THE HEALTH CARE M&A REPORT
FIRST QUARTER 2010
A SUPPLEMENT TO THE HEALTH CARE M&A MONTHLY
Irving Levin Associates Publications and Services
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The Health Care M&A Report First Quarter, 2010
ISSN 1076-3511 ISBN 1-933707-57-7 (Volume 1) ISBN 1-933707-61-5 (Four-Volume Set) Published by: Irving Levin Associates, Inc. 268-1/2 Main Avenue Norwalk, CT 06851 203-846-6800 Fax 203-846-8300 [email protected] www.levinassociates.com
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TABLE OF CONTENTS
INTRODUCTION v
BIOTECHNOLOGY 1
E-HEALTH 21
HOME HEALTH CARE 37
HOSPITALS 49
LABORATORIES, MRI and DIALYSIS 57
LONG-TERM CARE 65
MANAGED CARE 77
MEDICAL DEVICES 83
PHARMACEUTICALS 107
PHYSICIAN MEDICAL GROUPS 131
REHABILITATION 141
OTHER 147
INDEX 165
INTRODUCTION
This is the 67th issue of The Health Care M&A Report, which tracks the merger and acquisition market in the health care industry. General trends in the market are discussed in this Introduction, and supported by data from individual deals that appear in the body of the text. Each entry details a transaction, describing the target and acquirer. It also provides the price, terms, acquisition multiples and other financial information, where these are available. Finally, the commentary section offers additional analysis.
This issue reports on 215 separate transactions that were announced in the first quarter of 2010 and lists them alphabetically by target within 13 separate health care sectors.
Behavioral Health Care Managed Care Biotechnology Medical Devices E-Health Pharmaceuticals Home Health Care Physician Medical Groups Hospitals Rehabilitation Laboratories, MRI & Dialysis Other Long-Term Care
For reasons of timeliness, each transaction is tracked by the date of the announcement rather than the date of consummation, or closing date. This generally coincides with a significant event, such as the signing of a letter of intent or the receipt of regulatory clearance. It is assumed that once a letter of intent is signed, for example, the parties to the deal consider it to be economically viable relative to the market conditions at the time of the signing. The chart below presents these 215 deals in relation to the number of deals that were announced during the four previous quarters.
Health Care Mergers & Acquisitions Total Transactions By Quarter
300 267 236 239 203 215
200 159 148 144 129 125
100 Transactions 95 108 78 88 86
0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Services Technology
Source: Irving Levin Associates, Inc.
The Health Care M&A Report, First Quarter 2010 v
The chart on the previous page divides the health care industry into two broad segments: the nine sectors we have traditionally covered that offer “services” and the four sectors we subsequently began covering that are focused on products and “technology.” These two segments also figure in the discussion below.
With 215 deals announced during Q1:10, M&A activity was down 19% from the previous quarter’s 267 transactions, but up 6% from the 203 deals in the year-ago quarter (Q1:09). The 129 deals in the health care technology segment represent 60% of the total transaction volume announced during Q1:10, with the 86 deals in the health care services segment making up the remaining 40%. This is the same percentage split as in the previous quarter.
Q4:09 Q1:09 Q1:10 % % Sector Deals* Deals Change Deals Change Services Segment: Long-Term Care 16 40 -60% 15 7% Home Health Care 14 12 17% 7 100% Physician Groups 11 13 -15% 9 22% Labs, MRI, Dialysis 8 7 14% 10 -20% Hospitals 7 4 75% 12 -42% Managed Care 2 3 -33% 1 100% Rehabilitation 2 6 -67% 3 -33% Behavioral Health Care 0 1 NA 5 NA Other 26 22 18% 16 63% Services Subtotal 86 108 -20% 78 10%
Technology Segment: Medical Devices 39 50 -22% 34 15% Pharmaceuticals 39 29 34% 37 5% Biotechnology 30 61 -51% 45 -33% e-Health 21 19 11% 9 133% Technology Subtotal 129 159 -19% 125 3%
Grand Total 215 267 -19% 203 6% *Preliminary figures
The Health Care M&A Market—Deal Volume
The three most active sectors taken together account for 50% of the total deal volume announced during the first quarter of 2010. In Q1:10, the three most active individual sectors were Medical Devices (39), Pharmaceuticals (39) and Biotechnology (30). The three largest sectors in the previous quarter (Biotechnology, Long-Term Care, and Medical Devices) accounted for 56% of that period’s total transaction volume.
A total of 174 companies were involved in the Q1:10 health care M&A market as buyers (Q4:09, 205). One-hundred-two publicly traded corporations announced a combined total of 139 deals; 62 privately held companies announced a combined 65 deals; and 10 not-for-profit organizations announced a combined total of 11 deals. The most prolific acquirer was home health provider LHC Group with five deals. It was followed by GlaxoSmithKline, Mednax and Novartis with four deals each, and Inverness Medical Innovations, RadNet and TeamHealth with three deals each. For the remaining multiple acquirers, 18 publicly traded corporations and three private companies announced two deals each. On the seller’s side of the equation, the targets included 148 privately held companies or divisions thereof, 56 publicly traded corporations or divisions thereof and 11 not-for-profit organizations. Privately held
The Health Care M&A Report, First Quarter 2010 vi
Sunwest Management made a total of four divestments while publicly traded Agilent and Sunrise Senior Living made two sales apiece.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 Services $1.3 billion $5.3 billion $3.7 billion $3.5 billion $5.9 billion
Technology $126.0 billion $22.5 billion $36.0 billion $34.7 billion $19.7 billion
All Sectors $127.3 billion $27.8 billion $39.7 billion $38.2 billion $25.6 billion
Dollars Spent On Health Care M&A
Based on purchase prices revealed to date, a total of $25.6 billion was committed in Q1:10 to finance the quarter’s 215 transactions. The median price paid per transaction during the first quarter of 2010 was $27.8 million (Q4:09, $45.5 million).
Acquirer Type Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 (By Listing) Deals Dollars Deals Dollars Deals Dollar Deals Dollar Deals Dollar s s s Publicly Traded 57% 87% 61% 87% 53% 93% 64% 77% 65% 79%
Privately Held 36% 12% 32% 12% 34% 6% 34% 22% 30% 20%
Not-For-Profit 7% 1% 7% 1% 13% 1% 2% <1% 5% 1% Deals Announced and Dollars Spent By Acquirer Type
The table above classifies acquirers according to their listing type: publicly traded corporations, privately held companies or not-for-profit organizations. For each type, it presents the percentage of deals and dollars that type captured in a given quarter. In Q1:10, for example, acquisitions made by publicly traded corporations were responsible for approximately 79% of all dollars spent in the health care M&A market, while those made by privately held companies were responsible for 20% and those made by not-for-profit organizations were responsible for just 1%. The table also shows that in terms of dollar volume, not-for- profit organizations hover around the 1% mark even though they may range between 2% and 13% of the total deal volume.
What the table above shows us is that publicly traded corporations continually outstrip their privately held counterparts in the percentage of M&A dollars they capture. While access to the public equity markets accounts for some of the success the publicly traded groups enjoy versus their privately held counterparts, another factor may explain the increasing dominance enjoyed by publicly traded corporations. The increase in percentage of M&A dollars spent by publicly traded corporations prior to Q4:09 seems most likely correlated with the decrease in M&A dollars that were spent by such financial buyers as private equity groups and REITs. The Great Recession that began in August 2007, making credit scarcer and, where available, more costly, took a profound toll on deal-making by financial buyers, making the leveraged buyout more expensive and less profitable than it once was. Against this background, large publicly traded corporations, particularly big pharma companies, have been able to maintain or increase their level of M&A activity because many of them have the internal financial resources (read: cash flow) that allow them to bypass banks and other lenders. During Q4:09, financial buyers, including PEGs and REITs, staged a robust return to the health care M&A market. The deal and dollar levels fell off slightly during the first quarter of 2010, however.
The Health Care M&A Report, First Quarter 2010 vii
The table below indicates that financial buyers are now returning to the M&A market after posting nominal figures for the first three quarters of 2009.
Financial Buyers Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 Deals Announced 4 4 6 22 12
Percentage of Deal Volume 2% 2% 2% 8% 6%
Dollars Committed $580.5 million $267.5 million $1.5 billion $8.0 billion $3.5 billion
Percentage of Dollars Spent < 1% < 1% 4% 21% 14% The Impact Of Financial Buyers On The Health Care M&A Market
The chart below displays the percentage contribution of each sector to the total dollars spent during Q1:10. Pharmaceuticals, Biotechnology and Medical Devices captured the three highest amounts, posting $10.1 billion, $6.6 billion and $2.4 billion, respectively.
Medical Devices Hospitals 9.3% 8.6% e-Health Behavioral, Home, Labs, Other Services 2.6% Managed Care, P MG, 7.4% B iotechnology Rehab 25.6% 1.8%
Long-Term Care 5.4%
Pharmaceuticals 39.3%
Where The Health Care M&A Dollars Went In Q1:10
At the other end of the spectrum, six service sectors combined, Behavioral Health Care, Home Health Care, Laboratories, Managed Care, Physician Medical Groups and Rehabilitation, accounted for a total of $460.1 million, or approximately 1.8% of the first quarter’s total dollar volume.
The health care technology segment by itself attracted about $19.7 billion, or approximately 77% of the total amount committed to finance health care M&A activity during Q1:10 (Q4:09, 91%; Q3:09, 91%; Q2:09, 78%); the services segment, still lagging, accounted for the remainder.
The first quarter of 2010 saw the announcement of six billion-dollar deals (Q4:09, 6), listed in the table overleaf. Their combined value of $11.5 billion accounts for 45% of the quarter’s total M&A dollars (Q4:09, 47%). Half are in the technology sector, and all the acquirers but one (Triton) are strategic buyers.
The Health Care M&A Report, First Quarter 2010 viii
Acquirer Listing Target Listing Price Sector (In $ billions) Teva Pharmaceutical NASDAQ: Ratiopharm Private 5.0 Pharmaceuticals Industries TEVA GlaxoSmithKline plc NYSE: GSK RNA therapeutics NASDAQ: ISIS 1.5 Biotechnology collaboration The Blackstone NYSE: BX Sunwest Management Private 1.3 Long-Term Care Group portfolio Vanguard Health Private Detroit Medical Center Nonprofit 1.3 Hospitals Systems, Inc. AstraZeneca plc NYSE: AZN Rigel arthritis drug NASDAQ: RIGL 1.2 Pharmaceuticals Triton Private Ambea Private 1.2 Other
Billion-Dollar Deals Announced In Q1:10
Both foreign and domestic buyers have been active in the health care M&A market. As the chart below indicates, domestic buyers dominated the U.S. health care M&A market until Q4:07, when foreign buyers, buoyed by a relatively cheap dollar, began outspending American buyers. The chart gives three data points for each quarter. First is the total number of health care M&A dollars spent in that quarter on all transactions. The next two figures are derived from the top 20 deals of the quarter as measured in dollar value. Accordingly, the second data point is the number of dollars spent by all U.S. buyers among the top 20 deals. Similarly, the third data point is the number of dollars spent by all foreign buyers among the top 20 deals. (Since the top 20 deals in any given quarter generally account for four-fifths of all dollars spent, the inclusion of the remaining deals, all of lesser value, does not materially alter the overall pattern of results.)
$140.0
$120.0
$100.0 )
$80.0
$60.0 (In $ Billions (In $40.0
$20.0
$- Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10
All Deals $82.4 $66.7 $61.3 $49.9 $53.8 $27.7 $86.2 $89.4 $21.6 $127.4 $28.7 $39.7 $38.2 $25.7 Foreign Buyers $5.6 $17.8 $20.1 $13.9 $35.4 $11.8 $57.7 $75.3 $12.9 $3.1 $11.7 $7.7 $9.4 $12.2
Domestic Buyers $61.7 $37.4 $28.9 $22.7 $26.6 $8.9 $17.8 $5.1 $5.7 $119.2 $10.1 $24.3 $12.0 $7.0 Quarter And Year
Multi-Year Trend Of Foreign And Domestic Buyers In The Health Care M&A Market (Top 20 Deals)
The chart above reveals that for the four quarters from Q4:06 through Q3:07, big U.S. domestic buyers outspent their foreign counterparts. With the onset of the Credit Crunch in mid-2007, that pattern reversed itself so that for the five quarters from Q4:07 through the end of Q4:08, foreign buyers had the upper hand. Part of the reason for the recent preponderance of foreign buyers is that the dollar has been
The Health Care M&A Report, First Quarter 2010 ix
historically low against other major currencies for the past three years—and a lower dollar makes acquisitions in America by foreign buyers cheaper and more attractive. The low dollar also tends to keep American buyers in the American market and away from relatively more expensive foreign opportunities. However, since the beginning of 2009, no clear pattern has emerged, with domestic buyers outspending their foreign counterparts one quarter only to see that relationship reversed the next. In the short term, economic troubles in Southern Europe, as well as a falling Euro, may favor U.S. domestic buyers in the market. On a broader perspective, the trend toward globalization will likely raise the levels of cross- border M&A in the health care technology sectors while attempts to enhance local and regional health care delivery networks in the U.S. will foster a strong domestic market.
Of Special Note
To keep our readers abreast of the rapid developments in the merger and acquisition market, Irving Levin Associates issues The Health Care M&A Weekly 50 times a year. This bulletin, which reaches your desk by e-mail, lists all of the health care M&A deals announced during the week along with prices and links. Further detail and analysis of these transactions are provided in our monthly newsletter, The Health Care M&A Monthly, which is intended to serve two purposes. First, it offers up-to-date information on the market by collecting all the deals that have been announced during the previous month. Second, the newsletter places those deals in context by providing commentary on the market itself. Each month, we discuss emerging trends in individual sectors of the health care industry, interpret the investment implications of select deals and report information about deals we have heard to be brewing, but which have yet to be formally announced.
After the end of each quarter, we issue this source book, The Health Care M&A Report, to follow up on these transactions with more comprehensive information on the quarter’s deals. We utilize such sources as SEC filings, discussions with bankers and consultants involved in certain transactions, and interviews with company management to bring our readers reliable, value-added information on this important and rapidly developing market. The Irving Levin Online M&A Database, which includes 15 years’ worth of M&A data, is updated weekly and is at your disposal 24 hours a day, seven days a week. So even after the publication of this source book, we make subsequent updates to the deals contained in it available to subscribers through our online database. We hope that you will find our services a valuable tool for your business.
The Health Care M&A Report, First Quarter 2010 x
Behavioral Health Care
No transaction was announced in the Behavioral Health Care sector during Q4:10. During the past four quarters, only six transactions have been announced in this financially challenged industry.
Behavioral Health Care Mergers & Acquisitions Total Transactions By Quarter
6
5 4 5
2 Transactions
1 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
Based on revealed prices, the six Behavioral Health Care deals in the past four quarters cost a combined total of $72.9 million.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $6.8 million — $72.9 million — — Dollars Spent On Behavioral Health Care M&A, By Quarter
Subsequent to the end of the first quarter, however, the Behavioral Health Care sector has seen a revival of M&A activity. Most notably, Universal Health Services is paying $3.1 billion to acquire Psychiatric Solutions. And some smaller deals have also been announced as well.
The three largest Behavioral Health Care deals of the past 12 months are listed below.
Largest Behavioral Health Care Deals Of The Past 12 Months Value Quarter 1. The GEO Group acquired Just Care $40.0 million Q3:09 2. Psychiatric Solutions acquired Prairie St. John’s $19.5 million Q3:09 3. Psychiatric Solutions acquired a Florida facility $13.4 million Q3:09
The Health Care M&A Report, First Quarter 2010 xi
Biotechnology
During Q1:10, the Biotechnology sector posted a total of 30 deals, or 17% of the 178 biotech deals announced during the past four quarters. These 30 deals represent a 51% decrease from the 61 deals announced in the previous quarter, Q4:09, and a 33% decrease from the 45 deals announced in the year- ago quarter, Q1:09.
Biotechnology Mergers & Acquisitions Total Transactions By Quarter
70 60
50 61 40 45 30 45 42
Transactions 20 30 10 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
Based on prices revealed to date, a total of $6.6 billion was spent to finance the first quarter’s activity, or 15% of the $43.9 billion committed during the past 12 months.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $10.2 billion $10.2 billion $9.1 billion $18.0 billion $6.6 billion Dollars Spent On Biotechnology M&A, By Quarter
Twenty-one companies announced a combined total of 30 deals: 17 publicly traded corporations announced a total of 26 deals while four privately held companies announced one deal each. GlaxoSmithKline and Novartis each announced four deals while Abbott Laboratories, Kyowa Hakko Kirin and Roche Holding announced two deals each. Nineteen deals, or 63% of the sector total, involved foreign buyers acquiring an American-listed company. Twelve of the targets were publicly traded corporations or portions thereof while 18 were privately held companies. Fifteen of the targets, or 50% of the total, were foreign-listed.
The target businesses in Q1:10 are all involved in the discovery and use of cellular and molecular processes and platforms to solve problems or make products, both diagnostic and therapeutic. They include companies involved in antibodies, biologic drugs, gene therapies and vaccines, to name but a few. The therapeutic areas involved include bowel disease, cancer, kidney disease and pulmonary disease. Some of the targets have just a portfolio of intellectual property, while others have marketed products; some targets involve specific products, others entire companies.
The Health Care M&A Report, First Quarter 2010 xii
With the credit markets not flowing as freely as in the past, companies continue to hold onto their cash. This is reflected in a number of larger deals to acquire the rights to experimental therapeutic candidates: they generally consist of a small upfront payment, often a licensing fee, and very large milestone payments that will be made only if certain development, regulatory or commercialization thresholds are achieved. Note that two of the three largest deals of the quarter have this structure.
In the largest Biotechnology deal of the first quarter, one worth as much as $1.5 billion, Isis Pharmaceuticals is entering into a collaboration agreement with GlaxoSmithKline plc to develop and commercialize microRNA therapeutics for rare diseases. Isis will utilize its microRNA technology platform in this collaboration to develop Glaxo’s microRNA targets. This collaboration stipulates up to six programs; if all six are followed through, the price will be nearly $1.5 billion.
In the second largest deal, one potentially worth $960.0 million, Transgene is granting an exclusive option to Novartis AG for its TG4010 cancer vaccine, which is initially indicated for the treatment of lung cancer. Before it exercises its option, NVS wants to see the outcome of a midstage phase 2b clinical trial, due in 2012. Transgene will fund and keep control over phase 2b/3 development phases, but will recoup its costs if NVS goes ahead with the option. The initial option fee is just $10.0 million.
In the third largest deal, Abbott Laboratories is offering to pay $27.00 per share, or a total of $722.0 million, to acquire Facet Biotech, a publicly traded company that identifies and develops oncology drugs. Facet gives Abbott access to biologics in two therapeutic areas, immunology and oncology. This offer tops an unsuccessful hostile bid of $17.50 per share made last year by Biogen Idec.
Only the first of these three transactions figures among the five largest deals of the past 12 months, listed below. Two of the largest deals of the year are straightforward acquisitions; the other three are collaborations with small upfront and large contingent payments. All of the buyers in this list are big pharma companies. Biotechnology is just one of two sectors in which the individual prices of the top five deals exceed $1.0 billion; the other is Pharmaceuticals.
Five Largest Biotechnology Deals Of The Past 12 Months Value Quarter 1. Bristol-Myers acquired Medarex $2.4 billion Q3:09 2. Glaxo acquired access to Isis’ microRNA platform $1.5 billion Q1:10 3. Novartis acquired injectable generic cancer business $1.3 billion Q2:09 4. Novartis acquired a license for INCB18424 $1.3 billion Q4:09 5. Novartis acquired a license for TC-5214 $1.2 billion Q4:09
The Health Care M&A Report, First Quarter 2010 xiii
E-Health
Twenty-one deals were announced in the e-Health sector during Q1:10, representing 26% of the 80 e- Health transactions announced during the past four quarters. After hitting its lowest point in several years during Q1:09, M&A activity in this sector has rebounded over the four subsequent quarters, buoyed by renewed market interest in technology companies.
E-Health Mergers & Acquisitions Total Transactions By Quarter
25
20 21 21 15 19 19
10 Transactions 5 9
0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
Based on prices revealed to date, approximately $663.9 million was committed to finance this quarter’s 21 deals. The first quarter figure also represents about 5% of the approximately $12.2 billion spent during the past four quarters to finance the period’s 80 e-Health transactions.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $47.0 million $1.8 billion $4.1 billion $5.6 billion $663.9 million Dollars Spent On E-Health M&A, By Quarter
Seventeen organizations announced 21 deals. Eleven publicly traded corporations announced 13 deals, with Emdeon and MedCAREERS Group announcing two deals apiece. Six privately held companies announced 8 deals, with AdvantEdge and US Oncology announcing two. Nineteen of the targets are privately held companies while two are publicly traded corporations or units thereof. The targets in these transactions include companies involved in electronic billing, electronic health records, SaaS (software as a service) and web-based PACS systems, among other assets.
In the largest e-Health deal of the first quarter, Merge Healthcare is acquiring AMICAS for $248.0 million, or 3.4x revenue. Publicly traded AMICAS provides radiology and medical image and information management solutions through its web-based PACS. To pursue this deal, AMICAS terminated an agreement with an affiliate of Thoma Bravo, LLC to be bought at $5.35 per share, which was discussed in last quarter’s report. MRGE’s price represents a 13% premium to that earlier offer.
The Health Care M&A Report, First Quarter 2010 xiv
In the second largest deal of the quarter, the private equity firm Battery Ventures is selling Healthvision Solutions, a provider of integration and application technology and related services, to Lawson Software for $160.0 million in cash, or 2.5x revenue. The deal was carried out through the acquisition of privately held Quovadx Holdings, Healthvision’s parent holding company. Battery Ventures first acquired Healthvision through the purchase of Quovadx Holdings in 2007 for $136.7 million, and subsequently split the business into two divisions, one of which it continues to retain.
In the third largest transaction of Q1:10, Unisys Corp. is selling its Medicaid health information management (HIM) unit to Molina Healthcare for $135.0 million, or 1.2x revenue. The acquisition of Unisys’ HIM business will complement Molina’s existing Medicaid health plan business and advance the company’s strategic plan by expanding its services and product offerings beyond managed care.
Only the first of these three deals ranks among the top five e-Health deals for the past 12 months, listed below. Note that three of the acquirers are financial buyers.
Five Largest e-Health Deals Of The Past 12 Months Value Quarter 1. TPG Capital/CCP Investment Board acquired IMS Health $5.2 billion Q4:09 2. Dell acquired Perot Systems Corp. $3.9 billion Q3:09 3. WebMD acquired HLTH, Inc. $1.25 billion Q2:09 4. Ingenix acquired AIM Healthcare $440.0 million Q2:09 5. Merge Healthcare acquired AMICAS $248.0 million Q1:10
The Health Care M&A Report, First Quarter 2010 xv
Home Health Care
The Home Health Care sector recorded 14 transactions in Q1:10, up 17% from the 12 deals announced in the previous quarter and up 100% from the seven deals announced in the year-ago quarter (Q1:09). These 14 represent 29% of the 49 Home Health Care deals announced during the past 12 months. This section and its statistics include hospice and palliative care providers.
Home Health Care Mergers & Acquisitions Total Transactions By Quarter
15 15 14
10 12
8 7 5 Transactions
0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
Based on revealed prices, a total of $36.6 million was paid to finance the first quarter’s deals. During the past 12 months, a total of approximately $147.7 million has been spent to finance that period’s 49 deals of the year; the first quarter figure represents 25% of the year’s total. Most of the transactions are small, with no price disclosed.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $29.9 million $41.0 million $51.4 million $18.7 million $36.6 million Dollars Spent On Home Health Care M&A, By Quarter
The businesses acquired during the quarter generally involved small home health and hospice care providers. In Q1:10, nine companies announced 14 deals. Five publicly traded corporations announced 10 deals with LHC Group announcing four and ResCare announcing two. Four privately held companies announced one deal each. Among the targets, 13 were privately held companies and one was a unit of a publicly traded corporation.
In the largest Home Health Care deal of Q1:10, Gentiva Health Services sold its respiratory therapy, infusion therapy and home medical equipment businesses to Lincare Holdings for $16.4 million. This sale is consistent with Gentiva’s divestment of its noncore assets. With a price to revenue multiple of 0.3x, the price one might fetch for a distressed mom-and-pop home health agency, Gentiva appears eager to dispose of these businesses so it can concentrate on home health and hospice services targeting the elderly population.
The Health Care M&A Report, First Quarter 2010 xvi
In the second and third largest deals of the quarter, ResCare acquired RP Home Care, a provider of personal care, housekeeping and other home care services in Pennsylvania, and Progressive Personal Care, a provider of personal care services in Montana. These were two of several acquisitions made by the buyer for a combined $12.9 million, at 0.44x revenue. Using that multiple, we have estimated the price for the first acquisition at $6.6 million and for the second at $3.1 million. (The two other acquisitions were of businesses that are not related to health care.)
Only the first of these three deals ranks among the top five deals of the past 12 months, listed below.
Five Largest Home Health Care Deals Of The Past 12 Months Value Quarter 1. Amedisys acquired a New Jersey home health provider $23.1 million Q3:09 2. Landauer acquired three U.S. health care units $22.5 million Q2:09 3. Amedisys acquired a hospice business $16.9 million Q3:09 4. Lincare acquired three Gentiva business lines $16.4 million Q1:10 5. Sun Healthcare acquired Allegiance Hospice $15.5 million Q4:09
The Health Care M&A Report, First Quarter 2010 xvii
Hospitals
Seven transactions were announced in the Hospital sector during Q1:10. These seven represent 12% of the 47 deals announced during the past 12 months. The first quarter’s deals also represent a 75% increase in deal volume over the four transactions announced in the previous quarter, but a 42% decrease from the 12 in the year-ago quarter, Q1:09.
The assets that were acquired through these seven transactions include a combined total of 19 hospitals (Q4:09, 24); 3,823 acute care beds (Q4:09, 1,710); and combined net patient revenue of approximately $3.4 billion (Q4:09, $520.0 million). All of the facilities were general acute care hospitals; for the first time in several quarters, none of the deals involved long-term acute care hospitals.
Hospital Mergers & Acquisitions Total Transactions By Quarter
25
20
15 20 16 10 12 Transactions 5 7 4 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
Based on prices revealed so far, a total of $2.2 billion was committed to finance the four hospital deals in Q1:10. The first quarter figure represents 65% of the $3.4 billion spent during the past 12 months to finance the acquisition of 84 hospitals with 11,863 acute care beds in a total of 47 deals.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $496.7 million $161.5 million $420.7 million $597.4 million $2.2 billion Dollars Spent On Hospital M&A, By Quarter
Seven acquirers announced one deal each in Q1:10. Three privately held companies announced one deal each to buy 15 acute care hospitals with 3,376 beds while four not-for-profits announced one deal each for four hospitals with 447 beds. For the first time in several quarters running, there were no acquisitions by publicly traded hospital management companies. One of the buyers was a private equity firm; the other six, hospitals.
From the seller’s side of the equation, two transactions in the first quarter targeted two hospitals with 223 beds owned by publicly traded corporations while the other five deals targeted 17 acute care hospitals with 3,600 beds owned by not-for-profits. Two of the deals involved sales out of bankruptcy.
In the largest Hospital deal of Q1:10, Vanguard Health Systems is entering a new urban market by offering a total of $1.267 billion for Detroit Medical Center, which operates an eight-hospital system with
The Health Care M&A Report, First Quarter 2010 xviii
1,734 licensed beds in Michigan. Under terms of the deal, Vanguard will pay $417.0 million upfront to retire Detroit Medical’s bonds and other long-term debt; it will then commit to $850.0 million over the next five years for capital projects. Vanguard’s entry into the Detroit market took many observers by surprise. Apparently, local tax breaks under Michigan’s Renaissance Zone law, as well as a relatively small upfront payment of just $417.0 million, have made Vanguard’s investment affordable.
In the second largest deal, the private equity firm Cerebrus Capital Management is offering approximately $830.0 million to buy Caritas Christi Health Care, New England’s second-largest hospital group with six hospitals in the greater Boston market and a combined total of 1,552 acute care beds. Other potential buyers had taken a look at Caritas Christi, but ultimately passed. Under the terms of the deal, the hospital system will become for-profit and will retain its Catholic health care orientation. However, for just an additional $25.0 million donated to a charity of the Church’s choice, this latter agreement could be terminated. Such a parting of the ways might make it easier to market Caritas Christi when Cerberus puts the system on the market several years from now.
In the third largest deal of the quarter, MedCath is selling the Heart Hospital of Austin, a 58-bed hospital focused on cardiovascular care, to St. David’s HealthCare Partnership for $83.6 million. The buyer is a joint venture between St. David’s Health Network and for-profit hospital operator HCA. St. David’s is purchasing the hospital during the same quarter that it is purchasing a related physician group, Austin Heart, whose key admitting physicians appear to align themselves more comfortably with St. David’s than with MedCath. That other acquisition appears under the Physician Medical Groups section.
The first two of these two transactions rank among the top five deals for the past 12 months, listed in the table below.
Five Largest Hospital Deals Of The Past 12 Months Value Quarter 1. Vanguard Health acquired Detroit Medical Center $1.3 billion Q1:10 2. Cerberus Capital acquired Caritas Christi $830.0 million Q1:10 3. RehabCare Group acquired Triumph Healthcare $570.0 million Q4:09 4. Catholic Healthcare Partners acquired Jewish Hospital $180.0 million Q3:09 5. Health Management Associates acquired Sparks Health System $138.0 million Q3:09
The Health Care M&A Report, First Quarter 2010 xix
Laboratories, MRI and Dialysis
During the first quarter of 2010, eight deals were announced in the Laboratories, MRI and Dialysis sector; these eight account for 29% of the 28 transactions announced in the past 12 months. The first quarter’s figure is up 14% from the seven deals in Q4:09, but down 20% from the 10 deals in the year-ago quarter, Q1:09. The acquired businesses include laboratories and diagnostic imaging centers.
Labs, MRI & Dialysis Mergers & Acquisitions Total Transactions By Quarter
12
10 8 8 8 7
4 Transactions 5
0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
A total of $116.8 million, based on revealed prices, was spent to finance the first quarter’s M&A activity. The first quarter’s dollar volume represents 61% of the nearly $190.7 million that was committed to finance the 28 transactions in this sector during the past four quarters.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $16.6 million $6.6 million $52.9 million $14.4 million $116.8 million Dollars Spent On Laboratory M&A, By Quarter
Six buyers announced a total of eight deals. Three publicly traded corporations announced five deals, with imaging specialist RadNet announcing three. Three privately held companies announced one acquisition each. On the flip side, six privately held companies, one publicly traded corporation and one not-for-profit organization announced one sale each.
In the largest deal of the first quarter, the firm of Marsh & McLennan is selling Kroll Laboratory Specialists, a provider of substance abuse testing services, to Inverness Medical Innovations for $110.0 million, or 2.7x 2008 revenue. This acquisition, an example of vertical integration, broadens the range of services that Inverness Medical offers to government, employers, health plans and health care professionals. Kroll’s labs are located in Gretna, Louisiana and Richmond, Virginia.
As in the previous quarter, the diagnostic imaging provider RadNet is responsible for the second and third largest deals of the quarter. In the larger of the two, Los Angeles-based RadNet is acquiring Union Imaging Center from Modern Medical Modalities for approximately $5.6 million in cash and shares of The Health Care M&A Report, First Quarter 2010 xx
stock. This acquisition expands RadNet’s footprint in the New York City metropolitan area, a recent geographic focus of the buyer. In the third largest deal, RadNet is paying $910,000 to buy Anaheim Open MRI, and expand its imaging center network in Southern California.
Only the largest deal of Q1:10 ranks among the top five transactions of the past four quarters.
Five Largest Laboratory Deals Of The Past 12 Months Value Quarter 1. Inverness Medical acquired Kroll Laboratories $110.0 million Q1:10 2. Quest Diagnostics acquired Caritas lab business $23.7 million Q3:09 3. Banner Health acquired Sun City Cardiac Care $16.9 million Q3:09 4. Czura Thornton acquired Central Labs $12.0 million Q4:09 5. Graymark Healthcare acquired somniCare $7.0 million Q3:09
The Health Care M&A Report, First Quarter 2010 xxi
Long-Term Care
In Q1:10, 16 transactions were announced in the Long-Term Care sector; these 16 represent 18% of the 90 transactions announced during the past 12 months. The first quarter’s deals also represent a 60% decrease from the prior quarter’s deal volume, but a 7% increase from the year-ago quarter, Q1:09.
The first quarter’s transactions encompass a combined total of 159 facilities (Q4:09, 241) with 14,655 senior care beds or units (Q4:09, 26,194). The senior care properties involved include assisted living facilities, CCRCs, independent living facilities and skilled nursing facilities.
Long-Term Care Mergers & Acquisitions Total Transactions By Quarter
40 40 30
20 21
Transactions 10 15 16 13
0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
During Q1:10 and based on revealed prices, approximately $1.4 billion was spent to fund the quarter’s 16 deals. This first quarter figure thus represents 36% of the approximately $3.9 billion that was committed in the past 12 months to finance that period’s 90 transactions to buy 449 facilities with 52,078 beds/units.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $480.0 million $138.5 million $176.1 million $2.4 billion $1.4 billion Dollars Spent On Long-Term Care M&A, By Quarter
Thirteen buyers announced making a combined total of 16 deals. Three publicly traded corporations announced five deals to acquire 145 facilities with 12,313 beds/units. The multiple acquirers in this cohort are AdCare Health Systems and Emeritus Assisted Living. Eight privately held companies announced nine deals to buy nine facilities with 1,294 beds/units. Kandu Capital, LLC made two deals. Two not-for- profit organizations announced two deals to acquire five facilities with a combined total of 1,048 beds/units.
Two of the deals targeted two facilities with 116 beds/units owned by publicly traded corporation Sunrise Senior Living. Thirteen deals targeted privately held companies with a combined total of 153 facilities and 13,539 beds/units. Sunwest Management, in bankruptcy reorganization, accounted for four separate divestments. One deal targeted one not-for-profit organization with four facilities and 1,000 units.
The acquisition activity included the purchase of five skilled nursing facilities with a total of 760 beds. The median price per bed was $51,025; the median price to revenue multiple, 1.0x. Also acquired were
The Health Care M&A Report, First Quarter 2010 xxii
154 seniors retirement facilities, including assisted, independent living and CCRCs, with a combined total of 13,895 units. The median price per unit was $75,000; the median price to revenue multiple, 2.3x.
In the largest Long-Term Care deal of Q1:10, Blackstone Real Estate Advisors VI, LP (BREA) and Columbia Pacific Advisors teamed up with Emeritus Assisted Living to acquire a portfolio of 140 facilities from Sunwest Management, which was in bankruptcy reorganization. Under terms of the deal, the buyers are paying $285.0 million in cash and assuming approximately $1,009,000,000 in debt. The target portfolio includes 3,267 independent living units, 7,171 assisted living units and 1,325 Alzheimer’s units. Under terms of their agreement, BREA will have up to an 80% equity stake, and Columbia Pacific and Emeritus up to a 10% equity stake each, in the joint venture. Emeritus Assisted Living is to manage the portfolio for a fee equal to 5% of gross revenue. Three other deals in Q1:10 involved the sale of single Sunwest properties to unrelated buyers (see below for an example).
In the second largest deal of Q1:10, the Central DuPage Health System in Wheaton, Illinois is selling Wyndemere Senior Living Community, a 446-unit CCRC, to Life Care Services for $45.0 million. The price to revenue multiple is 2.2x revenue. Under terms of the agreement, the skilled nursing component of the CCRC, which has 131 beds and is currently leased from a third party, will come into Life Care’s possession in 2014.
The third largest deal involves Sunwest Management’s sale of Kensington Green, a 120-unit assisted living facility with 96 assisted living and 24 memory care units, to Hearth Management for approximately $17.2 million, or 3.3x 2010 projected revenue. The buyer believes that it will take 12 to 18 months for the facility to stabilize and to reach the level of revenue it is projecting.
Only the first of these three transactions ranks among the five largest deals announced during the past 12 months, listed below.
Five Largest Long-Term Care Deals Of The Past 12 Months Value Quarter 1. The Blackstone Group acquired a 140-facility Sunwest portfolio $1.3 billion Q1:10 2. Omega Healthcare acquired a 143-facility portfolio $860.0 million Q4:09 3. Redwood Capital acquired Erickson $365.0 million Q4:09 4. Brookdale Senior Living acquired 21 senior housing properties $204.0 million Q4:09 5. Brookdale Senior Living acquired 3 retirement centers $102.0 million Q4:09
The Health Care M&A Report, First Quarter 2010 xxiii
Managed Care
The Managed Care sector produced two transactions in Q1:10. This figure represents 19% of the 16 Managed Care deals announced during the past 12 months. The credit crunch and prolonged, contentious debate over the reform of the health insurance industry continue to place a damper on M&A activity in the Managed Care industry, even after passage of the reform act.
The first quarter’s transactions involved 40,000 plan enrollees (Q4:09, 160,000). This figure represents a mere fraction of the 9.2 million plan enrollees affected by the 16 Managed Care deals announced in the past 12 months. The businesses targeted during Q1:10 include one preferred provider organization, or PPO, and one Medicaid plan.
Managed Care Mergers & Acquisitions Total Transactions By Quarter
8
6 7
4 4 Transactions 2 3 2 1 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
No prices have yet been revealed for the first quarter’s two deals. Over the past 12 months, a total of $761.5 million has been committed to mergers and acquisitions in the Managed Care industry.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 — $125.0 million $590.5 million $46.0 million — Dollars Spent On Managed Care M&A, By Quarter
Two buyers announced one deal each: one publicly traded corporation and one privately held company. Conversely, the deals targeted one privately held company and one not-for-profit organization.
In what we believe to be the first quarter’s largest Managed Care transaction, Centene Corporation is acquiring Carolina Crescent Health Plan from University Health Services, Inc. in Columbia, South Carolina. The plan serves over 40,000 Medicaid members across the Palmetto State, and generates between $115.0 million and $130.0 million in annual revenue. This deal expands Centene’s presence in South Carolina, where its existing operations are conducted by Absolute Total Care. On closing this deal, Absolute will cover 90,000 lives, or 13% of the state’s eligible Medicaid population.
The Health Care M&A Report, First Quarter 2010 xxiv
In the other Managed Care deal of the first quarter, Summerlin Life & Health Insurance, a part of i/m2, is selling its fully insured PPO membership in Hawaii to Hawaii Medical Assurance Association (HMAA), another preferred provider organization. Summerlin’s PPO includes approximately 22,000 members. This acquisition brings HMAA’s total membership in Hawaii to 48,000 members, creating the second largest PPO in the Aloha State.
The top five transactions in the Managed Care industry for the past 12 months are listed below.
Five Largest Managed Care Deals Of The Past 12 Months Value Quarter 1. UnitedHealth acquired HealthNet NE operations $510.0 million Q3:09 2. Magellan acquired First Health Services $110.0 million Q2:09 3. Aetna acquired Horizon Behavioral Services $70.0 million Q3:09 4. PacificSource acquired Clear One Health Plans $46.0 million Q4:09 5. Peoples Health Network acquired THC’s membership interest $15.0 million Q2:09
The Health Care M&A Report, First Quarter 2010 xxv
Medical Devices
The Medical Device sector posted a total of 39 deals in Q1:10, down 22% from the 50 deals in Q4:09, but up 15% from the 34 deals in the year-ago quarter, Q1:09. The first quarter figure represents 22% of the 181 Medical Device deals announced in the past 12 months.
Medical Device Mergers & Acquisitions Total Transactions By Quarter
60
50
40 49 50 43 30 39 34 20 Transactions
10
0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
Based on revealed prices, a total of $2.4 billion was committed to finance the first quarter’s 39 transactions, down 35% from the prior quarter’s levels. The first quarter’s amount represents 18% of the $13.4 billion committed during the past four quarters to finance that period’s 181 deals.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $2.8 billion $1.7 billion $5.3 billion $4.0 billion $2.4 billion Dollars Spent On Medical Device M&A, By Quarter
A total of 36 acquirers announced 39 deals in Q1:10. Twenty-five publicly traded corporations announced a combined total of 28 deals, with Inverness Medical Innovations, QIAGEN and Thermo Fisher Scientific announcing two apiece. Eleven privately held companies announced one deal each. Of the targets, 26 were privately held companies, 12 were publicly traded corporations or units thereof and one was a not- for-profit organization. Publicly traded Agilent made two separate divestments.
Fifteen of the targets were foreign companies acquired by American-listed firms while 13 of the acquirers were foreign firms buying an American-listed company. The businesses targeted during the first quarter included manufacturers and fabricators of bone repair materials, diagnostic kits, catheter technologies and patient monitoring devices, among others.
In the largest Medical Device deal of Q1:10, Minnesota’s Medtronic is paying up to $500.0 million to buy the Italian company Invatec S.p.A. and its affiliated companies, Fogazzi and Krauth Cardiovascular, which are providers of stents and angioplasty balloons. Fogazzi supplies polymer technology to Invatec
The Health Care M&A Report, First Quarter 2010 xxvi
and Krauth Cardiovascular distributes Invatec’s products in Germany. This acquisition enlarges the buyer’s peripheral vascular business in Europe.
In the second largest deal of the first quarter, Baxter International is offering $330.0 million, or 5.5x revenue, to acquire ApaTech, a private equity-backed company that specializes in synthetic bone repair material for orthopedic and dental applications. Baxter is paying $240.0 million upfront and committing to as much as $90.0 million in potential milestone payments.
In the quarter’s third largest deal, one worth 2.8x revenue, Inverness Medical Innovations is paying $255.0 million to buy Epocal, a Canadian company that develops, manufactures and markets the epoc Blood Analysis System. Terms of the deal include a base price of $172.5 million if certain milestones are achieved by the end of October 2014, as well as additional payments if certain other measures are achieved.
Only the first of these three transactions rank among the top five Medical Device deals for the past 12 months, as listed below.
Five Largest Medical Device Deals Of The Past 12 Months Value Quarter 1. Agilent acquired Varian $1.5 billion Q3:09 2. Danaher acquired life sciences instrumentation business $1.1 billion Q3:09 3. Johnson & Johnson acquired Acclarent $785.0 million Q4:09 4. Stryker acquired Ascent Healthcare $525.0 million Q4:09 5. Medtronic acquired Invatec S.p.A. $500.0 million Q1:10
The Health Care M&A Report, First Quarter 2010 xxvii
Pharmaceuticals
Thirty-nine transactions were announced in the Pharmaceutical sector during Q1:10, up 34% from the 29 deals in Q4:09, and up 5% from the 37 deals in the year-ago quarter, Q1:09. These 39 deals represent 28% of the 141 Pharmaceutical deals announced during the past 12 months.
