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May 6, 2013 Issue:

Recent Health Care M&A Deals






Ingenuity Systems

$105 million

Medical Devices




Haemonetics Corporation

Hemerus Medical, LLC

$24 million

Group of Buyers

Alma Lasers

$240 million


Conceptus, Inc.

$1.1 billion





Hyperion Therapeutics

Rights to Buphenyl and Ammonul


Service Deal of the Week
Deal-making in the Long-Term Care sector stayed strong through April, too. On April 26, Kindred Healthcare, Inc. (NYSE: KND) announced its agreement to sell 17 of its facilities to an affiliate of Vibra Healthcare, LLC for $187 million. The facilities consist of 15 transitional care hospitals with a combined total of 1,052 beds, one inpatient rehabilitation facility with 44 beds, and one skilled nursing facility with 135 beds. Six of those facilities are owned by Kindred and the remaining six are leased. RBC Capital Markets serviced as exclusive financial advisor to Kindred on the transaction….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
The Long-Term Care sector typically leads all others in M&A activity, and the results for Q1:13 are no exception. Although deal volume in the sector fell 28% compared with Q4:12 (44 deals vs. 61 in the previous quarter), there was added incentive for buyers and sellers to complete anticipated transactions by the end of 2012. Based on revealed prices, nearly $1.5 billion was committed to finance the first quarter deals. Of the 44 deals announced, 34 came with prices.
Top 5 Long-Term Care M&A Transactions in Q1:2013







Assisted Living Concepts



Griffin-American Healthcare REIT II, Inc.

Five assisted living facilities



Brookdale Senior Living Inc.

12 senior living communities



HealthLease Properties REIT

13 senior housing and care properties



CNL Healthcare Properties, Inc.

Five assisted living communities


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Technology Deal of the Week
When we last left them, Dublin, Ireland-based Elan Corporation (NYSE: ELN) had refused a buyout offer of $11.00 per share, or $6.55 billion, from Royalty Pharma LLC, a New York City-based pharma investment firm.  Elan, you may recall, had just sold its share of the worldwide rights to Tysabri, a successful MS drug, to Biogen Idec (NASDAQ: BIIG) for $3.25 billion, essentially leaving the company without a drug pipeline to fall back on. The upside for Elan shareholders would be the royalties Biogen agreed to pay, and that’s what attracted Royalty Pharma. On April 15, Elan announced a Dutch Auction for its shares and its largest shareholder, Johnson & Johnson (NYSE: JNJ) promptly cashed out its 82 million shares at $11.25 per, for an after-tax gain of $213 million. Royalty announced a new offer, valued between $11.25 and $12.00 per share, based on the clearing price.  Elan’s board of directors unanimously rejected the offer on April 22. But wait! On May, Echo Pharma Acquisition Limited, the acquisition shell Royalty set up to acquire Elan, made another formal cash offer of $11.25 per share. The game’s not over…..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
Call this The Pipeline Itself. On May 2, Capital Royalty L.P., a healthcare investment firm, announced the final closing of Capital Royalty Partners II L.P., with $805 million in equity commitments. Anyone who thinks that health care is losing its luster as an investment vehicle would be surprised to hear the fund was oversubscribed and exceeded its initial target, although that target was not disclosed. Total investable capital is expected to exceed $1 billion including debt financing facilities. The fund’s focus is definitely not on startups. Capital Royalty is seeking credit-oriented investments in approved and commercialized healthcare products and technologies, as it supports commercialization, pipeline development and other growth opportunities to companies that are well along in the development process….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.

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