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Week ending March 27, 2015:
Recent Health Care M&A Deals
Acquirer
Target
Price
Pharmaceuticals
Tabuk Pharmaceutical
License to 3 erectile dysfunction drugs
$85.6 million
Nanolek
Russian rights to Green Cross’ biologics
N/A
Mundipharma
License to anamorelin
N/A
Other Services
Tenet Healthcare Corporation
United Surgical Partners International
$425 million
Fred’s Inc.
EntrustRx Specialty Pharmacy
$66 million
Joint venture
Concentra Inc.
$1.055 billion
Welsh, Carson’s Busy, Billion $$ Week
In case you hadn’t heard, the Welsh, Carson, Anderson & Stowe private equity firm was featured in several deal announcements last week. The largest deal, at $1.06 billion, was for Concentra Inc., a subsidiary of Humana Inc. (NYSE: HUM), which operates urgent care, occupational medicine, physical therapy and other programs. For the transaction, Welsh, Carson formed a joint venture with Select Medical Corporation (NYSE: SEM), which operates specialty hospitals and outpatient rehab clinics. Then there was the sale of a majority stake in its portfolio company, United Surgical Partners Inc. Tenet Healthcare Corporation (NYSE: THC) paid $425 million for a 50.1% interest, and will acquire the rest over the next five years through a put/call structure. At the same time, the PE firm sold another portfolio company, UK-based Aspen Healthcare Ltd., to Tenet for another $215 million. Whew.
March Healthcare M&A Madness
March isn’t quite over as we write this, and neither is the madness—which won’t stop us from posting the biggest deals of the month. As of Friday, March 27, $34.4 billion has been committed to finance about 105 transactions. Of course, $21 billion of that comes from the AbbVie (NYSE: ABBV) acquisition of Pharmacyclics (NASDAQ: PCYC). Next week, preliminary Q1:15 results!
Top Five Health Care Transactions in March 2015
Acquirer
Target
Price
AbbVie
Pharmacyclics
$21 billion
Leonard Green and TPG
Life Time Fitness
$4 billion
Mallinckrodt
Ikaria, Inc.
$2.3 billion
Cardinal Health
Cordis
$1.9 billion
Boston Scientific
Urology portfolio
$1.6 billion
Source: The Health Care M&A Information Source, March 27, 2015
Fred’s Inc. Buys EntrustRx
Specialty pharmaceutical companies are still in strong demand, and so are specialty pharmacies. Three deals in the first quarter of 2015 have been announced, the most recent being last week’s $66 million acquisition of Reeves-Sain Drug Store, Inc., a private specialty and retail pharmacy company, by Fred’s Inc. (NASDAQ: FRED). Fred’s sells general merchandise through 661 retail discount stores and full-service pharmacies in the southeastern United States. This transaction nets it a single Reeves-Sain retail pharmacy in Murfreesboro, Tennessee, and
Fortis Sells its Singapore Surgical Hospital
Fortis Healthcare International Pte Ltd, a subsidiary of Fortis Healthcare Ltd (BSE: FORTIS), sold its Fortis Surgical Hospital in Singapore to Beijing-based Concord Medical Services Holdings Limited (NYSE: CCM). The 31-bed hospital sold for $39.8 million, or $1.28 million per bed. Concord plans to rename the facility the Singapore Concord Cancer Hospital, and to add more medical specialties, such as oncology, cardiology, respiratory, dermatology, renal medicine and more…………………..Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
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