Pharmaceutical Mergers & Acquisitions Total Transactions By Quarter
40
39 38 37 30 35 29 20
Transactions 10
0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
Based on prices revealed to date, a total of $10.1 billion was committed during Q1:10 to finance the quarter’s 39 deals. The first quarter’s figure represents 23% of the $44.4 billion committed during the past four quarters to finance that period’s 141 transactions.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $112.9 billion $9.5 billion $18.0 billion $6.8 billion $10.1 billion Dollars Spent On Pharmaceutical M&A, By Quarter
A total of 33 companies announced making a combined total of 39 deals in Q1:10. Twenty-six publicly traded corporations announced 32 deals, with Biovail Corp., Bristol-Myers Squibb, Strides Arcolab, Teva Pharmaceutical, Valeant Pharmaceuticals and Watson Pharmaceutical announcing two each. Seven privately held companies announced one deal apiece. Twenty of the targets were publicly traded corporations or units thereof while nineteen were privately held companies or divisions thereof. South Africa’s Aspen Group announced two divestments.
As to cross-border activity, 17 of the targets were foreign companies; 21 of the buyers were foreign- domiciled companies. The targeted business assets included branded and specialty pharmaceuticals, as well as OTC and generic pharmaceutical products and companies. Therapeutic areas included antibacterials, cancer, contraceptives, depression and pain management, among others. Many deals involved whole companies but, as in the Biotechnology sector, others involved just the acquisition of rights or licenses to specific drugs or drug technology platforms.
The Health Care M&A Report, First Quarter 2010 xxviii
In the largest Pharmaceutical transaction of Q1:10, Teva Pharmaceutical Industries is offering $4.97 billion to acquire Ratiopharm, Germany’s second-largest generic pharma company. This deal, valued at approximately 2.2x revenue, makes Teva the second largest supplier of generic drugs in the world’s second largest generic drugs market. The Merckle family, which sold Ratiopharm, also sold its holdings in the Swiss generic drug company Mepha AG to Cephalon in a separate deal during Q1:10.
In the second largest deal, AstraZeneca is paying as much as $1.245 billion to acquire the rights to Rigel Pharmaceutical’s R788, or fostamatinib disodium, a potential treatment for rheumatoid arthritis. Under terms of the deal, AstraZeneca will pay $100.0 million in an upfront payment, $345.0 million in milestone payments and up to $800.0 million in payments based on future sales. The global rheumatoid arthritis market for 2009 is believed to have been about $13.0 billion; this deal will enhance AstraZeneca’ ability to tap the potential of this market.
In the third largest transaction of Q1:10, Boehringer Ingelheim is paying approximately $913.0 million to acquire the 40% interest it does not already own in SSP, a Japanese company that manufactures and sells over-the-counter drugs, including vitamins and cold tablets. Boehringer began buying shares of SSP in 1996, when it acquired a 9.2% interest in the company; its stake expanded above 50% in 2001.
The first of these transactions ranks among the top five transactions for the past 12 months, listed below. This is just one of two sectors in which the top five deals all break the billion-dollar mark; the other is Biotechnology.
Five Largest Pharmaceutical Deals Of The Past 12 Months Value Quarter 1. Abbott Laboratories acquired Solvay Pharmaceutical $7.6 billion Q3:09 2. Teva acquired Ratiopharm $5.0 billion Q1:10 3. GlaxoSmithKline acquired Stiefel Labs $3.6 billion Q2:09 4. Warner Chilcott acquired P&G global pharma business $3.1 billion Q3:09 5. Dainippon acquired Sepracor $2.6 billion Q3:09
The Health Care M&A Report, First Quarter 2010 xxix
Physician Medical Groups
Eleven deals were announced in the Physician Medical Group sector during Q1:10, down 15% from the 13 deals announced in the previous quarter, Q4:09, but up 22% from the nine deals made in the year-ago quarter, Q1:09. This figure also represents 26% of the 43 deals announced in this sector during the past 12 months.
The buyers in this market tend to be specialized PPMs targeting specific medical group practices, although hospital systems are starting to re-enter the market as buyers. The first quarter saw transactions targeting emergency medicine, hospitalist, neonatology and pediatric specialties, among others. Combined, these practices represent approximately 1,160 physicians.
Physician Medical Group Mergers & Acquisitions Total Transactions By Quarter
16
12 13 11 8 9 10 9
Transactions 4
0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
Based on prices revealed to date, a total of $297.7 million was committed to fund the first quarter’s M&A activity. This amount represents just over three-quarters of the $386.5 million that has been spent on Physician Medical Group transactions in the past 12 months.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $10.3 million $11.9 million $9.2 million $67.7 million $297.7 million Dollars Spent On Physician Medical Group M&A, By Quarter
Seven organizations announced a combined total of 11 deals. Three publicly traded corporations announced seven deals, with Mednax announcing four and TeamHealth announcing two. One privately held company and three not-for-profit organizations, all hospital systems, announced one deal each. The targeted practices involved the assets of 11 privately held companies.
In the largest deal of the first quarter, one worth $250.0 million, the Carle Foundation Hospital acquired Carle Clinic Association, a 340-physician group practice, and Health Alliance Medical Plan, a 340,000- member affiliated health plan. The acquisition is to be financed with an $82.8 million bond issue and a promissory note for the balance. This combination creates a large, physician-led integrated delivery system in mid-Illinois.
The Health Care M&A Report, First Quarter 2010 xxx
In the second largest deal, pediatrics specialist Mednax is paying an estimated $16.87 million to buy Maryland Perinatal Associates, a four-physician group practice specializing in maternal-fetal medicine based in Rockville, Maryland. This acquisition expands the buyer’s network of providers in the Maryland and northern Virginia market.
And in the third largest deal, Mednax is paying $12.65 million for a three-physician group practice based in Shreveport, Louisiana that specializes in neonatology. These are two of four practices that Mednax acquired for a combined total of $46.4 million, consisting of $37.4 million in cash and $9.0 million of contingent consideration; that amount has been apportioned among the four deals in proportion to the number of physicians involved in each practice.
All three deals rank among the top five deals of the past 12 months, as listed below.
Five Largest Physician Medical Group Deals Of The Past 12 Months Value Quarter 1. Carle Foundation acquired Carle Clinic Association $250.0 million Q1:10 2. Community Health acquired Rockwood Clinic, P.S. $54.2 million Q4:09 3. Mednax acquired Maryland Perinatal $16.9 million Q1:10 4. Team Health acquired Emergency Physicians of Naples $13.5 million Q4:09 5. Mednax acquired Shreveport perinatal group $12.7 million Q1:10
The Health Care M&A Report, First Quarter 2010 xxxi
Rehabilitation
Two transactions were announced in the Rehabilitation sector during the first quarter of 2010. This figure represents 20% of the 10 deals announced in this sector during the past 12 months.
Rehabilitation Merger & Acquisitions Total Transactions By Quarter
6 5 6 4 3 2 3 Transactions 1 2 2 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
During the past 12 months, a total of just $24.5 million was spent on Rehabilitation M&A; the first quarter’s amount represents 37% of that figure.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $6.6 million — — $15.5 million $9.0 million Dollars Spent On Rehabilitation M&A, By Quarter
In the only deal of the quarter to come with a price, U.S. Physical Therapy is paying $9.0 million for a 70% interest in an outpatient physical therapy practice with five clinics and 58,000 annual patient visits. The price paid implies a purchase price of $12.86 million for a 100% interest in the target business.
The top transactions in the Rehabilitation sector for the past 12 months are listed below.
The Largest Rehabilitation Deals Of The Past 12 Months Value Quarter 1. Healthcare Trust acquired Selection Rehabilitation Hospital $15.5 million Q4:09 2. U.S. Physical Therapy acquired a physical therapy practice $9.0 million Q1:10
The Health Care M&A Report, First Quarter 2010 xxxii
Other
Twenty-six “Other” health care services mergers and acquisitions were announced in Q1:10, representing 30% of the 88 “Other” deals announced in this sector during the past 12 months. Transactions undertaken during the first quarter of 2010 variously targeted contract research organizations, dental practices, outpatient surgery centers and medical staffing businesses, to name a few.
A significant number of the businesses that are listed in what appears at first glance to be a catch-all category conduct their operations at sites alternative to, or perform services ancillary to, other providers who are thought to be more centrally positioned in the health care delivery system and thus more immediately linked with patients and consumers. Still other businesses in this category are relatively new entrants to the health care industry. Due to the novelty and behind-the-scenes nature of these businesses, which incidentally attract less public scrutiny and governmental regulation, entrepreneurs, including private equity firms, perceive more investment opportunities here than in some of the more mature and picked-over sectors of the health care industry. Further, many of the businesses covered here appear to be more amenable to a retail model than, say, a physician medical group.
"Other" Mergers and Acquisitions Total Transactions By Quarter
e 30
20 26 23 22 17 10 16 Transaction Volum Transaction
0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010
Quarter
Source: Irving Levin Associates, Inc.
Based on revealed prices, a total of $1.9 billion was committed in Q1:10 to carry out these 26 deals. This amount represents approximately 24% of the $7.8 billion that has been committed during the past 12 months to pay for that period’s year’s 88 deals.
Q1:09 Q2:09 Q3:09 Q4:09 Q1:10 $324.6 million $4.8 billion $389.2 million $717.9 million $1.9 billion Dollars Spent On Other Services M&A, By Quarter
Twenty-six buyers announced a combined total of 26 deals. Eleven publicly traded corporations, 13 privately held companies and two not-for-profit organizations announced one deal each. Conversely, the targets included three publicly traded corporations or divisions thereof, 21 privately held companies and two not-for-profit organizations.
The top three deals of the quarter all involve the sale of a business by a financial seller, generally a private equity group, allowing a return on their original investments.
The Health Care M&A Report, First Quarter 2010 xxxiii
In the largest “Other” health care transaction of Q1:10, the private equity firm Triton is buying Ambea, a provider of health care services in the Nordic countries from a group of private equity firms, including 3i Group and GIC. The purchase price is $1.16 billion. The purchase price represents 3.5x the sellers’ original equity investment. Under 3i, Ambea has made over two dozen acquisitions and has doubled net sales since 2005.
In the second largest “Other” deal of the first quarter, Kohlberg & Company, LLC is selling Critical Homecare, a provider of infusion therapy and nursing services, to Bioscrip for $358.0 million, or 1.4x revenue. On closing this deal, Kohlberg & Co. will own a 24% stake in Bioscrip. This acquisition gives Bioscrip 35 specialty infusion pharmacies and 33 nursing locations, making it one of the largest home infusion providers in the country.
And in Q1:10’s third largest deal, the private equity group Charterhouse Group is selling Amerifit Brands, a consumer health and wellness company, to Martek Biosciences for $200.0 million. Charterhouse originally invested $80.0 million in Amerifit in 2005; this sale allows it a handsome return on investment.
Two of these three transactions rank among the top five deals of the past 12 months, listed below. Note that three of the five buyers in this list are private equity firms. Note that four out of the five involved private equity groups as buyers or sellers.
Five Largest Other Services Deals Of The Past 12 Months Value Quarter 1. Express Scripts acquired NextRx $4.7 billion Q2:09 2. Triton acquired Ambea $1.2 billion Q1:10 3. Bioscrip acquired Critical Homecare $358.0 million Q1:10 4. H.I.G. Capital acquired Allion $278.0 million Q4:09 5. Welsh Carson acquired Spectrum Labs $230.0 million Q4:09
The Health Care M&A Report, First Quarter 2010 xxxiv
BIOTECHNOLOGY
FIRST QUARTER 2010 BIOTECHNOLOGY TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
Bridged nucleic acid patent estate Aliso Viejo California MDRNA, Inc. Bothell Washington 3/23/10 Cancer treatment collaboration Castres France Abbott Laboratories Abbott Park Illinois 2/2/10 $25,000,000 deCODE genetics ehf Reykjavik Iceland Saga Investments, LLC Boca Raton Florida 1/21/10 $11,000,000 Evolva discovery collaboration Basel Switzerland Roche Holding AG Basel Switzerland 1/4/10 Facet Biotech Corporation Redwood City California Abbott Laboratories Abbott Park Illinois 3/9/10 $722,000,000 Hearing loss alliance Gaithersburg Maryland Novartis AG Basel Switzerland 1/19/10 $213,600,000 Hemophilia alliance Laguna Niguel California Ipsen, S.A. Boulogne-Billancourt France 1/21/10 $259,000,000 Hepatitis C Viral therapeutic collaboration Carlsbad California GlaxoSmithKline plc Middlesex England 2/25/10 $150,000,000 Humalys SAS Lyon France Vivalis Nantes France 1/11/10 $38,100,000 License for APN01 therapeutic enzyme Vienna Austria GlaxoSmithKline plc Middlesex England 2/3/10 $341,320,000 License for bardoxolone methyl Irving Texas Kyowa Hakko Kirin Co. Ltd. Tokyo Japan 1/8/10 $272,000,000 License for ospemifene Atlanta Georgia Shionogi & Co. Ltd. Osaka Japan 3/2/10 $125,000,000 License for testosterone gel Melbourne Australia Eli Lilly and Co. Indianapolis Indiana 3/16/10 $335,000,000 License for Traficet-EN Mountain View California GlaxoSmithKline plc Middlesex England 1/11/10 $35,000,000 License to Belinostat anticancer drug Copenhagen Denmark Spectrum Pharmaceuticals, Inc. Irvine California 2/2/10 $354,500,000 Licensing option for metalloenzyme inhibitors Morrisville North Carolina Novartis Option Fund Basel Switzerland 2/23/10 $200,000,000 Obesity treatment license Paris France Rhythm Pharmaceuticals, Inc. Boston Massachusetts 3/12/10 $80,000,000 Oncology collaboration Watertown Massachusetts Kyowa Hakko Kirin Co. Ltd. Tokyo Japan 1/4/10 $124,000,000 Prostate cancer drug candidates Menlo Park California Adamis Pharmaceuticals Corporation Del Mar California 2/25/10 $3,400,000 Rights to Ceplene Tarrytown New York Meda AB Solna Sweden 1/11/10 $40,000,000 Rights to Debio 025 Lausanne Switzerland Novartis AG Basel Switzerland 2/9/10 Rights to Shigamabs e. coli treatment Montreal Quebec LFB Biotechnologies Les Ulis France 2/16/10 $129,100,000 RNA therapeutics collaboration Carlsbad California GlaxoSmithKline plc Middlesex England 3/31/10 $1,500,000,000 StemTroniX, Inc. Huntsville Texas Power3 Medical Products, Inc. The Woodlands Texas 2/11/10 Strategic alliance in COPD Mechelen Belgium Roche Holding AG Basel Switzerland 1/11/10 $572,900,000 TG4010 cancer vaccine Graffenstaden France Novartis AG Basel Switzerland 3/10/10 $960,000,000 Therapeutic antibody collaboration Lund Sweden Human Genome Sciences, Inc. Rockville Maryland 3/12/10 Topigen Pharmaceuticals Montreal Quebec Pharmaxis, Ltd. Frenchs Forest, NSW Australia 1/12/10 $20,600,000 Toremifene partnership Memphis Tennessee Ipsen, SA Boulogne-Billancourt France 3/23/10 $58,000,000 Two wound healing products Cambridge England Healthpoint, Ltd. Fort Worth Texas 1/21/10 $990,000
TARGET: Bridged nucleic acid patent ACQUIRER: MDRNA, Inc. estate LISTING: NYSE: VRX LISTING: NASDAQ: MRNA LOCATION: Aliso Viejo, California CEO: J. Michael French PHONE: 425-908-3600 UNITS: 3830 Monte Villa Parkway FAX: 425-908-3650 REVENUE: Bothell, Washington 98021 NET INCOME: WEB SITE: www.mdrnainc.com
Valeant Pharmaceuticals North America is selling a MDRNA develops RNA-based technologies, including therapeutics patent estate for bridged nucleic acids, novel based on RNA interference and microRNA. On a trailing 12-month nucleoside analogs in which the flexible ribose basis, MDRNA generated revenue of $14.7 million and a net loss of sugar is locked into a rigid conformation by a small $19.6 million. chemical linker.
ANNOUNCEMENT DATE: March 23, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Nonrefundable licensing fee due in PRICE/REVENUE: equal portions in April and July 2010. PRICE/INCOME:
This acquisition expands the buyer's intellectual property holdings. Bridge nucleic acids may be included in oligonucleotides, favoring a highly stable A-form of RNA or DNA.
TARGET: Cancer treatment ACQUIRER: Abbott Laboratories collaboration LISTING: Private LISTING: NYSE: ABT LOCATION: Castres, France CEO: Miles White PHONE: 847-937-6100 UNITS: 100 Abbott Park Road FAX: 847-937-1511 REVENUE: Abbott Park, Illinois 60064 NET INCOME: WEB SITE: www.abbott.com
Pierre Fabre SA is entering into a collaboration ABT discovers, develops, manufactures and sells health care agreement to research and develop novel H224G11, products and services, including diagnostic, pharmaceutical and a pre-clinical monoclonal antibody to treat solid hospital products. On a 12-month trailing basis, ABT generated tumors, including prostate, lung and gastric cancers. revenue of $31.0 billion, EBITDA of $8.5 billion and net income of $5.8 billion.
ANNOUNCEMENT DATE: February 2, 2010 PRICE: $25,000,000 (minimum) PRICE PER UNIT: TERMS: $25.0 million in an upfront payment and PRICE/REVENUE: research funding. Undisclosed amounts PRICE/INCOME: in milestone payments and royalties.
This agreement gives ABT access to H224G11, a candidate that binds to cMet proteins, a cancer target. The antibody inhibits cancer cell migration and angiogenesis.
The Health Care M&A Report, First Quarter 2010 5 TARGET: deCODE genetics ehf ACQUIRER: Saga Investments, LLC
LISTING: Private LISTING: Private LOCATION: Reykjavik, Iceland CEO: Brandon Roth PHONE: UNITS: 21474 Linwood Ct FAX: REVENUE: Boca Raton, Florida 33433 NET INCOME: WEB SITE: deCODE genetics is selling its Iceland-based Owned by Polaris Venture Partners and Arch Venture Partners, subsidiary deCODE genetics ehf (aka Islensk Saga Investments is an investment company. erfdagreining).
ANNOUNCEMENT DATE: January 21, 2010 PRICE: $11,000,000 PRICE PER UNIT: TERMS: In bankruptcy proceedings. $11.0 PRICE/REVENUE: million base price. PRICE/INCOME:
The unit being sold conducts deCODEÆs human genetics research, manages its population genetics resources and provides its personal genome scans, DNA-based risk assessment tests, and genomics services for contract customers. Saga announced its stalking horse bid in mid-November 2009; the bankruptcy court approved the deal in January 2010.
TARGET: Evolva discovery ACQUIRER: Roche Holding AG collaboration LISTING: SIX: EVE LISTING: VX: ROG LOCATION: Basel, Switzerland CEO: Severin Schwan PHONE: 41-61-688-1111 UNITS: Grenzacherstrasse 124 FAX: 41-61-691-9391 REVENUE: Basel, Switzerland CH-4070 NET INCOME: WEB SITE: www.roche.com
Evolva Holding SA is entering into a collaboration Roche Holding AG is a global pharmaceutical company, with agreement to apply EVE's technology platform to pharmaceuticals and diagnostic divisions. For the six months ended create compounds for oncology targets, as well as June 30, 2007, Roche generated revenue of CHF 22.8 billion and anti-infectives. EBITDA of CHF 8.7 billion.
ANNOUNCEMENT DATE: January 4, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Upfront technology access fee, ongoing PRICE/REVENUE: research fees. Research and clinical PRICE/INCOME: milestone fees. Royalties on any resulting products.
Under terms of this agreement, ROG has the responsibility to take forward any compounds discovered during the collaboration. Evolva will have the first right to any compounds not taken forward or subsequently deprioritized by ROG.
The Health Care M&A Report, First Quarter 2010 6 TARGET: Facet Biotech Corporation ACQUIRER: Abbott Laboratories
LISTING: NASDAQ: FACT LISTING: NYSE: ABT LOCATION: Redwood City, California CEO: Miles White PHONE: 847-937-6100 UNITS: 100 Abbott Park Road FAX: 847-937-1511 REVENUE: $46,100,000 Abbott Park, Illinois 60064 NET INCOME: WEB SITE: www.abbott.com
Facet Biotech identifies and develops oncology Abbott discovers, develops, manufactures and sells health care drugs. Product candidates include Daclizumab for products and services, including diagnostic, pharmaceutical and multiple sclerosis and Volociximab for certain types hospital products. On a 12-month trailing basis, ABT generated of cancer. On a trailing 12-month basis, it generated revenue of $30.7 billion, EBITDA of $8.7 billion and net income of revenue of $46.1 million and a net loss of $142 $5.8 billion. million.
ANNOUNCEMENT DATE: March 9, 2010 PRICE: $722,000,000 (minimum) PRICE PER UNIT: TERMS: $27.00 in cash per share. PRICE/REVENUE: 15.66 PRICE/INCOME:
This acquisition, which offers FACT shareholders a 67% premium on the stock's prior-day price, gives ABT access to biologics in two therapeutic areas, immunology and oncology. Less FACT's projected cash and marketable securities at closing of approximately $272 million, the effective purchase price for ABT is $450 million. This tops a failed hostile bid of $17.50 per share made last year by Biogen Idec.
TARGET: Hearing loss alliance ACQUIRER: Novartis AG
LISTING: NASDAQ: GNVC LISTING: NYSE: NVS LOCATION: Gaithersburg, Maryland CEO: Joseph Jimenez PHONE: 877-999-8850 UNITS: 11 Lichtstrasse FAX: 212-830-2405 REVENUE: Basel, Switzerland CH-4002 NET INCOME: WEB SITE: www.novartis.com
GenVec is entering into a research collaboration and Novartis is engaged in sales and product innovation in license agreement to discover and develop novel pharmaceuticals, generics, consumer health and eye care, as well as treatments to treat hearing loss and balance animal health. On a trailing 12-month basis, NVS generated revenue disorders. of $42 billion, EBITDA of $11.5 billion and net income of $7.6 billion.
ANNOUNCEMENT DATE: January 19, 2010 PRICE: $213,600,000 (approximate) PRICE PER UNIT: TERMS: $5 million in upfront payment, purchase PRICE/REVENUE: of $2 million in GNVC stock. Up to PRICE/INCOME: $213.6 million, including upfront and milestone payments. Royalties.
Preclinical studies suggest that delivery of the atonal gene using GNVC's adenovector technology may have the potential to restore hearing and balance function.
The Health Care M&A Report, First Quarter 2010 7 TARGET: Hemophilia alliance ACQUIRER: Ipsen, S.A.
LISTING: Private LISTING: Euronext: IPN LOCATION: Laguna Niguel, California CEO: Jean-Luc Belingard PHONE: 330 1 15833 5000 UNITS: 65 quai Georges Gorse FAX: 330 1 15833 5001 REVENUE: Boulogne-Billancourt, France 92100 NET INCOME: WEB SITE: www.ipsen.com
Inspiration BioPharmaceuticals is entering into an Ipsen is a specialty pharma focused on researching, developing, alliance to advance a portfolio of recombinant manufacturing and marketing medications. For the first nine months proteins which address all major hemophilia of 2009,IPN generated revenue of Eur 777.5 million. disorders.
ANNOUNCEMENT DATE: January 21, 2010 PRICE: $259,000,000 (approximate) PRICE PER UNIT: TERMS: Upfront payment of $85 million for 20% PRICE/REVENUE: of Inspiration's equity. Up to $174 PRICE/INCOME: million in milestone payments, payable in convertible notes.
This alliance expands IPN's hemophilia franchise and allows for the rapid development of two of IPN's phase 3 drug candidates using Inspiration's technology. As part of the alliance, IPN is exclusively licensing its OBI-1 factor to Inspiration for $50 million in convertible notes and a 27.5% royalty on future OBI-1 sales. Assuming all milestone payments are made and all notes converted, IPN would end up with approximately 47% of Inspiration's equity.
TARGET: Hepatitis C Viral ACQUIRER: GlaxoSmithKline plc therapeutic collaboration LISTING: Private LISTING: NYSE: GSK LOCATION: Carlsbad, California CEO: Andrew Witty PHONE: 44 0 20 2047 5000 UNITS: 980 Great West Road FAX: 181-966-8330 REVENUE: Middlesex, England TW8 9GS NET INCOME: WEB SITE: www.gsk.com
Regulus Therapeutics is entering into a GlaxoSmithKline is a global pharmaceutical company. On a trailing collaboration agreement to develop and 12-month basis, GSK generated revenue of $44.5 billion, EBITDA commercialize microRNA therapeutics targeting of $14.124 billion and net income of $8.7 billion. microRNA-122. It will pursue the target in all fields with Hepatitis C Viral infection as the lead indication.
ANNOUNCEMENT DATE: February 25, 2010 PRICE: $150,000,000 (approximate) PRICE PER UNIT: TERMS: Upfront and early-stage milestone PRICE/REVENUE: payments up to $150 million. Tiered, PRICE/INCOME: double-digit royalties on worldwide sales of products.
This deal builds upon an earlier $598.0 million collaboration between the two companies, announced in 2008, to discover and develop microRNA therapeutics for immuno-inflammatory disease.
The Health Care M&A Report, First Quarter 2010 8 TARGET: Humalys SAS ACQUIRER: Vivalis
LISTING: Private LISTING: Euronext: VLS LOCATION: Lyon, France CEO: Franck Grimaud PHONE: 330 22807 3710 UNITS: 6 rue Alan-Bombard FAX: 330 22807 3711 REVENUE: Nantes, France 44821 NET INCOME: WEB SITE: www.vivalis.com
Humalys has developed a proprietary platform for Vivalis is a biopharma that provides cell-based solutions to the generating human monoclonal antibodies for pharma industry for the manufacture of vaccines and proteins. therapeutic and diagnostic applications.
ANNOUNCEMENT DATE: January 11, 2010 PRICE: $38,100,000 (approximate) PRICE PER UNIT: TERMS: Eur 10.4 million. Eur 15.0 million over PRICE/REVENUE: 15 years for license payments to third PRICE/INCOME: parties.
This acquisition gives the buyer a platform for manufacturing and supplying monoclonal antibodies to its clients.
TARGET: License for APN01 ACQUIRER: GlaxoSmithKline plc therapeutic enzyme LISTING: Private LISTING: NYSE: GSK LOCATION: Vienna, Austria CEO: Andrew Witty PHONE: 44 0 20 2047 5000 UNITS: 980 Great West Road FAX: 181-966-8330 REVENUE: Middlesex, England TW8 9GS NET INCOME: WEB SITE: www.gsk.com
Apeiron Biologics AG is granting exclusive rights GlaxoSmithKline is a global pharmaceutical company. On a trailing to APN01, an enzyme biotherapeutics in phase 1 12-month basis, GSK generated revenue of $44.5 billion, EBITDA development for treating acute respiratory distress of $14.124 billion and net income of $8.7 billion. syndrome.
ANNOUNCEMENT DATE: February 3, 2010 PRICE: $341,320,000 (approximate) PRICE PER UNIT: TERMS: GBP 11 million in cash and equity PRICE/REVENUE: investment. Up to GBP 207 million in PRICE/INCOME: milestone payments. Royalties on sales.
This deal potentially expands GSK's franchise for lung treatments. Apeiron reached this level of development without venture capital, but just with support from private investors. JSB Partners LP acted as transaction advisor to Apeiron.
The Health Care M&A Report, First Quarter 2010 9 TARGET: License for bardoxolone ACQUIRER: Kyowa Hakko Kirin Co. Ltd. methyl LISTING: Private LISTING: T: 4151 LOCATION: Irving, Texas CEO: Yuzuru Matsuda PHONE: 81-3-3282-0007 UNITS: 1-6-1 Ohtemachi, Chiyoda-ku FAX: 81-3-3284-1968 REVENUE: Tokyo, Japan 100-8185 NET INCOME: WEB SITE: www.kyowa-kirin.co.jp
Reata Pharmaceuticals is licensing exclusive Kyowa Hakko Kirin is a leading biopharma in Japan. For the six development and commercialization rights to months ended September 30, 2009, the company generated revenue bardoxolone methyl in Japan and certain other of Yen 194.3 billion and net income of Yen 10.8 billion. Asian markets. It is indicated for the treatment of chronic kidney disease.
ANNOUNCEMENT DATE: January 8, 2010 PRICE: $272,000,000 PRICE PER UNIT: TERMS: $132 in development milestones, PRICE/REVENUE: including a $35 million upfront PRICE/INCOME: payment, and up to $140 million in sales milestones. Double-digit royalties.
This license gives Kyowa Hakko Kirin the right to develop, market and sell the drug in Japan, China, Korea and Southeast Asian countries.
TARGET: License for ospemifene ACQUIRER: Shionogi & Co. Ltd.
LISTING: Private LISTING: T: 4507 LOCATION: Atlanta, Georgia CEO: Isao Teshirogi PHONE: 81-6-6202-2161 UNITS: 1-8, Doshomachi 3-chome FAX: 81-6-6229-9596 REVENUE: Osaka, Japan 541-0045 NET INCOME: WEB SITE: www.shionogi.co.jp
QuatRx Pharmaceuticals is granting an exclusive Shionogi is a Japanese pharmaceutical manufacturer. For the year license to develop and market ospemifene, a ended March 31, 2009, Shionogi generated revenue of Yen 227.5 selective estrogen receptor modulator. It is indicated billion, operating income of Yen 32.0 billion and net income of Yen for the treatment of post-menopausal vulvovaginal 15.7 billion. atrophy.
ANNOUNCEMENT DATE: March 2, 2010 PRICE: $125,000,000 (approximate) PRICE PER UNIT: TERMS: Upfront payment of $25 million; PRICE/REVENUE: development and regulatory milestones PRICE/INCOME: of $100 million.
This transaction gives Shionogi access to a therapy for post-menopausal vulvovaginal atrophy that does not involve estrogen. This difference will allow Shionogi to distinguish its products from those of its competitors.
The Health Care M&A Report, First Quarter 2010 10 TARGET: License for testosterone gel ACQUIRER: Eli Lilly and Co.
LISTING: ASX: ACR LISTING: NYSE: LLY LOCATION: Melbourne, Australia CEO: John Lechleiter PHONE: 317-276-2000 UNITS: Lilly Corporate Center FAX: 317-276-3492 REVENUE: Indianapolis, Indiana 46285 NET INCOME: WEB SITE: www.lilly.com
Acrux is entering into a licensing agreement to Eli Lilly and Co. is engaged in the discovery, development, commercialize its underarm testosterone gel, manufacture and sale of pharmaceutical products. On a trailing 12- AXIRON. month basis, LLY generated revenue of $21.1 billion, EBITDA of $7.7 billion and a net loss of $216 million.
ANNOUNCEMENT DATE: March 16, 2010 PRICE: $335,000,000 (approximate) PRICE PER UNIT: TERMS: Upfront fee of $50 million; $3 million PRICE/REVENUE: on transfer of manufacturing assets. $87 PRICE/INCOME: million on receipt of marketing authorization by FDA. Up to $195 million in commercialization milestones. Royalties on global sales.
This deal gives LLY access to a novel formulation of testosterone gel, one that may be applied via an underarm applicator. It is believed that this novel formulation will differentiate it from other kinds of testosterone gels, and form the basis of a competitive advantage over them, based on ease and discreteness of application.
TARGET: License for Traficet-EN ACQUIRER: GlaxoSmithKline plc
LISTING: Private LISTING: NYSE: GSK LOCATION: Mountain View, California CEO: Andrew Witty PHONE: 44 0 20 2047 5000 UNITS: 980 Great West Road FAX: 181-966-8330 REVENUE: Middlesex, England TW8 9GS NET INCOME: WEB SITE: www.gsk.com
ChemoCentryx is granting a license for Traficet- GlaxoSmithKline is a global pharmaceutical company. On a trailing EN, or CCX202-B, a drug candidate that targets 12-month basis, GSK generated revenue of $41.5 billion, EBITDA inflammatory bowel diseases, including Crohn's of $16.4 billion and net income of $7.2 billion. disease.
ANNOUNCEMENT DATE: January 11, 2010 PRICE: $35,000,000 PRICE PER UNIT: TERMS: $35 million in upfront payment. PRICE/REVENUE: Milestone payments. Double-digit PRICE/INCOME: royalties on sales.
This deal comes after the successful completion of phase 2 trials. It is believed that this drug may possess such competitive advantages over current treatments for Crohn's disease as reduced side effects and oral dosing.
The Health Care M&A Report, First Quarter 2010 11 TARGET: License to Belinostat ACQUIRER: Spectrum Pharmaceuticals, Inc. anticancer drug LISTING: Private LISTING: NASDAQ: SPPI LOCATION: Copenhagen, Denmark CEO: Rajesh Shrotriya PHONE: 949-788-6700 UNITS: 157 Technology Drive FAX: 949-788-6706 REVENUE: Irvine, California 92618 NET INCOME: WEB SITE: www.spectrumpharm.com
TopoTarget A/S is entering into a co-development Spectrum Pharmaceuticals is engaged in discovering and and commercialization agreement for Belinostat, an developing novel therapeutic drugs for neurodegenerative diseases HDAC inhibitor in development for the treatment of and conditions. On a trailing 12-month basis, SPPI generated peripheral T-cell lymphoma. revenue of $37.5 million and a net loss of $26 million.
ANNOUNCEMENT DATE: February 2, 2010 PRICE: $354,500,000 (approximate) PRICE PER UNIT: TERMS: $30 million upfront payment; $320 PRICE/REVENUE: million in potential milestone payments; PRICE/INCOME: issuance of 1 million shares of SPPI stock, based on achieving certain milestones. Double-digit royalties.
This agreement sharpens SPPI's focus on oncology treatments. The drug has been granted fast track and orphan drug designation by the FDA. SPPI and TopoTarget will jointly fund future clinical development activities in a ratio of 70:30.
TARGET: Licensing option for ACQUIRER: Novartis Option Fund metalloenzyme inhibitors LISTING: Private LISTING: NYSE: NVS LOCATION: Morrisville, North Carolina CEO: Lauren Silverman PHONE: 41 61 324 32 67 UNITS: Forum 1-3.73 FAX: 41 61 324 86 79 REVENUE: Basel, Switzerland CH-4002 NET INCOME: WEB SITE: www.venturefund.novartis.com
Viamet Pharmaceuticals is entering into a licensing Part of Novartis AG, the Novartis Option Fund seeds innovative option agreement to discover and develop novel companies through initial and follow-on investment. metalloenzyme inhibitors against a specific metalloenzyme of interest to Novartis.
ANNOUNCEMENT DATE: February 23, 2010 PRICE: $200,000,000 PRICE PER UNIT: TERMS: Upfront fee and potential milestones PRICE/REVENUE: totaling over $200 million. Royalties on PRICE/INCOME: sales of products.
Under terms of the agreement, Viamet will use its proprietary Metallophile Technology to discover and develop metalloenzyme inhibitors for metalloenzymes of interest to Novartis.
The Health Care M&A Report, First Quarter 2010 12 TARGET: Obesity treatment license ACQUIRER: Rhythm Pharmaceuticals, Inc.
LISTING: PA: IPN LISTING: Private LOCATION: Paris, France CEO: Bart Henderson PHONE: UNITS: FAX: REVENUE: Boston, Massachusetts NET INCOME: WEB SITE: www.rhythmtx.com
Ipsen SA is granting a global license to develop and Backed by the private equity firms MPM Capital and New market its melanocortin and ghrelin program Enterprise Associates, Rhythm Pharmaceuticals is involved in treatments for obesity, diabetes and digestive developing peptide therapeutics for metabolic diseases. problems.
ANNOUNCEMENT DATE: March 12, 2010 PRICE: $80,000,000 (approximate) PRICE PER UNIT: TERMS: Up to $80 million in milestone PRICE/REVENUE: payments. Royalties on future product PRICE/INCOME: sales.
As part of this transaction, Ipsen is also taking a 17% equity stake in Rhythm and will be granted one seat on Rhythm's board. This deal allows Ipsen to arrange for the development of some of its proprietary molecules outside of the therapeutic areas that constitute the company's core focus.
TARGET: Oncology collaboration ACQUIRER: Kyowa Hakko Kirin Co. Ltd.
LISTING: Private LISTING: T: 4151 LOCATION: Watertown, Massachusetts CEO: Yuzuru Matsuda PHONE: 81-3-3282-0007 UNITS: 1-6-1 Ohtemachi, Chiyoda-ku FAX: 81-3-3284-1968 REVENUE: Tokyo, Japan 100-8185 NET INCOME: WEB SITE: www.kyowa-kirin.co.jp
Discerna Pharmaceuticals is entering into a research Kyowa Hakko Kirin is a leading biopharma in Japan. For the six collaboration and license agreement to develop and months ended September 30, 2009, the company generated revenue commercialize Dicer Substrate siRNA (DsiRNA) of Yen 194.3 billion and net income of Yen 10.8 billion. molecules for therapeutics targets in oncology.
ANNOUNCEMENT DATE: January 4, 2010 PRICE: $124,000,000 (approximate) PRICE PER UNIT: TERMS: $4 million in upfront cash payment; up PRICE/REVENUE: to $120 million in research funding, PRICE/INCOME: development and commercialization milestones for exclusive rights to one target in oncology.
This collaboration expands Kyowa's oncology franchise. According to the progress on this collaboration, the two companies may expand its scope by adding approximately up to 10 targets under similar terms. In such a case, the value of the collaboration would rise to about $1.324 billion.
The Health Care M&A Report, First Quarter 2010 13 TARGET: Prostate cancer drug ACQUIRER: Adamis Pharmaceuticals Corporation candidates LISTING: Private LISTING: OTCBB: ADMP LOCATION: Menlo Park, California CEO: Dennis J. Carlo PHONE: 858-401-3984 UNITS: 2658 Del Mar Heights Road FAX: REVENUE: Del Mar, California 92014 NET INCOME: WEB SITE: www.adamispharmaceuticals.com
Colby Pharmaceuticals is selling three small Adamis Pharmaceuticals is a specialty pharma targeting the allergy, molecule compounds, CPC-100, CPC 200 and respiratory and pediatric medicine markets. On a trailing 12-month CPC-300, for the potential treatment of human basis, ADMP generated revenue of $580,000 and a net loss of $3.9 prostate cancer. million.
ANNOUNCEMENT DATE: February 25, 2010 PRICE: $3,400,000 PRICE PER UNIT: TERMS: One million shares of ADMP stock for PRICE/REVENUE: license for CPC-300. Up to 7.5 million PRICE/INCOME: shares for CPC-100 and CPC-200.
The seller, Colby, initially in-licensed these three drugs from the Wisconsin Alumni Research Foundation. This builds up ADMP's drug development pipeline for prostate cancer.
TARGET: Rights to Ceplene ACQUIRER: Meda AB
LISTING: NASDAQ: EPCT LISTING: STO: MEDAA LOCATION: Tarrytown, New York CEO: Anders Lonner PHONE: 46 8 630 19 00 UNITS: Pipers vag 2 A FAX: 46 8 6301950 REVENUE: Solna, Sweden SE-170 09 NET INCOME: WEB SITE: www.meda.se
EpiCept Corporation is licensing exclusive rights Meda is a specialty pharma company that markets prescription and for Ceplene (histamine dihydrochloride), a drug OTC drugs and medical equipment in Nordic Europe. For 2009, indicated for remission maintenance therapy and Meda generated revenue of SEK 13.2 billion and EBITDA of SEK prevention of relapse in adult patients with acute 4.4 billion. myeloid leukemia.
ANNOUNCEMENT DATE: January 11, 2010 PRICE: $40,000,000 (approximate) PRICE PER UNIT: TERMS: $3 million in upfront payment; $2 PRICE/REVENUE: million on launch; $5 million in a PRICE/INCOME: regulatory milestone; sales milestones of up to $30 million. Double-digit royalties.
Meda's rights cover Europe and certain markets in Australia and Asia, including China and Japan. The drug has been granted orphan status by the European Commission, which confers a 10-year period of market exclusivity. Once annual sales of Ceplene reach $50 million and $100 million, milestone payments of $10 million and $20 million, respectively, will be paid out.
The Health Care M&A Report, First Quarter 2010 14 TARGET: Rights to Debio 025 ACQUIRER: Novartis AG
LISTING: Private LISTING: NYSE: NVS LOCATION: Lausanne, Switzerland CEO: Joseph Jimenez PHONE: 877-999-8850 UNITS: 11 Lichtstrasse FAX: 212-830-2405 REVENUE: Basel, Switzerland CH-4002 NET INCOME: WEB SITE: www.novartis.com
Debiopharm Group is granting exclusive rights for Novartis is engaged in sales and product innovation in Debio 025, an antiviral agent in phase 2b pharmaceuticals, generics, consumer health and eye care, as well as development as a potential hepatitis C therapy. animal health. On a trailing 12-month basis, NVS generated revenue Debio 025 is a cyclophilin inhibitor. of $42 billion, EBITDA of $11.5 billion and net income of $7.6 billion.
ANNOUNCEMENT DATE: February 9, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Undisclosed upfront payment; PRICE/REVENUE: undisclosed milestone payments. PRICE/INCOME: Royalties on future sales.
This acquisition gives NVS access to a drug candidate which may become a first-in-class antiviral agent and part of the future standard care for the disease.
TARGET: Rights to Shigamabs e. coli ACQUIRER: LFB Biotechnologies treatment LISTING: TSX: TLN LISTING: Private LOCATION: Montreal, Quebec CEO: Christian Bechon PHONE: 330 1 69 82 70 10 UNITS: 3, avenue des Tropiques FAX: 330 1 69 07 19 03 REVENUE: Les Ulis, France 91958 NET INCOME: WEB SITE: www.lfb.fr
Thallion is granting development and LFB Biotechnologies is a biopharma that develops, manufactures commercialization rights for Shigamabs, a product and markets medicinal products for serious and rare diseases in such candidate for treating Shiga toxin-producing e. coli areas as hemostasis, immunology and intensive care. In 2008, it infections. generated revenue of Eur 352.4 million.
ANNOUNCEMENT DATE: February 16, 2010 PRICE: $129,100,000 (approximate) PRICE PER UNIT: TERMS: Eur 95 million. Includes upfront PRICE/REVENUE: licensing fee of Eur 1.5 million, funding PRICE/INCOME: for future clinical development costs and milestone payments. Tiered, double- digit royalties.
This deal expands LFB's portfolio of monoclonal antibodies. The license covers Europe, South America, Russia, Turkey, China, South Korea and North Africa. Thallion retains rights elsewhere, particularly in North America.
