Health Care Deal News, May 13, 2013 - Although Deal Volume Didn’t Hit Record Levels in April 2013, the Values of the Deals Announced were Healthy, The Current Surge in the U.S. Stock Markets is Boosting the Number of Private Equity Exits From All Things

 

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May 13, 2013 Issue:

 

Recent Health Care M&A Deals

Hospitals

Acquirer

Target

Price

Prime Healthcare Services

Saint Clare's Health System

N/A

Pharmaceuticals

Acquirer

Target

Price

 Takeda Pharmaceutical Company

 Inviragen, Inc.

 $35.0 million

Regeneron

 Rights to Ophthalmology Drugs

 $10.0 million

Other

Acquirer

Target

Price

 Sebring Software, Inc.

 Orthodontic Specialists Management, LLC

 $10.1 million

 Sebring Software, Inc.

 Absolute Aesthetic & Restorative

 $400,000

 

Service Deal of the Week
Health Care REIT (NYSE: HCN) last week acquired a 75% interest in 47 Revera Canadian properties for $1.01 billion. Revera Inc. will get $697 million in cash and HCN will assume $314 million of debt. The portfolio consists of 47 seniors housing communities in Canada, with 25 in Ontario, seven each in British Columbia and Saskatchewan, six in Alberta and two in Manitoba. The current occupancy level is 89% but 14 communities are in lease-up.  Revera will continue to manage the communities for the jint venture under an incentive-based contract. The company has invested approximately $150 million in these properties since 2009......Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.

 

Charted Territory
Although deal volume didn’t hit record levels in April 2013, the values of the deals announced were healthy. Topping the list of the month’s top-10 transactions was the $15.8 billion Thermo Fisher Scientific (NYSE: TMO) acquisition of Life Technologies (NASDAQ: LIFE)—a deal that will most likely lead the year’s top 10 deals, as well. Two other deals reached or surpassed the billion-dollar mark in April: Bayer Healthcare’s (DE: BAYG) $1.1 billion bid for contraceptive device maker Conceptus, Inc. (NASDAQ: CPTS) and Catholic Health Initiatives’ agreement to fund a $1 billion foundation for the non-profit St. Luke’s Episcopal Health System in Houston, Texas. With Wall Street setting new records in May, the M&A momentum continues to build. Stay tuned. .

 

Top 10 Health Care M&A Transactions in April 2013

Rank

Acquirer

Target

Price

1

Thermo Fisher Scientific

Life Technologies Corporation

$15.8 billion

2

Bayer HealthCare AG

Conceptus, Inc.

$1.1 billion

3

Catholic Health Initiatives

St. Luke’s Episcopal Health System

$1.0 billion

4

Auxilium Pharmaceuticals

Actient Pharmaceuticals, LLC

$585 million

5

OPKO Health, Inc.

PROLOR Biotech, Inc.

$480 million

6

Leisureworld Senior Care

Senior Living portfolio

$264 million

7

Chindex International, Inc.

Alma Lasers, Inc.

$240 million

8

Vibra Healthcare, LLC

17 senior living and health facilities

$187 million

9

QIAGEN

Ingenuity Systems, Inc.

$105 million

10

Acadia Healthcare Co.

2 psychiatric facilities

$91.8million

Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today

 

Technology Deal of the Week
Last week Qualcomm Life, Inc. (NASDAQ: QCOM) announced its purchase of HealthyCircles, Inc., an integrated, interoperable software as a service (SaaS) Care Orchestration Engine that will help build out its 2net Ecosystem. HealthyCircles’ products connect health care professionals, patients, families and caregivers to manage a patient’s care as they transition from a hospital stay and home. Its service-oriented architecture was designed to work with the new reimbursement system under the Affordable Care Act. Terms were not disclosed......Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.

 

In the Pipeline
The current surge in the U.S. stock markets is boosting the number of private equity exits from all things pharmaceutical, it seems. Durham, North Carolina-based Quintiles Transnational Holdings made a big splash last week as it raised $947 million in its IPO, backed by Bain Capital LLC and TPG Capital LP. It was the largest IPO of the 11 priced out last week. Now all eyes are turning to Covidien (NYSE: COV), which announced last week that it will spin off its pharma business, Mallinckrodt, on June 28. The medical device maker plans to focus on its devices and supplies. Mallinckrodt will trade on the New York Stock Exchange under the ticker symbol “MNK.”.....Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.

 

Upcoming Interactive M&A Webcast:
CCRCs: Buying, Selling and Valuing
Thursday, May 23, 2013, 1:00 pm ET            
Has the market changed since the depths of the Great Recession? The answer is yes, and while there are still some distressed CCRC sales on the market, the environment is much better with the housing market gaining strength and perhaps a pent-up demand for what the CCRC product offers. Find out more from our expert panel: Stephen M. Monroe (Moderator), Managing Editor and Partner, Irving Levin Associates, Inc.; Paul Brand, Treasurer and CFO, Concordia Lutheran Ministries; Allen McMurtry, Executive Managing Director, Principal, Cassidy Turley; David Reis, CEO, Senior Care Development, LLC; David Salinas, Partner, HealthTrust LLC.
Go to http://www.levinassociates.com/conferences/1305b-online-conference or call 800-248-1668 to register.

 

NEW - The Health Care Services Acquisition Report, 19th Edition - Save $50
Deals have been made. The 2013 Health Care Services Acquisition Report contains private deals in this market that are too small to make it into the financial press. Take advantage of our limited time $50 instant savings offer - order The 2013 Health Care Services Acquisition Report by May 31st and receive $50 off your purchase! Now that’s a recession resistant deal. Go to http://www.levinassociates.com/landing/har19order or call 800-248-1668 to preorder today!

 

 
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