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May 20, 2013 Issue:
Recent Health Care M&A Deals
Hospitals
Acquirer
Target
Price
Alameda Health System
San Leandro Hospital
N/A
OhioHealth
MedCentral Health System
N/A
Medical Devices
Acquirer
Target
Price
TriStar Wellness Solutions
HemCon Medical Technologies
$3.075 million
Biosensors
Spectrum Dynamics
$51 million
Pharmaceuticals
Acquirer
Target
Price
Elan Corporation, LLC
Theravance, Inc.
$1.0 billion
Service Deal of the Week
Things were tamer in the Long-Term Care sector last week, as Chartwell Retirement Residences (TSX: CSH.UN) accepted an offer of $80.9 million from Brookdale Senior Living Inc. (NYSE: BKD). The price paid, $61 million in debt (mostly assumed) and the rest in cash, was for seven senior living communities located in Alabama (1), Arizona (2), Georgia (2), Louisiana (1) and Oklahoma (1). Brookdale has been managing all but the Alabama community since its September 2011 acquisition of Horizon Bay. The deal adds 613 units, with 493 assisted living, 80 independent living and 40 Alzheimer’s units. …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
In the first four months of 2013, the Biotechnology sector has racked up 21 deals. That’s not a bad showing, but the pace will have to pick up soon if this year is going to rival 2012’s 107 transactions. However, deal value in the Biotech sector has already hit $16.7 billion, which is very close to last year’s combined total of $18.7 billion. However, looking back over the last five years of M&A activity in the category shows that the best years for Biotech deals were among the worst for the U.S. economy. In 2008, the 148 deals turned in a total of $94 billion. And while deal volume soared 30% in 2009, deal values plunged nearly 50%. So far, 2013 hasn’t demonstrated such volatility, but the year is still young. We’ll keep you posted.
Biotechnology Deals, 2008 to 2012
2012
2011
2010
2009
2008
Deal volume
107
82
129
193
148
% change
30.5%
-36.4%
-33.2%
30.4%
2.8%
Deal value*
$18.7
$33.2
$61.0
$47.4
$94.0
% change
-43.7%
-45.5%
28.4%
-49.5%
121.3%
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 drama continues in the Pharmaceuticals sector, and Elan Corporation, plc (NYSE: ELN) is once again in a starring role. When we last left them, Elan’s board “unanimously and without reservation” had rejected yet another hostile takeover bid by Royalty Pharma’s acquisition arm, Echo Pharma Acquisition Limited. The company’s published response “strongly advised” shareholders to take no action in relation to the offer. To top it off, Elan turned around and paid $1 billion to Theravance, Inc. (NASDAQ: THRX) in exchange for 21% interest in royalty payments from four respiratory programs the company has going with GlaxoSmithKline plc (NYSE: GSK). Late last month, Theravance announced it would split into two companies, with one branch as a biopharma company and the other a royalty management company. …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
Cambridge, Massachusetts-based Tokai Pharmaceuticals, Inc. announced it has raised $35.5 million in Series E financing to support its lead prostate cancer drug candidate, galeterone (TOK-001) in ongoing clinical trials. The biopharma company will expand the ongoing ARMOR2 Phase 2 trial of galeterone in patients with castration-resistant prostate cancer and prepare for registration studies. The financing included current investors Apple Tree Partners and Novartis Venture Funds, as well as undisclosed angel investors…..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.
Grandbridge Real Estate Capital’s Seniors Housing and Healthcare Finance Capabilities
Grandbridge Real Estate Capital’s dedicated Seniors Housing team offers seniors housing owners construction, nonrecourse acquisition/bridge and permanent financing options nationwide.
The team has more than 50 years of combined seniors housing experience, and has closed more than $5 billion in seniors housing loan, sales and advisory transactions over the past 10 years.
A subsidiary of Branch Banking and Trust Company (NYSE: BBT), Charlotte, N.C.-based Grandbridge has a proprietary lending platform, BB&T Real Estate Funding, as well as core balance sheet capabilities, which complement the firm’s broad investor base that include Fannie Mae, Freddie Mac, FHA, insurance companies, CMBS investors, pension funds advisors, commercial banks and capital market investors.
For more information visit www.grandbridge.com/seniors_housing.
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.
Webcast Calendar…Click here to see more