The Health Care M&A Report, First Quarter 2010 15 TARGET: RNA therapeutics ACQUIRER: GlaxoSmithKline plc collaboration LISTING: NASDAQ: ISIS LISTING: NYSE: GSK LOCATION: Carlsbad, California CEO: Andrew Witty PHONE: 44 0 20 2047 5000 UNITS: 980 Great West Road FAX: 181-966-8330 REVENUE: Middlesex, England TW8 9GS NET INCOME: WEB SITE: www.gsk.com
Isis Pharmaceuticals is entering into a collaboration GlaxoSmithKline is a global pharmaceutical company. On a trailing agreement to develop and commercialize 12-month basis, GSK generated revenue of $44.5 billion, EBITDA microRNA therapeutics for rare diseases, including of $14.124 billion and net income of $8.7 billion. infectious illnesses and diseases that cause blindness.
ANNOUNCEMENT DATE: March 31, 2010 PRICE: $1,500,000,000 (approximate) PRICE PER UNIT: TERMS: Upfront payment of $35 million. $20 PRICE/REVENUE: million in milestones per program up to PRICE/INCOME: phase 2. Option to license compounds. License fees and milestone payments totaling nearly $1.5 billion.
This deal stipulates up to six programs; if all six are followed through, the price will be nearly $1.5 billion. Isis will utilize its microRNA technology platform in this collaboration. This deal expands Glaxo's development of microRNA targets.
TARGET: StemTroniX, Inc. ACQUIRER: Power3 Medical Products, Inc.
LISTING: Private LISTING: OTCBB: PWRM LOCATION: Huntsville, Texas CEO: Helen R. Park PHONE: 281-466-1600 UNITS: 3400 Research Forest Drive FAX: 281-466-1481 REVENUE: The Woodlands, Texas 77381 NET INCOME: WEB SITE: www.power3medical.com
StemTroniX is a biotech focused on using Power3 Medical Products, a development stage company, engages autologous adult stem cell technology to repair in commercializing its intellectual properties in the area of diagnosis tissue damage in patients. It is working towards a and treatment of certain diseases. non-invasive method for treating heart disease.
ANNOUNCEMENT DATE: February 11, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Reverse merger PRICE/REVENUE: PRICE/INCOME:
This transaction strengthens the buyer's intellectual portfolio by adding StemTroniX's complementary adult stem cell therapy technology.
The Health Care M&A Report, First Quarter 2010 16 TARGET: Strategic alliance in COPD ACQUIRER: Roche Holding AG
LISTING: Euronext: GLPG LISTING: VX: ROG LOCATION: Mechelen, Belgium CEO: Severin Schwan PHONE: 41-61-688-1111 UNITS: Grenzacherstrasse 124 FAX: 41-61-691-9391 REVENUE: Basel, Switzerland CH-4070 NET INCOME: WEB SITE: www.roche.com
Galapagos NV is entering into a multi-year strategic Roche Holding AG is a global pharmaceutical company, with alliance to develop potential new therapies to treat pharmaceuticals and diagnostic divisions. For the six months ended chronic obstructive pulmonary disease (COPD). June 30, 2007, Roche generated revenue of CHF 22.8 billion and EBITDA of CHF 8.7 billion.
ANNOUNCEMENT DATE: January 11, 2010 PRICE: $572,900,000 (approximate) PRICE PER UNIT: TERMS: Research access payment of Eur 6 PRICE/REVENUE: million. Discovery, development, PRICE/INCOME: regulatory and sales milestones of up to Eur 400 million. Royalties on commercialization of products.
Under terms of this agreement, GLPG will apply its target discovery platform to discover novel COPD targets. GLPG is then responsible for the discovery and development of new small molecule candidate drugs against such targets. Roche will have an exclusive option to license each small molecule program.
TARGET: TG4010 cancer vaccine ACQUIRER: Novartis AG
LISTING: Private LISTING: NYSE: NVS LOCATION: Graffenstaden, France CEO: Joseph Jimenez PHONE: 877-999-8850 UNITS: 11 Lichtstrasse FAX: 212-830-2405 REVENUE: Basel, Switzerland CH-4002 NET INCOME: WEB SITE: www.novartis.com
Transgene is granting an exclusive option for its Novartis is engaged in sales and product innovation in TG4010 cancer vaccine. The initial target for this pharmaceuticals, generics, consumer health and eye care, as well as vaccine candidate is lung cancer. animal health. On a trailing 12-month basis, NVS generated revenue of $42 billion, EBITDA of $11.5 billion and net income of $7.6 billion.
ANNOUNCEMENT DATE: March 10, 2010 PRICE: $960,000,000 PRICE PER UNIT: TERMS: Option fee of $10 million. Milestone PRICE/REVENUE: payments of up to $950 million. PRICE/INCOME: Royalties on sales.
Before it exercises its option, NVS wants to see the outcome of a midstage phase 2b clinical trial, due in 2012. Transgene will fund and keep control over phase 2b/3 development phases, but will get the costs back if NVS goes ahead with the option.
The Health Care M&A Report, First Quarter 2010 17 TARGET: Therapeutic antibody ACQUIRER: Human Genome Sciences, Inc. collaboration LISTING: OMXS: BINV LISTING: NYSE: HGSI LOCATION: Lund, Sweden CEO: H. Thomas Watkins PHONE: 301-309-8504 UNITS: 14200 Shady Grove Road FAX: 301-309-8512 REVENUE: Rockville, Maryland 20850 NET INCOME: WEB SITE: www.hgsi.com
BioInvent International AB is entering into a Human Genome Sciences operates as a biopharmaceutical company collaboration agreement to discover, develop and with a focus on drug development. For the nine months ended commercialize therapeutic monoclonal antibodies September 30, 2007, HGSI generated revenue of $276 million and that specifically target antigens discovered by net income of $5.7 million. HGSI.
ANNOUNCEMENT DATE: March 12, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
Under terms of the collaboration, BINV will apply its proprietary antibody discovery technology to antigens discovered by HGSI. Each company will have the right to participate in the development and global commercialization of each antibody candidate. The two will share research, development, manufacturing and commercialization costs as well as future revenues.
TARGET: Topigen Pharmaceuticals ACQUIRER: Pharmaxis, Ltd.
LISTING: Private LISTING: ASX: PXS LOCATION: Montreal, Quebec CEO: Alan Robertson PHONE: 61-2 9454 7200 UNITS: 20 Rodborough Road FAX: 61-2 9451 3622 REVENUE: Frenchs Forest, NSW, Australia 2086 NET INCOME: WEB SITE: www.pharmaxis.com.au
Topigen is a biopharma focused on discovering Pharmaxis is a specialty pharma focused on human therapeutic treatments for such pulmonary conditions as asthma products for chronic respiratory and autoimmune diseases. and COPD.
ANNOUNCEMENT DATE: January 12, 2010 PRICE: $20,600,000 (approximate) PRICE PER UNIT: TERMS: Issuance of 3.2 million shares at closing, PRICE/REVENUE: with an additional 5.0 million shares to PRICE/INCOME: be issued subject to the achievement of certain milestones.
This deal enhances the buyer's respiratory drug pipeline. The target's lead candidate is in phase 2 clinical trials for asthma; there is also a drug in preclinical development for COPD.
The Health Care M&A Report, First Quarter 2010 18 TARGET: Toremifene partnership ACQUIRER: Ipsen, SA
LISTING: NASDAQ: GTXI LISTING: PA: IPN LOCATION: Memphis, Tennessee CEO: Jean-Luc Belingard PHONE: 3301 15833 5000 UNITS: 65 quai Georges Gorse FAX: 3301 15833 5001 REVENUE: Boulogne-Billancourt, France 92100 NET INCOME: WEB SITE: www.ipsen.com
GTx, Inc. is entering into a partnership to develop Ipsen in a specialty biotechnology firm. It generates in excess of Eur and commercialize toremifene 80 mg and 1 billion in annual revenue. toremifene 20 mg, for certain indications for patients with prostate cancer.
ANNOUNCEMENT DATE: March 23, 2010 PRICE: $58,000,000 (approximate) PRICE PER UNIT: TERMS: Up to Eur 42 million in specified PRICE/REVENUE: milestone payments. PRICE/INCOME:
This transaction expands the companies' existing partnership for toremifene. The 80 mg dosage is to reduce fractures in men with advanced prostate cancer on androgen deprivation therapy; the 20 mg dosage is for preventing prostate cancer in high-risk patients with high grade prostatic intraepithelial neoplasia lesions. The agreement also stipulates conditions under which GTx may receive royalties on sales of the drug.
TARGET: Two wound healing ACQUIRER: Healthpoint, Ltd. products LISTING: Private LISTING: Private LOCATION: Cambridge, England CEO: Travis Baugh PHONE: 800-441-8227 UNITS: 3909 Hulen Street FAX: 817-900-4100 REVENUE: Fort Worth, Texas 76107 NET INCOME: WEB SITE: www.healthpoint.com
Intercytex Limited, a subsidiary of Regenerative An affiliate of DFP Pharmaceuticals, Healthpoint is a specialty Medicine Assets, is selling certain assets and pharma involved in technologies for preventing and treating acute, technology relating to its stem cell-based wound chronic and burn-related wounds. healing products ICX-SKN and Cyzact. Assets include such intellectual property as patents.
ANNOUNCEMENT DATE: January 21, 2010 PRICE: $990,000 PRICE PER UNIT: TERMS: Maximum consideration of up to PRICE/REVENUE: $990,000, including upfront and PRICE/INCOME: contingent payments, all receivable within the next 12 months.
This acquisition expands the buyer's portfolio of wound-care technologies. Cyzact delivers human dermal fibroblasts via a fibrin sheet while ICX-SKN is a combination of fibroblasts and fibrin matrix which are remodeled to produce a collagen that allows the engineered tissue to remain intact in a hostile wound environment. The seller is divesting these assets because its lead product, Cyzact failed in clinical trials, making it unable to secure further funding.
The Health Care M&A Report, First Quarter 2010 19
E-HEALTH
FIRST QUARTER 2010 E-HEALTH TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
AHP Billing Services Falmouth Maine AdvantEdge Healthcare Solutions Warren New Jersey 3/24/10 AMICAS, Inc. Boston Massachusetts Merge Healthcare Hartland Wisconsin 3/5/10 $248,000,000 CURE Media Group Dallas Texas US Oncology, Inc. The Woodlands Texas 2/24/10 eWebHealth Reading Massachusetts Hyland Software Westlake Ohio 3/1/10 FutureVision Technologies Salt Lake City Utah Emdeon Nashville Tennessee 1/26/10 $60,000,000 Healthcare Technology Management Services Indianapolis Indiana Emdeon, Inc. Nashville Tennessee 3/16/10 $25,000,000 Healthvision Solutions, Inc. Dallas Texas Lawson Software, Inc. St. Paul Minnesota 1/7/10 $160,000,000 Initiate Systems Chicago Illinois International Business Machines Corp. Armonk New York 2/3/10 MEDHOST, Inc. Addison Texas HealthTech Holdings, Inc. Nashville Tennessee 2/1/10 Medicaid health information management unit Blue Bell Pennsylvania Molina Healthcare, Inc. Long Beach California 1/19/10 $135,000,000 Medical Account Services, Inc. Dayton Ohio AdvantEdge Healthcare Solutions Warren New Jersey 1/27/10 MedPlexus Sunnyvale California GE HealthCare Chalfont St Giles England 3/24/10 Midtech Partners Denver Colorado Evolute Consolidated Holdings Kirkland Washington 2/23/10 NexCura Seattle Washington US Oncology, Inc. The Woodlands Texas 2/24/10 Opus Healthcare Solutions Austin Texas Quality Systems, Inc. Irvine California 2/11/10 $26,000,000 QualityMetric, Inc. Lincoln Rhode Island Ingenix Eden Prairie Minnesota 3/24/10 RES-Q Healthcare Systems Calabasas California Concerro, Inc. San Diego California 2/1/10 SK&A Information Services, Inc. Bedminster New Jersey CEGEDIM, S.A Boulogne-Billancourt France 1/11/10 StaffMD MedCAREERS GROUP, Inc. Atlanta Georgia 3/4/10 $7,210,000 TranSend International, LLC Bellevue Washington BioClinica, Inc. Newtown Pennsylvania 3/26/10 $2,500,000 Workabroad.com MedCAREERS GROUP, Inc. Atlanta Georgia 3/2/10 $225,000
TARGET: AHP Billing Services ACQUIRER: AdvantEdge Healthcare Solutions
LISTING: Private LISTING: Private LOCATION: Falmouth, Maine CEO: David Langsam PHONE: 908-279-8111 UNITS: 30 Technology Drive FAX: 908-791-3330 REVENUE: Warren, New Jersey 07059 NET INCOME: WEB SITE: www.AHSRCM.com
AHP Billing Services is a provider of outsourced AdvantEdge Healthcare Solutions (AHS) provides medical billing billing and coding services to the health care services, practice management and accounts receivable management industry. services for specialty physicians and outpatient surgery centers.
ANNOUNCEMENT DATE: March 24, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's billing solutions, particularly to hospital-based and office-based physicians. Falmouth is to become AdvantEdge's fifth processing location.
TARGET: AMICAS, Inc. ACQUIRER: Merge Healthcare
LISTING: NASDAQ: AMCS LISTING: NASDAQ: MRGE LOCATION: Boston, Massachusetts CEO: Justin C. Dearborn PHONE: 262-367-0700 UNITS: 900 Walnut Ridge Drive FAX: 262-367-0717 REVENUE: $73,650,000 Hartland, Wisconsin 53029 NET INCOME: $1,950,000 (EBITDA) WEB SITE: www.merge.com
AMICAS provides radiology, and medical image Merge Healthcare develops medical imaging and information and information management solutions through its software solutions and related services. On a trailing 12-month web-based PACS. On a trailing 12-month basis, basis, MRGE generated revenue of $66.8 million, EBITDA of $16.3 AMCS generated revenue of $73.65 million, million and net income of $285,000. EBITDA of $1.95 million and a net loss of $34.8 million.
ANNOUNCEMENT DATE: March 5, 2010 PRICE: $248,000,000 (approximate) PRICE PER UNIT: TERMS: $6.05 per share. PRICE/REVENUE: 3.37 PRICE/INCOME: 127.18
AMCS recently terminated an agreement with an affiliate of Thoma Bravo, LLC to be bought at $5.35 per share. MRGE's price represents a 13% premium to that earlier offer. The combination of these two companies will create a larger global health care IT company, with a strength in picture archiving and communications systems.
The Health Care M&A Report, First Quarter 2010 25 TARGET: CURE Media Group ACQUIRER: US Oncology, Inc.
LISTING: Private LISTING: Private LOCATION: Dallas, Texas CEO: Bruce Broussard PHONE: 281-863-1000 UNITS: 10101 Woodloch Forest FAX: REVENUE: The Woodlands, Texas 77380 NET INCOME: WEB SITE: www.usoncology.com
CURE Media Group is a provider of cancer US Oncology is a practice management organization affiliated with information through print and online media. over 1,310 physicians at 493 locations. For the three months ended September 30, 2009, it generated revenue of $901.5 million and a net loss of $20.3 million.
ANNOUNCEMENT DATE: February 24, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This is one of two deals the buyer announced making at the same time; the other is NexCura. These two acquisitions enhance US Oncology's ability to disseminate information about cancer to providers and patients.
TARGET: eWebHealth ACQUIRER: Hyland Software
LISTING: Private LISTING: Private LOCATION: Reading, Massachusetts CEO: A.J. Hyland PHONE: 440-788-5000 UNITS: 28500 Clemens Road FAX: 440-788-5100 REVENUE: Westlake, Ohio 44145 NET INCOME: WEB SITE: www.onbase.com eWebHealth is a provider of hosted medical records Hyland software is an enterprise content software vendor, supplying workflow solutions. using an SaaS model, a suite of document and process management solutions. eWebHealth technology solutions direct the flow of health information to the point of impact and make health records accessible.
ANNOUNCEMENT DATE: March 1, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition continues the buyer's program of expanding its presence in the health care space. The target business will enlarge Hyland's experience in domain expertise in the areas of coding and revenue cycle workflow management. eWebHealth's customer base has embraced the SaaS model, which is a key part of Hyland's services.
The Health Care M&A Report, First Quarter 2010 26 TARGET: FutureVision Technologies ACQUIRER: Emdeon, Inc.
LISTING: Private LISTING: NYSE: EM LOCATION: Salt Lake City, Utah CEO: George Lazenby PHONE: 615-932-3000 UNITS: 3055 Lebanon Road FAX: REVENUE: Nashville, Tennessee 37214 NET INCOME: WEB SITE: www.emdeon.com
FutureVision Technologies is a provider of Emdeon is a provider of revenue cycle management and clinical outsourced services specializing in electronic data communication solutions that connect payers, providers and conversion and information management solutions. patients. On a trailing 12-month basis, Emdeon generated revenue of $898 million, EBITDA of $205 million and net income of $11 million.
ANNOUNCEMENT DATE: January 26, 2010 PRICE: $60,000,000 (approximate) PRICE PER UNIT: TERMS: $20 million in cash at closing; up to $40 PRICE/REVENUE: million in contingent payments based on PRICE/INCOME: financial performance.
The buyer believes that this acquisition will enable it to automate billing and offer paperless solutions for payments in the health care industry. The goal is to lower costs for customers, and make the company's offerings more competitive in the billings solutions market.
TARGET: Healthcare Technology ACQUIRER: Emdeon, Inc. Management Services LISTING: Private LISTING: NYSE: EM LOCATION: Indianapolis, Indiana CEO: George Lazenby PHONE: 615-932-3000 UNITS: 3055 Lebanon Road FAX: REVENUE: Nashville, Tennessee 37214 NET INCOME: WEB SITE: www.emdeon.com
Healthcare Technology Management Services is a Emdeon is a provider of revenue cycle management and clinical management consulting company focused on the communication solutions that connect payers, providers and health care market, particularly payer organizations. patients. On a trailing 12-month basis, Emdeon generated revenue of $898 million, EBITDA of $205 million and net income of $11 million.
ANNOUNCEMENT DATE: March 16, 2010 PRICE: $25,000,000 (approximate) PRICE PER UNIT: TERMS: $11 million at closing, consisting of PRICE/REVENUE: $8.5 million in cash and $2.5 million in PRICE/INCOME: shares of restricted stock. Up to $14 million in contingent payments, based on financial performance over three years.
This acquisition complements the buyer's revenue and payment cycle management solutions with consulting services to the health care payer market.
The Health Care M&A Report, First Quarter 2010 27 TARGET: Healthvision Solutions, Inc. ACQUIRER: Lawson Software, Inc.
LISTING: Private LISTING: NASDAQ: LWSN LOCATION: Dallas, Texas CEO: Harry Debes PHONE: 651-767-7000 UNITS: 380 St. Peter Street FAX: 651-767-7141 REVENUE: $65,000,000 (2010 St. Paul, Minnesota 55102 projected) NET INCOME: WEB SITE: www.lawson.com
Battery Ventures is selling Healthvision Solutions, a Lawson Software provides enterprise software, services and provider of integration and application technology support. On a trailing 12-month basis, LWSN generated revenue of and related services to hospitals and large health $713 million, EBITDA of $119 million and net income of $28 care organizations. million.
ANNOUNCEMENT DATE: January 7, 2010 PRICE: $160,000,000 PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: 2.46 PRICE/INCOME:
This acquisition gives LWSN a business which has a market share of 40% of large integrated health care delivery systems. The deal was carried out through the acquisition of privately held Quovadx Holdings, HealthvisionÆs parent holding company. Battery Ventures first acquired Healthvision through the purchase of Quovadx Holdings in 2007 for $136.7 million; it split Quovadx into two companies: Healthvision and Rogue Wave Software, which Battery still owns. This deal closed January 11, 2010.
TARGET: Initiate Systems ACQUIRER: International Business Machines Corp.
LISTING: Private LISTING: NYSE: IBM LOCATION: Chicago, Illinois CEO: Samuel J. Palmisano PHONE: 914-499-1900 UNITS: 1 New Orchard Road FAX: 914-765-7382 REVENUE: Armonk, New York 10504 NET INCOME: WEB SITE: www.ibm.com
Initiate Systems is a provider of record-matching International Business Machines Corporation develops and technology to prescription drug and other key health manufactures information technology products and services information network exchange systems. worldwide. On a trailing 12-month basis, it generated revenue of $96 billion, EBITDA of $23 billion and net income of $13 billion.
ANNOUNCEMENT DATE: February 3, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
The target's software provides algorithms for identifying a patient's prescription history. The company's software is deployed at 2,400 health care sites and is used by 40 health information exchanges. Clients include the Veterans Affairs Department and CVS Caremark.
The Health Care M&A Report, First Quarter 2010 28 TARGET: MEDHOST, Inc. ACQUIRER: HealthTech Holdings, Inc.
LISTING: Private LISTING: Private LOCATION: Addison, Texas CEO: Tom Stephenson PHONE: 615-383-7300 UNITS: 3102 West End Ave., Suite 400 FAX: 615-383-6093 REVENUE: Nashville, Tennessee 37203 NET INCOME: WEB SITE: www.hmstn.com
MEDHOST is a software solutions provider, HealthTech Holdings is a health information technology holding specializing in emergency department information company and the parent of Healthcare Management Systems. systems.
ANNOUNCEMENT DATE: February 1, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
The acquisition of MEDHOST will allow HealthTech to develop an integrated emergency department system for the Healthcare Management Systems enterprise-wide solution for community hospitals. The combined companies are expected to generate revenue of $100.0 million in 2010.
TARGET: Medicaid health ACQUIRER: Molina Healthcare, Inc. information management unit LISTING: NYSE: UIS LISTING: NYSE: MOH LOCATION: Blue Bell, Pennsylvania CEO: J. Mario Molina PHONE: 562-435-3666 UNITS: 200 Oceangate, Suite 100 FAX: 562-495-7770 REVENUE: $110,000,000 Long Beach, California 90802 NET INCOME: WEB SITE: www.molinahealthcare.com
Unisys Corp. is selling its Medicaid health Molina Healthcare is an MCO that specializes in the Medicaid information management (HIM) unit. This unit market and other programs for low-income families and individuals. generates annual revenue of approximately $110 On a trailing 12-month basis, MOH generated revenue of $3.5 million. billion, EBITDA of $113 million and net income of $53 million.
ANNOUNCEMENT DATE: January 19, 2010 PRICE: $135,000,000 (approximate) PRICE PER UNIT: TERMS: Subject to working capital adjustments. PRICE/REVENUE: 1.23 PRICE/INCOME:
The acquisition of UIS' HIM business will complement MOH's existing Medicaid health plan business and advance the company's strategic plan by expanding its services and product offerings beyond managed care. The HIM business currently holds MMIS contracts with the states of Idaho, Louisiana, Maine, New Jersey and West Virginia, as well as a contract to provide drug rebate administration services for the Florida Medicaid program. This acquisition is to be financed out of MOH's credit facility. This deal closed May 1, 2010.
The Health Care M&A Report, First Quarter 2010 29 TARGET: Medical Account Services, ACQUIRER: AdvantEdge Healthcare Solutions Inc. LISTING: Private LISTING: Private LOCATION: Dayton, Ohio CEO: David Langsam PHONE: 908-279-8111 UNITS: 30 Technology Drive FAX: 908-791-3330 REVENUE: Warren, New Jersey 07059 NET INCOME: WEB SITE: www.AHSRCM.com
Medical Account Services (MAS) is a provider of AdvantEdge Healthcare Solutions (AHS) provides medical billing billing and practice management services to services, practice management and accounts receivable management anesthesiologists in Ohio. services for specialty physicians and outpatient surgery centers.
ANNOUNCEMENT DATE: January 27, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
The buyer believes that this acquisition will enable it to leverage its technological capabilities, increase processing efficiencies and maximize performance for all of its clients. The combination of these businesses should deliver AHSÆ web-based reporting and dashboard tools to MAS clients, and MASÆ extensive consulting and practice management expertise will enable AHS to expand those services for its clients.
TARGET: MedPlexus ACQUIRER: GE HealthCare
LISTING: Private LISTING: NYSE: GE LOCATION: Sunnyvale, California CEO: Joseph M. Hogan PHONE: UNITS: Amersham Place FAX: REVENUE: Chalfont St Giles, England HP7 9NA NET INCOME: WEB SITE: www.gehealthcare.com
MedPlexus is a provider of electronic health A $17 billion unit of the General Electric family of companies, GE records, revenue cycle management software and HealthCare is a provider of transformational medical technologies hosted services for payroll and billing. Its client and services. base includes small, independent physician practices.
ANNOUNCEMENT DATE: March 24, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition would expand the buyer's presence in the independent physician office market. It would also give GE Healthcare customers practice management solutions and EHR systems through an SaaS platform.
The Health Care M&A Report, First Quarter 2010 30 TARGET: Midtech Partners ACQUIRER: Evolute Consolidated Holdings
LISTING: Private LISTING: Private LOCATION: Denver, Colorado CEO: Hedy Foreman PHONE: 425-463-4400 UNITS: 335 Park Place Center FAX: 425-463-4401 REVENUE: Kirkland, Washington 98033 NET INCOME: WEB SITE: www.evolutechi.com
Midtech Partners is a technology integration Formed in 2009, Evolute focuses on the implementation of health services that provides solutions in the health care, care solutions using certain Microsoft technologies and platforms. public health and financial services industries. Evolute develops solutions that emphasize user experience and enhance productivity, communications and business insights.
ANNOUNCEMENT DATE: February 23, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
The combination of these two complementary companies, both *Gold Certified* partner firms of Microsoft, results in a firm with greater scale. The combined business will provide integration and compliance management solutions in such areas as chronic condition management, HIPAA 5010, care team collaboration and business process automation.
TARGET: NexCura ACQUIRER: US Oncology, Inc.
LISTING: Private LISTING: Private LOCATION: Seattle, Washington CEO: Bruce Broussard PHONE: 281-863-1000 UNITS: 10101 Woodloch Forest FAX: REVENUE: The Woodlands, Texas 77380 NET INCOME: WEB SITE: www.usoncology.com
NexCura is an online resource that provides US Oncology is a practice management organization affiliated with information for patients and caregivers. over 1,310 physicians at 493 locations. For the three months ended September 30, 2009, it generated revenue of $901.5 million and a net loss of $20.3 million.
ANNOUNCEMENT DATE: February 24, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This is one of two deals the buyer announced making at the same time; the other is CURE Media Group. These two acquisitions enhance US Oncology's ability to disseminate information about cancer to providers and patients.
The Health Care M&A Report, First Quarter 2010 31 TARGET: Opus Healthcare Solutions ACQUIRER: Quality Systems, Inc.
LISTING: Private LISTING: NASDAQ: QSII LOCATION: Austin, Texas CEO: Steven Plochocki PHONE: 949-255-2600 UNITS: 18111 Von Karman Avenue FAX: 949-255-2605 REVENUE: Irvine, California 92612 NET INCOME: WEB SITE: www.qsii.com
Opus Healthcare Solutions delivers Web-based Quality Systems develops and markets health care information clinical solutions to hospital systems and integrated systems. On a trailing 12-month basis, QSII generated revenue of health networks across the country. $279 million, EBITDA of $79 million and net income of $47 million.
ANNOUNCEMENT DATE: February 11, 2010 PRICE: $26,000,000 (approximate) PRICE PER UNIT: TERMS: $12 million in unregistered and PRICE/REVENUE: contractually restricted stock; up to $14 PRICE/INCOME: million in additional stock, tied to the future performance of Opus.
This acquired business, including Opus' acquisition of Sphere Health Systems, is to become part of NextGen Healthcare Information Systems, QSIIÆs wholly owned subsidiary in Pennsylvania.
TARGET: QualityMetric, Inc. ACQUIRER: Ingenix
LISTING: Private LISTING: NYSE: UNH LOCATION: Lincoln, Rhode Island CEO: Andy Slavitt PHONE: 952-833-7100 UNITS: 12125 Technology Drive FAX: 952-833-7079 REVENUE: Eden Prairie, Minnesota 55344 NET INCOME: WEB SITE: www.ingenix.com
QualityMetric is a provider of health outcomes A subsidiary of UnitedHealth Group, Ingenix provides products and measurement services to health companies. It services to a broad customer base in the health care community. On reports on patient-reported outcomes. a trailing 12-month basis, UNH generated revenue of $86 billion, EBITDA of $7.3 billion and net income of $3.6 billion.
ANNOUNCEMENT DATE: March 24, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: All-cash transaction. PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's capabilities in the area of health outcomes measurement.
The Health Care M&A Report, First Quarter 2010 32 TARGET: RES-Q Healthcare Systems ACQUIRER: Concerro, Inc.
LISTING: Private LISTING: Private LOCATION: Calabasas, California CEO: Graham Barnes PHONE: 800-658-8940 UNITS: 9276 Scranton Road, Suite 400 FAX: 858-882-8501 REVENUE: San Diego, California 92121 NET INCOME: WEB SITE: www.concerro.com
RES-Q Healthcare Systems is a developer of Concerro is a health care SaaS company that provides workforce information systems for staff and nursing and emergency management systems to hospitals. scheduling at hospitals.
ANNOUNCEMENT DATE: February 1, 2010 PRICE: PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's offerings in workforce management.
TARGET: SK&A Information ACQUIRER: CEGEDIM, S.A Services, Inc. LISTING: Private LISTING: Euronext: CGM LOCATION: Bedminster, New Jersey CEO: Jean-Claude Labrune PHONE: 33 1 49 09 22 00 UNITS: 127, rue d'Aguesseau FAX: 33 1 46 03 45 95 REVENUE: $15,000,000 Boulogne-Billancourt, France 92641 NET INCOME: WEB SITE: www.CEGEDIM.com
SK&A is a provider of U.S. health care data, CEGEDIM provides value-added software solutions to the maintaining contact profiling information for over pharmaceutical and other industries. In 2008, it generated revenue two million health care practitioners. of Eur 849.0 million.
ANNOUNCEMENT DATE: January 11, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
The target business will join Cegedim Dendrite's OneKey offerings in the United States. This deal enlarges the buyer's footprint in the life sciences industry. The deal was financed from the company's internal sources.
The Health Care M&A Report, First Quarter 2010 33 TARGET: StaffMD ACQUIRER: MedCAREERS GROUP, Inc.
LISTING: Private LISTING: OTCBB: MCGI.OB LOCATION: CEO: Robert Bryan PHONE: 888-561-2780 Crutchfield UNITS: 1100 Hammond Drive FAX: 770-392-5269 REVENUE: Atlanta, Georgia 30328 NET INCOME: WEB SITE: www.medcareersgroup.com
StaffMD is an online job posting website in the MedCareers Group plans and executes medical meetings and physician staffing industry. It operates primarily educational programs for nurses, physicians, pharmacists and other under the name www.physicianswork.com. providers. On a trailing 12-month basis, it generated a net loss of $73,900.
ANNOUNCEMENT DATE: March 4, 2010 PRICE: $7,210,000 PRICE PER UNIT: TERMS: $4.0 million in cash; 3.0 million shares PRICE/REVENUE: of common stock (at $1.07 per share). PRICE/INCOME:
This deal extends the buyer's business into online physician staffing services. The acquired web site is the country's second most popular online source for physicians looking for jobs (as of 2007).
TARGET: TranSend International, ACQUIRER: BioClinica, Inc. LLC LISTING: Private LISTING: NASDAQ: BIOC LOCATION: Bellevue, Washington CEO: Mark L. Weinstein PHONE: 267-757-3000 UNITS: 826 Newtown-Yardley Road FAX: 267-757-3010 REVENUE: $1,000,000 Newtown, Pennsylvania 18940 NET INCOME: WEB SITE: www.bioclinica.com
TranSend International is a provider of clinical trial BioClinica is a global provider of clinical trials services. On a management software solutions. Its web-based trailing 12-month basis, it generated revenue of $72.2 million, solution and integration technologies create EBITDA of $8.5 million and net income of $3.0 million. efficiencies for trial operations.
ANNOUNCEMENT DATE: March 26, 2010 PRICE: $2,500,000 (approximate) PRICE PER UNIT: TERMS: Issuance of 577,960 shares of BIOC PRICE/REVENUE: 2.50 unregistered common stock. PRICE/INCOME:
This acquisition expands the buyer's ability to manage medical images from a clinical site. TranSend's solutions create efficiencies through interoperability with Microsoft office tools. It is thought that for 2010, TranSend will contribute approximately $1.0 million in service revenue and an operating loss of $500,000.
The Health Care M&A Report, First Quarter 2010 34 TARGET: Workabroad.com ACQUIRER: MedCAREERS GROUP, Inc.
LISTING: Private LISTING: OTCBB: MCGI.OB LOCATION: CEO: Robert Bryan PHONE: 888-561-2780 Crutchfield UNITS: 1100 Hammond Drive FAX: 770-392-5269 REVENUE: Atlanta, Georgia 30328 NET INCOME: WEB SITE: www.medcareersgroup.com
Workabroad.com is a domain name. It currently MedCareers Group plans and executes medical meetings and serves as a portal for employment-related postings educational programs for nurses, physicians, pharmacists and other that focuses on international opportunities for job providers. On a trailing 12-month basis, it generated a net loss of seekers who live outside the United States. $73,900.
ANNOUNCEMENT DATE: March 2, 2010 PRICE: $225,000 PRICE PER UNIT: TERMS: Asset purchase agreement. PRICE/REVENUE: PRICE/INCOME:
This deal extends the buyer's business into online physician staffing services, and complements its acquisition of StaffMD. The two deals complement each other, one treating foreign recruiting opportunities, the other domestic opportunities.
The Health Care M&A Report, First Quarter 2010 35
HOME HEALTH CARE
FIRST QUARTER 2010 HOME HEALTH CARE TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
Access Hospice Care, LLC Branson Missouri LHC Group Lafayette Louisiana 1/4/10 $880,000 Advocate Medical Services, Inc. Tampa Florida ActivStyle, Inc. Minneapolis Minnesota 1/25/10 Atenda Healthcare Solutions Davie Florida Univita Health Scottsdale Arizona 1/5/10 De Queen Home Health Agency De Queen Arkansas Amedisys, Inc. Baton Rouge Louisiana 2/2/10 $2,500,000 Family Care, Inc. Cincinnati Ohio Home Care by Black Stone Cincinnati Ohio 1/21/10 Heart to Heart Hospice Starkville Mississippi Gentiva Health Services, Inc. Atlanta Georgia 3/8/10 $2,500,000 HMC Home Health, LLC Savannah Tennessee LHC Group Lafayette Louisiana 2/8/10 $970,000 Hutcheson Home Health Fort Oglethorpe Georgia LHC Group Lafayette Louisiana 2/8/10 $3,080,000 Preston Memorial HomeCare, LLC Kingswood West Virginia LHC Group Lafayette Louisiana 1/4/10 $563,000 Progressive Personal Care Missoula Montana ResCare, Inc. Louisville Kentucky 2/2/10 $3,100,000 Respiratory therapy, infusion therapy, HME Atlanta Georgia Lincare Holdings, Inc. Clearwater Florida 2/4/10 $16,400,000 RP Home Care, Inc. Spring House Pennsylvania ResCare, Inc. Louisville Kentucky 2/2/10 $6,600,000 Salem Hospital Home Care Salem Oregon LHC Group Lafayette Louisiana 3/10/10 Visiting Nurse Managed Care Corporation Miami Florida All-Med Services of Florida, Inc. Miami Lakes Florida 2/1/10
TARGET: Access Hospice Care, LLC ACQUIRER: LHC Group
LISTING: Private LISTING: NASDAQ: LHCG LOCATION: Branson, Missouri CEO: Keith Myers PHONE: 337-233-1307 UNITS: 420 West Pinhook Road FAX: 337-235-8037 REVENUE: $1,000,000 Lafayette, Louisiana 70503 NET INCOME: WEB SITE: www.lhcgroup.com
Access Hospice Care is a provider of hospice and LHC Group provides post-acute health care services primarily to palliative care services to a 13-county service area. Medicare beneficiaries in rural markets in the southern U.S. On a The business generates annual revenue of trailing 12-month basis, LHCG generated revenue of $501 million, approximately $1.0 million. EBITDA of $87 million and net income of $42 million.
ANNOUNCEMENT DATE: January 4, 2010 PRICE: $880,000 (apportioned) PRICE PER UNIT: TERMS: For a 100% interest. PRICE/REVENUE: 0.88 PRICE/INCOME:
This deal complements LHCG's 2008 acquisition of Access' home health care segment. It expands the buyer's presence in southwestern Missouri. This is one of four businesses LHCG acquired in the first quarter for $5.5 million; the price has been apportioned among them in proportion to their revenues.
TARGET: Advocate Medical Services, ACQUIRER: ActivStyle, Inc. Inc. LISTING: Private LISTING: Private LOCATION: Tampa, Florida CEO: Daniel Filippini PHONE: 612-920-5133 UNITS: 3100 Pacific Street FAX: REVENUE: Minneapolis, Minnesota 55411 NET INCOME: WEB SITE: www.activstyle.com
Advocate provides medical supplies to customers ActivStyle is a supplier of disposable medical products, specializing who suffer from spinal cord injuries, spina bifida, in incontinence supplies, with a focus on Medicaid and other urological incontinence and retention, chronic insurance-reimbursed markets. wounds and ostomies.
ANNOUNCEMENT DATE: January 25, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's presence and expertise, particularly in the catheter supply market.
The Health Care M&A Report, First Quarter 2010 41 TARGET: Atenda Healthcare ACQUIRER: Univita Health Solutions LISTING: Private LISTING: Private LOCATION: Davie, Florida CEO: Hugh Lytle PHONE: 480-922-8950 UNITS: 8601 N. Scottsdale Road FAX: 408-240-9338 REVENUE: Scottsdale, Arizona 85253 NET INCOME: WEB SITE: www.univitahealth.com
Atenda Healthcare coordinates home health care Backed by Genstar Capital, Univita Health promotes independent services through Atenda Specialty Pharmacy, aging through home-based care and support. Atenda Nursing Management and Atenda Home Medical Equipment. It serves over 1.3 million managed care lives in Florida and Georgia.
ANNOUNCEMENT DATE: January 5, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands Univita's home health care coordination capacities, making it more attractive to large managed care organizations. Atenda has a large home medical equipment component.
TARGET: De Queen Home Health ACQUIRER: Amedisys, Inc. Agency LISTING: Private LISTING: NASDAQ: AMED LOCATION: De Queen, Arkansas CEO: William F. Borne PHONE: 225-292-2031 UNITS: 5959 S. Sherwood Forest Blvd. FAX: 225-295-9624 REVENUE: $2,900,000 Baton Rouge, Louisiana 70816 NET INCOME: WEB SITE: www.amedisys.com
De Queen Home Health Agency provides home Amedisys is a provider of outpatient health care services throughout health care services to an eight-county area. The the country. On a trailing 12-month basis, AMED generated business generates annual revenue of $2.9 million. revenue of $1.45 billion, EBITDA of $247 million and net income of $124 million.
ANNOUNCEMENT DATE: February 2, 2010 PRICE: $2,500,000 PRICE PER UNIT: TERMS: $2.0 million in cash; $500,000 in a PRICE/REVENUE: 0.86 promissory note. PRICE/INCOME:
This acquisition expands the buyer's geographic coverage in Arkansas to a total of 32 counties. Arkansas is a permit of approval state. This deal closed effective February 1, 2010.
The Health Care M&A Report, First Quarter 2010 42 TARGET: Family Care, Inc. ACQUIRER: Home Care by Black Stone
LISTING: Private LISTING: Private LOCATION: Cincinnati, Ohio CEO: David Tramontana PHONE: 513-924-1370 UNITS: 8280 Montgomery Rd., Suite FAX: 513-924-1372 202 REVENUE: Cincinnati, Ohio 45236 NET INCOME: WEB SITE: www.blackstonehc.com
Family Care is a provider of home health services in Home Care by Black Stone provides a variety of in-home care the Cincinnati market. services for elderly and disabled patients, including home nursing, homemaker assistance and geriatric care management services.
ANNOUNCEMENT DATE: January 21, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition is projected to effect a 10% increase in Home Care's client base. Family Care's patients will now be serviced from Home Care's office on Montgomery Road. This deal continues the buyer's growth; in July 2009, it acquired MJ Nursing Registry, also in Cincinnati.
TARGET: Heart to Heart Hospice ACQUIRER: Gentiva Health Services, Inc.
LISTING: Private LISTING: NASDAQ: GTIV LOCATION: Starkville, Mississippi CEO: Tony Strange PHONE: 770-951-6450 UNITS: 3350 Riverwood Parkway FAX: REVENUE: $4,000,000 Atlanta, Georgia 30339 NET INCOME: WEB SITE: www.gentiva.com
Heart to Heart Hospice is a provider of hospice and Gentiva Health Services is a provider of home health care services palliative care. from 250 locations in 35 states. On a trailing 12-month basis, GTIV generated revenue of $1.15 billion, EBITDA of $125 million and net income of $70 million.
ANNOUNCEMENT DATE: March 8, 2010 PRICE: $2,500,000 (approximate) PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: 0.63 PRICE/INCOME:
This acquisition expands the buyer's existing presence in the Mississippi market, which it entered in 2008 with the acquisition of Gilbert's Home Health and Gilbert's Hospice Care.
The Health Care M&A Report, First Quarter 2010 43 TARGET: HMC Home Health, LLC ACQUIRER: LHC Group
LISTING: Private LISTING: NASDAQ: LHCG LOCATION: Savannah, Tennessee CEO: Keith Myers PHONE: 337-233-1307 UNITS: 420 West Pinhook Road FAX: 337-235-8037 REVENUE: $1,100,000 Lafayette, Louisiana 70503 NET INCOME: WEB SITE: www.lhcgroup.com
Hardin Medical Center, a 58-bed acute care facility, LHC Group provides post-acute health care services primarily to is entering into a joint venture to provide home Medicare beneficiaries in rural markets in the southern U.S. On a health services in the hospital's service area. The trailing 12-month basis, LHCG generated revenue of $501 million, home health business generates approximately $1.1 EBITDA of $87 million and net income of $42 million. million in annual revenue.
ANNOUNCEMENT DATE: February 8, 2010 PRICE: $970,000 (apportioned) PRICE PER UNIT: TERMS: For a 75% interest. PRICE/REVENUE: 0.88 PRICE/INCOME:
This acquisition expands the buyer's presence in Tennessee, a certificate of need state. This transaction closed effective February 1, 2010. This is one of four businesses LHCG acquired in the first quarter for $5.5 million; the price has been apportioned among them in proportion to their revenues.
