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April 22, 2013 Issue:
Recent Health Care M&A Deals
Behavioral Health Care
Acquirer
Target
Price
Acadia Healthcare
Two Psychiatric Facilities
$91.8 million
Biotechnology
Acquirer
Target
Price
Origene Technologies, Inc.
Life Science business of SDIX
N/A
Rockland Pharmaceuticals
Epi-Plus Product Line
N/A
Laboratories, MRI and Dialysis
Acquirer
Target
Price
SleepMed, Inc.
Watermark Medical, Inc.
Merger
Other
Acquirer
Target
Price
Ajinomoto Co., Inc.
Althea Technologies
$175 million
Service Deal of the Week
Quest Diagnostics (NYSE: DGX) announced it had a definitive agreement to acquire the lab-related clinical outreach operations of Dignity Health in California and Nevada for an undisclosed price. The nonprofit is keeping its hospital-based laboratories. Quest has been on a de-acquisitioning kick in recent months as it pared down non-core businesses such as its Sweden-based HemoCue, which manufactures and markets point-of-care testing equipment, in a sale to Danish medical device company Radiometer Medical ApS in February 2013 for $300 million. In the agreement with Dignity Health, Quest expects the transaction to be neutral to adjusted earnings in 2013 and modestly accretive to earnings per share in 2014. The deal is expected to close in June 2013. …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
Deal-making remained slow in March 2013, with just 64 deals announced. Of course, more may come to light, but last month still has a way to go to catch up to the deal volume in March 2012, when 98 transactions were announced. Deal value in March 2012 reached $8.4 billion, helped by the $1.35 billion deal for Cameron Health, Inc. announced by Boston Scientific (NYSE: BSX). This year, the largest deal of March was a mere $418.3 million, and total deal value stands at $2.43 billion. Stay tuned – our data are showing things may be picking up in April.
Top 5 Health Care M&A Transactions in March 2013
Rank
Acquirer
Target
Price
1
Valeant Pharmaceuticals International, Inc.
Obagi Medical Products, Inc.
$418,300,000
2
Argon Medical Devices
Interventional products business
$362,500,000
3
Cynosure, Inc.
Palomar Medical Technologies
$294,000,000
4
Allscripts
dbMotion, Ltd.
$235,000,000
5
Ajinomoto Co., Inc.
Althea Technologies, Inc.
$175,000,000
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
The list of Life Technologies Corporation’s (NASDAQ: LIFE) many suitors narrowed down to one last week, as Thermo Fisher Scientific (NYSE: TMO) emerged as the successful acquirer. The biotech giant was also being pursued by a buyout team consisting of Blackstone Group LP, Carlyle Group LP, KKR & Co., and Singapore’s state investment company, Temasek Holdings Ltd. Their joint bid of about $11 billion, or $62 per share, was far below Thermo Fisher’s offer of $76 per share, which works out to $13.6 billion. Thermo Fisher will also assume $2.2 billion in debt, bringing the cost to $15.8 billion. The transaction is expected to be immediately accretive to TMO’s adjusted earnings, although the deal is not expected to close until early 2014. …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
Venture capital is still pouring into biotech companies, and it’s not just seed or A rounds. One deal we enjoyed hearing of was Swiss biotech Auris Medical’s announcement that it had raised $50.6 million (CHF 47.1 million) in a Series C round to advance two major therapeutics, AM-101 for the treatment of acute tinnitus and AM-111 for the treatment of acute inner ear hearing loss. The funds will help move the products through Phase 3 studies and ultimately to market launch. Not a moment too soon for some baby boomers…..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:
Hospitals: Buying, Selling and Valuing
Thursday, April 25, 2013, 1:00 pm ET
The dramatic increase in Hospital M&A activity from 2010 through 2012 accounts for a 25% increase in the number of deals made compared to the prior three-year period. That steep incline in hospital mergers and acquisitions is expected to continue in the coming years. Find out more from our expert panel: David Ertel (Moderator), Chief Financial Officer, Einstein Healthcare Network; Arnie Kimmel, Senior Vice President of Development, Prime Healthcare Services; Monte Dube, Esq., Partner, Proskauer Rose; Stephen Gelineau, Senior Vice President, The Camden Group; and Jim Moloney, Managing Director / Co-Head of Tax-Exempt M&A, Cain Brothers.
Go to http://www.levinassociates.com/conferences/1304b-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 April 30th 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!
Conference Calendar…Click here to see more
