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Week ending June 5, 2015:
Recent Healthcare M&A Deals
Hospitals
Acquirer
Target
Price
SSM Health
Saint Louis University Hospital
Merger
Franciscan Alliance
Jasper County Hospital
Merger
Laboratories, MRI & Dialysis
Acquirer
Target
Price
Accuratus Lab Services, Inc.
Array Biopharma’s CMC operation
N/A
OPKO Health, Inc.
Bio-Reference Laboratories
$1.47 billion
OPKO Health Buys Bio-Reference Labs
OPKO Health (NYSE: OPK) may have posted a net loss of $244 million on a trailing 12-month basis, but it had the wherewithal to buy Bio-Reference Laboratories (NASDAQ: BRLI), one of the largest full-service diagnostic laboratories in the world. Bio-Reference provides clinical testing services to physician offices, clinics, hospitals, long-term care facilities and employers in more than 50 countries. OPKO plans to leverage the company’s the national marketing, sales and distribution resources to boost sales of its 4Kscore test, a blood test that evaluates a patient’s risk for aggressive prostate cancer. Under terms of the deal, BRLI stockholders will receive 2.75 shares of OPKO common stock for each share of BRLI common stock. Based on a closing price of $19.12 per share of OPKO stock on June 3, 2015, the transaction is valued at approximately $1.47 billion.
May 2015 Health Care M&A vs. May 2014
Health care deals were fairly strong in the early weeks of May 2015, but deal makers seemed to take a vacation around the Memorial Day weekend, and didn’t get back to work until the first week in June. Here’s how May 2015 transactions compare with the same month the year before, when M&A was booming through the second quarter. The difference isn’t dramatic, but so far in Q2:15, we’ve counted approximately 228 transactions, compared with 325 in Q2:14. Stay tuned.
Deal Volume, May 2015 vs. May 2014
Segment
May 2015
May 2014
Change
Health Care Services
53
63
-16%
Health Care Technology
50
46
9%
Total
103
109
-6%
Source: The Health Care M&A Information Source, June 5, 2015
Acadia Healthcare Is Still on the Acquisition Trail
Acadia Healthcare (NASDAQ: ACHC) made its second acquisition of 2015 last week, adding three more facilities to its growing list of inpatient behavioral health care assets. Two of its targets are in the United Kingdom, where last year it picked up Partnerships in Care, the second-largest independent behavioral health care provider, for $662 million. This year Acadia acquired Care UK, which operates 15 inpatient facilities with approximately 300 beds, and Choice Lifestyles, a single facility with 42 beds. The third property is Belmont Behavioral Health, a 147-bed inpatient facility that was part of the not-for-profit Einstein Healthcare Network outside Philadelphia, Pennsylvania. The aggregate cash consideration for all three companies is approximately $145 million.
McKesson Sells its Care Management Business
McKesson Corporation (NYSE: MCK) is divesting its Care Management business, which will be renamed AxisPoint Health. Its offerings include complex and chronic case management services to payers and other risk-bearing entities through a network of nurses and clinicians in 24 states. The buyers are Comvest Partners and Mosaic Health. Financial terms were not disclosed…………………………Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
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