TARGET: Hutcheson Home Health ACQUIRER: LHC Group
LISTING: Private LISTING: NASDAQ: LHCG LOCATION: Fort Oglethorpe, Georgia CEO: Keith Myers PHONE: 337-233-1307 UNITS: 420 West Pinhook Road FAX: 337-235-8037 REVENUE: $3,500,000 Lafayette, Louisiana 70503 NET INCOME: WEB SITE: www.lhcgroup.com
Hutcheson Home Health is a provider of home LHC Group provides post-acute health care services primarily to health services. The business generates annual Medicare beneficiaries in rural markets in the southern U.S. On a revenue of approximately $3.5 million. trailing 12-month basis, LHCG generated revenue of $501 million, EBITDA of $87 million and net income of $42 million.
ANNOUNCEMENT DATE: February 8, 2010 PRICE: $3,080,000 (apportioned) PRICE PER UNIT: TERMS: For 100% interest. PRICE/REVENUE: 0.88 PRICE/INCOME:
This acquisition expands the buyer's presence in Georgia, a certificate of need state. This is one of four businesses LHCG acquired in the first quarter for $5.5 million; the price has been apportioned among them in proportion to their revenues.
The Health Care M&A Report, First Quarter 2010 44 TARGET: Preston Memorial ACQUIRER: LHC Group HomeCare, LLC LISTING: Private LISTING: NASDAQ: LHCG LOCATION: Kingswood, West Virginia CEO: Keith Myers PHONE: 337-233-1307 UNITS: 420 West Pinhook Road FAX: 337-235-8037 REVENUE: $640,000 Lafayette, Louisiana 70503 NET INCOME: WEB SITE: www.lhcgroup.com
Preston Memorial Hospital, a 25-bed critical access LHC Group provides post-acute health care services primarily to hospital, is entering into a joint venture to operate a Medicare beneficiaries in rural markets in the southern U.S. On a home health agency. Spanning five counties, this trailing 12-month basis, LHCG generated revenue of $501 million, joint venture generates annual revenue of about EBITDA of $87 million and net income of $42 million. $640,000.
ANNOUNCEMENT DATE: January 4, 2010 PRICE: $563,000 (apportioned) PRICE PER UNIT: TERMS: Joint venture agreement. PRICE/REVENUE: 0.88 PRICE/INCOME:
This joint venture extends LHCG's presence in the northern West Virginia market, a certificate of need state. This is one of four businesses LHCG acquired in the first quarter for $5.5 million; the price has been apportioned among them in proportion to their revenues.
TARGET: Progressive Personal Care ACQUIRER: ResCare, Inc.
LISTING: Private LISTING: NASDAQ: RSCR LOCATION: Missoula, Montana CEO: Ralph Groenfeld PHONE: 502-394-2100 UNITS: 9901 Linn Station Road FAX: 502-394-2206 REVENUE: $7,000,000 Louisville, Kentucky 40223 NET INCOME: WEB SITE: www.rescare.com
Progressive Personal Care is a provider of personal ResCare provides services for mentally retarded or developmentally care services. It affects over 400 clients in disabled persons (MR/DD) and others in behavioral crisis. On a Anchorage and Fairbanks, Alaska, as well as in trailing 12-month basis, RSCR generated revenue of $1.6 billion, Missoula, Montana. The business generates about EBITDA of $118 million and net income of $40 million. $7 million in annual revenue.
ANNOUNCEMENT DATE: February 2, 2010 PRICE: $3,100,000 (estimated) PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: 0.44 PRICE/INCOME:
This acquisition expands the buyer's presence in Alaska and Montana. It broadens the kind of services that RSCR may offer to the elderly and people with special needs in rural areas. This is one of several acquisitions made by RSCR for a combined $12.9 million. The combined revenue of the acquired businesses is $29.4 million, so the average price to revenue multiple is 0.44x. The price has been estimated using that multiple.
The Health Care M&A Report, First Quarter 2010 45 TARGET: Respiratory therapy, ACQUIRER: Lincare Holdings, Inc. infusion therapy, HME LISTING: NASDAQ: GTIV LISTING: NASDAQ: LNCR LOCATION: Atlanta, Georgia CEO: John P. Byrnes PHONE: 813-530-7700 UNITS: 19387 US 19 North, Suite 500 FAX: 813-532-9692 REVENUE: $55,000,000 Clearwater, Florida 33764 NET INCOME: WEB SITE: www.lincare.com
Gentiva Health Services is selling its respiratory LNCR provides such home health services as respiratory therapy, therapy, infusion therapy and home medical infusion therapy and rehabilitation services. On a trailing 12-month equipment businesses. Together they generated basis, LNCR generated revenue of $1.6 billion, EBITDA of $290 revenue of approximately $55 million in 2009. For million and net income of $136 million. the first quarter of 2010, they generated revenue of approximately $4.0 million.
ANNOUNCEMENT DATE: February 4, 2010 PRICE: $16,400,000 (approximate) PRICE PER UNIT: TERMS: All-cash transaction. PRICE/REVENUE: 0.30 PRICE/INCOME:
This sale is consistent with GTIV's divestment of its noncore assets; going forward GTIV will concentrate on home health and hospice services targeted to the elderly population. This deal closed effective February 1, 2010.
TARGET: RP Home Care, Inc. ACQUIRER: ResCare, Inc.
LISTING: Private LISTING: NASDAQ: RSCR LOCATION: Spring House, Pennsylvania CEO: Ralph Groenfeld PHONE: 502-394-2100 UNITS: 9901 Linn Station Road FAX: 502-394-2206 REVENUE: $15,000,000 Louisville, Kentucky 40223 NET INCOME: WEB SITE: www.rescare.com
RP Home Care is a provider of personal care, ResCare provides services for mentally retarded or developmentally housekeeping, meal preparation and other home disabled persons (MR/DD) and others in behavioral crisis. On a care services to over 1,000 clients in Pennsylvania trailing 12-month basis, RSCR generated revenue of $1.6 billion, and Delaware. The business generates about $15 EBITDA of $118 million and net income of $40 million. million in annual revenue.
ANNOUNCEMENT DATE: February 2, 2010 PRICE: $6,600,000 (estimated) PRICE PER UNIT: TERMS: See below for details. PRICE/REVENUE: 0.44 PRICE/INCOME:
This acquisition expands the buyer's presence in Pennsylvania and Delaware. This is one of several acquisitions made by RSCR for a combined $12.9 million. The combined revenue of the acquired businesses is $29.4 million, so the average price to revenue multiple is 0.44x. The price has been estimated using that multiple.
The Health Care M&A Report, First Quarter 2010 46 TARGET: Salem Hospital Home Care ACQUIRER: LHC Group
LISTING: Private LISTING: NASDAQ: LHCG LOCATION: Salem, Oregon CEO: Keith Myers PHONE: 337-233-1307 UNITS: 420 West Pinhook Road FAX: 337-235-8037 REVENUE: $5,500,000 Lafayette, Louisiana 70503 NET INCOME: WEB SITE: www.lhcgroup.com
Salem Hospital Home Care is the largest provider of LHC Group provides post-acute health care services primarily to home health services in the mid-valley area. Net Medicare beneficiaries in rural markets in the southern U.S. On a revenue for the most recent 12 months is $5.5 trailing 12-month basis, LHCG generated revenue of $501 million, million. EBITDA of $87 million and net income of $42 million.
ANNOUNCEMENT DATE: March 10, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
The target's primary service area spans five counties in Oregon; accordingly, this acquisition expands the buyer's home health provider network in the Pacific Northwest. This deal closed April 1, 2010.
TARGET: Visiting Nurse Managed ACQUIRER: All-Med Services of Florida, Inc. Care Corporation LISTING: Private LISTING: Private LOCATION: Miami, Florida CEO: Raul Rodriguez PHONE: 800-369-1416 UNITS: 14101 Commerce Way FAX: 800-831-4264 REVENUE: $1,800,000 (estimated) Miami Lakes, Florida 33016 NET INCOME: WEB SITE: www.all-medservices.com
Visiting Nurse Managed Care Corporation and All-Med Services of Florida is a provider of DME, infusion therapy, Southeast Homecare Corporation provide home respiratory therapy and home health services. Services are provided health care services to managed care organizations. from six locations in Florida. It generates an estimated $1.8 million in annual revenue.
ANNOUNCEMENT DATE: February 1, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's capitated home care business. The buyer had previously contracted with the target businesses, a relationship that led to this deal. This deal was effective as of December 31, 2009.
The Health Care M&A Report, First Quarter 2010 47
HOSPITALS
FIRST QUARTER 2010 HOSPITAL TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
Banks-Jackson-Commerce Medical Center Commerce Georgia Restoration Healthcare, LLC Clinton Tennessee 1/3/10 $7,100,000 Caritas Christi Health Care Boston Massachusetts Cerberus Capital Management, LP New York New York 3/25/10 $830,000,000 Detroit Medical Center Detroit Michigan Vanguard Health Systems, Inc. Nashville Tennessee 3/19/10 $1,267,000,000 Downey Regional Medical Center Downey California Daughters of Charity Health System Los Altos Hills California 2/9/10 Heart Hospital of Austin Austin Texas St. David's HealthCare Partnership, LP Austin Texas 2/17/10 $83,600,000 NorthShore Regional Medical Center Slidell Louisiana Ochsner Health System New Orleans Louisiana 1/8/10 Washington County Memorial Hospital Salem Indiana St. Vincent Jennings Hospital North Vernon Indiana 2/2/10 $3,500,000
TARGET: Banks-Jackson-Commerce ACQUIRER: Restoration Healthcare, LLC Medical Center LISTING: Nonprofit LISTING: Private LOCATION: Commerce, Georgia CEO: PHONE: UNITS: 90 (beds) 511 Mariner Point Drive FAX: REVENUE: $27,300,000 Clinton, Tennessee 37716 NET INCOME: WEB SITE:
Banks-Jackson-Commerce Medical Center is a 90- Restoration Healthcare is a hospital management company. bed acute care facility. For the year ended June 30, 2008, the hospital generated net patient revenue of $27.3 million and a net loss of $1.1 million. It is operated by two counties and one city.
ANNOUNCEMENT DATE: January 3, 2010 PRICE: $7,100,000 PRICE PER UNIT: $78,889 TERMS: Not disclosed PRICE/REVENUE: 0.26 PRICE/INCOME:
The state's Department of Community Health approved this sale, which was originally proposed in mid-2009. The facility began the year with a $6.3 million budget shortfall and $5.2 million in debt. The hospital also has an associated nursing home.
TARGET: Caritas Christi Health Care ACQUIRER: Cerberus Capital Management, LP
LISTING: Nonprofit LISTING: Private LOCATION: Boston, Massachusetts CEO: W. Brett Ingersoll PHONE: 212-891-2100 UNITS: 1,552 (beds) 299 Park Avenue FAX: REVENUE: $1,320,000,000 New York, New York 10171 NET INCOME: $54,300,000 WEB SITE: www.cerberuscapital.com
Caritas Christi Health Care, the state's second- Cerberus Capital Management is a private equity firm. largest hospital group, operates six hospitals in the greater Boston market with a combined total of 1,552 acute care beds. For 2009, it generated revenue of $1.32 billion and operating income of $54.3 million.
ANNOUNCEMENT DATE: March 25, 2010 PRICE: $830,000,000 (approximate) PRICE PER UNIT: $534,794 TERMS: $430 to $450 million to pay off debt and PRICE/REVENUE: 0.63 make other necessary arrangements. PRICE/INCOME: 15.29 $400 million to be invested over four years for additional improvements.
This is Cerberus' first foray into the hospital industry. This deal would result in Caritas Christi becoming for-profit, but retaining its Catholic health care orientation. The system had been financially challenged for a few years, and had sought out buyers. The facilities include Carney Hospital, Good Samaritan Medical Center, Holy Family Hospital, Norwood Hospital, Saint Anne's Hospital and St. Elizabeth's Medical Center. Cain Brothers provided Caritas Christi with financial advice on this deal.
The Health Care M&A Report, First Quarter 2010 53 TARGET: Detroit Medical Center ACQUIRER: Vanguard Health Systems, Inc.
LISTING: Nonprofit LISTING: Private LOCATION: Detroit, Michigan CEO: Charles N. Martin PHONE: 615-665-6000 UNITS: 1,734 (beds) 20 Burton Hills Boulevard FAX: 615-665-6099 REVENUE: $2,010,000,000 Nashville, Tennessee 37215 NET INCOME: WEB SITE: www.vanguardhealth.com
Detroit Medical Center (DMC) operates an eight- Vanguard Health Systems operates 15 acute care hospitals with hospital system with 1,734 licensed beds. For 2009, 4,181 beds and related facilities. For the nine months ended March it generated total revenue of $2.01 billion. 31, 2009, Vanguard generated revenue of $2.4 billion and net income of $26.8 million.
ANNOUNCEMENT DATE: March 19, 2010 PRICE: $1,267,000,000 (approximate) PRICE PER UNIT: $730,681 TERMS: $417 million to retire DMC bonds and PRICE/REVENUE: 0.63 other long-term debt. $850 million over PRICE/INCOME: five years for capital projects.
This acquisition marks Vanguard Health's entry into a new market, the greater Detroit area. Under terms of the deal, DMC is to become a for-profit entity. A definitive letter of intent is expected by June 2010.
TARGET: Downey Regional Medical ACQUIRER: Daughters of Charity Health System Center LISTING: Nonprofit LISTING: Nonprofit LOCATION: Downey, California CEO: Robert Issai PHONE: 650-917-4500 UNITS: 199 (beds) 26000 Altamont Road FAX: 650-941-6309 REVENUE: $126,900,000 Los Altos Hills, California 94022 NET INCOME: WEB SITE: www.dochs.org
Downey Regional Medical Center is a 199-bed The Daughters of Charity of Saint Vincent de Paul of the West acute care facility. For the year ended June 30, operates six hospitals in California. For the year ended June 30, 2008, the hospital generated net patient revenue of 2008, the system generated net patient revenue of $1.08 billion and $126.9 million and a net loss of $14.0 million. generated a loss of $7.9 million.
ANNOUNCEMENT DATE: February 9, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: In bankruptcy proceedings. PRICE/REVENUE: PRICE/INCOME:
Downey Regional entered bankruptcy proceedings in September 2009. If discussions lead to a successful deal, this would be the buyer's seventh hospital. Downey Regional is located five miles away from the buyer's St. Francis Medical Center in Lynwood.
The Health Care M&A Report, First Quarter 2010 54 TARGET: Heart Hospital of Austin ACQUIRER: St. David's HealthCare Partnership, LP
LISTING: NASDAQ: MDTH LISTING: Nonprofit LOCATION: Austin, Texas CEO: Jon Foster PHONE: 512-708-9700 UNITS: 58 (beds) 98 San Jacinto Blvd., Ste. 1800 FAX: 512-482-4126 REVENUE: Austin, Texas 78701 NET INCOME: $12,800,000 (EBITDA) WEB SITE: www.stdavids.com
MedCath is selling Heart Hospital of Austin, a 58- St. David's Health Network and HCA operate St. David's bed hospital focused on cardiovascular care. HealthCare Partnership, which operates 24 care centers in central Texas, including five acute care hospitals with over 1,100 beds.
ANNOUNCEMENT DATE: February 17, 2010 PRICE: $83,600,000 PRICE PER UNIT: $1,441,379 TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME: 6.53
St. David's is purchasing the hospital less than two months after purchasing a related physician group, Austin Heart, whose key admitting physicians appear to align themselves more comfortably with St. David's than with MDTH.
TARGET: NorthShore Regional ACQUIRER: Ochsner Health System Medical Center LISTING: NYSE: HCP LISTING: Nonprofit LOCATION: Slidell, Louisiana CEO: Patrick Quinlan PHONE: 504-842-3925 UNITS: 165 (beds) 1514 Jefferson Highway FAX: 504-837-0191- REVENUE: $70,700,000 New Orleans, Louisiana 70121 NET INCOME: WEB SITE: www.ochsner.org
HCP, a REIT, is selling NorthShore Regional Ochsner Health System (fka Ochsner Clinic Foundation) is an Medical Center, a 165-bed acute care facility. In integrated delivery system with six acute care hospitals, a subacute 2008, the hospital generated net patient revenue of facility and 25 clinics in Southeast Louisiana. $70.7 million and a net loss of $17.7 million.
ANNOUNCEMENT DATE: January 8, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition also includes an affiliated outpatient surgery center and other property. This deal expands Ochsner's hospital network. Tenet Healthcare had been leasing the facility, but announced in May 2009 that it would not renew its lease and, with the lapse of that lease, would exit the Louisiana market. Tenet received $16.0 million from the sale of its assets. This would give Ochsner a presence in the northern suburbs of New Orleans where it already has a physician and patient base. This deal closed April 1, 2010.
The Health Care M&A Report, First Quarter 2010 55 TARGET: Washington County ACQUIRER: St. Vincent Jennings Hospital Memorial Hospital LISTING: Nonprofit LISTING: Nonprofit LOCATION: Salem, Indiana CEO: Vincent Caponi PHONE: 812-352-4200 UNITS: 25 (beds) 301 Henry Street FAX: REVENUE: $29,700,000 North Vernon, Indiana 47265 NET INCOME: WEB SITE: www.stvincent.org
Washington County Memorial Hospital is a 25-bed, Part of Ascension Health, St. Vincent Jennings Hospital is a 25-bed acute care facility. For 2008, it generated net patient critical access hospital. For the 12 months ended June 30, 2008, it revenue of $29.7 million and a net loss of $5.2 generated net patient revenue of $25.2 million and a net loss of million. $307,000.
ANNOUNCEMENT DATE: February 2, 2010 PRICE: $3,500,000 PRICE PER UNIT: $140,000 TERMS: In bankruptcy proceedings. Lease with PRICE/REVENUE: 0.12 purchase option. PRICE/INCOME:
Effectively, the buyer is acquiring the right to lease the facility for $500,000 per year, with the option to purchase the property for $3.5 million, less any rent paid. This deal extends Ascension's acute care network in Indiana. Having accumulated losses for several years, Washington County Memorial entered bankruptcy reorganization in June 2009. Washington County Memorial had been operated by Critical Access Health Services; St. Vincent provided management services during the bankruptcy reorganization.
The Health Care M&A Report, First Quarter 2010 56 LABORATORIES, MRI AND DIALYSIS
FIRST QUARTER 2010 LABORATORIES, MRI and DIALYSIS TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
Anaheim Open MRI Anaheim California RadNet, Inc. Los Angeles California 3/1/10 $910,000 Clinical laboratory operations Roanoke Virginia Spectrum Laboratory Network Greensboro North Carolina 1/28/10 Imaging practice of Theodore Feit Burbank California RadNet, Inc. Los Angeles California 3/1/10 $350,000 Kroll Laboratory Specialists, Inc. New York New York Inverness Medical Innovations, Inc. Waltham Massachusetts 2/3/10 $110,000,000 Meridian Regional Imaging Vernon Hills Illinois ONRAD, Inc. Riverside California 1/13/10 OncoDiagnostic Laboratory Cleveland Ohio Predictive Biosciences Lexington Massachusetts 1/7/10 Texas Mobile Health, Inc. Seabrook Texas Bederra Corporation Houston Texas 3/22/10 Union Imaging Center Union New Jersey RadNet, Inc. Los Angeles California 1/1/10 $5,553,000
TARGET: Anaheim Open MRI ACQUIRER: RadNet, Inc.
LISTING: Private LISTING: NASDAQ: RDNT LOCATION: Anaheim, California CEO: Howard Berger PHONE: 310-445-2800 UNITS: 1510 Cotner Avenue FAX: 310-445-2980 REVENUE: Los Angeles, California 90025 NET INCOME: WEB SITE: www.radnet.com
Anaheim Open MRI provides MRI, CT, ultrasound RadNet provides diagnostic imaging services through outpatient and X-ray services. imaging centers in six states. On a trailing 12-month basis, RDNT generated revenue of $524 million, EBITDA of $94 million and a net loss of $2.3 million.
ANNOUNCEMENT DATE: March 1, 2010 PRICE: $910,000 (approximate) PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's network of imaging facilities in California. The facility has been rebranded as Anaheim Advanced Imaging.
TARGET: Clinical laboratory ACQUIRER: Spectrum Laboratory Network operations LISTING: Nonprofit LISTING: Private LOCATION: Roanoke, Virginia CEO: Nathan Headley PHONE: 336-664-6100 UNITS: 4380 Federal Drive, Suite 100 FAX: 336-852-0003 REVENUE: Greensboro, North Carolina 27410 NET INCOME: WEB SITE: www.spectrumlab.org
Carilion Clinic is contributing its clinical laboratory A Welsh, Carson, Anderson & Stowe portfolio company, Spectrum subsidiary. This unit provides medical laboratory Laboratory Network is a regional medical laboratory network services to hospitals and physicians. serving five states.
ANNOUNCEMENT DATE: January 28, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Merger PRICE/REVENUE: PRICE/INCOME:
Under terms of the merger, Carilion would own 33% of Spectrum and appoint three members to its board; Novant Health would appoint one member. Founded as a joint venture of High Point Regional Medical Center and Moses Cone Health System, Spectrum was acquired by Welsh, Carson in 2009 for $230.0 million. The combination of Carilion's laboratory operations with Spectrum creates a company serving 37 hospitals and 14,000 physicians in eight states, with over $300.0 million in revenue. This merger was facilitated by Carilion LabsÆ financial advisor Lazard Middle Market LLC.
The Health Care M&A Report, First Quarter 2010 61 TARGET: Imaging practice of ACQUIRER: RadNet, Inc. Theodore Feit LISTING: Private LISTING: NASDAQ: RDNT LOCATION: Burbank, California CEO: Howard Berger PHONE: 310-445-2800 UNITS: 1510 Cotner Avenue FAX: 310-445-2980 REVENUE: Los Angeles, California 90025 NET INCOME: WEB SITE: www.radnet.com
Theodore Feit, M.D. is selling his imaging practice, RadNet provides diagnostic imaging services through outpatient which provides diagnostic imaging services. imaging centers in six states. On a trailing 12-month basis, RDNT generated revenue of $524 million, EBITDA of $94 million and a net loss of $2.3 million.
ANNOUNCEMENT DATE: March 1, 2010 PRICE: $350,000 (approximate) PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's network of imaging facilities in Southern California.
TARGET: Kroll Laboratory Specialists, ACQUIRER: Inverness Medical Innovations, Inc. Inc. LISTING: NYSE: MMC LISTING: AMEX: IMA LOCATION: New York, New York CEO: Ron Zwanziger PHONE: 781-647-3900 UNITS: 51 Sawyer Road, Suite 200 FAX: 781-647-3939 REVENUE: $40,200,000 (2008) Waltham, Massachusetts 02453 NET INCOME: WEB SITE: www.invernessmedical.com
Marsh & McLennan is selling Kroll Laboratory Inverness Medical has three segments: consumer diagnostic Specialists, a provider of substance abuse testing products, vitamins and nutritional supplements, and professional services. Kroll operates two labs and in 2008 diagnostic products. On a trailing 12-month basis, IMA generated generated revenue of $40.2 million. revenue of $1.9 billion, EBITDA of $475.0 million and net income of $24.8 million.
ANNOUNCEMENT DATE: February 3, 2010 PRICE: $110,000,000 PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: 2.74 PRICE/INCOME:
This acquisition broadens the range of services that IMA offers to government, employers, health plans and health care professionals. Kroll's labs are located in Gretna, Louisiana and Richmond, Virginia.
The Health Care M&A Report, First Quarter 2010 62 TARGET: Meridian Regional Imaging ACQUIRER: ONRAD, Inc.
LISTING: Private LISTING: Private LOCATION: Vernon Hills, Illinois CEO: Samuel Salen PHONE: 800-848-5876 UNITS: 1770 Iowa Ave., Suite 250 FAX: 866-671-1671 REVENUE: Riverside, California 92507 NET INCOME: WEB SITE: www.onradinc.com
Meridian Regional Imaging & Premier Imaging ONRAD is a full-service teleradiology group and radiology staffing Associates is a provider of radiology and diagnostic and technology consulting solution. It has 22 physicians imaging services.
ANNOUNCEMENT DATE: January 13, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
With this acquisition, ONRAD now has 49 radiologists with subspecialty expertise in musculoskeletal radiology, neurological MRI, abdominal MRI, women's imaging, trauma and emergency radiology and body imaging.
TARGET: OncoDiagnostic Laboratory ACQUIRER: Predictive Biosciences
LISTING: Private LISTING: Private LOCATION: Cleveland, Ohio CEO: Peter Klemm PHONE: 781-402-1780 UNITS: 128 Spring Street, 400 Level FAX: 781-402-1785 REVENUE: Lexington, Massachusetts 02421 NET INCOME: WEB SITE: www.predictivebiosci.com
OncoDiagnostic Laboratory is an anatomic Predictive Biosciences is a provider of diagnostic assays for cancer pathology and molecular diagnostic lab serving management. urologists, gastroenterologists, dermatologists, gynecologists and other physicians.
ANNOUNCEMENT DATE: January 7, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This vertical acquisition equips the buyer with an integrated pathology laboratory, through which the company will commercialize its proprietary non-invasive molecular cancer diagnostic assays.
The Health Care M&A Report, First Quarter 2010 63 TARGET: Texas Mobile Health, Inc. ACQUIRER: Bederra Corporation
LISTING: Private LISTING: PK: BEDA LOCATION: Seabrook, Texas CEO: Graham Williams PHONE: 281-540-0500 UNITS: 71 N. Post Oak Road FAX: 832-442-3149 REVENUE: $2,000,000 Houston, Texas 77024 NET INCOME: WEB SITE: www.bederra.com
Texas Mobile Health is a provider of mobile Bederra Corp. specializes in equipment financing for industries, imaging services. Services include including health care, by providing financing for clinics, medical echocardiograms, stress testing and other diagnostic doctors, dentists, chiropractors, imaging centers, surgery centers and services to physicians, clinics and corporations. It hospitals. generates approximately $2.0 million in annual revenue.
ANNOUNCEMENT DATE: March 22, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition diversifies the medical services that Bederra and its subsidiaries may offer its customers. The company sees an opportunity in providing diagnostic services to clients who do not contract with large insurance companies.
TARGET: Union Imaging Center ACQUIRER: RadNet, Inc.
LISTING: Private LISTING: NASDAQ: RDNT LOCATION: Union, New Jersey CEO: Howard Berger PHONE: 310-445-2800 UNITS: 1510 Cotner Avenue FAX: 310-445-2980 REVENUE: Los Angeles, California 90025 NET INCOME: WEB SITE: www.radnet.com
Modern Medical Modalities Corporation is selling RadNet provides diagnostic imaging services through outpatient Union Imaging Center, whose imaging modalities imaging centers in six states. On a trailing 12-month basis, RDNT include MRI, CT, PET/CT, mammography, generated revenue of $524 million, EBITDA of $94 million and a ultrasound, nuclear medicine and X-ray. net loss of $2.3 million.
ANNOUNCEMENT DATE: January 1, 2010 PRICE: $5,553,000 (approximate) PRICE PER UNIT: TERMS: $5.4 million in cash; the issuance of PRICE/REVENUE: 75,000 shares of RDNT common stock PRICE/INCOME: worth approximately $153,000.
This acquisition expands the buyer's network of imaging facilities in the New York City metropolitan area. Subsequent deals will enlarge RDNT's network in the region.
The Health Care M&A Report, First Quarter 2010 64 LONG-TERM CARE
FIRST QUARTER 2010 LONG-TERM CARE TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
Attalla Health Care Attalla Alabama AdCare Health Systems, Inc. Springfield Ohio 3/11/10 $9,800,000 Belfair Retirement Community Bluffton South Carolina Kandu Capital, LLC Birmingham Michigan 1/6/10 $3,154,000 Coosa Valley Health Care Gadsen Alabama AdCare Health Systems, Inc. Springfield Ohio 3/11/10 $8,700,000 Emerald Park Hollywood Florida TJM Properties, Inc. Clearwater Florida 3/31/10 $7,850,000 Garden Square Assisted Living of Crete Crete Nebraska Not disclosed Nebraska 1/4/10 $3,600,000 Grant Park Nursing Home Washington DC Not disclosed 2/1/10 $11,232,800 Kensington Green Southbury Connecticut Hearth Management, LLC Syracuse New York 1/15/10 $17,199,000 Northwesterly Assisted Living Lakewood Ohio Kandu Capital, LLC Birmingham Michigan 1/15/10 $3,100,000 Peninsula United Methodist Homes Greenville Delaware ACTS Retirement-Life Communities West Point Pennsylvania 3/4/10 Sterling Oaks Maple Heights Ohio Platinum Health Care, LLC Skokie Illinois 1/1/10 $2,400,000 Sunrise of Dunwoody Dunwoody Georgia Regional operator 2/16/10 $1,900,000 Sunrise of Eastover Charlotte North Carolina Emeritus Assisted Living, Inc. Seattle Washington 2/23/10 $8,850,000 Sunset Bay New Port Richey Florida Capital Health Group, LLC Baltimore Maryland 1/15/10 $2,000,000 Sunwest portfolio Salem Oregon The Blackstone Group New York New York 1/19/10 $1,294,000,000 Two Idaho skilled nursing facilities Emmett Idaho The Ensign Group, Inc. Mission Viejo California 1/4/10 $7,617,000 Wyndemere Senior Living Community Wheaton Illinois Life Care Services, LLC Des Moines Iowa 3/29/10 $45,000,000
TARGET: Attalla Health Care ACQUIRER: AdCare Health Systems, Inc.
LISTING: Private LISTING: AMEX: ADK LOCATION: Attalla, Alabama CEO: Gary L. Wade PHONE: 937-964-8974 UNITS: 182 (beds) 5057 Troy Road FAX: 937-964-8961 REVENUE: $9,500,000 Springfield, Ohio 45502 NET INCOME: WEB SITE: www.adcarehealth.com
Attalla Health Care, Inc. is selling Attalla Health AdCare is involved in owning and operating seniors housing Care in Attalla, a 182-bed skilled nursing facility. communities, as well as providing home health care services in The facility generates revenue of approximately Ohio. On a trailing 12-month basis,, ADK generated revenue of $9.5 million. $26.5 million, EBITDA of $2.7 million and net income of $147,400.
ANNOUNCEMENT DATE: March 11, 2010 PRICE: $9,800,000 PRICE PER UNIT: $53,846 TERMS: Not disclosed PRICE/REVENUE: 1.03 PRICE/INCOME:
This is one of two deals that the buyer announced making at the same time; they represent the company's first acquisitions outside Ohio. It is believed that the addition of these two facilities will increase ADK's annualized revenue by 60% and be immediately accretive to earnings. The buyer will finance this purchase through a local bank. The other acquisition is Coosa Valley Health Care in Gadsen, Alabama.
TARGET: Belfair Retirement ACQUIRER: Kandu Capital, LLC Community LISTING: Private LISTING: Private LOCATION: Bluffton, South Carolina CEO: Bradley Dubin PHONE: 248-642-2914 UNITS: 79 260 E. Brown St., Suite 315 FAX: 248-258-8716 REVENUE: $1,330,000 Birmingham, Michigan 48009 NET INCOME: $200,000 (EBITDA) WEB SITE: www.kanducapital.com
Sunwest Management is selling Belfair Retirement Kandu Capital is an investment company specializing in health care community, a 79-unit independent living acquisition and management. community. Built in 2000 on six acres, the facility was 80% occupied at the time of sale.
ANNOUNCEMENT DATE: January 6, 2010 PRICE: $3,154,000 PRICE PER UNIT: $39,924 TERMS: In bankruptcy proceedings. PRICE/REVENUE: 2.37 PRICE/INCOME: 15.77
The acquisition includes an adjacent 23-unit memory care wing that was never opened due to a mold problem and is not included in the value indicators above. The mold remediation is expected to cost a further $50,000, and the buyer will invest at least another $200,000 in renovations. The buyer plans to rename the facility Riverside at Belfair. When stabilized, the independent living unit will generate revenue of $1.8 million and EBITDA of $433,000; the memory care unit, revenue of $1.08 million and EBITDA of $560,000.
The Health Care M&A Report, First Quarter 2010 69 TARGET: Coosa Valley Health Care ACQUIRER: AdCare Health Systems, Inc.
LISTING: Private LISTING: AMEX: ADK LOCATION: Gadsen, Alabama CEO: Gary L. Wade PHONE: 937-964-8974 UNITS: 124 (beds) 5057 Troy Road FAX: 937-964-8961 REVENUE: $8,500,000 Springfield, Ohio 45502 NET INCOME: WEB SITE: www.adcarehealth.com
Coosa Valley Health Care, Inc. is selling Coosa AdCare is involved in owning and operating seniors housing Valley Health Care, a 124-bed skilled nursing communities, as well as providing home health care services in facility. It generates an estimated $8.5 million in Ohio. On a trailing 12-month basis, ADK generated revenue of annual revenue. $26.5 million, EBITDA of $2.7 million and net income of $147,400.
ANNOUNCEMENT DATE: March 11, 2010 PRICE: $8,700,000 PRICE PER UNIT: $70,161 TERMS: Not disclosed PRICE/REVENUE: 1.02 PRICE/INCOME:
This is one of two deals the buyer announced making at the same time; they are the company's first acquisitions outside Ohio. It is believed that the addition of these two facilities will increase ADK's annualized revenue by 60% and be immediately accretive to earnings. The buyer will finance this purchase through a local bank. The other acquisition is Attalla Health Care in Attalla, Alabama.
TARGET: Emerald Park ACQUIRER: TJM Properties, Inc.
LISTING: Private LISTING: Private LOCATION: Hollywood, Florida CEO: Terry McCarthy PHONE: 727-445-4862 UNITS: 78 420 Bay Avenue FAX: 727-445-4840 REVENUE: $2,337,692 Clearwater, Florida 33756 NET INCOME: $557,323 (EBITDA) WEB SITE: www.tjmproperrties.us
A local partnership is selling Emerald Park, a 78- TJM Properties is an owner and operator of senior care properties. unit assisted living facility. Built in 1999 on 2.9 acres, it was 80% occupied at the time of sale. Census was 15% Medicaid and 85% private pay. This four-story building is licensed for 100 beds.
ANNOUNCEMENT DATE: March 31, 2010 PRICE: $7,850,000 PRICE PER UNIT: $100,641 TERMS: Not disclosed PRICE/REVENUE: 3.36 PRICE/INCOME: 14.09
The buyer assumed the HUD mortgage insurance but increased the loan amount to its original amount of $7.2 million, and lowered the interest rate to 4.75% (arranged by Love Funding). The financial data above is annualized for the last six months of 2009; the buyer expects to increase both occupancy and cash flow. Senior Living Investment Brokerage handled the transaction.
The Health Care M&A Report, First Quarter 2010 70 TARGET: Garden Square Assisted ACQUIRER: Not disclosed Living of Crete LISTING: Private LISTING: Nonprofit LOCATION: Crete, Nebraska CEO: PHONE: UNITS: 48 FAX: REVENUE: $1,330,000 , Nebraska NET INCOME: $310,000 (EBITDA) WEB SITE:
Garden Square Assisted Living of Crete is a 48-unit The buyer is a local, not-for-profit organization. assisted living facility. Built in 1996 on 2.3 acres, it was 81% occupied at the time of sale. Census was 17% Medicaid and 83% private pay.
ANNOUNCEMENT DATE: January 4, 2010 PRICE: $3,600,000 PRICE PER UNIT: $75,000 TERMS: Not disclosed PRICE/REVENUE: 2.71 PRICE/INCOME: 11.61
The property is a one-story building, built in 1996 with an eight-unit addition in 2007. The capacity is for 59 residents. The buyer financed this transaction as part of a larger bond issue. Marcus & Millichap represented the seller in this deal.
TARGET: Grant Park Nursing Home ACQUIRER: Not disclosed
LISTING: Private LISTING: Private LOCATION: Washington, DC CEO: PHONE: UNITS: 296 (beds) FAX: REVENUE: $22,900,000 (2009) NET INCOME: $1,600,000 (EBITDA) WEB SITE:
A limited partnership is selling Grant Park Nursing The buyer is a larger regional operator of senior care and housing Home, a 296-bed skilled nursing facility. Built in properties. 1982, the facility was 88% occupied at the time of sale.
ANNOUNCEMENT DATE: February 1, 2010 PRICE: $11,232,800 PRICE PER UNIT: $37,949 TERMS: Not disclosed PRICE/REVENUE: 0.49 PRICE/INCOME: 7.02
The target facility was in good overall condition; however, the census was primarily Medicaid. In the past, it did have some survey issues. The buyer will be assuming a HUD mortgage of $10.0 million. Senior Living Investment Brokerage handled the sale.
The Health Care M&A Report, First Quarter 2010 71 TARGET: Kensington Green ACQUIRER: Hearth Management, LLC
LISTING: Private LISTING: Private LOCATION: Southbury, Connecticut CEO: Maynard Fahs PHONE: 315-453-0561 UNITS: 120 217 Montgomery St., Ste. 500 FAX: REVENUE: $5,210,000 (2010 Syracuse, New York 13202 projected) NET INCOME: $1,560,000 (EBITDA) WEB SITE: www.thehearth.net
Sunwest Management is selling Kensington Green, Hearth Management is involved in the seniors housing and care a 120-unit with 96 assisted living and 24 memory industry. It operates 11 communities in New York, Connecticut and care units. Built in 2000, it was 50% occupied at the Indiana. time of sale.
ANNOUNCEMENT DATE: January 15, 2010 PRICE: $17,199,000 PRICE PER UNIT: $143,325 TERMS: In bankruptcy proceedings. PRICE/REVENUE: 3.30 PRICE/INCOME: 11.03
Occupancy was low due to problems at the corporate owner. The buyer believes that it will take 12 to 18 months for the facility to stabilize and generate the figures noted above. Revenue and EBITDA for 2011 are estimated to be $6.7 million and $2.35 million, respectively. M&T Bank provided the financing and CB Richard Ellis represented the seller in this transaction.
TARGET: Northwesterly Assisted ACQUIRER: Kandu Capital, LLC Living LISTING: Private LISTING: Private LOCATION: Lakewood, Ohio CEO: Bradley Dubin PHONE: 248-642-2914 UNITS: 91 260 E. Brown St., Suite 315 FAX: 248-258-8716 REVENUE: $1,872,000 Birmingham, Michigan 48009 NET INCOME: $255,000 (EBITDA) WEB SITE: www.kanducapital.com
Sunwest Management is selling Northwesterly Kandu Capital is an investment company specializing in health care Assisted Living Community, a 91-unit assisted acquisition and management. living facility. Built in 1988, the facility was 69% occupied at the time of sale. Census was 45% Medicaid and 55% private pay.
ANNOUNCEMENT DATE: January 15, 2010 PRICE: $3,100,000 PRICE PER UNIT: $34,066 TERMS: In bankruptcy proceedings. PRICE/REVENUE: 1.66 PRICE/INCOME: 12.16
At the time, one-third of the building was licensed for Medicaid waiver residents (at a rate of $2,700 per month), but subsequent to the closing, the entire building is. The building has eight stories, and the *market* occupancy is 85% to 90%, which the buyer expects to reach within the next two years. Upon stabilization, the EBITDA is expected to be between $700,000 and $900,000 based on revenue of at least $2.6 million. Marcus & Millichap represented the seller in this transaction.
The Health Care M&A Report, First Quarter 2010 72 TARGET: Peninsula United Methodist ACQUIRER: ACTS Retirement-Life Communities Homes LISTING: Nonprofit LISTING: Nonprofit LOCATION: Greenville, Delaware CEO: Marvin Mashner PHONE: 215-661-8330 UNITS: 1,000 (residents) 375 Morris Road FAX: 215-661-8320 REVENUE: West Point, Pennsylvania 19486-0090 NET INCOME: WEB SITE: www.ACTSretirement.com
Peninsula United Methodist Homes (PUMH) owns ACTS Retirement-Life Communities is an owner and operator of and operates three CCRCs in Delaware. It also CCRCs. It owns and operates 19 facilities in six states, with an manages Heron Point, a CCRC in Chestertown, aggregate of 8,000 residents. Maryland. The four CCRCs have a combined total of 1,000 residents.
ANNOUNCEMENT DATE: March 4, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Affiliation PRICE/REVENUE: PRICE/INCOME:
With this transaction, ACTS enters two new states. The affiliation of these four CCRCs gives ACTS a total of 23 locations in eight states. PUMH's Delaware properties include Methodist Village in Greenville, Methodist Manor in Seaford and Cokesbury Village in Hockessin.
TARGET: Sterling Oaks ACQUIRER: Platinum Health Care, LLC
LISTING: Private LISTING: Private LOCATION: Maple Heights, Ohio CEO: Ron Klein PHONE: 847-329-4100 UNITS: 99 7444 North Long Avenue FAX: 847-329-7652 REVENUE: $2,840,000 (pro forma) Skokie, Illinois 60077 NET INCOME: $920,000 (EBITDA) WEB SITE: www.platinumhc.net
Sterling Oaks will be a 99-bed assisted living Platinum Health Care provides a full range of back office facility. Formerly a hotel, it was converted to an functionality on a contractual basis to senior housing communities. independent living facility with a total of 61,913 square feet.
ANNOUNCEMENT DATE: January 1, 2010 PRICE: $2,400,000 PRICE PER UNIT: $24,242 TERMS: Not disclosed PRICE/REVENUE: 0.85 PRICE/INCOME: 2.61
Of the 30-35 residents at closing, all but a few qualified for the Ohio assisted living Medicaid waiver program, which is what the buyer is converting the facility to. With renovations, FF&E, working capital and interest while filling up, the total *price* will be $3.53 million, funded with a $2.82 million loan from The Private Bank and $706,000 of equity. The revenue and EBITDA above are pro forma, based on 90% occupancy and a waiver rate of $2,600 per month. Marcus & Millichap represented the seller in this deal.
The Health Care M&A Report, First Quarter 2010 73 TARGET: Sunrise of Dunwoody ACQUIRER: Regional operator
LISTING: NYSE: SRZ LISTING: Private LOCATION: Dunwoody, Georgia CEO: PHONE: UNITS: 30 FAX: REVENUE: $1,200,000 NET INCOME: $180,000 (EBITDA) WEB SITE:
Sunrise Senior Living is selling Sunrise of The acquirer is a regional operator of seniors housing and care Dunwoody, a 30-unit assisted living facility. Built properties. in 1990 on 1.7 acres of land, the facility was 95% occupied at the time of sale.
ANNOUNCEMENT DATE: February 16, 2010 PRICE: $1,900,000 PRICE PER UNIT: $63,333 TERMS: Not disclosed PRICE/REVENUE: 1.58 PRICE/INCOME: 10.56
This two-story building had an average occupancy rate of 80% in 2008 and, due to its small size, was losing money. By June 2009, the occupancy had reached between 95% and 100%. Marcus & Millichap represented the seller in this transaction.
TARGET: Sunrise of Eastover ACQUIRER: Emeritus Assisted Living, Inc.
