Stephen M. Monroe, Partner
Sanford B. Steever, Editor
800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com
Health Care M&A Dollars
Spent In 2006 Shatters Previous Record According To New Report From Irving
Levin Associates, Inc.
NORWALK, CT – January 11, 2007 – During 2006, a total
of 991 mergers and acquisitions were announced in 13 sectors of the health
care industry, a 2% increase over the 970 transactions announced in 2005.
Based on prices revealed to date, a combined total of $260.7 billion was
committed to finance the year’s 991 deals. This is a 61% increase over the
$162.3 billion in 2005 and a 59% increase over the $164.3 billion in 2004,
the previous record-breaking year in terms of dollars spent.
see chart below
“Health care M&A activity surged in 2006 with a market that
was flush with capital looking for investments,” stated Stephen M. Monroe,
managing editor at Irving Levin Associates, Inc., which publishes The Health
Care Acquisition Report. “The year saw a total of 35 billion-dollar deals,
worth a combined total of over $200.0 billion, hitting the market at the
astonishing rate of one every 10 days."
The four sectors of the health care technology segment,
including Biotechnology, e-Health, Medical Devices and Pharmaceuticals,
posted 471 deals, or 48% of the year’s deal volume. A combined total of
$171.8 billion, or 66% of all health care dollars spent in 2006, was
committed to the technology sector. “Just three sectors, Pharmaceuticals,
Medical Devices and Biotechnology combined, garnered 64% of all health care
dollars committed in 2006,” observed Sanford Steever, Ph.D., editor of the
Report. “Investors’ favorable attitude toward the industry can be gauged by
the fact that health care deals commanded acquisition premiums that were 50%
more than the average for M&A across all industries.”
In the service segment, facility-based sectors, particularly
Hospitals and Long-Term Care, attracted the greatest number of investors’
dollars in 2006. “Traditional real estate investors continued targeting the
senior housing market, helping drive valuations up to their current high
levels,” Mr. Monroe indicated. “The $33.0 billion acquisition and
privatization of hospital giant HCA proved emblematic of private equity’s
buying power and interest in asset-based acquisition targets.”
The fourth quarter of 2006 witnessed 226 mergers and
acquisitions worth $75.8 billion. With 12 billion-dollar deals announced
during the period, Q4:06 maintained the heady pace set earlier during the
year. “While we recognize that not every year can be a record-breaker, our
current indications are that the trends established in the 2006 M&A market
will continue robustly in 2007,” Mr. Steever concluded.
For more information on The Health Care Acquisition Report,
The Health Care M&A Information Service or for a subscription to any Irving
Levin publication, call 800-248-1668. Irving Levin Associates, Inc.,
established in 1948, has headquarters in Norwalk, CT and is online at
www.levinassociates.com. This privately held corporation publishes research
reports and newsletters, and maintains merger and acquisition databases, on
the health care and senior housing markets.
Since 1948, Irving
Levin Associates, Inc. has been the leading source of information
and investment research on mergers and acquisitions in the
Behavioral Health Care, Biotech, 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 markets.
