc. (NYSE: MDT) has agreed to purchase China Kanghui Holdings (NYSE: KH) for $30.75 per share, representing a 22% premium.  China Kanghui makes orthopedic implants and associated instruments for trauma, spine and joint reconstruction.  Net of KH’s cash, the transaction value comes to $775 million.  The company’s revenue grew from $37 million in 2010 to $52 million in 2011, and trailing 12-month EBITDA is about $26.4 million.  This acquisition brings Medtronic closer to its goal of getting 20% of its sales from emerging markets by 2016, and this is believed to be the largest acquisition of a Chinese health care company.
There were a couple of noteworthy transactions in the Labs side of the health care market.  Danaher Corp. (NYSE: DHR) has agreed to buy IRIS International (NASDAQ: IRIS), a manufacturer of automated in-vitro diagnostic systems for urinalysis and body fluids.  Danaher is paying $19.50 per share, representing a 43.5% premium, which comes to approximately $338 million net of cash but including assumed debt. IRIS will become part of Danaher’s Beckman Coulter Diagnostics business when it closes later in the fourth quarter.........Want to read more? Click here for a free trial to The Health Care M&A Information Source and download the current issue today