LISTING: NYSE: SRZ LISTING: NYSE: ESC LOCATION: Charlotte, North Carolina CEO: Daniel R. Baty PHONE: 206-298-2909 UNITS: 86 3131 Elliott Avenue, Suite 500 FAX: 206-301-4500 REVENUE: $3,100,000 Seattle, Washington 98121 NET INCOME: $875,000 (EBITDA) WEB SITE: www.emeritus.com
Sunrise Senior Living is selling Sunrise of Eastover, Emeritus Assisted Living is an operator of assisted living facilities. an 86-unit, 91-bed assisted living facility. Built in ESC owns, leases or manages 289 communities in 36 states. On a 1999 on 3.54 acres of land, the facility was 91% trailing 12-month basis, ESC generated revenue of $870 million, occupied at the time of sale. It is licensed for 104 EBITDA of $150 million and a net loss of $67 million. beds, 26 of which are for memory care.
ANNOUNCEMENT DATE: February 23, 2010 PRICE: $8,850,000 PRICE PER UNIT: $102,907 TERMS: Not disclosed PRICE/REVENUE: 2.85 PRICE/INCOME: 10.11
This three-story building was originally built by Karrington Health in 1999. The financial data above is pro forma based on 91% occupancy and a 3% increase in rates, but a 78% expense ratio (22% operating margin after a 5% management fee). Marcus & Millichap represented the seller in this transaction.
The Health Care M&A Report, First Quarter 2010 74 TARGET: Sunset Bay ACQUIRER: Capital Health Group, LLC
LISTING: Private LISTING: Private LOCATION: New Port Richey, Florida CEO: Ken Assiran PHONE: 410-342-3155 UNITS: 55 1422 Clarkview Rd., 5th Floor FAX: 410-342-7101 REVENUE: $2,250,000 Baltimore, Maryland 21209 NET INCOME: $750,000 (EBITDA) WEB SITE: www.capfundinc.com
Sunset Bay is a 55-unit assisted living facility. Built An affiliate of Capital Funding Group, Capital Health Group is a in 2006, it was 50% occupied at the time of sale. private equity company specializing in making debt and equity Census was 10% Medicaid and 90% private pay. investments in the senior housing industry. Contact information below is for Capital Funding Group.
ANNOUNCEMENT DATE: January 15, 2010 PRICE: $2,000,000 PRICE PER UNIT: $36,364 TERMS: Privately financed PRICE/REVENUE: 0.89 PRICE/INCOME: 2.67
This property was in financial distress; the owner, along with the lender, had to sell. The buyer plans on spending up to $1.5 million to convert the facility to memory care with average basic rates of $3,500 per month. At stabilization and a theoretical price of $3.5 million ($2.0 million sale price and $1.5 million in renovations), the price to revenue multiple would be 1.66x and the price per unit $67,310. Virginia-based Morningside Management will be the operator.
TARGET: Sunwest portfolio ACQUIRER: The Blackstone Group
LISTING: Private LISTING: NYSE: BX LOCATION: Salem, Oregon CEO: Stephen Allen PHONE: 212-583-5000 Schwarzman UNITS: 11,763 345 Park Avenue FAX: 212-583-5712 REVENUE: New York, New York 10154 NET INCOME: WEB SITE: www.blackstone.com
Sunwest Management is selling a seniors housing The Blackstone Group provides alternative asset management and portfolio with 140 facilities. The portfolio includes financial advisory services. On a trailing 12-month basis, it 3,267 independent living units, 7,171 assisted living generated revenue of $2.4 billion and a net loss of $591 million. units and 1,325 Alzheimer's units.
ANNOUNCEMENT DATE: January 19, 2010 PRICE: $1,294,000,000 (approximate) PRICE PER UNIT: $110,006 TERMS: $285.0 million in cash; $1,009,000,000 PRICE/REVENUE: in assumed debt. PRICE/INCOME:
Emeritus Assisted Living has entered into a joint venture with Blackstone Real Estate Advisors VI, LP (BREA) and Columbia Pacific Advisors to undertake this deal. Under terms of the agreement, BREA will have up to an 80% equity stake, and Columbia Pacific up to a 10% equity stake, in the joint venture. Emeritus will manage the portfolio for a fee equal to 5% of gross revenue. This deal revises an earlier bid made in Q3:09.
The Health Care M&A Report, First Quarter 2010 75 TARGET: Two Idaho skilled nursing ACQUIRER: The Ensign Group, Inc. facilities LISTING: Private LISTING: NASDAQ: ENSG LOCATION: Emmett, Idaho CEO: Christopher PHONE: 949-487-9500 Christensen UNITS: 158 (beds) 27101 Puerta Real, Suite 450 FAX: 949-487-9400 REVENUE: Mission Viejo, California 92691 NET INCOME: WEB SITE: www.ensigngroup.net
Emmett Care & Rehabilitation Center is a 72-bed The Ensign Group operates 65 senior care facilities in six Western skilled nursing facility in Emmett while Parke View states. On a trailing 12-month basis, ENSG generated revenue of Rehabilitation & Care Center is an 86-bed skilled $519 million, EBITDA of $69 million and net income of $32 nursing facility in Burley. They were 79% occupied million. at the time of sale.
ANNOUNCEMENT DATE: January 4, 2010 PRICE: $7,617,000 PRICE PER UNIT: $48,209 TERMS: Cash PRICE/REVENUE: PRICE/INCOME:
Together with its facility in Pocatello, these two facilities enlarge the buyer's presence in the Idaho seniors housing and care market. The Burley facility was originally built as a county hospital and includes 8,000 square feet of commercial space, which is leased to a variety of tenants.
TARGET: Wyndemere Senior Living ACQUIRER: Life Care Services, LLC Community LISTING: Private LISTING: Private LOCATION: Wheaton, Illinois CEO: Ed Kenny PHONE: 515-875-4500 UNITS: 446 400 Locust, Suite 820 FAX: 515-875-4780 REVENUE: $20,500,000 Des Moines, Iowa 50309 NET INCOME: $5,000,000 (EBITDA) WEB SITE: www.LCSnet.com
Central DuPage Health System is selling Life Care Services is a developer and manager of senior living Wyndemere Senior Living Community, a 446-unit communities. It currently has communities in 26 states. CCRC with 238 independent living units, 77 assisted living units and 131 skilled nursing beds. Built in 1993, it was 86% occupied at the time of sale.
ANNOUNCEMENT DATE: March 29, 2010 PRICE: $45,000,000 PRICE PER UNIT: $100,897 TERMS: Mortgage financing was provided by PRICE/REVENUE: 2.20 two banks. PRICE/INCOME: 9.00
The financial data above is approximate for the recent performance, and the EBITDA includes about $3.0 million to $3.5 million in annual net entrance-fee revenue as a result of unit turnover. As part of the transaction and included in the price above is an assumption of a capital lease for the skilled nursing unit, owned by a third party, which has an installment contract ending in 2014 with a balloon payment at the end. At that time, LCS will own the skilled nursing real estate. This deal gives the buyer its second community in Illinois; it already has one in Godfrey.
The Health Care M&A Report, First Quarter 2010 76 MANAGED CARE
FIRST QUARTER 2010 MANAGED CARE TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
Carolina Crescent Health Plan Columbia South Carolina Centene Corporation St. Louis Missouri 2/18/10 PPO membership Tempe Arizona Hawaii Medical Assurance Association Honolulu Hawaii 2/11/10
TARGET: Carolina Crescent Health ACQUIRER: Centene Corporation Plan LISTING: Nonprofit LISTING: NYSE: CNC LOCATION: Columbia, South Carolina CEO: Michael F. Neidorff PHONE: 314-725-4477 UNITS: 40,000 (enrollees) 7711 Carondelet Avenue FAX: 314-558-2428 REVENUE: $122,500,000 St. Louis, Missouri 63105 NET INCOME: WEB SITE: www.centene.com
University Health Services, Inc. is selling Carolina CNC provides managed care programs and related services to those Crescent Health Plan, which serves over 40,000 receiving benefits under Medicaid and certain other programs. On a Medicaid members across the state. It generates trailing 12-month basis, CNC generated revenue of $4.1 billion, between $115 million and $130 million in annual EBITDA of $198 million and net income of $86 million. revenue.
ANNOUNCEMENT DATE: February 18, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands CNC's presence in South Carolina, where its existing operations are conducted by Absolute Total Care. On closing this deal, Absolute will cover 90,000 lives, or 13% of the state's eligible Medicaid population.
TARGET: PPO membership ACQUIRER: Hawaii Medical Assurance Association
LISTING: Private LISTING: Private LOCATION: Tempe, Arizona CEO: John Henry Felix PHONE: 808-591-0088 UNITS: 22,000 (members) 737 Bishop Street, Suite 1200 FAX: 808-591-0463 REVENUE: Honolulu, Hawaii 96813 NET INCOME: WEB SITE: www.hmaa.com
Part of i/m2, Summerlin Life & Health Insurance is Hawaii Medical Assurance Association (HMAA) is a preferred selling its fully insured PPO membership in Hawaii, provider organization. Its medical plans include alternative benefits which includes approximately 22,000 members. such as chiropractic care, as well as life insurance, health and wellness programs.
ANNOUNCEMENT DATE: February 11, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition brings HMAA's total membership in Hawaii to 48,000 members. This transaction creates the second largest PPO in the state.
The Health Care M&A Report, First Quarter 2010 81
MEDICAL DEVICES
FIRST QUARTER 2010 MEDICAL DEVICE TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
AcroMetrix Benicia California Life Technologies Corporation Carlsbad California 1/12/10 Aesthera Corporation Pleasanton California Solta Medical, Inc. Hayward California 2/23/10 $16,000,000 Ahura Scientific Wilmington Massachusetts Thermo Fisher Scientific Waltham Massachusetts 1/19/10 $170,000,000 ApaTech Elstree England Baxter International, Inc. Deerfield Illinois 3/1/10 $330,000,000 AxMediTec Sp. z. o. o. Poland InduTrade AB Stockholm Sweden 1/27/10 Brain function monitoring business Lake Forest Illinois SEDLine, Inc. Irvine California 1/12/10 Catheter pump technology Stockholm Sweden Thoratec Corporation Pleasanton California 1/25/10 $8,500,000 CHF Solutions Brooklyn Park Minnesota Gambro AB Stockholm Sweden 1/20/10 Creative Rehab Technology Services, Inc. Chula Vista California Medex, Inc. Las Vegas Nevada 3/24/10 CVC, Inc. Arlington Texas Sarnova, Inc. Sylmar California 1/12/10 Diabetes testing alliance Salem New Hampshire Sanofi-Aventis SA Paris France 3/31/10 Diagnostic Hybrids, Inc. Athens Ohio Quidel Corporation San Diego California 1/11/10 $130,000,000 Epocal, Inc. Ottawa Ontario Inverness Medical Innovations, Inc. Waltham Massachusetts 1/5/10 $255,000,000 ESE GmbH Stockach Germany QIAGEN, NV Venlo Netherlands 1/12/10 $19,000,000 EvaCare pessaries Humlebaek Denmark SRS Medical Corp. N. Billerica Massachusetts 1/26/10 FIMI s.r.l. Saronno Italy Barco Kortrijk Belgium 1/6/10 $41,800,000 Finnzymes Espoo Finland Thermo Fisher Scientific Waltham Massachusetts 2/1/10 $59,300,000 Fruition Design Bountiful Utah Biomerics, LLC Salt Lake City Utah 2/4/10 Fully passive safety catheter MedPro Safety Products, Inc. Lexington Kentucky 1/13/10 $5,000,000 Global Med Technologies, Inc. Lakewood Colorado Haemonetics Corporation Braintree Massachusetts 2/1/10 $60,000,000 Home Diagnostics, Inc. Fort Lauderdale Florida Nipro Corporation Osaka Japan 2/3/10 $215,000,000 Hycor Biomedical, Inc. Garden Grove California Linden, LLC Chicago Illinois 2/3/10 iCyt Mission Technology Champaign Illinois Sony Corporation Tokyo Japan 2/9/10 InSound Medical, Inc. Newark California Sonova Holding AG Staefa Switzerland 1/6/10 $75,000,000 Invatec S.p.A. Roncadelle Italy Medtronic, Inc. Minneapolis Minnesota 1/25/10 $500,000,000 License for PI3K gene Baltimore Maryland QIAGEN, NV Venlo Netherlands 2/8/10 Nanomedicine technology Albuquerque New Mexico Manhattan Scientifics, Inc. New York New York 2/25/10 OrthoGlide ankle technology Minnetonka Minnesota MMI-USA, Inc. Memphis Tennessee 2/22/10 PPD Biomarker Discovery Services, LLC Menlo Park California Caprion Proteomics, Inc. Montreal Quebec 1/21/10 $100,000 Praxim, SA Grenoble France Orthopaedic Synergy, Inc. East Taunton Massachusetts 3/9/10 Rights for Allay menstrual pain therapy brand Frederick Maryland YesTDC San Francisco California 3/23/10 Serica Technologies Medford Massachusetts Allergan, Inc. Irvine California 2/4/10 $70,000,000 Sierra Scientific Instruments, LLC Los Angeles California Given Imaging, Ltd Yoqneam Israel 3/22/10 $35,000,000 Sortimat Group Winnenden Germany ATS Automation Tooling Systems, Inc. Cambridge Ontario 3/25/10 $59,800,000 SSI Surgical Services, Inc. Limerick Pennsylvania Not disclosed 2/24/10 $25,000,000 Standard Diagnostics Seoul Korea Inverness Medical Innovations, Inc. Waltham Massachusetts 1/11/10 $224,650,000 Technomed Europe assets Netherlands NeuroTherm Wilmington Massachusetts 2/12/10 Three Agilent product lines Santa Clara California Bruker Corp. Billerica Massachusetts 3/9/10 $37,500,000 Vascular business Curacao Netherlands Antilles Covidien Plc Dublin Ireland 3/8/10 $19,000,000
TARGET: AcroMetrix ACQUIRER: Life Technologies Corporation
LISTING: Private LISTING: NASDAQ: LIFE LOCATION: Benicia, California CEO: Gregory T. Lucier PHONE: 760-603-7200 UNITS: 5791 Van Allen Way FAX: 760-602-6500 REVENUE: Carlsbad, California 92008 NET INCOME: WEB SITE: www.lifetechnologies.com
AcroMetrix is a provider of molecular and Life Technologies Corp. provides systems, consumables, and serological diagnostic quality control products to services to accelerate scientific research. On a trailing 12-month clinical labs, blood screening centers and in vitro basis, LIFE generated revenue of $2.95 billion, EBITDA of $818 diagnostic manufacturers. million and net income of $7.9 million.
ANNOUNCEMENT DATE: January 12, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition enlarges the buyer's business of providing tools and technologies in the molecular diagnostics industry.
TARGET: Aesthera Corporation ACQUIRER: Solta Medical, Inc.
LISTING: Private LISTING: NASDAQ: SLTM LOCATION: Pleasanton, California CEO: Stephen J. Fanning PHONE: 510-782-2286 UNITS: 25881 Industrial Boulevard FAX: 510-782-2287 REVENUE: $8,500,000 Hayward, California 94545 NET INCOME: WEB SITE: www.solta.com
Aesthera Corp. develops, manufactures and markets Solta Medical designs, develops, manufactures and markets energy- light-based aesthetic treatment systems for the based medical device systems for aesthetic applications. On a treatment of acne and other conditions. For 2009, trailing 12-month basis, it generated revenue of $80 million and a Aesthera generated unaudited revenue of net loss of $26 million. approximately $8.5 million.
ANNOUNCEMENT DATE: February 23, 2010 PRICE: $16,000,000 PRICE PER UNIT: TERMS: $5.25 million in cash and common PRICE/REVENUE: 1.88 stock; $725,000 in additional base line PRICE/INCOME: milestones; $10 million of stretch milestones, based on future financial results.
This acquisition expands the range of aesthetic devices that SLTM can offer its customers. The stretch milestones will be paid out if Aesthera achieves revenue ranging from $14 million to $21 million in the 12 months beginning April 1, 2010. Shattuck Hammond Partners provided SLTM with financial advice on this deal; Gravitas Healthcare, LLC provided Aesthera with similar advice.
The Health Care M&A Report, First Quarter 2010 87 TARGET: Ahura Scientific ACQUIRER: Thermo Fisher Scientific
LISTING: Private LISTING: NYSE: TMO LOCATION: Wilmington, Massachusetts CEO: Mark Casper PHONE: 781-622-1000 UNITS: 81 Wyman Street FAX: 781-622-1123 REVENUE: $45,000,000 (2009) Waltham, Massachusetts 02454 NET INCOME: WEB SITE: www.thermofisher.com
Ahura Scientific is involved in field-deployed TMO provides technology-based instruments and systems for analytical instruments for human health and public various industries. On a trailing 12-month basis, TMO generated safety. It specializes in identifying chemicals for revenue of $9.9 billion, EBITDA of $1.9 billion and net income of safety, security and pharmaceutical applications. In $880 million. 2009, it generated revenue of $45 million.
ANNOUNCEMENT DATE: January 19, 2010 PRICE: $170,000,000 PRICE PER UNIT: TERMS: $145 million in cash; potential earnout PRICE/REVENUE: 3.78 of up to $25 million based on achieving PRICE/INCOME: certain 2010 financial targets.
This acquisition enhances the buyer's position in the market for hand-held analyzers, and expands its portfolio with complementary technologies. Ahura is to be integrated into TMO's analytical technologies segment.
TARGET: ApaTech ACQUIRER: Baxter International, Inc.
LISTING: Private LISTING: NYSE: BAX LOCATION: Elstree, England CEO: Robert Parkinson, Jr. PHONE: 847-948-2000 UNITS: One Baxter Parkway FAX: 847-948-3948 REVENUE: $60,000,000 Deerfield, Illinois 60015 NET INCOME: WEB SITE: www.baxter.com
Backed by private equity, ApaTech specializes in Baxter operates as a medical products and services company, synthetic bone repair material for orthopedic and specializing in medical devices, pharmaceuticals and biotechnology. dental applications. In 2009, the company generated On a trailing 12-month basis, BAX generated revenue of $12.6 revenue of $60 million. billion, EBITDA of $3.6 billion and net income of $2.2 billion.
ANNOUNCEMENT DATE: March 1, 2010 PRICE: $330,000,000 (approximate) PRICE PER UNIT: TERMS: Upfront cash payment of $240 million. PRICE/REVENUE: 5.50 Up to $90 million in certain sales PRICE/INCOME: milestones.
This acquisition gives the buyer a synthetic bone graft material that is currently marketed in the U.S., the EU and other select markets.
The Health Care M&A Report, First Quarter 2010 88 TARGET: AxMediTec Sp. z. o. o. ACQUIRER: InduTrade AB
LISTING: Private LISTING: STO: INDTB LOCATION: Poland CEO: Johnny Alvarsson PHONE: 46 8 703 03 00 UNITS: Raseborgsgatan 9 FAX: 46 8 752 79 39 REVENUE: $9,600,000 (approximate) Stockholm, Sweden SE-164 06 NET INCOME: WEB SITE: www.indutrade.se
Axel Johnson International is selling AxMediTec, a InduTrade markets and sells components within selected niches. In technology sales company specializing in 2008, it generated revenue of SEK 6.68 billion and operating technology equipment used for health care income of SEK 820 million. applications in operating rooms, intensive care wards and neonatal units, among others. It generates sales of about SEK 70 million.
ANNOUNCEMENT DATE: January 27, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's presence in Poland. The target company is to be included in the buyer's industrial components business.
TARGET: Brain function monitoring ACQUIRER: SEDLine, Inc. business LISTING: NYSE: HSP LISTING: Private LOCATION: Lake Forest, Illinois CEO: David Goodman PHONE: 888-733-5467 UNITS: 13766 Alton Parkqay, No. 143 FAX: REVENUE: Irvine, California 92618 NET INCOME: WEB SITE: www.sedline.com
Hospira is selling its brain function monitoring SEDLine is a medical device company focused on neuromonitoring business. to improve the care of patients under anesthesia or sedation.
ANNOUNCEMENT DATE: January 12, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition enlarges the buyer's neuromonitoring business.
The Health Care M&A Report, First Quarter 2010 89 TARGET: Catheter pump technology ACQUIRER: Thoratec Corporation
LISTING: STO: GETIB LISTING: NASDAQ: THOR LOCATION: Stockholm, Sweden CEO: Gary Burbach PHONE: 925-847-8600 UNITS: 6101 Stoneridge Drive FAX: 925-847-8574 REVENUE: Pleasanton, California 94588 NET INCOME: WEB SITE: www.thoratec.com
Getinge AB is selling its innovative catheter pump Thoratec is engaged in researching, developing and manufacturing technology. medical devices for circulatory support, vascular graft, blood coagulation and other applications. On a trailing 12-month basis, THOR generated revenues of $355 million and EBITDA of $69 million.
ANNOUNCEMENT DATE: January 25, 2010 PRICE: $8,500,000 PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: PRICE/INCOME:
The buyer plans to use the acquired technology to develop a minimally invasive, acute cardiac axial flow pump that can be used percuntaneously in cardiac catheterization labs and operating rooms.
TARGET: CHF Solutions ACQUIRER: Gambro AB
LISTING: Private LISTING: Private LOCATION: Brooklyn Park, Minnesota CEO: Thomas Glanzmann PHONE: 46 8 613 65 00 UNITS: Regeringsgatan 29 FAX: 46 8 611 28 30 REVENUE: Stockholm, Sweden 103 91 NET INCOME: WEB SITE: www.gambro.com
CHF Solutions manufactures and distributes Gambro is a medical technology company that provides products, ultrafiltration devices to treat fluid overload. Its therapies and services for dialysis patients and hepatic care. devices remove salt and water in patients with fluid overload, and may be used in renal patients.
ANNOUNCEMENT DATE: January 20, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
The target's Aquadox FlexFlow system offers what the buyer believes to be a superior ultrafiltration device; accordingly, it will be used to promote a competitive advantage in the company's renal care business. The Aquadox system allows physicians and nurses to remove the salt and water they need to, where and when they want to with no clinically significant impact on electrolytes, heart rate or blood pressure.
The Health Care M&A Report, First Quarter 2010 90 TARGET: Creative Rehab Technology ACQUIRER: Medex, Inc. Services, Inc. LISTING: Private LISTING: PK: MDXX LOCATION: Chula Vista, California CEO: Marco Montenegro PHONE: UNITS: FAX: REVENUE: $1,200,000 Las Vegas, Nevada NET INCOME: $365,000 WEB SITE: www.medexsynergies.com
Creative Rehab Technology Services is a provider Medex is an early-stage medical acquisition company, specializing of specialty high-end rehabilitation chairs in the in the procurement of medical supply and medical technology DME industry. It generates annual revenue of $1.2 companies. million and net sales of $365,000.
ANNOUNCEMENT DATE: March 24, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Cash and restricted shares of MDXX PRICE/REVENUE: stock. PRICE/INCOME:
Through this acquisition, the buyer gains the target's existing service relationships with Medicare and Medi Cal.
TARGET: CVC, Inc. ACQUIRER: Sarnova, Inc.
LISTING: Private LISTING: Private LOCATION: Arlington, Texas CEO: Craig Davenport PHONE: 614-760-5000 UNITS: 5000 Tuttle Crossing Blvd. FAX: REVENUE: Sylmar, California 43016 NET INCOME: WEB SITE: www.boundtree.com
CVC is a supplier of products to the acute care A Water Street Healthcare Partners portfolio company, Sarnova is a respiratory and emergency medical services distributor of health care products to the emergency medical markets. services community nationwide.
ANNOUNCEMENT DATE: January 12, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition provides Sarnova with a complementary set of products which it can sell to customers in the acute care market. This is the buyer's third acquisition since Water Street Healthcare Partners made its investment in 2008.
The Health Care M&A Report, First Quarter 2010 91 TARGET: Diabetes testing alliance ACQUIRER: Sanofi-Aventis SA
LISTING: Private LISTING: NYSE: SNY LOCATION: Salem, New Hampshire CEO: Chris Viehbacher PHONE: 33 1 53 77 40 00 UNITS: 174, avenue de France FAX: 33 1 53 77 42 4622 REVENUE: Paris, France 75635 NET INCOME: WEB SITE: www.sanofi-aventis.com
AgaMatrix is entering into an alliance to develop Sanofi-Aventis is a pharmaceutical firm engaged primarily in the blood sugar monitoring systems for the detection of prescription drug market. It is the third largest pharmaceutical diabetes. company in the world.
ANNOUNCEMENT DATE: March 31, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This alliance will supply SNY with blood glucose monitoring tests that dovetail with the company's existing diabetes treatments. It also enhances the company's presence in the home monitoring device market.
TARGET: Diagnostic Hybrids, Inc. ACQUIRER: Quidel Corporation
LISTING: Private LISTING: NASDAQ: QDEL LOCATION: Athens, Ohio CEO: Douglas C. Bryant PHONE: 858-552-1100 UNITS: 10165 McKellar Court FAX: 858-453-4338 REVENUE: $38,000,000 (2008) San Diego, California 92121 NET INCOME: WEB SITE: www.quidel.com
Diagnostic Hybrids manufactures and Quidel is involved in point-of-care diagnostic solutions for commercializes direct fluorescent in vitro diagnostic infectious diseases, and reproductive and women's health. On a assays for a variety of diseases. For 2008, the trailing 12-month basis, it generated revenue of $131 million, company generated revenue of $38 million. EBITDA of $39 million and net income of $18.9 million.
ANNOUNCEMENT DATE: January 11, 2010 PRICE: $130,000,000 PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: 3.42 PRICE/INCOME:
This acquisition provides the buyer with a complementary set of assays so QDEL can offer the market place a continuum of diagnostic products. William Blair & Company, LLC served as exclusive financial advisor to Diagnostic Hybrids. This deal closed February 19, 2010.
The Health Care M&A Report, First Quarter 2010 92 TARGET: Epocal, Inc. ACQUIRER: Inverness Medical Innovations, Inc.
LISTING: Private LISTING: AMEX: IMA LOCATION: Ottawa, Ontario CEO: Ron Zwanziger PHONE: 781-647-3900 UNITS: 51 Sawyer Road, Suite 200 FAX: 781-647-3939 REVENUE: $47,100,000 (2008) Waltham, Massachusetts 02453 NET INCOME: WEB SITE: www.invernessmedical.com
Epocal develops, manufactures and markets the Inverness Medical has three segments: consumer diagnostic epoc Blood Analysis System: a point of care testing products, vitamins and nutritional supplements, and professional solution to leverage SmartCard technology and diagnostic products. On a trailing 12-month basis, IMA generated provides real-time, laboratory quality test results at revenue of $1.9 billion, EBITDA of $475.0 million and net income the patient's bedside. of $24.8 million.
ANNOUNCEMENT DATE: January 5, 2010 PRICE: $255,000,000 (approximate) PRICE PER UNIT: TERMS: Base price of $172.5 million if certain PRICE/REVENUE: 2.76 milestones are achieved by 11/30/2014. PRICE/INCOME: Additional payments of up to $82.5 million if certain other measures are achieved.
IMA also entered into a distribution agreement with Epocal to distribute its system for blood gas and electrolyte testing.
TARGET: ESE GmbH ACQUIRER: QIAGEN, NV
LISTING: Private LISTING: NASDAQ: QGEN LOCATION: Stockach, Germany CEO: Peer M. Schatz PHONE: 31-77-320-8400 UNITS: Spoorstraat 50 FAX: 31-77-320-8409 REVENUE: $6,000,000 (2010 Venlo, Netherlands 5911 KJ projected) NET INCOME: WEB SITE: www.qiagen.com
ESE develops and manufactures UV and QGEN produces and distributes biotechnology products for the fluorescence optical measurement devices for separation and purification of nucleic acids. On a trailing 12-month medical and industrial applications. basis, QGEN generated revenue of $929 million, EBITDA of $284 million and net income of $101 million.
ANNOUNCEMENT DATE: January 12, 2010 PRICE: $19,000,000 (approximate) PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: 3.17 PRICE/INCOME:
The target's technology dovetails with QGEN's existing technology, and can thus be adapted immediately to certain QGEN assay systems.
The Health Care M&A Report, First Quarter 2010 93 TARGET: EvaCare pessaries ACQUIRER: SRS Medical Corp.
LISTING: CO: COLO-B LISTING: Private LOCATION: Humlebaek, Denmark CEO: Kevin M. Connolly PHONE: 978-663-2800 UNITS: 76 Treble Cove Rd., Bldg. 3 FAX: 978-663-0999 REVENUE: N. Billerica, Massachusetts 01862 NET INCOME: WEB SITE: www.srsmedical.com
Coloplast A/S is selling the assets related to its SRS Medical provides devices for the diagnosis of lower urinary EvaCare brand of pessaries. tract symptoms and for conservative treatments of urinary incontinence.
ANNOUNCEMENT DATE: January 26, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition broadens the buyer's franchise in women's health and incontinence. SRS believes that it can market the pessaries as a conservative treatment alternative to surgical intervention.
TARGET: FIMI s.r.l. ACQUIRER: Barco
LISTING: Private LISTING: Euronext: BAR LOCATION: Saronno, Italy CEO: Eric Van Zele PHONE: 3256 233 211 UNITS: PresidentKennedypark 35 FAX: 3256 233 374 REVENUE: $57,700,000 Kortrijk, Belgium 8500 NET INCOME: WEB SITE: www.barco.com
Philips Healthcare is selling FIMI, a provider of Barco designs and develops visualization solutions for various dedicated modality monitors, patient monitoring and markets, including medical imaging, and media and entertainment. mobile point-of-care devices. FIMI generates annual For the nine months ended September 30, 2009, it generated sales of nearly Eur 40 million. revenue of Eur 517.4 million and EBITDA of Eur 53.8 million.
ANNOUNCEMENT DATE: January 6, 2010 PRICE: $41,800,000 PRICE PER UNIT: TERMS: Eur 19 million at closing; earnout of Eur PRICE/REVENUE: 0.72 10 million payable over five years. PRICE/INCOME:
This acquisition extends the buyer's geographic reach in Italy, as well as the portfolio of devices it can offer its customers. Of particular interest to Barco is FIMI's selection of mobile point-of-care devices.
The Health Care M&A Report, First Quarter 2010 94 TARGET: Finnzymes ACQUIRER: Thermo Fisher Scientific
LISTING: Private LISTING: NYSE: TMO LOCATION: Espoo, Finland CEO: Marc Casper PHONE: 781-622-1000 UNITS: 81 Wyman Street FAX: 781-622-1123 REVENUE: $90,000,000 (2009) Waltham, Massachusetts 02454 NET INCOME: WEB SITE: www.thermofisher.com
Finnzymes is a provider of integrated tools for Thermo Fisher Scientific provides technology-based instruments molecular biology analysis, including reagents, and systems for various industries. On a trailing 12-month basis, instruments, consumables and kits. It generated $90 TMO generated revenue of $9.9 billion, EBITDA of $1.9 billion million in revenue in 2009. and net income of $880 million.
ANNOUNCEMENT DATE: February 1, 2010 PRICE: $59,300,000 PRICE PER UNIT: TERMS: Net of cash acquired, the effective PRICE/REVENUE: 0.66 purchase price is $58.6 million. PRICE/INCOME:
This acquisition expands the buyer's portfolio of reagents and other consumables that it can offer to its customers. This deal closed March 1, 2010.
TARGET: Fruition Design ACQUIRER: Biomerics, LLC
LISTING: Private LISTING: Private LOCATION: Bountiful, Utah CEO: Travis Sessions PHONE: 801-355-2705 UNITS: 2700 South 900 West FAX: 801-355-3045 REVENUE: Salt Lake City, Utah 84119 NET INCOME: WEB SITE: www.biomerics.com
Fruition Design is a provider of early stage design Biomerics is a provider of medical polymer solutions, serving the services for the medical device industry. medical device industry. It specializes in polymer and plastic component design, injection molding, compounding, machining and medical device fabrication.
ANNOUNCEMENT DATE: February 4, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition enlarges the buyer's design engineering base, allowing it to provide customers with a wider range of services.
The Health Care M&A Report, First Quarter 2010 95 TARGET: Fully passive safety catheter ACQUIRER: MedPro Safety Products, Inc.
LISTING: Private LISTING: OTCBB: MPSP LOCATION: CEO: Craig Turner PHONE: 859-225-5375 UNITS: 817 Winchester Road FAX: 859-225-5347 REVENUE: Lexington, Kentucky 40505 NET INCOME: WEB SITE: www.medprosafety.com
A company owned by Hooman Asbaghi and Don MedPro Safety Products develops, acquires and sells medical device Millerd is selling a fully passive intravenous safety products incorporating needlestick prevention technologies. catheter.
ANNOUNCEMENT DATE: January 13, 2010 PRICE: $5,000,000 PRICE PER UNIT: TERMS: 50% in cash and 50% in shares of MPSP PRICE/REVENUE: stock, in eight equal installments. PRICE/INCOME:
The addition of this catheter brings to nine the number of systems that the buyer can offer its clients. The acquired system should reduce the number of needlesticks that health care workers suffer, and lower the costs of post- exposure testing and treatment.
TARGET: Global Med Technologies, ACQUIRER: Haemonetics Corporation Inc. LISTING: OTCBB: GLOB LISTING: NYSE: HAE LOCATION: Lakewood, Colorado CEO: Brian Concannon PHONE: 781-848-7100 UNITS: 400 Wood Road FAX: 781-848-5106 REVENUE: $30,700,000 Braintree, Massachusetts 02184 NET INCOME: $2,100,000 (EBITDA) WEB SITE: www.haemonetics.com
Global Med Technologies designs, develops and HAE designs, manufactures and markets automated systems for the markets information management software products collection, processing and surgical salvage of blood. On a trailing for blood banks, hospitals and others. On a trailing 12-month basis, HAE generated revenue of $629 million, EBITDA 12-month basis, it generated revenue of $30.7 of $143 million and net income of $68 million. million, EBITDA of $2.1 million and net income of $994,000.
ANNOUNCEMENT DATE: February 1, 2010 PRICE: $60,000,000 PRICE PER UNIT: TERMS: $1.22 in cash for each common share; PRICE/REVENUE: 1.95 $1.694 in cash for each preferred share. PRICE/INCOME: 28.57
This acquisition expands the buyer's ability to provide effective management of blood analysis and transfusion products and services. Haemonetics is funding this acquisition from cash on hand.
The Health Care M&A Report, First Quarter 2010 96 TARGET: Home Diagnostics, Inc. ACQUIRER: Nipro Corporation
LISTING: NASDAQ: HDIX LISTING: TSE: 8086 LOCATION: Fort Lauderdale, Florida CEO: Minoru Sano PHONE: 81-6-6372-2331 UNITS: 3-9-3 Honjo-Nishi Kita-ku FAX: 81-6-6375-0669 REVENUE: $121,300,000 Osaka, Japan 531-8510 NET INCOME: $12,000,000 (EBITDA) WEB SITE: www.nipro.co.jp
Home Diagnostics develops, manufactures and Nipro Corporation manufactures and supplies medical devices on a markets blood glucose monitoring systems and global scale. disposable supplies for people with diabetes. On a trailing 12-month basis, it generated revenue of $121.3 million, EBITDA of $12 million and net income of $4.8 million.
ANNOUNCEMENT DATE: February 3, 2010 PRICE: $215,000,000 (approximate) PRICE PER UNIT: TERMS: $11.50 in cash per share. PRICE/REVENUE: 1.77 PRICE/INCOME: 17.92
This acquisition would enlarge the buyer's footprint in the U.S. devices market. Nipro's offer represents a 90% premium to HDIX's prior-day price; however, HDIX stock rose 89% to $11.44 on the announcement. The Raymond James Health Care Investment Banking Group is advising HDIX on this transaction.
TARGET: Hycor Biomedical, Inc. ACQUIRER: Linden, LLC
LISTING: NYSE: A LISTING: Private LOCATION: Garden Grove, California CEO: Eric Larson PHONE: 312-506-5600 UNITS: 111 S. Wacker Drive, Suite FAX: 312-506-5601 3350 REVENUE: Chicago, Illinois 60606 NET INCOME: WEB SITE: www.lindenllc.com
Agilent Technologies is selling Hycor Biomedical, a Linden, LLC is a private equity firm specializing in investments in company that develops, manufactures and markets the health care and life science sectors. in vitro diagnostic products for the allergy, autoimmune and urinalysis markets.
ANNOUNCEMENT DATE: February 3, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
It is believed that Hycor Biomedical will prosper more readily as a stand-alone company with private equity backing than as a unit of a larger company. Agilent first acquired Hycor when it bought Stratagene in 2007. Thomas Weisel Partners served as financial advisor to Agilent in this deal.
The Health Care M&A Report, First Quarter 2010 97 TARGET: iCyt Mission Technology ACQUIRER: Sony Corporation
LISTING: Private LISTING: NYSE: SNE LOCATION: Champaign, Illinois CEO: Howard Stringer PHONE: 81 3 6748 2111 UNITS: 1-7-1 Konan Minato-ku FAX: 81 3 5448 2244 REVENUE: Tokyo, Japan 108-0075 NET INCOME: WEB SITE: www.sony.net iCyt Mission Technology supplies advanced flow Sony develops, designs, manufactures and sells electronic cytometry analysis and sorting technology for life equipment, instruments and devices for consumer and industrial sciences research. markets. On a trailing 12-month basis, it generated revenue of $77 billion, EBITDA of $2.9 billion and a net loss of $1.6 billion.
ANNOUNCEMENT DATE: February 9, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
It is believed that iCyt will be able to leverage SNE's global resources to deliver new solutions to the cell analysis market. The two companies have been jointly developing new flow cytometry devices since April 2009.
TARGET: InSound Medical, Inc. ACQUIRER: Sonova Holding AG
LISTING: Private LISTING: VX: SOON LOCATION: Newark, California CEO: Valentin Chapero PHONE: 41 58 928 33 33 UNITS: Laubisruetistrasse 28 FAX: 41 58 928 33 99 REVENUE: $5,000,000 (2009) Staefa, Switzerland 8712 NET INCOME: WEB SITE: www.sonova.com
InSound Medical develops and markets hearing Sonova is a leading provider of innovative hearing health care systems under the Lyric brand. It is placed deep solutions. For fiscal 2008/2009, Sonova generated revenue of CHF within the ear canal and is invisible from the 1.25 billion, EBITDA of CHF 331.8 million and income after taxes outside. of CHF 284.1 million.
ANNOUNCEMENT DATE: January 6, 2010 PRICE: $75,000,000 PRICE PER UNIT: TERMS: Cash upfront of $75 million; earnout PRICE/REVENUE: 15.00 payments also possible. PRICE/INCOME:
With the addition of the Lyric brand to its portfolio, Sonova will be able to tap into a market of people with mild to moderate hearing loss.
The Health Care M&A Report, First Quarter 2010 98 TARGET: Invatec S.p.A. ACQUIRER: Medtronic, Inc.
LISTING: Private LISTING: NYSE: MDT LOCATION: Roncadelle, Italy CEO: William Hawkins PHONE: 763-514-4000 UNITS: 710 Medtronic Parkway FAX: 763-514-4879 REVENUE: Minneapolis, Minnesota 55432 NET INCOME: WEB SITE: www.medtronic.com
Invatec and its affiliated companies, Fogazzi and Medtronic is a medical device company. On a trailing 12-month Krauth Cardiovascular, are providers of stents and basis, MDT generated revenue of $14.5 billion, EBITDA of $5.3 angioplasty balloons. billion and net income of $2.2 billion.
ANNOUNCEMENT DATE: January 25, 2010 PRICE: $500,000,000 PRICE PER UNIT: TERMS: $350 million upfront; up to $150 million PRICE/REVENUE: in milestone payments. PRICE/INCOME:
This acquisition expands the buyer's peripheral vascular business. Fogazzi supplies polymer technology to Invatec and Krauth Cardiovascular distributes Invatec products in Germany. This transaction closed April 21, 2010.
TARGET: License for PI3K gene ACQUIRER: QIAGEN, NV
LISTING: Nonprofit LISTING: NASDAQ: QGEN LOCATION: Baltimore, Maryland CEO: Peer M. Schatz PHONE: 31-77-320-8400 UNITS: Spoorstraat 50 FAX: 31-77-320-8409 REVENUE: Venlo, Netherlands 5911 KJ NET INCOME: WEB SITE: www.qiagen.com
Johns Hopkins University is granting a license for QGEN produces and distributes biotechnology products for the biomarker PI3K to develop real-time polymerase separation and purification of nucleic acids. On a trailing 12-month chain reaction (PCR) and endpoint PCR assays. basis, QGEN generated revenue of $929 million, EBITDA of $284 million and net income of $101 million.
ANNOUNCEMENT DATE: February 8, 2010 PRICE: (approximate) PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
Studies have suggested that the PI3K gene could be an important biomarker for use as a companion diagnostic for certain cancer treatments. QGEN already markets a PI3K test for research use. This license strengthens its technology portfolio in this area.
The Health Care M&A Report, First Quarter 2010 99 TARGET: Nanomedicine technology ACQUIRER: Manhattan Scientifics, Inc.
LISTING: Private LISTING: OTCBB: MHTX LOCATION: Albuquerque, New Mexico CEO: Emmanuel PHONE: 212-551-0577 Tsoupanarias UNITS: 405 Lexington Ave., 32nd Floor FAX: 212) 752-0077 REVENUE: New York, New York 10174 NET INCOME: WEB SITE: www.mhtx.com
Edward Flynn and his company Senior Scientific, A development stage company, Manhattan Scientifics focuses on LLC are selling the commercial rights to his developing and manufacturing nanostructured metals for medical nanomedicine technology for the early detection of implants. cancer.
ANNOUNCEMENT DATE: February 25, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Option agreement. Cash and shares of PRICE/REVENUE: MHTX stock may be used to complete PRICE/INCOME: the acquisition.
Dr. Flynn's approach to early detection of certain cancers utilizes sophisticated magnetic field sensors and magnetic nanoparticles. This allows for the detection of cancer at a substantially earlier stage of its development than is currently possible. This biomagnetic sensor method is applicable to breast, ovarian, leukemia, prostate and potentially many other cancers.
TARGET: OrthoGlide ankle ACQUIRER: MMI-USA, Inc. technology LISTING: Private LISTING: Private LOCATION: Minnetonka, Minnesota CEO: Alan Taylor PHONE: 901-685-7557 UNITS: 6060 Poplar Avenue FAX: 901-683-7077 REVENUE: Memphis, Tennessee 38119 NET INCOME: WEB SITE: www.mmi-usa.com
Advanced Bio-Surfaces Corp. is selling its A unit of France's Memometal Technologies, MMI-USA is a OrthoGlide ankle technology. provider of orthopedic extremity solutions.
