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February 24, 2014 Issue:
Recent Health Care M&A Deals
E-Health
Acquirer
Target
Price
Optum
Audax Health Solutions, Inc.
N/A
Hospitals
Franciscan Missionaries of
Our Lady Health System
LSU Bogalusa Medical Center
Merger
Physicians Realty Trust
Texas Surgical Hospital
$18.9 million
TPG and Fosun Pharma
Chindex
$369 million
Laboratories, MRI and Dialysis
National Dentex Corporation
nSequence
N/A
Technology Deal of the Week
This one may turn out to be the deal of the year—maybe the last few years—measured by acquisition price. Actavis plc (NYSE: ACT), now based in Dublin, agreed to acquire Forest Laboratories Inc. (NYSE: FRX) in a cash-and-stock deal worth approximately $25 billion. The deal values Forest at $89.48 per share, a 25% premium to the close on February 14. The breakdown equates to $26.04 in cash and 0.3306 Actavis shares for each share of Forest. Actavis has been a very active M&A player in the last 12 months. In January, the company sold its generics commercial operations in Western Europe to Indian API manufacturer Aurobindo Pharma, Ltd. (BSE: AUROBINDOP.BO) for an undisclosed price. Its largest purchase last year was Irish drug company Warner Chilcott plc (NASDAQ: WCRX) for $8.5 billion, of course, but it also bought various geographical rights to three drugs: metronidazole vaginal gel (from Valeant Pharmaceuticals International [NYSE: VRX]); albaconazole antifungal agent (from Palau Pharma, S.A.; and the LNG20 intrauterine device from Medicines360……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
We’re pulling together data for the 20th edition of The Health Care Services Acquisition Report, covering mergers and acquisitions on the services side. The Hospital sector had a banner year in 2013, if you exclude the deal volume. Thanks to the two transactions involving publicly traded hospital chains, the Tenet Healthcare/Vanguard deal and Community Health Systems/Health Management Associates, the dollar volume, number of hospitals and price-per-bed set new records. (You’ll have to check out next month’s Health Care M&A News for the details.)
Announced Hospital Transactions, 2009 to 2013
Year
Deal Volume
Deal Value
Hospitals
2013
87
$19,001,720,000
330
2012
110
$2,273,017,010
247
2011
93
$8,305,060,000
156
2010
76
$10,515,632,477
125
2009
52
$2,088,600,000
80
Source: The Health Care M&A News, February 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
Services Deal of the Week
Blue Cross of Northeastern Pennsylvania and Highmark, Inc. have signed a definitive agreement to merge, which is now pending approval from the Pennsylvania Insurance Department. Under terms of the merger agreement, Wilkes-Barre-based BCNEPA’s local operations will be merged with Highmark, and Highmark will become the Blue Cross and Blue Shield Association affiliate for BSNEPA’s 13-county service area. If successful, the two not-for-profits will provide health insurance plans to nearly 5 million members in 62 of the 67 counties in Pennsylvania. Highmark also operates pans in Delaware and West Virginia, and more than 620 optical retail stores, known as Visionworks, and five eyewear manufacturing facilities……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
Only one year in, a mobile app that tracks women’s fertility cycles scored some major backing recently. Berlin-based Clue, the name of the company and the app, announced it had received €500,000 (approximately $680,000) seed funding led by the Swiss entrepreneur Christophe Maire, Joanne Wilson (aka Gotham Gal), Luminary Labs and existing investor Thomas Madsen-Mygdal. The capital will be used to build a team and improve the product, as well as adapt the app to local markets….. 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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