Key Companies and Top Deals Revealed In 10-year Data On Medical Device Mergers and Acquisitions, According to DealSearchOnline.com

 

FOR IMMEDIATE RELEASE Sanford B. Steever, Editor
Gretchen S. Swanson, Analyst
800-248-1668
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NORWALK, CT – March 25, 2010 – During the 10-year period ended December 31, 2009, more than $301 billion in funding was committed to complete 1,496 medical device mergers and acquisitions, according to DealSearchOnline.com. Data retrieved from DealSearchOnline.com revealed that the largest medical device acquisition for the same 10-year period was announced in 2008: the $39 billion acquisition by Novartis of Nestle SA’s 77% interest in Alcon—a deal still in process, expected to close at the end of 2010. Boston Scientific was responsible for the second-largest medical device acquisition, according to the 10-year data— its $27.2 billion acquisition of Guidant Corporation in 2005.
 
The 25 largest medical device mergers and acquisitions announced from 2000 to 2009, according to DealSearchOnline.com, include one company that appears once as an acquirer and once as a target: Fisher Scientific announced its $4.1 billion acquisition of Apogent Technologies in 2004, and in 2006, Fisher Scientific was acquired by Thermo Electron Corporation for $12.8 billion. The 25 largest deals revealed in the 10-year data include four buyers that were each responsible for two medical device acquisitions: Boston Scientific Corp., Siemens AG, Medtronic and Abbott Laboratories.
 
In addition to its acquisition of Guidant, Boston Scientific’s $2 billion acquisition of Medinol Ltd. in 2000 appeared among the 25 largest medical device acquisitions in the 10-year data drawn from DealSearchOnline.com. Siemens AG was the acquirer in the $7 billion acquisition of Dade Behring Holdings, announced in 2007, and the $5.26 billion acquisition of Bayer HealthCare Diagnostics, announced in 2006. Abbott Laboratories targeted Guidant’s vascular business in a $4.1 billion acquisition in 2006 and Abbott announced its $2.8 billion acquisition of Advanced Medical Optics in 2006. Medtronic announced its acquisition of Kyphon for $3.9 billion in 2007 and Medtronic announced its acquisition of MiniMed for $3.28 billion in 2001.
The 10-year data also revealed that in all but two of the 25 largest medical device mergers and acquisitions, revenue-producing medical device companies represent the target. In most of those top 25 medical device mergers and acquisitions, medical device companies that were acquired in the 10-year period ended December 31, 2009 were posting revenues in the billions at the time of acquisition. Further, in all but five of the top 100 largest medical device mergers and acquisitions announced from 2000 to 2009, the target was represented by a revenue-producing medical device company.
 
Among all medical device mergers and acquisitions comprising the 10-year data, the majority (80%) of buyers in medical device mergers and acquisitions were publicly traded companies, while most other buyers were privately held companies and one was a nonprofit. On the sell-side, privately held concerns represented the target in the largest percentage (69%) of medical device mergers and acquisitions announced from 2000 to 2009. Further, the 10-year data reveals that six of the top 25 largest medical device mergers and acquisitions announced feature a private equity firm or a consortium of private equity buyers acquiring a medical device company.
 
The largest of the deals featuring private equity buyers acquiring medical device companies, based on the 10-year data, is the $11.4 billion acquisition of Biomet by a private equity consortium in 2006. Other medical device acquisitions featuring a private equity buyer were the $4.1 billion acquisition of ConvaTec by Avista Capital Partners/Nordic Capital, announced in 2008, and the $4.5 billion acquisition of Bausch & Lomb by Warburg Pincus, announced in 2007. Other notable acquisitions of medical device companies by private equity buyers during the 10 years ended December 31, 2009 include the $3.7 billion acquisition of Molnlycke Health Care Group by Investor AB and Morgan Stanley, the $3.3 billion acquisition of Pharmaceutical Technologies & Services by The Blackstone Group and the $2.55 billion acquisition of Kodak Health Group by Onex Corp., all announced in 2007.
 
Geographically, the data revealed that for the 10-year period ended December 31, 2009, the targets in medical device mergers and acquisitions were concentrated heavily in the states of New Jersey, New York, Pennsylvania, Minnesota, Massachusetts, Texas, Illinois, Indiana, Florida, Georgia and Ohio. Outside the U.S., the targets in medical device mergers and acquisitions were concentrated primarily in countries including Switzerland, Germany, England, France, Canada, Sweden, Japan and the Netherlands. During the same 10-year period, states including California, New Jersey, New York, Massachusetts, Pennsylvania, Minnesota, Ohio, Texas, Florida, Utah and Wisconsin, and countries including the United Kingdom, Switzerland, the Netherlands, Germany and France are where the buyers were based in many of these medical device mergers and acquisitions.
 

Medical Device Mergers and Acquisitions, 2000 to 2009

Year

Dollars Committed

Number of Deals

2000

$12,159,048,681

76

2001

$10,407,474,904

120

2002

$6,235,300,825

175

2003

$14,463,966,700

166

2004

$21,310,256,810

133

2005

$42,138,020,000

140

2006

$53,268,054,000

150

2007

$58,219,045,917

194

2008

$69,305,607,825

167

2009

$13,826,283,950

175

Total

$301,333,059,612

1,496

 
Information in this press release is based on data drawn from DealSearchOnline.com, an online publication of Irving Levin Associates, Inc. Online and available 24/7 at www.dealsearchonline.com, DealSearchOnline.com is a database of current and historic health care mergers and acquisitions, with deal summaries on more than 15,000 mergers and acquisitions since 1993 in the following sectors: Behavioral Health Care; Biotechnology; e-Health; Home Health Care; Hospitals; Laboratories, MRI and Dialysis; Long Term Care; Managed Care; Medical Devices; Pharmaceuticals; Physician Medical Groups; Rehabilitation; and Other Health Care Services. Deal summaries include details such as deal terms, target and acquirer contact information (including e-mail addresses), and price to revenue multiples. Searching is free. Visit www.dealsearchonline.com for a login. Data is immediately available for download or to print, with a credit card or the purchase of a subscription. Certain Irving Levin Associates, Inc. print publications include special online access to the database for subscribers. Call 1-800-248-1668 for details on subscription options, or email customerservice@levinassociates.com.

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