ANNOUNCEMENT DATE: February 22, 2010 PRICE: PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition enlarges the buyer's intellectual property portfolio with a technology that can produce an implant similar to a unicompartmental knee. Such an implant would be less invasive than a total joint replacement or fusion.
The Health Care M&A Report, First Quarter 2010 100 TARGET: PPD Biomarker Discovery ACQUIRER: Caprion Proteomics, Inc. Services, LLC LISTING: NASDAQ: PPDI LISTING: Private LOCATION: Menlo Park, California CEO: Martin LeBlanc PHONE: 514-940-3600 UNITS: 7150 Alexander-Fleming FAX: 514-940-3620 REVENUE: Montreal, Quebec H4S 2C8 NET INCOME: WEB SITE: www.caprion.com
PPD, Inc. is selling its PPD Biomark Discovery A Great Point Partners portfolio company, Caprion has a proteomics Services unit. The unit provides biomarker discovery technology that enables the discovery of novel targets for discovery services and participant sample analysis. therapeutics development and the identification of novel protein biomarkers.
ANNOUNCEMENT DATE: January 21, 2010 PRICE: $100,000 PRICE PER UNIT: TERMS: $100,000. Contingent payments also PRICE/REVENUE: possible. PRICE/INCOME:
This acquisition extends the buyer's capabilities in performing biomarker discovery services for biotech and pharma clients. The deal is expected to be immediately accretive to earnings. Under terms of the deal, PPDI has the right to receive a percentage of the revenue received by the purchaser on contracts that had been awarded as of the date of the acquisition.
TARGET: Praxim, SA ACQUIRER: Orthopaedic Synergy, Inc.
LISTING: Private LISTING: Private LOCATION: Grenoble, France CEO: PHONE: UNITS: FAX: REVENUE: East Taunton, Massachusetts NET INCOME: WEB SITE:
Praxim develops and commercializes automated Orthopaedic Synergy is a holding company for several systems, software and instruments used by surgeons reconstructive orthopedic device manufacturers. to make total joint arthroplasty less invasive, faster and more reliable and cost effective.
ANNOUNCEMENT DATE: March 9, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition adds to the buyer's range of orthopedic device manufacturers.
The Health Care M&A Report, First Quarter 2010 101 TARGET: Rights for Allay menstrual ACQUIRER: YesTDC pain therapy brand LISTING: PK: BIEL LISTING: OTCBB: YESD LOCATION: Frederick, Maryland CEO: Joe Noel PHONE: 925-922-2560 UNITS: 300 Beale Street FAX: REVENUE: San Francisco, California 94105 NET INCOME: WEB SITE:
BioElectronics Corp. is selling the distribution YesTDC, fka PR Complete Holdings, is a direct-to-consumer rights in Japan for its Allay menstrual pain therapy. marketing company. The product features a microchip that delivers therapeutic energy waves to reduce inflammation and alleviate painful menstrual cramping.
ANNOUNCEMENT DATE: March 23, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition gives the buyer a therapy for menstrual cramping that is drug-free. The buyer already owns the distribution rights for the United States.
TARGET: Serica Technologies ACQUIRER: Allergan, Inc.
LISTING: Private LISTING: NYSE: AGN LOCATION: Medford, Massachusetts CEO: David E.I. Pyott PHONE: 714-246-4500 UNITS: 2525 Dupont Drive FAX: 714-246-6987 REVENUE: Irvine, California 92612 NET INCOME: WEB SITE: www.allergan.com
Investors are selling Serica Technologies, a medical Allergan develops and commercializes products for the ophthalmic, device company focused on the biodegradable silk- neurological, dermatological and other markets. Its products include based scaffolds for use in tissue regeneration, Botox. On a trailing 12-month basis, AGN generated revenue of including breast augmentation, revision and $4.5 billion, EBITDA of $1.3 billion and net income of $621 reconstruction and bariatric applications. million.
ANNOUNCEMENT DATE: February 4, 2010 PRICE: $70,000,000 (approximate) PRICE PER UNIT: TERMS: Upfront cash payment, plus equity in PRICE/REVENUE: Alcer Technologies. PRICE/INCOME:
This deal complements the buyer's cosmetic medicine business. The business being acquired by AGN is developing biodegradable scaffolds to be used in skin grafting, breast augmentation and reconstructive surgery. This transaction does not include rights to Serica's orthopedic or veterinary products, which have been spun-off into a separate company, Alcer Technologies. Serica's selling investors include Morningside Technology Ventures, Prism VentureWorks and Ivy Capital Partners.
The Health Care M&A Report, First Quarter 2010 102 TARGET: Sierra Scientific ACQUIRER: Given Imaging, Ltd Instruments, LLC LISTING: Private LISTING: NASDAQ: GIVN LOCATION: Los Angeles, California CEO: Nachum Shamir PHONE: 972 4 909 7777 UNITS: 2 Hacarmel Street FAX: 972 4 959 2466 REVENUE: $18,000,000 Yoqneam, Israel 20692 NET INCOME: WEB SITE: www.givenimaging.com
Wall Street Healthcare Partners, a private equity Given Imaging develops, manufactures, and markets diagnostic firm, is selling Sierra Scientific Instruments, a products for visualizing and detecting disorders of the provider of specialty diagnostic devices for the gastrointestinal tract. On a trailing 12-month basis, GIVN generated gastrointestinal tract. For 2009, it generated revenue revenue of $142 million, EBITDA of $17 million and net income of of $18.0 million. $14 million.
ANNOUNCEMENT DATE: March 22, 2010 PRICE: $35,000,000 PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: PRICE/INCOME:
This acquisition, coupled with the GIVN's existing expertise, strengthens the buyer's leadership position in the gastroesophageal diagnostic market.
TARGET: Sortimat Group ACQUIRER: ATS Automation Tooling Systems, Inc.
LISTING: Private LISTING: TSX: ATA LOCATION: Winnenden, Germany CEO: Anthony Caputo PHONE: 519-653-6500 UNITS: 730 Fountain Street North FAX: 519-653-6533 REVENUE: $75,750,000 Cambridge, Ontario N3H 4R7 NET INCOME: $5,980,000 (EBIT) WEB SITE: www.atsautomation.com
Sortimat Group manufactures specialized assembly ATS provides custom designed, built and installed manufacturing systems for medical products and pharmaceutical solutions. For 2009, the business generated revenue of $855.1 dosing devices. In 2009, it generated revenue of Eur million and net income of $48.0 million. 57 million and EBIT of approximately Eur 4.5 million.
ANNOUNCEMENT DATE: March 25, 2010 PRICE: $59,800,000 (approximate) PRICE PER UNIT: TERMS: Eur 38.4 million at closing; up to Eur PRICE/REVENUE: 0.79 6.6 million in potential milestone PRICE/INCOME: 10.00 payments.
This acquisition expands the buyer's penetration in the medical device and pharmaceutical industries. In addition to its presence in Germany, Sortimat also has locations in Chicago and a small, 60% owned joint venture in India.
The Health Care M&A Report, First Quarter 2010 103 TARGET: SSI Surgical Services, Inc. ACQUIRER: Not disclosed
LISTING: NYSE: TFX LISTING: Private LOCATION: Limerick, Pennsylvania CEO: PHONE: UNITS: FAX: REVENUE: $22,200,000 NET INCOME: WEB SITE:
Teleflex is selling SSI Surgical Services. SSI offers The buyer is a multi-service line health care company. a range of endoscopic surgical services and sterile processing management services. For 2009, SSI generated revenue of $22.2 million.
ANNOUNCEMENT DATE: February 24, 2010 PRICE: $25,000,000 PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: 1.13 PRICE/INCOME:
Teleflex decided to divest SSI because the unit was thought not to be a strategic fit with the remainder of the company's medical segment. TFX expects a pretax gain of about $9.0 million from this sale.
TARGET: Standard Diagnostics ACQUIRER: Inverness Medical Innovations, Inc.
LISTING: KOSDAQ LISTING: AMEX: IMA LOCATION: Seoul, Korea CEO: Ron Zwanziger PHONE: 781-647-3900 UNITS: 51 Sawyer Road, Suite 200 FAX: 781-647-3939 REVENUE: Waltham, Massachusetts 02453 NET INCOME: WEB SITE: www.invernessmedical.com
Standard Diagnostics offers diagnostic reagents or Inverness Medical has three segments: consumer diagnostic devices for hepatitis, infectious diseases, tumor products, vitamins and nutritional supplements, and professional markers, fertility, drugs of abuse, urine strips and diagnostic products. On a trailing 12-month basis, IMA generated protein strips. revenue of $1.9 billion, EBITDA of $475.0 million and net income of $24.8 million.
ANNOUNCEMENT DATE: January 11, 2010 PRICE: $224,650,000 (approximate) PRICE PER UNIT: TERMS: Cash tender offer. $35.46 per share. PRICE/REVENUE: IMA to acquire up to 75.79% of SD PRICE/INCOME: shares.
The tender offer price represents a 33% premium to Standard Diagnostic's 90-day trailing average share price. This deal would enlarge IMA's presence in Eastern Asia.
The Health Care M&A Report, First Quarter 2010 104 TARGET: Technomed Europe assets ACQUIRER: NeuroTherm
LISTING: Private LISTING: Private LOCATION: Netherlands CEO: Larry Hicks PHONE: 978-657 6519 UNITS: 30 Upton Drive, Suite 2 FAX: 978-658 2378 REVENUE: Wilmington, Massachusetts 01887 NET INCOME: WEB SITE: www.neurotherm.com
Technomed Europe is selling certain assets. The A Cortec Group portfolio company, NeuroTherm manufactures company is involved in neurodiagnostic accessories, radio-frequency generators and related consumables used in the including needles used in the practice of pain treatment of chronic pain. management.
ANNOUNCEMENT DATE: February 12, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
Under terms of this deal, NeuroTherm acquired all intellectual property and manufacturing know-how associated with certain of Technomed's needle product lines. This add-on deal expands the buyer's product lines.
TARGET: Three Agilent product lines ACQUIRER: Bruker Corp.
LISTING: NYSE: A LISTING: NASDAQ: BRKR LOCATION: Santa Clara, California CEO: Frank H. Laukien PHONE: 978-663-3660 UNITS: 40 Manning Road FAX: 978-667-5993 REVENUE: Billerica, Massachusetts 01821 NET INCOME: WEB SITE: www.bruker.com
Agilent is selling three product lines: Varian's Bruker designs, manufactures and markets life science systems and Australia-based plasma mass spectrometry materials research tools based on mass spectrometry core instruments, its Netherlands-based gas technology platforms and X-ray technology. On a trailing 12-month chromatography instruments line and its California- basis, it generated revenue of $1.1 billion, EBITDA of $167 million based gas chromatography mass spectrometry and net income of $81 million. instruments business.
ANNOUNCEMENT DATE: March 9, 2010 PRICE: $37,500,000 PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: PRICE/INCOME:
The sale of these three product lines helps to satisfy antitrust concerns surrounding Agilent's $1.5 billion takeover of Varian.
The Health Care M&A Report, First Quarter 2010 105 TARGET: Vascular business ACQUIRER: Covidien Plc
LISTING: NASDAQ: OFIX LISTING: NYSE: COV LOCATION: Curacao, Netherlands Antilles CEO: Richard J. Meelia PHONE: 353 4 39 3000 UNITS: Cherrywood Business Park, FAX: Block G REVENUE: Dublin, Ireland NET INCOME: WEB SITE: www.covidien.com
Orthofix International NV is selling its vascular Covidien develops, manufactures and distributes medical devices business, including its AV-impulse mechanical and supplies, diagnostic imaging agents and pharmaceuticals. On a compression technology. It includes compression trailing 12-month basis, COV generated revenue of $10.9 billion, therapy devices. EBITDA of $2.8 billion and net income of $933 million.
ANNOUNCEMENT DATE: March 8, 2010 PRICE: $19,000,000 PRICE PER UNIT: TERMS: $27.7 million in cash at closing. PRICE/REVENUE: Purchase price is $19.0 million, net cash PRICE/INCOME: proceeds.
Under terms of the deal, Orthofix will provide transitional services to COV for up to five months. The seller plans to use the proceeds to pay down debt, reducing it by approximately 7%.
The Health Care M&A Report, First Quarter 2010 106 PHARMACEUTICALS
FIRST QUARTER 2010 PHARMACEUTICAL TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
Ampakine Irvine California Biovail Corporation Mississauga Ontario 3/26/10 $25,000,000 Antibacterial assets Boston Massachusetts Biota Holdings Limited Notting Hill Australia 3/4/10 $1,500,000 Ariston Pharmaceuticals, Inc. Framingham Massachusetts Manhattan Pharmaceuticals, Inc. New York New York 3/12/10 $6,030,000 BioForm Medical, Inc. San Mateo California Merz GmbH & Co. KGaA Frankfurt am Main Germany 1/4/10 $253,000,000 Cedax antibiotic Osaka Japan Pernix Therapeutics Holdings, Inc. Magnolia Texas 3/24/10 $6,100,000 CNS drug development deal Atlanta Georgia Bristol-Myers Squibb, Inc. New York New York 3/30/10 $75,500,000 Dragon Pharmaceuticals, Inc. Vancouver British Columbia Chief Respect, Ltd. Wanchai Hong Kong 3/26/10 $58,000,000 Early-stage ophthalmic asset Conshohocken Pennsylvania QLT, Inc. Vancouver British Columbia 1/4/10 $7,500,000 Eden Biopharm Group Limited Liverpool England Watson Pharmaceuticals, Inc. Corona California 1/28/10 $15,000,000 Excelsyn, Ltd. Holywell Wales Albany Molecular Research, Inc. Albany New York 2/18/10 $19,000,000 Generics collaboration Bombay India Pfizer, Inc. New York New York 1/6/10 Injectables manufacturing facility Campos Brazil Strides Arcolab Ltd. Bangalore India 3/4/10 $75,000,000 Instituto Terapeutico Delta Ltda Brazil Valeant Pharmaceuticals International Aliso Viejo California 3/19/10 $28,000,000 Interest in ScinoPharm Morristown New Jersey ScinoPharm Taiwan Ltd. Shan-Hua Taiwan 3/2/10 $94,000,000 LEAD Therapeutics, Inc. San Bruno California BioMarin Pharmaceutical, Inc. Novato California 2/4/10 $97,000,000 License for antifungal isavuconazole Basel Switzerland Astellas Pharma, Inc. Tokyo Japan 2/24/10 $516,100,000 License for Xerese Huddinge Sweden Meda AB Solna Sweden 2/15/10 $5,000,000 Mag-Ox line of supplements Fort Wright Kentucky Hi-Tech Pharmacal, Co., Inc. Amityville New York 3/2/10 $4,100,000 Mepha AG Aesch Switzerland Cephalon, Inc. Frazer Pennsylvania 2/1/10 $588,000,000 Neuropathic pain medicine agreement Irvine California Bristol-Myers Squibb, Inc. New York New York 3/3/10 $413,000,000 NuRx Pharmaceuticals, Inc. Irvine California QuantRx Biomedical Corporation Doylestown Pennsylvania 1/29/10 $15,525,000 Oncology collaboration San Diego California Bayer Schering Pharma AG Berlin Germany 3/17/10 $160,000,000 Oncology joint venture stakes Durban South Africa Strides Arcolab Ltd. Bangalore India 3/18/10 $117,000,000 Ophthalmic pharmaceutical assets Tampa Florida Alcon, Inc. Hunenberg Switzerland 1/19/10 Orion Laboratories Pty. Ltd. Perth Australia The Perrigo Company Allegan Michigan 3/1/10 $48,000,000 Pharmacos Exakta, S.A. de C.V. Guadalajara Mexico OPKO Health, Inc. Miami Florida 2/18/10 $3,600,000 PharmaForce, Inc. Columbus Ohio Daiichi Sankyo Co. Tokyo Japan 1/8/10 Ratiopharm Ulm Germany Teva Pharmaceutical Industries Petach Tikva Israel 3/17/10 $4,970,000,000 Regpara royalty rights Bedminster New Jersey DRI Capital, Inc. Toronto Ontario 3/2/10 $38,400,000 Remaining interest in SSP Co. Ltd. Tokyo Japan Boehringer Ingelheim GmbH Ingelheim Germany 2/10/10 $913,000,000 Rigel arthritis drug S. San Francisco California AstraZeneca plc London England 2/16/10 $1,245,000,000 Rights for oral Laquinimod Lund Sweden Teva Pharmaceutical Industries Petach Tikva Israel 2/8/10 Rights to AZ-004 treatment of agitation Mountain View California Biovail Corporation Mississauga Ontario 2/10/10 $130,000,000 Rights to Nuprin Woonsocket Rhode Island SCOLR Pharma, inc. Bothell Washington 3/16/10 $180,000 Rights to Prialt Dublin Ireland Azur Pharma Limited Dublin Ireland 3/11/10 Rights to progesterone gel products Livingston New Jersey Watson Pharmaceuticals, Inc. Corona California 3/4/10 $92,500,000 Rights to Proleukin Basel Switzerland Prometheus Laboratories, Inc. San Diego California 1/26/10 Rights to Refissa skin cream Fort Myers Florida Valeant Pharmaceuticals International Aliso Viejo California 3/1/10 $12,000,000 Rights to the i-pill Mumbai India Piramal Healthcare Ltd. Mumbai India 3/23/10 $21,000,000
TARGET: Ampakine ACQUIRER: Biovail Corporation
LISTING: Private LISTING: NYSE: BVF LOCATION: Irvine, California CEO: William M. Wells PHONE: 905-286-3000 UNITS: 7150 Mississauga Rd. FAX: 905-286-3050 REVENUE: Mississauga, Ontario L5N 8M5 NET INCOME: WEB SITE: www.biovail.com
Cortex Pharmaceuticals is selling certain Ampakine Biovail applies its proprietary drug delivery technologies to the compounds, including associated intellectual development and manufacture of drug products for treatment of property, for use in the treatment of respiratory major chronic conditions. On a trailing 12-month basis, BVF depression, a brain-mediated breathing disorder. generated revenue of $761 million, EBITFDA of $360 million and net income of $224 million.
ANNOUNCEMENT DATE: March 26, 2010 PRICE: $25,000,000 PRICE PER UNIT: TERMS: Upfront fee of $9.0 million; $1.0 million PRICE/REVENUE: on completion of transition period. Up PRICE/INCOME: to $15.0 million in potential milestones.
This is the buyer's eighth acquisition in the specialty CNS field. The assets include a phase 2 compound CX717, the preclinical compounds CX1763 and CX1942, and the injectable form of CX1739.
TARGET: Antibacterial assets ACQUIRER: Biota Holdings Limited
LISTING: Private LISTING: ASX: BTA LOCATION: Boston, Massachusetts CEO: Peter Cook PHONE: 61 3 9915 3700 UNITS: 585 Blackburn Road FAX: 61 3 9915 3702 REVENUE: Notting Hill, Australia VIC 3168 NET INCOME: WEB SITE: www.biota.com.au
MaxThera, Inc. is selling its antibacterial assets. Biota is an anti-infective drug development company. MaxThera has a suite of validated novel bacterial targets and early stage antibacterial programs for treating serious bacterial infections, including those that are resistant to existing antibiotics.
ANNOUNCEMENT DATE: March 4, 2010 PRICE: $1,500,000 PRICE PER UNIT: TERMS: $1.2 million in cash; $300,000 in PRICE/REVENUE: 155,850 shares of stock. PRICE/INCOME:
This enlarges the buyer's portfolio of anti-infective treatments. MaxTheraÆs portfolio of targets and novel inhibitor structures are complementary to BiotaÆs own programs. MaxThera shareholders are also entitled to receive 12% of all upfront and milestone payments received by Biota if the two main programs are licensed.
The Health Care M&A Report, First Quarter 2010 111 TARGET: Ariston Pharmaceuticals, ACQUIRER: Manhattan Pharmaceuticals, Inc. Inc. LISTING: Private LISTING: OTCBB; MHAN LOCATION: Framingham, Massachusetts CEO: Douglas Abel PHONE: 212-582-3950 UNITS: 48 Wall Street, Suite 1100 FAX: 212-582-3957 REVENUE: New York, New York 10008 NET INCOME: WEB SITE: www.manhattanpharma.com
Ariston Pharmaceuticals is a specialty pharma with Manhattan Pharmaceuticals develops and commercializes two drug development programs, one for a nasally biomedical and pharmaceutical technologies. It is in development delivered treatment for vitamin B12 deficiency, the stage. other for a treatment for essential tremor.
ANNOUNCEMENT DATE: March 12, 2010 PRICE: $6,030,000 (approximate) PRICE PER UNIT: TERMS: Issuance of up to 75.4 million shares of PRICE/REVENUE: MHAN stock. Includes milestone PRICE/INCOME: payments related to Ariston drug candidates.
This merger creates a larger organization with four drug programs and a greater likelihood of seeing those programs through further development. If the maximum payment is made, current Ariston shareholders will own 22% of the combined company.
TARGET: BioForm Medical, Inc. ACQUIRER: Merz GmbH & Co. KGaA
LISTING: NASDAQ: BFRM LISTING: Private LOCATION: San Mateo, California CEO: Martin Zuegel PHONE: 490-69-15 03-0 UNITS: Eckenheimer Landstrasse 100 FAX: 490-69-15 03-200 REVENUE: $69,000,000 Frankfurt am Main, Germany D-60318 NET INCOME: WEB SITE: www.merz.com
BioForm Medical is a medical aesthetics company Merz is a provider of both prescription and OTC medications. In whose products enhance aesthetic procedures in 2008-09, it generated revenue of $828.7 million and EBIT of $190.9 dermatology and plastic surgery procedures. On a million. trailing 12-month basis, it generated revenue of $69 million and a net loss of $13.9 million.
ANNOUNCEMENT DATE: January 4, 2010 PRICE: $253,000,000 PRICE PER UNIT: TERMS: $5.45 per share in cash tender offer. PRICE/REVENUE: 3.67 PRICE/INCOME:
This bid offers BFRM shareholders a 60% premium to the stock's prior-day price. This deal advances the buyer's goal of becoming a leading player in aesthetic medicine. Piper Jaffray & Co. provided Merz with financial advice on this deal; J.P. Morgan Securities provided BFRM with similar advice. This deal closed February 19, 2010; the target is to be renamed Merz Aesthetics.
The Health Care M&A Report, First Quarter 2010 112 TARGET: Cedax antibiotic ACQUIRER: Pernix Therapeutics Holdings, Inc.
LISTING: T: 4507 LISTING: AMEX: PTX LOCATION: Osaka, Japan CEO: Cooper C. Collins PHONE: 832-934-1825 UNITS: 33219 Forest West Drive FAX: REVENUE: Magnolia, Texas 77354 NET INCOME: WEB SITE: www.pernixtx.com
Shionogi Pharma is selling Cedax, a third- Pernix Therapeutics, a specialty pharma, is involved in generation antibiotic. Discovered by Shionogi and pharmaceutical products for pediatrics and primary care. On a originally licensed to Schering-Plough, it is trailing 12-month basis, it generated revenue of $28 million and indicated for mild to moderate bacterial EBITDA of $9.4 million. exacerbations of chronic bronchitis and tonsilitis, among other conditions.
ANNOUNCEMENT DATE: March 24, 2010 PRICE: $6,100,000 PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
The buyer believes that it can reinvigorate sales of this drug, whose revenues have fallen off since Schering-Plough distributed it. Velocity Health Securities provided PTX with financial advice on this deal.
TARGET: CNS drug development deal ACQUIRER: Bristol-Myers Squibb, Inc.
LISTING: Private LISTING: NYSE: BMY LOCATION: Atlanta, Georgia CEO: Lamberto Andreotti PHONE: 212-546-4000 UNITS: 345 Park Avenue FAX: 212-546-4020 REVENUE: New York, New York 10154 NET INCOME: WEB SITE: www.bms.com
NeurOp Corp. is entering into an agreement to Bristol-Myers Squibb is a producer and distributor of consumer develop potential treatments for depression and medicines, pharmaceuticals, nutritional, medical devices and beauty CNS disorders. care products. On a trailing 12-month basis, BMY generated revenue of $18.8 billion, EBITDA of $5.8 billion and net income of $3.1 billion.
ANNOUNCEMENT DATE: March 30, 2010 PRICE: $75,500,000 (approximate) PRICE PER UNIT: TERMS: Upfront fee of $1.5 million. Up to $74 PRICE/REVENUE: million in potential milestone payments. PRICE/INCOME:
This agreement enlarges BMY's CNS drug development pipeline in the therapeutic area of diseases and disorders of the central nervous system.
The Health Care M&A Report, First Quarter 2010 113 TARGET: Dragon Pharmaceuticals, ACQUIRER: Chief Respect, Ltd. Inc. LISTING: OTCBB: DRUG LISTING: Private LOCATION: Vancouver, British Columbia CEO: Yanlin Han PHONE: UNITS: 151 Gloucester Road FAX: REVENUE: $30,400,000 Wanchai, Hong Kong NET INCOME: WEB SITE:
Dragon manufactures and distributes a broad line of Chief Respect is a Hong Kong corporation owned by DRUG's CEO. high-quality antibiotic products. For 2009, DRUG generated gross profit of $30.4 million and net income of $8.4 million.
ANNOUNCEMENT DATE: March 26, 2010 PRICE: $58,000,000 (approximate) PRICE PER UNIT: TERMS: $0.82 per share. PRICE/REVENUE: 1.91 PRICE/INCOME:
This offer to take DRUG private offers shareholders a 19% premium to the stock's prior-day price; it also represents a 37% premium to the stock's price the day before Mr. Han announced his intention to privatize the company. Mr. Han already owns approximately 37% of DRUG so what will be paid out is effectively $34.1 million for the remaining equity and $1.7 million for certain stock options.
TARGET: Early-stage ophthalmic ACQUIRER: QLT, Inc. asset LISTING: Private LISTING: NASDAQ: QLTI LOCATION: Conshohocken, Pennsylvania CEO: Robert L. Butchofsky PHONE: 604-707-7000 UNITS: 887 Great Northern Way FAX: 604-707-7001 REVENUE: Vancouver, British Columbia V5T 4T5 NET INCOME: WEB SITE: www.qltinc.com
Othera Pharmaceuticals is selling OT-730, a QLT Inc. is a biopharmaceutical company. On a trailing 12-month prodrug of a beta andrenergic antagonist, a type of basis, QLTI generated revenue of $119 million, EBITDA of $22 beta blocker under investigation for the treatment of million and net income of $22 million. glaucoma.
ANNOUNCEMENT DATE: January 4, 2010 PRICE: $7,500,000 PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: PRICE/INCOME:
This acquisition gives the buyer a glaucoma treatment candidate that may come to compete with timolol, but without that drug's unwelcome cardiovascular side-effects. The deal expands QLTI's ocular portfolio.
The Health Care M&A Report, First Quarter 2010 114 TARGET: Eden Biopharm Group ACQUIRER: Watson Pharmaceuticals, Inc. Limited LISTING: Private LISTING: NYSE: WPI LOCATION: Liverpool, England CEO: Paul M. Bisaro PHONE: 951-493-5300 UNITS: 311 Bonnie Circle FAX: 951-270-1096 REVENUE: Corona, California 92880 NET INCOME: WEB SITE: www.watsonpharm.com
Eden Biopharm Group, dba Eden Biodesign, is a Watson Pharmaceuticals develops, produces, markets and biopharma development and contract manufacturing distributes branded and off-patent pharmaceutical products. On a company. trailing 12-month basis, WPI generated revenue of $2.65 billion, EBITDA of $642 million and net income of $221 million.
ANNOUNCEMENT DATE: January 28, 2010 PRICE: $15,000,000 (approximate) PRICE PER UNIT: TERMS: For the remaining 64% interest. PRICE/REVENUE: PRICE/INCOME:
WPI acquired its initial 36% interest in Eden as part of its $1.75 billion acquisition of The Arrow Group in mid- 2009. Eden is to become part of WPI's global brands division and will help accelerate WPI's biologic programs.
TARGET: Excelsyn, Ltd. ACQUIRER: Albany Molecular Research, Inc.
LISTING: Private LISTING: NASDAQ: AMRI LOCATION: Holywell, Wales CEO: Thomas D'Ambra PHONE: 518-512-2000 UNITS: 26 Corporate Circle FAX: 518-512-2020 REVENUE: $15,000,000 Albany, New York 12203 NET INCOME: WEB SITE: www.albmolecular.com
Excelsyn provides chemical development and Albany Molecular Research is a drug discovery and development manufacturing services to the pharmaceutical company. On a trailing 12-month basis, AMRI generated revenue of industry. It generates annual revenue of $196 million, EBITDA of $18 million and a net loss of $16.7 approximately $15.0 million. million.
ANNOUNCEMENT DATE: February 18, 2010 PRICE: $19,000,000 PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: 1.27 PRICE/INCOME:
This acquisition expands AMRI's presence in Europe. Excision's manufacturing services include pre-clinical and phase 1-3 product development, as well as commercial manufacturing services for approved products.
The Health Care M&A Report, First Quarter 2010 115 TARGET: Generics collaboration ACQUIRER: Pfizer, Inc.
LISTING: BSE: 532531 LISTING: NYSE: PFE LOCATION: Bombay, India CEO: Jeffrey B. Kindler PHONE: 212-573-2323 UNITS: 235 East 42nd Street FAX: 212-573-7851 REVENUE: New York, New York 10017 NET INCOME: WEB SITE: www.pfizer.com
Strides Arcolab is entering into an agreement to Pfizer is the world's largest manufacturer of pharmaceuticals. On a supply off-patent sterile injectable and oral products trailing 12-month basis, PFE generated revenue of $45.8 billion, in the United States. This agreement involves 40 EBITDA of $21.3 billion and net income of $8.1 billion. off-patent products, many of which are oncology therapeutics.
ANNOUNCEMENT DATE: January 6, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
Under terms of this deal, the finished dosage forms will be supplied by Strides and two joint ventures it has with the South African company, Aspen. These products are to be marketed through PFE's established products business unit.
TARGET: Injectables manufacturing ACQUIRER: Strides Arcolab Ltd. facility LISTING: JSE: APNH LISTING: BSE: 532531 LOCATION: Campos, Brazil CEO: Arun Kumar PHONE: 91 080-66580000 UNITS: Bilekahalli, Bannerghatta Road FAX: REVENUE: $40,000,000 Bangalore, India 560 076 NET INCOME: WEB SITE: www.stridesarco.com
Aspen Group is selling its manufacturing facility in Strides Arcolab is one of India's largest exporters of pharmaceutical Campos, which manufactures penems and formulations, manufacturing ethical prescription and generic drugs, penicillin. The facility delivers USD $40 million on as well as nutraceuticals. In 2009, Strides generated revenue of Rs. an annualized basis. 13.3 billion and EBITDA of Rs. 2.1 billion.
ANNOUNCEMENT DATE: March 4, 2010 PRICE: $75,000,000 PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: 1.88 PRICE/INCOME:
This acquisition increases the buyer's manufacturing capacity for the Strides specialty injectable business. It will allow Strides to service the various licensing agreements for penems it has made with various customers worldwide.
The Health Care M&A Report, First Quarter 2010 116 TARGET: Instituto Terapeutico Delta ACQUIRER: Valeant Pharmaceuticals International Ltda LISTING: Private LISTING: NYSE: VRX LOCATION: Brazil CEO: J. Michael Pearson PHONE: 949-461-6000 UNITS: One Enterprise FAX: 949-461-6609 REVENUE: $19,000,000 Aliso Viejo, California 92656 NET INCOME: WEB SITE: www.valeant.com
The target is a privately held manufacturer of Valeant Pharmaceuticals is a pharma company involved in a range generic and over-the-counter drugs in Brazil. In of prescription and nonprescription drugs. On a trailing 12-month 2009, the target generated revenue of about $19.0 basis, it generated revenue of $830 million, EBITDA of $336 million. million and net income of $258 million.
ANNOUNCEMENT DATE: March 19, 2010 PRICE: $28,000,000 (approximate) PRICE PER UNIT: TERMS: $12 million upfront; two companies to PRICE/REVENUE: 1.47 share net profits. PRICE/INCOME:
The acquisition expands the buyer's presence in Brazil, as well as in the generic drug industry.
TARGET: Interest in ScinoPharm ACQUIRER: ScinoPharm Taiwan Ltd.
LISTING: NYSE: WPI LISTING: Private LOCATION: Morristown, New Jersey CEO: Jo Shen PHONE: 886-6-505-2888 UNITS: No.1, Nan-Ke 8th Road FAX: 886-6-505-2898 REVENUE: Shan-Hua, Taiwan 74144 NET INCOME: WEB SITE: www.scinopharm.com
Watson Pharmaceuticals is divesting its 31% ScinoPharm is a leading process R&D and API manufacturing interest in ScinoPharm Taiwan, a producer of active service provider to the global pharmaceutical industry. pharmaceutical ingredients, or APIs.
ANNOUNCEMENT DATE: March 2, 2010 PRICE: $94,000,000 PRICE PER UNIT: TERMS: For Watson's 31% interest. PRICE/REVENUE: PRICE/INCOME:
WPI acquired an initial equity interest in ScinoPharm in 2004 as part of its program to increase access to unique APIs. As the company has increased its own commitment to APIs, holding a stake in Scinopharm is now of less strategic value so the company is divesting its interest.
The Health Care M&A Report, First Quarter 2010 117 TARGET: LEAD Therapeutics, Inc. ACQUIRER: BioMarin Pharmaceutical, Inc.
LISTING: Private LISTING: NASDAQ: BMRN LOCATION: San Bruno, California CEO: Jean-Jacques PHONE: 415-506-6700 Bienaime UNITS: 105 Digital Drive FAX: 415-382-7889 REVENUE: Novato, California 94949 NET INCOME: WEB SITE: www.biomarinpharm.com
LEAD Therapeutics is a drug discovery company. BioMarin develops and commercializes biopharmaceuticals for Its key compound, LT-673, is an orally available serious diseases and medical conditions. On a trailing 12-month polymerase inhibitor for treating rare, genetically basis, BMRN generated revenue of $337 million, EBITDA of $63 defined cancers. million and net income of $19.5 million.
ANNOUNCEMENT DATE: February 4, 2010 PRICE: $97,000,000 PRICE PER UNIT: TERMS: Stock purchase agreement. $18 million PRICE/REVENUE: upfront. An additional $11 million on PRICE/INCOME: acceptance of IND filing. Up to an additional $68 million on development and launch milestones.
This acquisition enlarges BMRN's development pipeline of orphan therapeutics.
TARGET: License for antifungal ACQUIRER: Astellas Pharma, Inc. isavuconazole LISTING: SIX: BSLN LISTING: T: 4503 LOCATION: Basel, Switzerland CEO: Masafumi Nogimori PHONE: 81-3-3244-3000 UNITS: 2-3-11, Nihonbashi-Honcho FAX: Chuo-ku REVENUE: Tokyo, Japan 103-8411 NET INCOME: WEB SITE: www.astellas.com
Basilea Pharmaceutica is entering into a license, Astellas Pharma is Japan's second-largest drug manufacturer. For codevelopment and copromotion agreement for its the 12 months ended March 31, 2009, Astellas generated revenue of azole antifungal agent isavuconazole, which is in $9.9 billion and net income of $1.7 billion. phase 3 development for the treatment of life- threatening fungal infections.
ANNOUNCEMENT DATE: February 24, 2010 PRICE: $516,100,000 (approximate) PRICE PER UNIT: TERMS: CHF 75 million in upfront payment, up PRICE/REVENUE: to CHF 478 million in specific PRICE/INCOME: development and sales milestones. Tiered, double-digit royalties on net sales.
This deal permits the antifungal candidate to be developed for the hospital market on a global basis. This agreement also provides Basilea with sufficient funds to continue operating, after problems with its ceftobiprole antibiotic left the company short of cash and revenue.
The Health Care M&A Report, First Quarter 2010 118 TARGET: License for Xerese ACQUIRER: Meda AB
LISTING: STO: MVIR-B LISTING: STO: MEDAA LOCATION: Huddinge, Sweden CEO: Anders Lonner PHONE: 46 8 630 19 00 UNITS: Pipers Vag 2 A FAX: 46 8 6301950 REVENUE: Solna, Sweden SE-170 09 NET INCOME: WEB SITE: www.meda.se
Medvir AB is licensing Xerese, used for the topical Meda is a specialty pharma company that markets prescription and treatment of cold sores (herpes labialis). It contains OTC drugs and medical equipment in Nordic Europe. For 2009, a combination of the antiviral acyclovir and Meda generated revenue of SEK 13.2 billion and EBITDA of SEK hydrocortisone. The license covers certain North 4.4 billion. American territories.
ANNOUNCEMENT DATE: February 15, 2010 PRICE: $5,000,000 (approximate) PRICE PER UNIT: TERMS: $5 million in upfront and pre-launch PRICE/REVENUE: milestones. Double-digit royalties on PRICE/INCOME: sales.
Meda's exclusive rights cover the United States, Canada and Mexico. Xerese (formerly Lipsovir, ME-609) was approved by the FDA as a prescription drug during 2009.
TARGET: Mag-Ox line of supplements ACQUIRER: Hi-Tech Pharmacal, Co., Inc.
LISTING: Private LISTING: NASDAQ: HITK LOCATION: Fort Wright, Kentucky CEO: David Seltzer PHONE: 631-789-8228 UNITS: 369 Bayview Avenue FAX: 631-789-8429 REVENUE: $3,400,000 Amityville, New York 11701 NET INCOME: WEB SITE: www.hitechpharm.com
The Blaine Company, Inc. is selling its Mag-Ox line Hi-Tech Pharmacal is a specialty manufacturer and marketer of of magnesium nutritional supplements, including prescription, OTC and nutritional products. On a trailing 12-month rights to Mag-Ox, Maginex, Uro-Mag and Corben. basis, HITK generated revenue of $161 million, EBITDA of $44 In calendar year 2009, sales of these products million and net income of $30 million. generated revenue of $3.4 million.
ANNOUNCEMENT DATE: March 2, 2010 PRICE: $4,100,000 PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: 1.21 PRICE/INCOME:
The acquired brands are to be sold through HITK's health care products OTC division, expanding its product offerings.
The Health Care M&A Report, First Quarter 2010 119 TARGET: Mepha AG ACQUIRER: Cephalon, Inc.
LISTING: Private LISTING: NASDAQ: CEPH LOCATION: Aesch, Switzerland CEO: Frank Baldino, Jr. PHONE: 610-344-0200 UNITS: 41 Moores Road FAX: 610-738-6590 REVENUE: $377,000,000 Frazer, Pennsylvania 19355 NET INCOME: WEB SITE: www.cephalon.com
Mepha is a Swiss generic drug firm that Cephalon develops and markets products for treating sleep manufactures over 120 products in 50 countries. In disorders, neurological and psychiatric disorders, cancer and pain. 2009, it generated revenue of about $377 million. On a 12-month trailing basis, CEPH generated revenue of $2.2 billion, EBITDA of $703 million and net income of $281 million.
ANNOUNCEMENT DATE: February 1, 2010 PRICE: $588,000,000 (approximate) PRICE PER UNIT: TERMS: CHF 622.5 million. PRICE/REVENUE: 1.56 PRICE/INCOME:
This acquisition effectively doubles the size of CEPH's international operations. Mepha is owned by Germany's Merckle family, which has been attempting to rationalize its holdings, including Ratiopharm, in the wake of the recent financial crisis. Deutsche Bank Securities provided CEPH with financial advice on this deal.
TARGET: Neuropathic pain medicine ACQUIRER: Bristol-Myers Squibb, Inc. agreement LISTING: NYSE: AGN LISTING: NYSE: BMY LOCATION: Irvine, California CEO: Lamberto Andreotti PHONE: 212-546-4000 UNITS: 345 Park Avenue FAX: 212-546-4020 REVENUE: New York, New York 10154 NET INCOME: WEB SITE: www.bms.com
Allergan is granting exclusive worldwide rights to Bristol-Myers Squibb is a producer and distributor of consumer develop, manufacture and commercialize AGN- medicines, pharmaceuticals, nutritional, medical devices and beauty 209323 and backup compounds in phase 2 clinical care products. On a trailing 12-month basis, BMY generated development for the treatment of neuropathic pain. revenue of $18.8 billion, EBITDA of $5.8 billion and net income of $3.1 billion.
ANNOUNCEMENT DATE: March 3, 2010 PRICE: $413,000,000 PRICE PER UNIT: TERMS: $40 million in cash upfront; $373 PRICE/REVENUE: million in milestone payments. PRICE/INCOME: Royalties on worldwide sales.
This agreement covers all indications for these investigational candidates except ophthalmology indications for products formulated for local delivery to the eye, where AGN will retain certain rights. This deal expands BMY's pain management pipeline. The molecule was discovered as part of a collaboration between AGN and ExonHit Therapeutics SA.
The Health Care M&A Report, First Quarter 2010 120 TARGET: NuRx Pharmaceuticals, Inc. ACQUIRER: QuantRx Biomedical Corporation
LISTING: OTCBB: NUXP LISTING: OTCBB: QXTB LOCATION: Irvine, California CEO: Walter Witoshkin PHONE: 267-880-1595 UNITS: 100 South Main Street FAX: 267-880-1596 REVENUE: Doylestown, Pennsylvania 18901 NET INCOME: WEB SITE: www.quantrx.com
NuRx is a life sciences company with a strong R&D QuantRx Pharmaceuticals develops and commercializes products focus on oncology. For the year ended September for advanced diagnosis of serious disease. On a trailing 12-month 30, 2009, it generated a loss of $5.5 million. basis, QXTB generated revenue of $1.48 million and a net loss of $3.6 million.
ANNOUNCEMENT DATE: January 29, 2010 PRICE: $15,525,000 (approximate) PRICE PER UNIT: TERMS: Stock exchange. NuRx shareholders to PRICE/REVENUE: receive 1.54x of QXTB stock for each PRICE/INCOME: share of NUXP they own.
This merger is the outcome of a joint venture between the two companies entered into in July 2009. Following the closing, the combined company will focus on its point-of-care lateral flow diagnostic devices.
TARGET: Oncology collaboration ACQUIRER: Bayer Schering Pharma AG
LISTING: Private LISTING: DE: BAYGn LOCATION: San Diego, California CEO: Andreas Fibig PHONE: 49 30 468 1111 UNITS: Muellerstrasse 178 FAX: 49 30 468 15305 REVENUE: Berlin, Germany 13353 NET INCOME: WEB SITE: www.bayerscheringpharma.de
Prometheus Laboratories is entering into a research Bayer Schering Pharma is a specialty pharmaceutical company. For collaboration and license agreement to use its 2009, it generated revenue of Eur 31.2 billion, EBIT of $3.0 billion proprietary oncology diagnostic platform to develop and net income of Eur 1.4 billion. novel oncology therapeutic products.
