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September 30, 2013 Issue:
Recent Health Care M&A Deals
E-Health
Acquirer
Target
Price
Vitera Healthcare
Greenway Medical Technologies
$644 million
Laboratories, MRI and Dialysis
Acquirer
Target
Price
IXICO Limited
Phytopharm plc
$9.02 million
Analogic Corporation
PocketSonics, Inc.
$11 million
Medical Devices
Acquirer
Target
Price
Stryker Corporation
MAKO Surgical Corp.
$1.65 billion
Pharmaceuticals
Acquirer
Target
Price
AbbVie
Right to ALX-0061
$175 million
Technology Deal of the Week
It’s all in the timing. Just as The Hill reported that Sen. Orrin Hatch (R-Utah) would lead an effort to repeal the 2.3% medical device tax, consumer electronics giant Panasonic Corp. (OTCBB: PCRFY) finally found a buyer for its health care unit in KKR & Co. (NYSE: KKR) last week, for approximately $1.67 billion. Under the agreement, KKR will own an 80% stake in Panasonic Healthcare Co., and Panasonic will own the remaining 20%. The three core businesses are In Vitro Diagnostics, including the manufacture and sale of blood glucose monitoring devices; Medicom, including medical receipt computers, electronic health records and other IT equipment for medical clinics; and Biomedical laboratory equipment, including incubators and ultra-low temperature freezers. The transaction is expected to close by the end of the first quarter of 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.
Charted Territory
Seeing Kohlberg Kravis Roberts & Co. (NYSE: KKR) on our radar again last week prompted us to check our database to see what private equity firms are acquiring this year. KKR, you may recall, made news earlier this summer with its purchase of two clinical research organizations, PRA International and ReSearch Pharmaceutical Services for undisclosed prices. Had those deals come with published prices, KKR would dominate this year’s list of PE acquisitions—at least, through the end of September. There’s still more to come.
Top 10 Health Care Deals Conducted by Private Equity Groups, thru Sept. 27, 2013
Rank
Acquirer
Target
Price
1
KKR & Co.
Panasonic’s Healthcare division
$1,670,000,000
2
TPG
Assisted Living Concepts, Inc.
$458,540,000
3
JLL Partners
BioClinica
$123,000,000
4
Eurazeo PME
Ideal Residences
$81,875,000
5
HSRE-EBI, LLC
2 assisted living communities
$80,000,000
6
Zhuhai Rongdong Equity
Jilin Boda Pharmaceutical Co., Ltd.
$65,204,000
7
Juniper Investment Co.
Theragenics Corporation
$64,300,000
8
The Carlyle Group
The Preserve at Palm Aire
$38,550,000
9
Prudential Real Estate Investment
Arbor Terrace at Crabapple
$32,700,000
10
Virtus Real Estate Capital
Park Place at Heritage Village
$20,800,000
Source: Irving Levin Associates, Inc., September 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
Services Deal of the Week
Behavioral health care is hot. That phrase was echoed by several speakers at last week’s Healthcare Deal Making Summit in Nashville, Tennessee, and borne out by the announced merger of two of the most recognized names in the space, Hazelden and the Betty Ford Center have agreed to merge. The combined entity will become the largest nonprofit addiction treatment provider in the United States, offering residential and outpatient services, under the new name, the Hazelden Betty Ford Foundation. Terms of the deal were not disclosed…..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
Investors just can’t seem to get enough of new biopharmaceutical companies. Foundation Medicine, Inc. (NASDAQ: FMI), maker of the FoundationOne cancer diagnostic test, made its debut on September 25 with in initial public offering of 5,888,888 shares of common stock priced at $18.00 per share. By Friday, September 27, the stock price had only slightly backed off its peak of $37.98 per share, putting the company’s market value around $1 billion. Goldman, Sachs & Co. and J.P. Morgan Securities acted as joint book-running managers, while Leerink Swann and Sanford C. Bernstein & Co. acted as co-managers. All may be expected to exercise their option to purchase up to an additional 883,333 shares at the public offering price…..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.
7th Annual HCap Healthcare Services & Capital Conference, December 4-6, 2013, JW Marriott, Washington, D.C. (Special Offer for HCDN readers – save additional $200 off Early-Bird rate!)
Strategy, Policy, Capital and M&A for the Healthcare Continuum – Healthcare’s best and brightest from LTC & Senior Living; Home Care and Hospice; Hospitals and Health Systems; and Physician and Medical Groups will gather in Washington, D.C. to share experiences, look ahead to 2014’s changes, and to meet with Capital.
Register today to:
Participate in interactive discussions with healthcare’s cutting-edge innovators, top policy makers and Wall Street analysts.
Meet leading lenders, iBanks, PE firms, M&A firms and other financial advisors to discuss capital for growth or acquisition purposes.
Discuss potential acquisitions and divestitures with other providers.
Engage C-Level thought leaders to share perspectives and business models and explore potential partnerships.
For more information and to register: www.hcapconference.com (Use the code HCAPDN to save $200).
IMN’s Healthcare Provider Technology M&A Forum, Oct. 22, NYC
IMN is proud to introduce the inaugural Healthcare Provider Technology M&A Forum, taking place October 22, in New York City. This unique and compelling program will bring together a large number of technology vendors with strategic & financial buyers and their financial intermediaries to examine the gamut of issues and opportunities – legal, financial, cultural, strategic – throughout the transaction lifecycle. Confirmed speakers include: Michael Kluger (ALTARIS CAPITAL PARTNERS), Steve Wiggins (ESSEX WOODLANDS), Mohit Kaushal (ABERDARE VENTURES), Brad Brooks (TIGERTEXT), David Tamburri (HEALTH ENTERPRISE PARTNERS), Jonathan Lujan (SIS), and Rob Cosinuke (ATHENAHEALTH). Visit http://www.imn.org/healthcare-it/conference/Healthcare-Technology-Mergers-Acquisitions-Forum/Home.html for more information.
Webcast Calendar…Click here to see more