ANNOUNCEMENT DATE: March 17, 2010 PRICE: $160,000,000 PRICE PER UNIT: TERMS: Upfront and milestone payments of up PRICE/REVENUE: to $160.0 million when all candidates PRICE/INCOME: are developed and receive regulatory approval.
This collaboration will use Prometheus' diagnostic platform in conjunction with Bayer's oncology pipeline in an effort to stratify patients to appropriate drug candidates. This marks a step forward in Bayer's goal of providing more personalized medicine, tailored to individual patients or groups. Prometheus' platform will help identify patients who will benefit most from drugs and design clinical trials.
The Health Care M&A Report, First Quarter 2010 121 TARGET: Oncology joint venture ACQUIRER: Strides Arcolab Ltd. stakes LISTING: JSE: APNH LISTING: BSE: 532531 LOCATION: Durban, South Africa CEO: Arun Kumar PHONE: 91 080-66580000 UNITS: Bilekahalli, Bannerghatta Road FAX: REVENUE: Bangalore, India 560 076 NET INCOME: WEB SITE: www.stridesarco.com
Aspen Group is selling its 50% joint venture Strides Arcolab is one of India's largest exporters of pharmaceutical interests in Onco Therapies, Ltd., India and Onco formulations, manufacturing ethical prescription and generic drugs, Laboratories Ltd., Cyprus. These joint ventures as well as nutraceuticals. In 2009, Strides generated revenue of Rs. have a portfolio of oncology drug candidates. 13.3 billion and EBITDA of Rs. 2.1 billion.
ANNOUNCEMENT DATE: March 18, 2010 PRICE: $117,000,000 (approximate) PRICE PER UNIT: TERMS: For the 50% interest it does not already PRICE/REVENUE: own. PRICE/INCOME:
As part of the deal, Strides will gain ownership of a key range of drugs in its specialty pharma business. The company has 40 oncology products in phase 1 of human trials and 16 in phase 2. It will also license the existing and future products to Aspen Group's Pharmacare unit in certain regions. The deal is to be financed through a combination of licensing revenue and bridge loans. Strides and Aspen began a series of joint ventures in 2007.
TARGET: Ophthalmic pharmaceutical ACQUIRER: Alcon, Inc. assets LISTING: Private LISTING: NYSE: ACL LOCATION: Tampa, Florida CEO: Kevin J. Buehler PHONE: 41 41 785 88 88 UNITS: Bosch 69 FAX: 41 41 785 88 87 REVENUE: Hunenberg, Switzerland 6331 NET INCOME: WEB SITE: www.alconinc.com
Sirion Therapeutics is selling Durezol, an Alcon is engaged in pharmaceuticals, surgical equipment and ophthalmic corticosteroid for treating inflammation devices, and consumer eye care products. On a trailing 12-month and pain, and Zirgan, an antiviral for treating basis, ACL generated revenue of $6.3 billion, EBITDA of $2.5 corneal ulcers. The buyer also obtained global billion and net income of $2 billion. rights, except in Latin America, for Zyclorin, a candidate to treat dry eye
ANNOUNCEMENT DATE: January 19, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
It is believed that this acquisition will incrementally add to the buyer's sales in the near term. J.P. Morgan Securities provided Sirion with financial advice on this deal.
The Health Care M&A Report, First Quarter 2010 122 TARGET: Orion Laboratories Pty. Ltd. ACQUIRER: The Perrigo Company
LISTING: Private LISTING: NASDAQ: PRGO LOCATION: Perth, Australia CEO: Joseph Papa PHONE: 269-673-8451 UNITS: 515 Eastern Ave. FAX: 269-673-7534 REVENUE: $30,000,000 Allegan, Michigan 49010 NET INCOME: WEB SITE: www.perrigo.com
Orion Laboratories supplies OTC store brand The Perrigo Company manufactures store brand OTC pharmaceutical products in Australia and New pharmaceutical products, as well as nutritional products. On a Zealand. It generates annual revenue of $30 million. trailing 12-month basis, PRGO generated revenue of $2.1 billion, EBITDA of $401 million and net income of $193 million.
ANNOUNCEMENT DATE: March 1, 2010 PRICE: $48,000,000 PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: 1.60 PRICE/INCOME:
This acquisition expands the buyer's global presence. PRGO recently closed on the sale of its Israeli consumer products business to Emilia Group; the proceeds from that divestiture will be used to fund the acquisition of Orion.
TARGET: Pharmacos Exakta, S.A. de ACQUIRER: OPKO Health, Inc. C.V. LISTING: Private LISTING: AMEX: OPK LOCATION: Guadalajara, Mexico CEO: Phillip Frost PHONE: 305-575-4100 UNITS: 4400 Biscayne Boulevard FAX: 305-575-6049 REVENUE: Miami, Florida 33137 NET INCOME: WEB SITE: www.opko.com
Pharmacos Exakta, S.A. de C.V. is a Mexican OPKO is a company focused on developing ophthalmologic drugs pharmaceutical company focused on ophthalmic and tests. On a trailing 12-month basis, it generated revenue of $7.8 and other pharmaceutical products. million and a net loss of $31 million.
ANNOUNCEMENT DATE: February 18, 2010 PRICE: $3,600,000 (approximate) PRICE PER UNIT: TERMS: $2.0 million in shares of OPK stock PRICE/REVENUE: (1,372,428 shares); $1.6 million in cash. PRICE/INCOME:
This acquisition expands the buyer's platform for manufacturing and distributing drugs while maintaining a focus on ophthalmologic diseases. It also enlarges OPK's presence in the Latin American market.
The Health Care M&A Report, First Quarter 2010 123 TARGET: PharmaForce, Inc. ACQUIRER: Daiichi Sankyo Co.
LISTING: Private LISTING: T: 4568 LOCATION: Columbus, Ohio CEO: Takashi Shoda PHONE: 813-6225-1111 UNITS: 3-5-1 Nihonbashi-honcho FAX: REVENUE: Tokyo, Japan 103-8426 NET INCOME: WEB SITE: www.daiichisankyo.com
PharmaForce is a specialty injectable Daiichi Sankyo Co. is currently Japan's second largest pharma pharmaceutical company. It owns three facilities, company by sales. For the year ended March 31, 2008, it generated one for sterile manufacturing, one for R&D and one revenue of Yen 880.1 billion, operating income of Yen 156.8 billion for API manufacturing. and net income of Yen 97.7 billion.
ANNOUNCEMENT DATE: January 8, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This transaction was carried out by Daiichi's subsidiary Luitpold Pharmaceuticals. This deal helps implement the buyer's strategy of diversifying its product portfolio, particularly into the generic injectables market. The deal closed effective December 29, 2009. Aquilo Partners provided Luitpold with financial advice on this deal; William Blair & Company provided PharmaForce with similar advice.
TARGET: Ratiopharm ACQUIRER: Teva Pharmaceutical Industries
LISTING: Private LISTING: NASDAQ: TEVA LOCATION: Ulm, Germany CEO: Shlomo Yanai PHONE: 972 3 926 7267 UNITS: 5 Basel Street FAX: 972 3 923 4050 REVENUE: $2,300,000,000 Petach Tikva, Israel 49131 NET INCOME: WEB SITE: www.tevapharm.com
Ratiopharm is Germany's second largest generic Teva Pharmaceutical is a leading generic pharmaceutical company. drug firm. The company sells about 750 medicines On a trailing 12-month basis, it generated revenue of $13 billion, for cardiovascular, respiratory, CNS and other EBITDA of $4 billion and net income of $953 billion. diseases. It generates annual revenue of about $2.3 billion.
ANNOUNCEMENT DATE: March 17, 2010 PRICE: $4,970,000,000 (approximate) PRICE PER UNIT: TERMS: Eur 3.63 billion. PRICE/REVENUE: 2.16 PRICE/INCOME:
This acquisition makes TEVA the second largest supplier of generic drugs in the world's second largest generic drugs market. Ratiopharm has an established presence throughout Europe. Commerzbank and Royal Bank of Scotland managed this sale; Goldman Sachs provided TEVA with financial advice.
The Health Care M&A Report, First Quarter 2010 124 TARGET: Regpara royalty rights ACQUIRER: DRI Capital, Inc.
LISTING: NASDAQ: NPSP LISTING: Private LOCATION: Bedminster, New Jersey CEO: Behzad PHONE: 416-863-1865 Khosrowshahi UNITS: 22 St. Clair Ave. East, Ste. 200 FAX: 416-863-5161 REVENUE: Toronto, Ontario M4T 2S5 NET INCOME: WEB SITE: www.drugroyalty.com
NPS Pharmaceuticals is selling the royalty rights DRI Capital, fka Drug Royalty Corp., is an investment management from sales of Regpara (cinaclcet HCI). Japan has company, focused on health care, with over $1.2 billion under approved the drug for the treatment of patients with management. secondary hyperparathyroidism during dialysis therapy.
ANNOUNCEMENT DATE: March 2, 2010 PRICE: $38,400,000 PRICE PER UNIT: TERMS: Sale of royalties. PRICE/REVENUE: PRICE/INCOME:
NPS Pharmaceuticals is retaining cumulative royalties of $96 million. However, this deal allows NPS to access significant capital that will be used to support two of the company's registration programs without diluting its capital stock.
TARGET: Remaining interest in SSP ACQUIRER: Boehringer Ingelheim GmbH Co. Ltd. LISTING: T: 4537 LISTING: Private LOCATION: Tokyo, Japan CEO: Andreas Barner PHONE: 49/6132/77 0 UNITS: Binger Str. 173 FAX: 49/6132/72 0 REVENUE: $412,500,000 Ingelheim, Germany 55216 NET INCOME: WEB SITE: www.boehringer-ingelheim.com
SSP Co. manufactures and sells over-the-counter Boehringer Ingelheim is a major pharmaceutical company. For drugs, including vitamins and cold tablets. It 2008, it generated revenue of Eur 11.6 billion, EBIT of Eur 2.0 generates annual revenue of about $412.5 million. billion and income after tax of Eur 1.4 billion.
ANNOUNCEMENT DATE: February 10, 2010 PRICE: $913,000,000 (approximate) PRICE PER UNIT: TERMS: For the 40% interest it does not already PRICE/REVENUE: 2.21 own. Yen 710 per share. PRICE/INCOME:
The acquisition gives Boehringer a 100% interest in the target company, and expands its consumers drug business worldwide. It also allows Boehringer to expand in the world's second-largest pharmaceutical market. This deal represents a 34% premium to SSP's prior-day price. Boehringer began buying shares of SSP in 1996, when it acquired a 9.2% interest in the company; its stake expanded above 50% in 2001.
The Health Care M&A Report, First Quarter 2010 125 TARGET: Rigel arthritis drug ACQUIRER: AstraZeneca plc
LISTING: NASDAQ: RIGL LISTING: NYSE: AZN LOCATION: S. San Francisco, California CEO: David Brennan PHONE: 44 20 7304 5000 UNITS: 15 Stanhope Gate FAX: 44 20 7304 5151 REVENUE: London, England W1K 1LN NET INCOME: WEB SITE: www.astrazeneca.com
Rigel Pharmaceuticals is licensing R788, or AstraZeneca is a global pharmaceutical company. On a trailing 12- fostamatinib disodium, a potential treatment for month basis, AZN generated revenue of $32.8 billion, EBITDA of arthritis. The drug has completed midstage studies. $14.9 billion and net income of $7.5 billion.
ANNOUNCEMENT DATE: February 16, 2010 PRICE: $1,245,000,000 (approximate) PRICE PER UNIT: TERMS: $100 million in an upfront payment; PRICE/REVENUE: $345 million in milestone payments; up PRICE/INCOME: to $800 million in payments based on future sales.
Under terms of the deal, AZN will be responsible for all development, regulatory filings and commercialization activities. The global rheumatoid arthritis market for 2009 is believed to have been about $13.0 billion. This deal will enhance AZN's ability to tap this market. The buyer also receives exclusive rights to RIGL's portfolio of oral Syk inhibitors, as well as for additional indications for fostamatinib disodium beyond rheumatoid arthritis.
TARGET: Rights for oral Laquinimod ACQUIRER: Teva Pharmaceutical Industries
LISTING: OMX: ACTI LISTING: NASDAQ: TEVA LOCATION: Lund, Sweden CEO: Shlomo Yanai PHONE: 972 3 926 7267 UNITS: 5 Basel Street FAX: 972 3 923 4050 REVENUE: Petach Tikva, Israel 49131 NET INCOME: WEB SITE: www.tevapharm.com
Active Biotech is granting fuller marketing and Teva Pharmaceutical is a leading generic pharmaceutical company. distribution rights for oral Laquinimod in the Nordic On a trailing 12-month basis, it generated revenue of $13 billion, and Baltic countries. Laquinimod is an EBITDA of $4 billion and net income of $953 billion. investigational treatment for relapse-remitting multiple sclerosis.
ANNOUNCEMENT DATE: February 8, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: A higher royalty rate. PRICE/REVENUE: PRICE/INCOME:
This deal provides for a higher royalty rate in the relevant territories compared to the royalty rate set under the original licensing agreement signed in 2004 for sales in the rest of the world.
The Health Care M&A Report, First Quarter 2010 126 TARGET: Rights to AZ-004 treatment ACQUIRER: Biovail Corporation of agitation LISTING: NASDAQ: ALXA LISTING: NYSE: BVF LOCATION: Mountain View, California CEO: William M. Wells PHONE: 905-286-3000 UNITS: 7150 Mississauga Rd. FAX: 905-286-3050 REVENUE: Mississauga, Ontario L5N 8M5 NET INCOME: WEB SITE: www.biovail.com
Alexza Pharmaceuticals is entering into an Biovail applies its proprietary drug delivery technologies to the agreement to develop and commercialize AZ-004 development and manufacture of drug products for treatment of (Staccato loxapine) in the U.S. and Canada. AZ-004 major chronic conditions. On a trailing 12-month basis, BVF is an inhalation product candidate for treating generated revenue of $761 million, EBITFDA of $360 million and agitation in patients with schizophrenia and bipolar net income of $224 million. disorder.
ANNOUNCEMENT DATE: February 10, 2010 PRICE: $130,000,000 PRICE PER UNIT: TERMS: $40 million upfront; up to $90 million in PRICE/REVENUE: acquisition, regulatory and PRICE/INCOME: commercialization milestones. Tiered royalty payments of between 10% and 25% on sales.
This collaboration develops AZ-004 using ALZA's proprietary technology, the Staccato system. The deal is being carried out by BVF subsidiary, Biovail Laboratories International SRL. Biovail will lead the commercialization efforts while ALXA will continue to manage the ongoing review and approval process for AZ-004, which has completed phase 1 testing and one phase 2a proof-of-concept clinical trial.
TARGET: Rights to Nuprin ACQUIRER: SCOLR Pharma, inc.
LISTING: NYSE: CVS LISTING: AMEX: DDD LOCATION: Woonsocket, Rhode Island CEO: Stephen J. Turner PHONE: 425-368-1050 UNITS: 19204 North Creek Parkway FAX: 425-368-1051 REVENUE: Bothell, Washington 98011 NET INCOME: WEB SITE: www.scolr.com
Advanced Healthcare Distributors, an affiliate of SCOLR Pharma, Inc. develops and formulates prescription, over- CVS Caremark Corp, is selling the rights to the the-counter and nutritional products. On a trailing 12-month basis, it Nuprin name in connection with sales of ibuprofen. generated revenue of $841,000 and a net loss of $8 million.
ANNOUNCEMENT DATE: March 16, 2010 PRICE: $180,000 PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: PRICE/INCOME:
Acquisition of this well-recognized name will expand DDD's opportunities for ibuprofen-based products. Management expects this will allow the company to generate near-term sales of immediate release 200 mg ibuprofen tablets.
The Health Care M&A Report, First Quarter 2010 127 TARGET: Rights to Prialt ACQUIRER: Azur Pharma Limited
LISTING: NYSE: ELN LISTING: Private LOCATION: Dublin, Ireland CEO: Seamus Mulligan PHONE: 353-1-6344-183 UNITS: 45 Fitzwilliam Square FAX: 353-1-6344-170 REVENUE: $20,000,000 (U.S. sales) Dublin, Ireland 2 NET INCOME: WEB SITE: www.azurpharma.com
Elan Corp is selling the rights to its chronic Azur Pharma is a therapeutically focused pharmaceutical company. painkiller Prialt in all markets except Europe. Prialt In June 2005, it completed a private placement of $50 million. generates 2009 U.S. sales of $20 million. Patents covering Prialt expire in 2016.
ANNOUNCEMENT DATE: March 11, 2010 PRICE: (approximate) PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's pain medication franchise. Azur will also employ 34 persons in a specialty pharmaceutical infrastructure, which is currently supporting Prialt at Elan.
TARGET: Rights to progesterone gel ACQUIRER: Watson Pharmaceuticals, Inc. products LISTING: Private LISTING: NYSE: WPI LOCATION: Livingston, New Jersey CEO: Paul M. Bisaro PHONE: 951-493-5300 UNITS: 311 Bonnie Circle FAX: 951-270-1096 REVENUE: Corona, California 92880 NET INCOME: WEB SITE: www.watsonpharm.com
Columbia Laboratories is selling the U.S. rights to Watson Pharmaceuticals develops, produces, markets and crinone and prochieve, two bioadhesive distributes branded and off-patent pharmaceutical products. On a progesterone gel products for indications of trailing 12-month basis, WPI generated revenue of $2.65 billion, infertility and secondary amenorrhea. EBITDA of $642 million and net income of $221 million.
ANNOUNCEMENT DATE: March 4, 2010 PRICE: $92,500,000 PRICE PER UNIT: TERMS: $47.0 million in an upfront payment. PRICE/REVENUE: Milestone payments of up to $45.5 PRICE/INCOME: million for a new indication for the drugs.
Under terms of the transaction, WPI will also receive 11.2 million shares of Columbia stock. The two companies are to collaborate in the ongoing phase 3 development program toward a new indication for these products for the prevention of preterm birth in women with a short cervix.
The Health Care M&A Report, First Quarter 2010 128 TARGET: Rights to Proleukin ACQUIRER: Prometheus Laboratories, Inc.
LISTING: NYSE: NVS LISTING: Private LOCATION: Basel, Switzerland CEO: Joseph M. Limber PHONE: 858-824-0895 UNITS: 9410 Carroll Park Drive FAX: 858-535-2193 REVENUE: $75,000,000 San Diego, California 92121 NET INCOME: WEB SITE: www.prometheuslabs.com
Novartis AG is granting the right to distribute, Prometheus Labs is a specialty pharma company that focuses on promote and sell Proleukin in the United States. The management of autoimmune and gastrointestinal diseases and drug is a recombinant human interleukin-2 for the disorders. For the nine months ended September 30, 2009, the treatment of metastatic melanoma and metastatic company generated revenue of $257.8 million and net income of kidney cancer. It generated 2009 U.S. sales of $75.0 $28.3 million. million.
ANNOUNCEMENT DATE: January 26, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Initial six-year term. Upfront fee. PRICE/REVENUE: Royalties on net sales of Proleukin in PRICE/INCOME: the U.S.
This deal helps the buyer enter the oncology market. A portion of the proceeds from Prometheus' $260 million senior secured credit facility was used to finance this transaction.
TARGET: Rights to Refissa skin cream ACQUIRER: Valeant Pharmaceuticals International
LISTING: Private LISTING: NYSE: VRX LOCATION: Fort Myers, Florida CEO: J. Michael Pearson PHONE: 949-461-6000 UNITS: One Enterprise FAX: 949-461-6609 REVENUE: $5,000,000 Aliso Viejo, California 92656 NET INCOME: WEB SITE: www.valeant.com
Spear Pharmaceuticals is granting Valeant Pharmaceuticals is a pharma company involved in a range commercialization rights for Refissa, a prescription- of prescription and nonprescription drugs. On a trailing 12-month based topical cream used to diminish fine wrinkles basis, it generated revenue of $830 million, EBITDA of $336 and fade irregular pigmentation due to sun damage. million and net income of $258 million. It had 2009 sales of $5.0 million.
ANNOUNCEMENT DATE: March 1, 2010 PRICE: $12,000,000 PRICE PER UNIT: TERMS: $12 million upfront; two companies to PRICE/REVENUE: 2.40 share net profits. PRICE/INCOME:
The acquisition of these rights allows Valeant Pharmaceuticals to diversify its existing portfolio of dermatology products.
The Health Care M&A Report, First Quarter 2010 129 TARGET: Rights to the i-pill ACQUIRER: Piramal Healthcare Ltd.
LISTING: BO: CIPL LISTING: BO: PIRA LOCATION: Mumbai, India CEO: Ajay Piramal PHONE: 91-22-3953-6666 UNITS: Goregaon Muland Link Rd. FAX: REVENUE: $6,853,000 Mumbai, India 400 080 NET INCOME: WEB SITE: www.nicholaspiramal.com
Cipla Ltd. is selling the rights to the emergency Piramal Healthcare is a pharmaceutical manufacturer whose product contractive i-pill, a generic drug. This drug portfolio spans nine therapeutics areas. For the quarter ended generates annual revenue of Rs. 310 million. December 31, 2009, Piramal generated revenue of Rs. 9.1 billion and net profit of Rs. 1.4 billion.
ANNOUNCEMENT DATE: March 23, 2010 PRICE: $21,000,000 (approximate) PRICE PER UNIT: TERMS: Rs. 950 million. PRICE/REVENUE: 3.06 PRICE/INCOME:
This acquisition expands the buyer's presence within the generic drug market. The acquisition is to be funded through internal accruals and short-term loans. Kodak Investment Banking advised Cipla in the deal.
The Health Care M&A Report, First Quarter 2010 130 PHYSICIAN MEDICAL GROUPS
FIRST QUARTER 2010 PHYSICIAN MEDICAL GROUP TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
Anesthetix Management LLC Palm Beach Gardens Florida TeamHealth Knoxville Tennessee 1/9/10 Arizona Medical Services, PC Tucson Arizona IPC-The Hospitalist Co. North Hollywood California 2/5/10 $1,341,000 Austin Heart Austin Texas St. David's HealthCare Partnership, LP Austin Texas 1/1/10 Carle Clinic Association Urbana Illinois Carle Foundation Hospital Urbana Illinois 3/2/10 $250,000,000 Idaho Falls neonatal practice Idaho Falls Idaho Mednax, Inc. Sunrise Florida 2/25/10 $8,436,000 Maryland Perinatal Associates, PC Rockville Maryland Mednax, Inc. Sunrise Florida 3/11/10 $16,872,000 NEA Clinic Jonesboro Arkansas Baptist Memorial Health Care Corp. Memphis Tennessee 1/21/10 Physicians Integrated Medical Group Brisbane California Hill Physicians Medical Group, Inc. San Ramon California 3/15/10 Shreveport neonatal practice Shreveport Louisiana Mednax, Inc. Sunrise Florida 2/1/10 $12,654,000 Southwest Emergency Physicians Salem Virginia Team Health Holdings, Inc. Knoxville Tennessee 3/22/10 Spokane neonatal practice Spokane Washington Mednax, Inc. Sunrise Florida 2/1/10 $8,436,000
TARGET: Anesthetix Management ACQUIRER: TeamHealth LLC LISTING: Private LISTING: NYSE: TMH LOCATION: Palm Beach Gardens, Florida CEO: Greg Roth PHONE: 865-693-1000 UNITS: 180 (providers) 1900 Winston Road FAX: 865-539-3073 REVENUE: $53,000,000 Knoxville, Tennessee 37919 NET INCOME: WEB SITE: www.teamhealth.com
Anesthetix Management provides anesthesiology TeamHealth provides outsourced physician staffing and and pain management services to hospitals and administrative services to hospitals and other health care providers. surgery centers in 10 states. It has 180 providers. On a trailing 12-month basis, it generated revenue of $2.4 billion, For the year ended September 30, 2009, the EBITDA of $148 million and net income of $50 million. company reported revenue of $53 million.
ANNOUNCEMENT DATE: January 9, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's capacity to provide anesthesiology services to its client base. This deal closed effective December 31, 2009.
TARGET: Arizona Medical Services, ACQUIRER: IPC-The Hospitalist Co. PC LISTING: Private LISTING: NASDAQ: IPCM LOCATION: Tucson, Arizona CEO: Adam Singer PHONE: 888- 447-2362 UNITS: 4605 Lankershim Boulevard FAX: 818-766-3999 REVENUE: North Hollywood, California 91602 NET INCOME: WEB SITE: www.hospitalist.com
Arizona Medical Services, dba Old Pueblo Medical IPC provides management services to hospitalists. On a trailing 12- Consultants, is a group practice that provides month basis, IPCM generated revenue of $297 million, EBITDA of hospitalist services. Practicing at 22 skilled nursing $31 million and net income of $18 million. and four assisted living facilities, it generates over 30,000 patient encounters annually.
ANNOUNCEMENT DATE: February 5, 2010 PRICE: $1,341,000 PRICE PER UNIT: TERMS: Initial consideration of $1.341 million in PRICE/REVENUE: cash. Contingent payments based on PRICE/INCOME: certain future operating results also possible.
This acquisition expands the buyer's existing presence in the Tucson market, adding several senior care facilities to its customer base.
The Health Care M&A Report, First Quarter 2010 135 TARGET: Austin Heart ACQUIRER: St. David's HealthCare Partnership, LP
LISTING: Private LISTING: Nonprofit LOCATION: Austin, Texas CEO: Jon Foster PHONE: 512-708-9700 UNITS: 43 (physicians) 98 San Jacinto Blvd., Ste. 1800 FAX: 512-482-4126 REVENUE: Austin, Texas 78701 NET INCOME: WEB SITE: www.stdavids.com
Austin Heart is a physician medical group St. David's Health Network and HCA operate St. David's specializing in cardiovascular disease. The HealthCare Partnership, which operates 24 care centers in central practice's 43 physicians provide services in the Texas, including five acute care hospitals with over 1,100 beds. Austin market.
ANNOUNCEMENT DATE: January 1, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition is a prelude to St. David's purchase of Heart Hospital of Austin from MedCath. Austin Heart is a founding member and shareholder of the specialty hospital.
TARGET: Carle Clinic Association ACQUIRER: Carle Foundation Hospital
LISTING: Private LISTING: Nonprofit LOCATION: Urbana, Illinois CEO: James Leonard PHONE: 217-383-3311 UNITS: 340 (physicians) 611 W. Park Street FAX: REVENUE: Urbana, Illinois 61801 NET INCOME: WEB SITE: www.carle.org
Carle Clinic Association is a 340-physician medical Carle Foundation Hospital is a 279-bed acute care facility. group. Included is a subsidiary health plan with 320,000 enrollees, Health Alliance Medical Plan.
ANNOUNCEMENT DATE: March 2, 2010 PRICE: $250,000,000 PRICE PER UNIT: $735,294 TERMS: To be financed with a $82.8 million PRICE/REVENUE: bond issue and a promissory note for the PRICE/INCOME: balance.
This combination creates a physician-led integrated delivery system in mid-Illinois. This deal closed April 1, 2010 after receiving CON approval in early March.
The Health Care M&A Report, First Quarter 2010 136 TARGET: Idaho Falls neonatal ACQUIRER: Mednax, Inc. practice LISTING: Private LISTING: NYSE: MD LOCATION: Idaho Falls, Idaho CEO: Roger J. Medel PHONE: 954-384-0175 UNITS: 2 (physicians) 1301 Concord Terrace FAX: 954-838-9961 REVENUE: Sunrise, Florida 33323 NET INCOME: WEB SITE: www.mednax.com
The target is a two-physician group practice Mednax is a national practice for neonatal, maternal-fetal, pediatric specializing in neonatology. It staffs the Level III and anesthesiology specialties. On a trailing 12-month basis, MD NICU at Eastern Idaho Regional Medical Center. generated revenue of $1.3 billion, EBITDA of $305 million and net Annual NICU patient volume exceeds 4,000 patient income of $176 million. days.
ANNOUNCEMENT DATE: February 25, 2010 PRICE: $8,436,000 (apportioned) PRICE PER UNIT: $4,218,000 TERMS: Cash PRICE/REVENUE: PRICE/INCOME:
The physicians will practice as part of MD's Pediatrix Medical Group. This acquisition gives MD the only neonatal practice in southeastern Idaho. This is one of four practices MD acquired for a combined total of $46.4 million, consisting of $37.4 million in cash and $9.0 million of contingent consideration. That amount has been apportioned among the four deals in proportion to the number of physicians in each practice.
TARGET: Maryland Perinatal ACQUIRER: Mednax, Inc. Associates, PC LISTING: Private LISTING: NYSE: MD LOCATION: Rockville, Maryland CEO: Roger J. Medel PHONE: 954-384-0175 UNITS: 4 (physicians) 1301 Concord Terrace FAX: 954-838-9961 REVENUE: Sunrise, Florida 33323 NET INCOME: WEB SITE: www.mednax.com
Maryland Perinatal Associates is a four-physician Mednax is a national practice for neonatal, maternal-fetal, pediatric group practice specializing in maternal-fetal and anesthesiology specialties. On a trailing 12-month basis, MD medicine. Services are provided from four offices, generated revenue of $1.3 billion, EBITDA of $305 million and net and the practice has relationships with four area income of $176 million. hospitals.
ANNOUNCEMENT DATE: March 11, 2010 PRICE: $16,872,000 (apportioned) PRICE PER UNIT: $4,218,000 TERMS: Cash. See below for details of PRICE/REVENUE: apportionment. PRICE/INCOME:
This acquisition expands the buyer's network of maternal-fetal medicine providers in the Maryland and northern Virginia market. The hospitals with which Maryland Perinatal has relationships are in Rockville, Frederick, Silver Spring and Takoma Park. This is one of four practices MD acquired for a combined total of $46.4 million, consisting of $37.4 million in cash and $9.0 million of contingent consideration. That amount has been apportioned among the four deals in proportion to the number of physicians in each practice.
The Health Care M&A Report, First Quarter 2010 137 TARGET: NEA Clinic ACQUIRER: Baptist Memorial Health Care Corp.
LISTING: Private LISTING: Nonprofit LOCATION: Jonesboro, Arkansas CEO: Stephen C. Reynolds PHONE: UNITS: 90 (physicians) 350 North Humphreys Blvd. FAX: REVENUE: Memphis, Tennessee 38120 NET INCOME: WEB SITE: www.baptistonline.org
NEA Clinic is a physician medical group practice Baptist Memorial operates 15 hospitals in Arkansas, Mississippi and with over 90 physicians. The Clinic owns a 40% Tennessee. stake in Northeast Arkansas (NEA) Baptist Memorial Hospital, a 100-bed acute care facility. It is the largest physician-owned clinic in the state.
ANNOUNCEMENT DATE: January 21, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
The buyer and target have been 60-40 joint venture partners in NEA Hospital; the buyer acquired its 60% interest from Community Health Systems in 2007. The physician group is to be renamed NEA Baptist Clinic and will convert to not-for-profit status. This deal helps to integrate physicians and acute care services in the local Jonesboro market.
TARGET: Physicians Integrated ACQUIRER: Hill Physicians Medical Group, Inc. Medical Group LISTING: Private LISTING: Private LOCATION: Brisbane, California CEO: Steve McDermott PHONE: 800-445-5747 UNITS: 500 (physicians) 2409 Camino Ramon FAX: REVENUE: San Ramon, California 94583 NET INCOME: WEB SITE: www.hillphysicians.com
Physicians Integrated Medical Group (PIMG) is a Hill Physicians Medical Group is an IPA with 3,000 physicians who 500-physician IPA, whose doctors practice in San practice in the Bay Area, the Sacramento region and the Central Francisco and San Mateo counties. Valley. It serves approximately 300,000 HMO enrollees. For 2008, it generated revenue of $420.6 million and a net loss of $4.4 million.
ANNOUNCEMENT DATE: March 15, 2010 PRICE: Merger PRICE PER UNIT: TERMS: Merger PRICE/REVENUE: PRICE/INCOME:
Under terms of this deal, PIMG would suspend independent operations by mid-2010, allowing for an orderly transition into Hill. A majority of PIMG physicians already have some form of affiliation with Hill so the combination of the two organizations should be a smooth one.
The Health Care M&A Report, First Quarter 2010 138 TARGET: Shreveport neonatal ACQUIRER: Mednax, Inc. practice LISTING: Private LISTING: NYSE: MD LOCATION: Shreveport, Louisiana CEO: Roger J. Medel PHONE: 954-384-0175 UNITS: 3 (physicians) 1301 Concord Terrace FAX: 954-838-9961 REVENUE: Sunrise, Florida 33323 NET INCOME: WEB SITE: www.mednax.com
The target is a three-physician group practice Mednax is a national practice for neonatal, maternal-fetal, pediatric specializing in neonatology. It staffs the NICU at and anesthesiology specialties. On a trailing 12-month basis, MD Christus Schumpert Sutton Children's Medical generated revenue of $1.3 billion, EBITDA of $305 million and net Center. Annual patient volume is 11,000 patient income of $176 million. days.
ANNOUNCEMENT DATE: February 1, 2010 PRICE: $12,654,000 (apportioned) PRICE PER UNIT: $4,218,000 TERMS: Cash PRICE/REVENUE: PRICE/INCOME:
This acquisition expands Mednax's presence in the Louisiana neonatal care market. This is one of four practices MD acquired for a combined total of $46.4 million, consisting of $37.4 million in cash and $9.0 million of contingent consideration. That amount has been apportioned among the four deals in proportion to the number of physicians in each practice.
TARGET: Southwest Emergency ACQUIRER: Team Health Holdings, Inc. Physicians LISTING: Private LISTING: NYSE: TMH LOCATION: Salem, Virginia CEO: Greg Roth PHONE: 865-693-1000 UNITS: 1900 Winston Road FAX: 865-539-8052 REVENUE: Knoxville, Tennessee 37919 NET INCOME: WEB SITE: www.teamhealth.com
Southwest Emergency Physicians manages and Team Health is a provider of hospital-based physician services. It staffs the emergency department at 521-bed Lewis- serves 530 locations in 48 states. On a trailing 12-month basis, Gale Medical Center. TMH generated revenue of $2.4 billion, EBITDA of $156 million and income of $41 million.
ANNOUNCEMENT DATE: March 22, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's presence in the Virginia hospitalist and emergency services market.
The Health Care M&A Report, First Quarter 2010 139 TARGET: Spokane neonatal practice ACQUIRER: Mednax, Inc.
LISTING: Private LISTING: NYSE: MD LOCATION: Spokane, Washington CEO: Roger J. Medel PHONE: 954-384-0175 UNITS: 2 (physicians) 1301 Concord Terrace FAX: 954-838-9961 REVENUE: Sunrise, Florida 33323 NET INCOME: WEB SITE: www.mednax.com
The target is a two-physician group practice Mednax is a national practice for neonatal, maternal-fetal, pediatric specializing in neonatology. It provides neonatal and anesthesiology specialties. On a trailing 12-month basis, MD and well-baby care at Providence Sacred Heart generated revenue of $1.3 billion, EBITDA of $305 million and net Medical Center. income of $176 million.
ANNOUNCEMENT DATE: February 1, 2010 PRICE: $8,436,000 (apportioned) PRICE PER UNIT: $4,218,000 TERMS: Cash. See below for apportionment. PRICE/REVENUE: PRICE/INCOME:
The two physicians in the target practice will join MD's existing group of five neonatologists in Spokane, who also staff a local NICU. This is one of four practices MD acquired for a combined total of $46.4 million, consisting of $37.4 million in cash and $9.0 million of contingent consideration. That amount has been apportioned among the four deals in proportion to the number of physicians in each practice.
The Health Care M&A Report, First Quarter 2010 140 REHABILITATION
FIRST QUARTER 2010 REHABILITATION TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
HealthSouth Rehabilitation Hospital Baton Rouge Louisiana Baton Rouge Rehabilitation Hospital, LLC Slidell Louisiana 1/7/10 Physical therapy group U. S. Physical Therapy, Inc. Houston Texas 3/1/10 $9,000,000
TARGET: HealthSouth Rehabilitation ACQUIRER: Baton Rouge Rehabilitation Hospital, Hospital LLC
LISTING: NYSE: HLS LISTING: Private LOCATION: Baton Rouge, Louisiana CEO: PHONE: UNITS: 80 (beds) FAX: REVENUE: $9,400,000 Slidell, Louisiana NET INCOME: WEB SITE:
HealthSouth is selling 80-bed HealthSouth Baton Rouge Rehabilitation Hospital, LLC operates an acute Rehabilitation Hospital of Baton Rouge. In 2008, it rehabilitation hospital. generated net patient revenue of $9.4 million and a net loss of $789,000.
ANNOUNCEMENT DATE: January 7, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
With overbedding in the local rehab hospital market, HLS decided to monetize this asset and redeploy the capital elsewhere. The buyer made an unsolicited offer to buy the facility, and HLS accepted.
TARGET: Physical therapy group ACQUIRER: U. S. Physical Therapy, Inc.
LISTING: Private LISTING: NASDAQ: USPH LOCATION: CEO: Christopher J. PHONE: 713-297-7000 Reading UNITS: 58,000 (patient visits) 1300 W. Sam Houston Parkway FAX: 713-297-7090 REVENUE: $6,900,000 Houston, Texas 77042 NET INCOME: WEB SITE: www.usph.com
The target is an outpatient physical therapy practice U.S. Physical Therapy operates 264 outpatient physical and with five clinics. The practice sees approximately occupational therapy clinics in 35 states. On a trailing 12-month 58,000 patient visits each year, and generates over basis, USPH generated revenue of $199 million, EBITDA of $34 $6.9 million in annual revenue. million and net income of $11.7 million.
ANNOUNCEMENT DATE: March 1, 2010 PRICE: $9,000,000 PRICE PER UNIT: $155 TERMS: For a 70% interest. $8.8 million in cash, PRICE/REVENUE: 1.30 $200,000 in seller notes. PRICE/INCOME:
This acquisition expands the buyer's network of outpatient clinics. The deal was financed with borrowings under USPH's revolving credit facility and a seller note. The price paid implies a purchase price of $12.86 million for a 100% interest in the target business.
The Health Care M&A Report, First Quarter 2010 145
OTHER
FIRST QUARTER 2010 OTHER TRANSACTIONS
TARGET CITY STATE ACQUIRER CITY STATE DATE PRICE
Ambea Sweden Triton London England 2/23/10 $1,160,000,000 Amerifit Brands, Inc. New York New York Martek Biosciences Corporation Columbia Maryland 1/21/10 $200,000,000 Area surgery center Sonora California Sonora Regional Medical Center Sonora California 3/1/10 Bridge Laboratories China Beijing China Pharmaron, Inc. Irvine California 1/11/10 Center for Surgical Excellence Roanoke Virginia Fairlawn Surgery Center, LLC Roanoke Virginia 2/1/10 Cherry Hill Health Care Associates, P.A. Pennsauken New Jersey Concentra Health Services, Inc. Addison Texas 3/2/10 Colorado dental practice Denver Colorado Birner Dental Management Services, Inc. Denver Colorado 1/4/10 $620,000 Critical Homecare Solutions Conshohocken Pennsylvania BioScrip, Inc. Elmsford New York 1/25/10 $358,000,000 DNA Direct San Francisco California Medco Health Solutions, Inc. Franklin Lakes New Jersey 2/2/10 $19,400,000 First quarter acquisitions Several states AmSurg Corporation Nashville Tennessee 3/31/10 $27,675,000 Massage Envy, LLC Scottsdale Arizona Sentinel Capital Partners New York New York 1/4/10 Medifacts International, Inc. Rockville Maryland RadPharm, Inc. Princeton New Jersey 2/11/10 National Vascular Care, Inc. Rosemont Pennsylvania Fresenius Medical Care Bad Homburg Germany 3/4/10 Net-Rx Vancouver Washington Managed Health Care Associates, Inc. Florham Park New Jersey 1/5/10 Nutritional business Waltham Massachusetts International Vitamin Corporation Freehold New Jersey 1/19/10 $63,400,000 OSR Solutions, Inc. Monmouth Junction New Jersey Laxai Pharma, Ltd. Tampa Florida 3/11/10 $3,600,000 Pharma services unit Toronto Ontario Ricerca Biosciences, LLC Concord Ohio 2/10/10 $45,000,000 Psychiatrists Only, LLC Atlanta Georgia TeamHealth Knoxville Tennessee 1/5/10 Ramsey Salem DDS Jacksonville Florida Great Expressions Dental Centers, Inc. Bloomfield Hills Michigan 3/23/10 Six dental practices Four States Heartland Dental Care, Inc. Effingham Illinois 3/31/10 Southwest Community Health Center Houston Texas Legacy Community Health Services Houston Texas 2/3/10 stellacure GmbH Hamburg Germany Cord Blood America, Inc. Las Vegas Nevada 3/25/10 $680,000 Surgery Partners Holdings, LLC Tampa Florida H.I.G. Capital, LLC Miami Florida 1/7/10 Three Tucson medical centers Tucson Arizona U.S. HealthWorks Valencia California 2/22/10 Trustaff Management, Inc. Cincinnati Ohio Medical Connections Holdings, Inc. Boca Raton Florida 3/12/10 $26,690,000 Wellness, Inc. Aurora Illinois OptumHealth Golden Valley Minnesota 2/25/10
TARGET: Ambea ACQUIRER: Triton
LISTING: LSE: LISTING: Private LOCATION: Sweden CEO: PHONE: 440 207 297 6150 UNITS: 105 Piccadilly, 5th fl. FAX: 440 207 297 6189 REVENUE: $1,000,000,000 London, England W1J 7NJ NET INCOME: $86,200,000 (EBITA) WEB SITE: www.triton-partners.org
3i Group is selling its 75% interest in Ambea, a Triton is a private equity firm, operating primarily in northern provider of health care services in the Nordic Europe. countries. In 2009, it generated sales of $1.0 billion and EBITA of $86.2 million.
ANNOUNCEMENT DATE: February 23, 2010 PRICE: $1,160,000,000 (approximate) PRICE PER UNIT: TERMS: Eur 850 million. PRICE/REVENUE: 1.16 PRICE/INCOME: 13.46
Singapore's sovereign wealth fund GIC is also selling its 15.9% share. The purchase price represents 3.5x 3i Group's original equity investment. Under 3i, Ambea has made over two dozen acquisitions and has doubled net sales since 2005. 3i sought to sell Ambea in 2009, but put those plans on hold due to the credit crunch.
TARGET: Amerifit Brands, Inc. ACQUIRER: Martek Biosciences Corporation
LISTING: Private LISTING: NASDAQ: MATK LOCATION: New York, New York CEO: Steve Dubin PHONE: 410-740-0081 UNITS: 6480 Dobbin Road FAX: 410-740-2985 REVENUE: Columbia, Maryland 21045 NET INCOME: WEB SITE: www.martek.com
Private equity group Charterhouse Group is selling Martek Biosciences innovates and develops nutritional products Amerifit Brands, a consumer health and wellness from microbial sources. On a trailing 12-month basis, it generated company. revenue of $345 million, EBITDA of $93 million and net income of $41 million.
ANNOUNCEMENT DATE: January 21, 2010 PRICE: $200,000,000 PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
Charterhouse originally invested $80 million in Amerifit in 2005; this sale allows it a return on investment. This acquisition gives MATK such Amerifit Brands products as Culturelle, a probiotic supplement, and Estroven, a nutritional supplement used to treat symptoms of menopause. MATK is to pay $120 million in cash reserves and use a new credit facility to finance the rest of the deal. MATK was advised by Canaccord Adams Inc., Hogan & Hartson LLP, and Miles & Stockbridge P.C.
The Health Care M&A Report, First Quarter 2010 151 TARGET: Area surgery center ACQUIRER: Sonora Regional Medical Center
LISTING: Private LISTING: Nonprofit LOCATION: Sonora, California CEO: Jeff Eller PHONE: 209-532-5000 UNITS: 1000 Greenley Road FAX: REVENUE: Sonora, California 95370 NET INCOME: WEB SITE: www.sonoramedicalcenter.org
The target in this transaction in an outpatient A member of Adventist Health, Sonora Regional Medical Center is surgery center. an acute care hospital.
ANNOUNCEMENT DATE: March 1, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
The renamed Sonora Regional Surgery Center is to operate with the centerÆs current surgeons; it will function as a licensed outpatient department of the hospital.
TARGET: Bridge Laboratories China ACQUIRER: Pharmaron, Inc.
LISTING: Private LISTING: Private LOCATION: Beijing, China CEO: Boliang Lou PHONE: 949-788-0586 UNITS: 6 Venture, Suite 250 FAX: 949-788-9204 REVENUE: Irvine, California 92618 NET INCOME: WEB SITE: www.pharmaron.com
Bridge Laboratories China is a contract research Pharmaron is a pharmaceutical and biotechnology drug R&D organization that provides toxicology services to contract research organization (CRO). pharmaceutical and biotechnology companies.
ANNOUNCEMENT DATE: January 11, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands Pharmaron's presence in the growing Chinese market. With this deal, the buyer becomes the first integrated CRO in China supporting clients with drug discovery and development processes in support of IND filings.
The Health Care M&A Report, First Quarter 2010 152 TARGET: Center for Surgical ACQUIRER: Fairlawn Surgery Center, LLC Excellence LISTING: Nonprofit LISTING: Private LOCATION: Roanoke, Virginia CEO: Dev Jarratt PHONE: 540-344-1400 UNITS: 2602 Franklin Road, SW FAX: REVENUE: Roanoke, Virginia 24009 NET INCOME: WEB SITE:
Carilion Clinic is selling the Center for Surgical Formed by e-physician Valley Nephrology Associates, Fairlawn Excellence, an outpatient surgery center. Surgery Center is a vehicle to acquire the Center for Surgical Excellence.
ANNOUNCEMENT DATE: February 1, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
The seller originally acquired the target when it bought the Center for Advanced Imaging in 2008. The Federal Trade Commission objected to the concentration of facilities and entered a consent order calling for Carilion to sell this to another outpatient center. Fairlawn has indicated that the center would allow the group to address the surgical needs associated with kidney disease. Carilion is being represented by the law firm Epstein Becker & Green, PC.
TARGET: Cherry Hill Health Care ACQUIRER: Concentra Health Services, Inc. Associates, P.A. LISTING: Private LISTING: Private LOCATION: Pennsauken, New Jersey CEO: James Greenwood PHONE: 972-364-8000 UNITS: 5080 Spectrum Dr., Ste. 1200 FAX: West REVENUE: Addison, Texas 75001 NET INCOME: WEB SITE: www.concentra.com
Cherry Hill Health Care Associates, dba Health Concentra provides urgent care and operates a network of 300 Now, is selling its assets related to providing health centers in 40 states. It generates annual revenue in the occupational health care services at a walk-in clinic. neighborhood of $1.0 billion.
ANNOUNCEMENT DATE: March 2, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Asset purchase agreement. PRICE/REVENUE: PRICE/INCOME:
The operations of Health Now are to be merged into Concentra's existing urgent care center in Pennsauken. This deal greatly expands the buyer's patient base in this market.
The Health Care M&A Report, First Quarter 2010 153 TARGET: Colorado dental practice ACQUIRER: Birner Dental Management Services, Inc.
LISTING: Private LISTING: NASDAQ: BDMS LOCATION: Denver, Colorado CEO: Frederic W. J. Birner PHONE: 303-691-0680 UNITS: 3801 East Florida Avenue FAX: 303-691-0889 REVENUE: $830,000 Denver, Colorado 80210 NET INCOME: WEB SITE: www.bdms-perfectteeth.com
The target is a dental practice located in Denver, Birner Dental Management provides business services to 64 dental Colorado. For 2008, the practice generated patient group practices in Colorado, New Mexico, and Arizona. On a revenue of $830,000. trailing 12-month basis, it generated revenue of $34.4 million, EBITDA of $6.1 million and net income of $1.9 million.
ANNOUNCEMENT DATE: January 4, 2010 PRICE: $620,000 (approximate) PRICE PER UNIT: TERMS: $340,000 in cash; $280,000 in assumed PRICE/REVENUE: 0.75 contingent liabilities. PRICE/INCOME:
This acquisition expands BDMS' dental provider network in Colorado. This deal closed effective December 30, 2009.
TARGET: Critical Homecare Solutions ACQUIRER: BioScrip, Inc.
LISTING: Private LISTING: NASDAQ: BIOS LOCATION: Conshohocken, Pennsylvania CEO: Richard H. Friedman PHONE: 914-460-1600 UNITS: 100 Clearbrook Road FAX: 914-460-1670 REVENUE: $252,000,000 Elmsford, New York 10523 NET INCOME: $39,000,000 (EBITDA) WEB SITE: www.bioscrip.com
Kohlberg & Company, LLC is selling Critical BioScrip provides medications and management solutions for Homecare, a provider of home infusion therapy and chronic and other healthcare conditions. On a trailing 12-month nursing services. For the 12 months ended basis, BIOS generated revenue of $1.35 billion, EBITDA of $25 September 30, 2009, it generated revenue of $252 million and a net loss of $67 million. million and EBITDA of $39 million.
ANNOUNCEMENT DATE: January 25, 2010 PRICE: $358,000,000 PRICE PER UNIT: TERMS: $242 million in cash (including $132 PRICE/REVENUE: 1.42 million to repay debt); issuance of 12.9 PRICE/INCOME: 9.18 million shares of BIOS stock valued at $101.2 million; 3.4 million five-year warrants.
Upon closing this deal, Kohlberg & Co. will own a 24% stake in BIOS. This acquisition gives BIOS 35 specialty infusion pharmacies and 33 nursing locations, making it one of the largest home infusion providers in the country. Kohlberg & Co. had proposed selling Critical Homecare in 2008 for $420.0 million, but that deal was cancelled. Jefferies Finance LLC provided BIOS with financial advice on this deal, as well as $375.0 million in financing. This deal closed March 25, 2010.
The Health Care M&A Report, First Quarter 2010 154 TARGET: DNA Direct ACQUIRER: Medco Health Solutions, Inc.
LISTING: Private LISTING: NYSE: MHS LOCATION: San Francisco, California CEO: David Snow, Jr. PHONE: 201-269-3400 UNITS: 100 Parsons Pond Drive, F1-9 FAX: 201-269-1109 REVENUE: Franklin Lakes, New Jersey 07417 NET INCOME: WEB SITE: www.medcohealth.com
DNA Direct offers guidance to providers, payers Medco Health Solutions provides pharmacy benefit management and employers on over 2,000 genetic and molecular services nationwide. On a trailing 12-month basis, MHS generated tests. Clients include health insurers and hospitals. revenue of $57.5 billion, EBITDA of $2.7 billion and net income of $1.2 billion.
ANNOUNCEMENT DATE: February 2, 2010 PRICE: $19,400,000 (approximate) PRICE PER UNIT: TERMS: $19.4 million, net of cash acquired. PRICE/REVENUE: PRICE/INCOME:
This acquisition expands MHS' personalized medicine portfolio, helping to determine whether certain tests are appropriate for certain patients.
TARGET: First quarter acquisitions ACQUIRER: AmSurg Corporation
LISTING: Private LISTING: NASDAQ: AMSG LOCATION: Several states CEO: Christopher A. PHONE: 615-665-1283 Holden UNITS: 20 Burton Hills Boulevard FAX: 615-665-0755 REVENUE: Nashville, Tennessee 37215 NET INCOME: WEB SITE: www.amsurg.com
The assets acquired during the first quarter of 2010 AmSurg owns a majority interest in and operates 202 outpatient include a 65% controlling interest in one outpatient surgery centers. On a trailing 12-month basis, the company surgery centers and a 51% controlling interest in generated revenue of $678 million, EBITDA of $248 million and three centers. net income of $53 million.
ANNOUNCEMENT DATE: March 31, 2010 PRICE: $27,675,000 (approximate) PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: PRICE/INCOME:
These acquisitions extend the buyer's network of ambulatory surgery centers. These transaction were funded by a combination of operating cash flow and borrowings under the company's revolving credit facility.
The Health Care M&A Report, First Quarter 2010 155 TARGET: Massage Envy, LLC ACQUIRER: Sentinel Capital Partners
LISTING: Private LISTING: Private LOCATION: Scottsdale, Arizona CEO: David Lobel PHONE: 212-688-3100 UNITS: 330 Madison Avenue, 27th FAX: 212-688-6513 Floor REVENUE: $450,000,000 New York, New York 10017 NET INCOME: WEB SITE: www.sentinelpartners.com
Massage Envy provides and franchises therapeutic Sentinel Capital Partners is a private equity investment firm with massage and spa services. With over 600 clinics in approximately $500 million of capital under management. It invests 42 states the business generates annual sales of $450 in businesses with EBITDA between $5 million and $35 million. million.
ANNOUNCEMENT DATE: January 4, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This transaction will give Massage Envy the financial and strategic support it needs to grow its business beyond its current dimensions.
TARGET: Medifacts International, ACQUIRER: RadPharm, Inc. Inc. LISTING: Private LISTING: Private LOCATION: Rockville, Maryland CEO: Michael Woehler PHONE: 877-632-9432 UNITS: 100 Overlook Center FAX: 609-936-2602 REVENUE: Princeton, New Jersey 08540 NET INCOME: WEB SITE: www.radpharm.com
Medifacts International is a cardiovascular core RadPharm is an imaging core laboratory, providing image laboratory, providing solutions to the pharma, management solutions to pharma, biotech and medical device biotech and medical device industries for collecting, companies. analyzing and managing cardiac safety and efficacy information.
ANNOUNCEMENT DATE: February 11, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Merger PRICE/REVENUE: PRICE/INCOME:
The combined company is to be called CoreLab Partners. The merger creates a company better able to serve the needs of contract research organizations and drug development companies.
The Health Care M&A Report, First Quarter 2010 156 TARGET: National Vascular Care, ACQUIRER: Fresenius Medical Care Inc. LISTING: Private LISTING: NYSE: FMS LOCATION: Rosemont, Pennsylvania CEO: Ben Lipps PHONE: 49 0 6172 6090 UNITS: Else-Kroener-Strasse 1 FAX: REVENUE: Bad Homburg, Germany 61352 NET INCOME: WEB SITE: www.fmc-ag.com
National Vascular Care is a provider of vascular Fresenius Medical Care is the world's largest integrated provider of services working in partnership with physicians and products and services for individuals with chronic kidney failure. others to develop, own and manage specialty For 2009, it generated revenue of $11.2 billion and EBIT of $1.8 outpatient surgery centers for the delivery of billion. vascular care.
ANNOUNCEMENT DATE: March 4, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This deal was carried out by FMS subsidiary U.S. Vascular Access Holdings, LLC. It complements the buyer's service offerings for the treatment of end-stage renal disease.
TARGET: Net-Rx ACQUIRER: Managed Health Care Associates, Inc.
LISTING: Private LISTING: Private LOCATION: Vancouver, Washington CEO: Douglas Present PHONE: 973-966-9200 UNITS: 25-B Vreeland Road, Suite 300 FAX: 973-966-5529 REVENUE: Florham Park, New Jersey 07932 NET INCOME: WEB SITE: www.mhainc.com
Net-Rx is a provider of pharmacy reimbursement Managed Health Care Associates (MHA) is an alternate site group management services. purchasing organization, or GPO. It services the Long-Term Care, Home Infusion and Specialty Pharmacy markets.
ANNOUNCEMENT DATE: January 5, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition expands the buyer's ability to manage pharmacy reimbursement. The target's main product, RecRx, assists pharmacies in managing their reimbursement and reconciliation processes.
The Health Care M&A Report, First Quarter 2010 157 TARGET: Nutritional business ACQUIRER: International Vitamin Corporation
LISTING: AMEX: IMA LISTING: Private LOCATION: Waltham, Massachusetts CEO: PHONE: 732-308-3000 UNITS: 500 Halls Mill Road FAX: 732-761-2878 REVENUE: $84,800,000 (annualized) Freehold, New Jersey 07728 NET INCOME: WEB SITE: www.ivc.com
Inverness Medical Innovations is selling its vitamin International Vitamin Corp. is involved in the nutritional and nutritional supplements business. For the first supplements business. It manufactures, packages, sells and nine months of 2009, the business generated distributes branded and private-label vitamins, herbs, nutritional revenue of $63.4 million and an operating loss of supplements and Rx and OTC drug products. $2.4 million.
ANNOUNCEMENT DATE: January 19, 2010 PRICE: $63,400,000 (approximate) PRICE PER UNIT: TERMS: Cash PRICE/REVENUE: 0.75 PRICE/INCOME:
This divestment rids IMA of a non-core asset as the company seeks to integrate several recent acquisitions, including Concateno plc. The assets acquired include manufacturing facilities in Freehold and Irvington, New Jersey. Deloitte Corporate Finance, LLC acted as the exclusive buy-side financial advisor for this transaction.
TARGET: OSR Solutions, Inc. ACQUIRER: Laxai Pharma, Ltd.
LISTING: Private LISTING: OTCBB: NXGNF LOCATION: Monmouth Junction, New Jersey CEO: Ram Ajjarapu PHONE: 813-428-3500 UNITS: 8905 Regents Park Drive FAX: 775-942-6642 REVENUE: Tampa, Florida 33647 NET INCOME: WEB SITE: www.laxai.com
OSR Solutions is a contract research organization, Laxai Pharma, fka NexGen Biofuels, is entering the clinical or CRO. research services space.
ANNOUNCEMENT DATE: March 11, 2010 PRICE: $3,600,000 PRICE PER UNIT: TERMS: $1.5 million in cash, $750,000 in notes, PRICE/REVENUE: $600,000 in assumed liabilities, 5.6 PRICE/INCOME: million common shares of Laxai Pharma.
This acquisition allows the buyer to enter the clinical research services space. The 5.6 million shares issued in this deal represent 10% of the issued and outstanding shares at closing. This deal was financed by a combination of debt and equity. As part of the deal, the buyer obtained an option to purchase shares of Avanti Life Sciences, Pvt. Ltd., an affiliate of OSR Solutions.
The Health Care M&A Report, First Quarter 2010 158 TARGET: Pharma services unit ACQUIRER: Ricerca Biosciences, LLC
LISTING: NYSE: MDZ LISTING: Private LOCATION: Toronto, Ontario CEO: Ian Lennox PHONE: 440-357-3300 UNITS: 7528 Auburn Road FAX: 440-354-6276 REVENUE: Concord, Ohio 44077 NET INCOME: WEB SITE: www.ricerca.com
MDS is divesting its remaining Pharma Services Ricerca Biosciences is a provider of early-stage contract research Early Stage business, which provides discovery organization services. It has capabilities in discovery and medicinal through phase 2a clinical trial services to biotech chemistry, API process chemistry, cGMP manufacturing and scale- and pharma companies. up and IND-enabling toxicology.
ANNOUNCEMENT DATE: February 10, 2010 PRICE: $45,000,000 PRICE PER UNIT: TERMS: $25 million note; $20 million in cash. PRICE/REVENUE: PRICE/INCOME:
Under terms of the deal, MDS is divesting its pre-clinical and clinical operations in Bothell, Washington; Lyon, France; and Taipei, Taiwan. This deal adds the acquired unit's molecular profiling, pharmacology and drug safety assessment services. The combined services offer customers a broader range of CRO services.
TARGET: Psychiatrists Only, LLC ACQUIRER: TeamHealth
LISTING: Private LISTING: NYSE: TMH LOCATION: Atlanta, Georgia CEO: Greg Roth PHONE: 865-693-1000 UNITS: 1900 Winston Road FAX: 865-539-3073 REVENUE: $6,000,000 Knoxville, Tennessee 37919 NET INCOME: WEB SITE: www.teamhealth.com
Psychiatrists Only recruits qualified psychiatrists for TeamHealth provides outsourced physician staffing and locum tenens and permanent placement in health administrative services to hospitals and other health care providers. care facilities. In its most recent fiscal year, the On a trailing 12-month basis, it generated revenue of $2.4 billion, business generated revenue of $6.0 million. EBITDA of $148 million and net income of $50 million.
ANNOUNCEMENT DATE: January 5, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition is being carried out by TMH's D&Y staffing subsidiary. This deal also diversifies the kind of subspecialties that TMH offers its clients.
The Health Care M&A Report, First Quarter 2010 159 TARGET: Ramsey Salem DDS ACQUIRER: Great Expressions Dental Centers, Inc.
LISTING: Private LISTING: Private LOCATION: Jacksonville, Florida CEO: Richard Beckman PHONE: 248-647-0516 UNITS: 300 East Long Lake Rd., Suite FAX: 248-433-1664 311 REVENUE: Bloomfield Hills, Michigan 48304 NET INCOME: WEB SITE: www.greatexpressions.com
Ramsey Salem DDS provides dental care services in Great Expressions Dental Centers operates 120 affiliated dental the Jacksonville market. The practice was practices in Connecticut, Florida, Georgia, Massachusetts, established in 1979. Michigan, Ohio and Virginia.
ANNOUNCEMENT DATE: March 23, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition gives the buyer a second dental office in the Jacksonville market.
TARGET: Six dental practices ACQUIRER: Heartland Dental Care, Inc.
LISTING: Private LISTING: Private LOCATION: Four, States CEO: Richard Workman PHONE: 217-540-5100 UNITS: 1200 Network Centre Drive FAX: 217-540-5600 REVENUE: Effingham, Illinois 62401 NET INCOME: WEB SITE: www.HeartlandDentalCare.com
The targets are dental practices located in Dunedin Heartland Dental is a dental practice management company. It and Port Orange, Florida; Henderson, Nevada; operates 245 dental practices9. Pataskala and Westerville, Ohio; and Cypress, Texas.
ANNOUNCEMENT DATE: March 31, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
These six dental practices were acquired during the first quarter of 2010, extending Heartland's dental provider network. During the same period, the company developed one de novo practice in Tennessee. These acquisitions and development bring Heartland's total number of practices to 251.
The Health Care M&A Report, First Quarter 2010 160 TARGET: Southwest Community ACQUIRER: Legacy Community Health Services Health Center LISTING: Nonprofit LISTING: Nonprofit LOCATION: Houston, Texas CEO: Katy Caldwell PHONE: 713-830-3000 UNITS: 215 Westheimer FAX: 713-830-3079 REVENUE: Houston, Texas 77006 NET INCOME: WEB SITE: www.legacycommunityhealth.org
Christus Health is selling the Christus Medical Legacy Community Health Services is a full-service, federally Group-Southwest Community Health Center. It qualified health center that provides comprehensive, primary provides programs in pediatrics, healthcare services. It has an annual budget of over $15.0 million. obstetrics/gynecology and family medicine, among other services
ANNOUNCEMENT DATE: February 3, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
Legacy plans to operate the clinic as a community health center. It is thought that since Legacy can operate the clinic as a federally qualified health center, it will be able to provide more people with more services. Legacy plans to add mental health services.
TARGET: stellacure GmbH ACQUIRER: Cord Blood America, Inc.
LISTING: Private LISTING: OTCBB: CBAI LOCATION: Hamburg, Germany CEO: Matthew L. Schissler PHONE: 702-914-7250 UNITS: 1857 Helm Drive FAX: REVENUE: $800,000 Las Vegas, Nevada 89119 NET INCOME: WEB SITE: www.cordblood-america.com stellacure GmbH is the third largest cord blood Cord Blood America provides private cord blood stem cell banking service in Germany. stellacure operates in preservation services to families. On a trailing 12-month basis, it conjunction with the German Red Cross. In 2009, generated revenue of $3.4 million and a net loss of $7.5 million. the company generated revenue of $800,000.
ANNOUNCEMENT DATE: March 25, 2010 PRICE: $680,000 (approximate) PRICE PER UNIT: TERMS: For a 51% interest. Eur 501,000. PRICE/REVENUE: 0.85 PRICE/INCOME:
This acquisition expands the buyer's geographic reach outside of the United States. The purchase price implies a price to revenue multiple of 1.7x for a 100% interest in the target.
The Health Care M&A Report, First Quarter 2010 161 TARGET: Surgery Partners Holdings, ACQUIRER: H.I.G. Capital, LLC LLC LISTING: Private LISTING: Private LOCATION: Tampa, Florida CEO: Chris Laitala PHONE: 305-379-2322 UNITS: 11 (ASCs) 1001 Brickell Bay Drive FAX: 305-379-2013 REVENUE: Miami, Florida 33131 NET INCOME: WEB SITE: www.higcapital.com
Surgery Partners Holdings operates outpatient H.I.G. Capital is a leading global private investment firm with over surgery centers in the Southeast. It owns and $7.5 billion of capital under management. operates 11 surgical centers and several related practice specialties.
ANNOUNCEMENT DATE: January 7, 2010 PRICE: (approximate) PRICE PER UNIT: TERMS: For a majority investment. PRICE/REVENUE: PRICE/INCOME:
This transaction allows Surgery Partners to access H.I.G.'s financial resources and managerial expertise in the health care industry to grow its business beyond its current dimensions.
TARGET: Three Tucson medical ACQUIRER: U.S. HealthWorks centers LISTING: Private LISTING: Private LOCATION: Tucson, Arizona CEO: Daniel D. Crowley PHONE: 661-678-2600 UNITS: 25124 Springfield Court FAX: 661-678-2700 REVENUE: Valencia, California 91355 NET INCOME: WEB SITE: www.ushealthworks.com
Tucson Occupational Medicine is selling its three U.S. HealthWorks operates 131 outpatient occupational health and health care centers, occupational health facilities urgent care centers in 13 states. The centers provide injury care, that provide injury and illness diagnosis and early return-to-work programs, injury prevention and wellness treatment, preventive services and return-to-work programs. programs, among others.
ANNOUNCEMENT DATE: February 22, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition raises the number of centers that the buyer operates in Arizona to six. This transaction was effective February 19, 2010.
The Health Care M&A Report, First Quarter 2010 162 TARGET: Trustaff Management, Inc. ACQUIRER: Medical Connections Holdings, Inc.
LISTING: Private LISTING: OTCBB: MCTH LOCATION: Cincinnati, Ohio CEO: Joseph J. Azzata PHONE: 561-353-1110 UNITS: 2300 Glades Road FAX: 561-353-1042 REVENUE: $42,000,000 Boca Raton, Florida 33431 NET INCOME: $4,400,000 WEB SITE: www.medicalconnections.com
Trustaff is a national health care staffing company Medical Connections Holdings provides medical recruiting services with 100 corporate staff supporting 500 health care to clients in the health care and medical industries. On a trailing 12- professionals across the country. For 2009, the month basis, MCTH generated revenue of $6.4 million and a net company generated revenue of $42 million and loss of $7.1 million. profits of over $4.4 million.
ANNOUNCEMENT DATE: March 12, 2010 PRICE: $26,690,000 PRICE PER UNIT: TERMS: $26 million in cash and notes; issuance PRICE/REVENUE: 0.64 of 1.5 million shares of MCTH stock at PRICE/INCOME: 6.07 $0.26 per share.
This acquisition expands the buyer's travel nursing business with an organization that is based in the Midwest, and can draw from health care professionals in that market.
TARGET: Wellness, Inc. ACQUIRER: OptumHealth
LISTING: Private LISTING: NYSE: UNH LOCATION: Aurora, Illinois CEO: Dawn Owens PHONE: 866-427-6845 UNITS: 6300 Olson Memorial Hwy FAX: REVENUE: Golden Valley, Minnesota 55427 NET INCOME: WEB SITE: www.optumhealth.com
Wellness, Inc. is a provider of onsite health A division of UnitedHealth Group, OptumHealth assists individuals screenings. Its biometric screenings utilize a blood to navigate the health care system, finance their health care and panel of 36 medical tests. The company provides its achieve health and well-being goals. services to 1,000 employers countrywide.
ANNOUNCEMENT DATE: February 25, 2010 PRICE: Not disclosed PRICE PER UNIT: TERMS: Not disclosed PRICE/REVENUE: PRICE/INCOME:
This acquisition allows OptumHealth to broaden its support for employers who want more comprehensive ways to manage their employees' health.
The Health Care M&A Report, First Quarter 2010 163
INDEX
Name Sector Page
Abbott Laboratories Biotechnology 5, 7 Access Hospice Care, LLC Home Health Care 41 AcroMetrix Medical Devices 87 ActivStyle, Inc. Home Health Care 41 ACTS Retirement-Life Communities Long-Term Care 73 Adamis Pharmaceuticals Corporation Biotechnology 14 AdCare Health Systems, Inc. Long-Term Care 69, 70 AdvantEdge Healthcare Solutions e-Health 25, 30 Advocate Medical Services, Inc. Home Health Care 41 Aesthera Corporation Medical Devices 87 AHP Billing Services e-Health 25 Ahura Scientific Medical Devices 88 Albany Molecular Research, Inc. Pharmaceuticals 115 Alcon, Inc. Pharmaceuticals 122 Allergan, Inc. Medical Devices 102 All-Med Services of Florida, Inc. Home Health Care 47 Ambea Other 151 Amedisys, Inc. Home Health Care 42 Amerifit Brands, Inc. Other 151 AMICAS, Inc. e-Health 25 Ampakine Pharmaceuticals 111 AmSurg Corporation Other 155 Anaheim Open MRI Laboratories, MRI and Dialysis 61 Anesthetix Management LLC Physician Medical Groups 135 Antibacterial assets Pharmaceuticals 111 ApaTech Medical Devices 88 Area surgery center Other 152 Ariston Pharmaceuticals, Inc. Pharmaceuticals 112 Arizona Medical Services, PC Physician Medical Groups 135 Astellas Pharma, Inc. Pharmaceuticals 118 AstraZeneca plc Pharmaceuticals 126 Atenda Healthcare Solutions Home Health Care 42 ATS Automation Tooling Systems, Inc. Medical Devices 103 Attalla Health Care Long-Term Care 69 Austin Heart Physician Medical Groups 136 AxMediTec Sp. z. o. o. Medical Devices 89 Azur Pharma Limited Pharmaceuticals 128 Banks-Jackson-Commerce Medical Center Hospitals 53 Baptist Memorial Health Care Corp. Physician Medical Groups 138 Barco Medical Devices 94 Baton Rouge Rehabilitation Hospital, LLC Rehabilitation 145 Baxter International, Inc. Medical Devices 88 Bayer Schering Pharma AG Pharmaceuticals 121 Bederra Corporation Laboratories, MRI and Dialysis 64 Belfair Retirement Community Long-Term Care 69
The Health Care M&A Report, First Quarter 2010
167 Name Sector Page
BioClinica, Inc. e-Health 34 BioForm Medical, Inc. Pharmaceuticals 112 BioMarin Pharmaceutical, Inc. Pharmaceuticals 118 Biomerics, LLC Medical Devices 95 BioScrip, Inc. Other 154 Biota Holdings Limited Pharmaceuticals 111 Biovail Corporation Pharmaceuticals 111, 127 Birner Dental Management Services, Inc. Other 154 Boehringer Ingelheim GmbH Pharmaceuticals 125 Brain function monitoring business Medical Devices 89 Bridge Laboratories China Other 152 Bridged nucleic acid patent estate Biotechnology 5 Bristol-Myers Squibb, Inc. Pharmaceuticals 113, 120 Bruker Corp. Medical Devices 105 Cancer treatment collaboration Biotechnology 5 Capital Health Group, LLC Long-Term Care 75 Caprion Proteomics, Inc. Medical Devices 101 Caritas Christi Health Care Hospitals 53 Carle Clinic Association Physician Medical Groups 136 Carle Foundation Hospital Physician Medical Groups 136 Carolina Crescent Health Plan Managed Care 81 Catheter pump technology Medical Devices 90 Cedax antibiotic Pharmaceuticals 113 CEGEDIM, S.A e-Health 33 Centene Corporation Managed Care 81 Center for Surgical Excellence Other 153 Cephalon, Inc. Pharmaceuticals 120 Cerberus Capital Management, LP Hospitals 53 Cherry Hill Health Care Associates, P.A. Other 153 CHF Solutions Medical Devices 90 Chief Respect, Ltd. Pharmaceuticals 114 Clinical laboratory operations Laboratories, MRI and Dialysis 61 CNS drug development deal Pharmaceuticals 113 Colorado dental practice Other 154 Concentra Health Services, Inc. Other 153 Concerro, Inc. e-Health 33 Coosa Valley Health Care Long-Term Care 70 Cord Blood America, Inc. Other 161 Covidien Plc Medical Devices 106 Creative Rehab Technology Services, Inc. Medical Devices 91 Critical Homecare Solutions Other 154 CURE Media Group e-Health 26 CVC, Inc. Medical Devices 91 Daiichi Sankyo Co. Pharmaceuticals 124 Daughters of Charity Health System Hospitals 54
The Health Care M&A Report, First Quarter 2010
168 Name Sector Page
De Queen Home Health Agency Home Health Care 42 deCODE genetics ehf Biotechnology 6 Detroit Medical Center Hospitals 54 Diabetes testing alliance Medical Devices 92 Diagnostic Hybrids, Inc. Medical Devices 92 DNA Direct Other 155 Downey Regional Medical Center Hospitals 54 Dragon Pharmaceuticals, Inc. Pharmaceuticals 114 DRI Capital, Inc. Pharmaceuticals 125 Early-stage ophthalmic asset Pharmaceuticals 114 Eden Biopharm Group Limited Pharmaceuticals 115 Eli Lilly and Co. Biotechnology 11 Emdeon, Inc. e-Health 27 Emerald Park Long-Term Care 70 Emeritus Assisted Living, Inc. Long-Term Care 74 Epocal, Inc. Medical Devices 93 ESE GmbH Medical Devices 93 EvaCare pessaries Medical Devices 94 Evolute Consolidated Holdings e-Health 31 Evolva discovery collaboration Biotechnology 6 eWebHealth e-Health 26 Excelsyn, Ltd. Pharmaceuticals 115 Facet Biotech Corporation Biotechnology 7 Fairlawn Surgery Center, LLC Other 153 Family Care, Inc. Home Health Care 43 FIMI s.r.l. Medical Devices 94 Finnzymes Medical Devices 95 First quarter acquisitions Other 155 Fresenius Medical Care Other 157 Fruition Design Medical Devices 95 Fully passive safety catheter Medical Devices 96 FutureVision Technologies e-Health 27 Gambro AB Medical Devices 90 Garden Square Assisted Living of Crete Long-Term Care 71 GE HealthCare e-Health 30 Generics collaboration Pharmaceuticals 116 Gentiva Health Services, Inc. Home Health Care 43 Given Imaging, Ltd Medical Devices 103 GlaxoSmithKline plc Biotechnology 8, 9, 11, 16 Global Med Technologies, Inc. Medical Devices 96 Grant Park Nursing Home Long-Term Care 71 Great Expressions Dental Centers, Inc. Other 160 H.I.G. Capital, LLC Other 162 Haemonetics Corporation Medical Devices 96 Hawaii Medical Assurance Association Managed Care 81
The Health Care M&A Report, First Quarter 2010
169 Name Sector Page
Healthcare Technology Management Services e-Health 27 Healthpoint, Ltd. Biotechnology 19 HealthSouth Rehabilitation Hospital Rehabilitation 145 HealthTech Holdings, Inc. e-Health 29 Healthvision Solutions, Inc. e-Health 28 Hearing loss alliance Biotechnology 7 Heart Hospital of Austin Hospitals 55 Heart to Heart Hospice Home Health Care 43 Hearth Management, LLC Long-Term Care 72 Heartland Dental Care, Inc. Other 160 Hemophilia alliance Biotechnology 8 Hepatitis C Viral therapeutic collaboration Biotechnology 8 Hill Physicians Medical Group, Inc. Physician Medical Groups 138 Hi-Tech Pharmacal, Co., Inc. Pharmaceuticals 119 HMC Home Health, LLC Home Health Care 44 Home Care by Black Stone Home Health Care 43 Home Diagnostics, Inc. Medical Devices 97 Humalys SAS Biotechnology 9 Human Genome Sciences, Inc. Biotechnology 18 Hutcheson Home Health Home Health Care 44 Hycor Biomedical, Inc. Medical Devices 97 Hyland Software e-Health 26 iCyt Mission Technology Medical Devices 98 Idaho Falls neonatal practice Physician Medical Groups 137 Imaging practice of Theodore Feit Laboratories, MRI and Dialysis 62 InduTrade AB Medical Devices 89 Ingenix e-Health 32 Initiate Systems e-Health 28 Injectables manufacturing facility Pharmaceuticals 116 InSound Medical, Inc. Medical Devices 98 Instituto Terapeutico Delta Ltda Pharmaceuticals 117 Interest in ScinoPharm Pharmaceuticals 117 International Business Machines Corp. e-Health 28 International Vitamin Corporation Other 158 Invatec S.p.A. Medical Devices 99 Inverness Medical Innovations, Inc. Laboratories, MRI and Dialysis, Medical Devices 62, 93, 104 IPC-The Hospitalist Co. Physician Medical Groups 135 Ipsen, S.A. Biotechnology 8, 19 Kandu Capital, LLC Long-Term Care 69, 72 Kensington Green Long-Term Care 72 Kroll Laboratory Specialists, Inc. Laboratories, MRI and Dialysis 62 Kyowa Hakko Kirin Co. Ltd. Biotechnology 10, 13 Lawson Software, Inc. e-Health 28 Laxai Pharma, Ltd. Other 158 LEAD Therapeutics, Inc. Pharmaceuticals 118
The Health Care M&A Report, First Quarter 2010
170 Name Sector Page
Legacy Community Health Services Other 161 LFB Biotechnologies Biotechnology 15 LHC Group Home Health Care 41, 44, 45, 47 License for antifungal isavuconazole Pharmaceuticals 118 License for APN01 therapeutic enzyme Biotechnology 9 License for bardoxolone methyl Biotechnology 10 License for ospemifene Biotechnology 10 License for PI3K gene Medical Devices 99 License for testosterone gel Biotechnology 11 License for Traficet-EN Biotechnology 11 License for Xerese Pharmaceuticals 119 License to Belinostat anticancer drug Biotechnology 12 Licensing option for metalloenzyme inhibitors Biotechnology 12 Life Care Services, LLC Long-Term Care 76 Life Technologies Corporation Medical Devices 87 Lincare Holdings, Inc. Home Health Care 46 Linden, LLC Medical Devices 97 Mag-Ox line of supplements Pharmaceuticals 119 Managed Health Care Associates, Inc. Other 157 Manhattan Pharmaceuticals, Inc. Pharmaceuticals 112 Manhattan Scientifics, Inc. Medical Devices 100 Martek Biosciences Corporation Other 151 Maryland Perinatal Associates, PC Physician Medical Groups 137 Massage Envy, LLC Other 156 MDRNA, Inc. Biotechnology 5 Meda AB Biotechnology, Pharmaceuticals 14, 119 MedCAREERS GROUP, Inc. e-Health 34, 35 Medco Health Solutions, Inc. Other 155 Medex, Inc. Medical Devices 91 MEDHOST, Inc. e-Health 29 Medicaid health information management unit e-Health 29 Medical Account Services, Inc. e-Health 30 Medical Connections Holdings, Inc. Other 163 Medifacts International, Inc. Other 156 Mednax, Inc. Physician Medical Groups 137, 139, 140 MedPlexus e-Health 30 MedPro Safety Products, Inc. Medical Devices 96 Medtronic, Inc. Medical Devices 99 Mepha AG Pharmaceuticals 120 Merge Healthcare e-Health 25 Meridian Regional Imaging Laboratories, MRI and Dialysis 63 Merz GmbH & Co. KGaA Pharmaceuticals 112 Midtech Partners e-Health 31 MMI-USA, Inc. Medical Devices 100 Molina Healthcare, Inc. e-Health 29
The Health Care M&A Report, First Quarter 2010
171 Name Sector Page
Nanomedicine technology Medical Devices 100 National Vascular Care, Inc. Other 157 NEA Clinic Physician Medical Groups 138 Net-Rx Other 157 Neuropathic pain medicine agreement Pharmaceuticals 120 NeuroTherm Medical Devices 105 NexCura e-Health 31 Nipro Corporation Medical Devices 97 NorthShore Regional Medical Center Hospitals 55 Northwesterly Assisted Living Long-Term Care 72 Novartis AG Biotechnology 7, 15, 17 Novartis Option Fund Biotechnology 12 NuRx Pharmaceuticals, Inc. Pharmaceuticals 121 Nutritional business Other 158 Obesity treatment license Biotechnology 13 Ochsner Health System Hospitals 55 OncoDiagnostic Laboratory Laboratories, MRI and Dialysis 63 Oncology collaboration Biotechnology, Pharmaceuticals 13, 121 Oncology joint venture stakes Pharmaceuticals 122 ONRAD, Inc. Laboratories, MRI and Dialysis 63 Ophthalmic pharmaceutical assets Pharmaceuticals 122 OPKO Health, Inc. Pharmaceuticals 123 OptumHealth Other 163 Opus Healthcare Solutions e-Health 32 Orion Laboratories Pty. Ltd. Pharmaceuticals 123 OrthoGlide ankle technology Medical Devices 100 Orthopaedic Synergy, Inc. Medical Devices 101 OSR Solutions, Inc. Other 158 Peninsula United Methodist Homes Long-Term Care 73 Pernix Therapeutics Holdings, Inc. Pharmaceuticals 113 Pfizer, Inc. Pharmaceuticals 116 Pharma services unit Other 159 Pharmacos Exakta, S.A. de C.V. Pharmaceuticals 123 PharmaForce, Inc. Pharmaceuticals 124 Pharmaron, Inc. Other 152 Pharmaxis, Ltd. Biotechnology 18 Physical therapy group Rehabilitation 145 Physicians Integrated Medical Group Physician Medical Groups 138 Piramal Healthcare Ltd. Pharmaceuticals 130 Platinum Health Care, LLC Long-Term Care 73 Power3 Medical Products, Inc. Biotechnology 16 PPD Biomarker Discovery Services, LLC Medical Devices 101 PPO membership Managed Care 81 Praxim, SA Medical Devices 101 Predictive Biosciences Laboratories, MRI and Dialysis 63
The Health Care M&A Report, First Quarter 2010
172 Name Sector Page
Preston Memorial HomeCare, LLC Home Health Care 45 Progressive Personal Care Home Health Care 45 Prometheus Laboratories, Inc. Pharmaceuticals 129 Prostate cancer drug candidates Biotechnology 14 Psychiatrists Only, LLC Other 159 QIAGEN, NV Medical Devices 93, 99 QLT, Inc. Pharmaceuticals 114 Quality Systems, Inc. e-Health 32 QualityMetric, Inc. e-Health 32 QuantRx Biomedical Corporation Pharmaceuticals 121 Quidel Corporation Medical Devices 92 RadNet, Inc. Laboratories, MRI and Dialysis 61, 62, 64 RadPharm, Inc. Other 156 Ramsey Salem DDS Other 160 Ratiopharm Pharmaceuticals 124 Regional operator Long-Term Care 74 Regpara royalty rights Pharmaceuticals 125 Remaining interest in SSP Co. Ltd. Pharmaceuticals 125 ResCare, Inc. Home Health Care 45, 46 Respiratory therapy, infusion therapy, HME Home Health Care 46 RES-Q Healthcare Systems e-Health 33 Restoration Healthcare, LLC Hospitals 53 Rhythm Pharmaceuticals, Inc. Biotechnology 13 Ricerca Biosciences, LLC Other 159 Rigel arthritis drug Pharmaceuticals 126 Rights for Allay menstrual pain therapy brand Medical Devices 102 Rights for oral Laquinimod Pharmaceuticals 126 Rights to AZ-004 treatment of agitation Pharmaceuticals 127 Rights to Ceplene Biotechnology 14 Rights to Debio 025 Biotechnology 15 Rights to Nuprin Pharmaceuticals 127 Rights to Prialt Pharmaceuticals 128 Rights to progesterone gel products Pharmaceuticals 128 Rights to Proleukin Pharmaceuticals 129 Rights to Refissa skin cream Pharmaceuticals 129 Rights to Shigamabs e. coli treatment Biotechnology 15 Rights to the i-pill Pharmaceuticals 130 RNA therapeutics collaboration Biotechnology 16 Roche Holding AG Biotechnology 6, 17 RP Home Care, Inc. Home Health Care 46 Saga Investments, LLC Biotechnology 6 Salem Hospital Home Care Home Health Care 47 Sanofi-Aventis SA Medical Devices 92 Sarnova, Inc. Medical Devices 91 ScinoPharm Taiwan Ltd. Pharmaceuticals 117
The Health Care M&A Report, First Quarter 2010
173 Name Sector Page
SCOLR Pharma, inc. Pharmaceuticals 127 SEDLine, Inc. Medical Devices 89 Sentinel Capital Partners Other 156 Serica Technologies Medical Devices 102 Shionogi & Co. Ltd. Biotechnology 10 Shreveport neonatal practice Physician Medical Groups 139 Sierra Scientific Instruments, LLC Medical Devices 103 Six dental practices Other 160 SK&A Information Services, Inc. e-Health 33 Solta Medical, Inc. Medical Devices 87 Sonora Regional Medical Center Other 152 Sonova Holding AG Medical Devices 98 Sony Corporation Medical Devices 98 Sortimat Group Medical Devices 103 Southwest Community Health Center Other 161 Southwest Emergency Physicians Physician Medical Groups 139 Spectrum Laboratory Network Laboratories, MRI and Dialysis 61 Spectrum Pharmaceuticals, Inc. Biotechnology 12 Spokane neonatal practice Physician Medical Groups 140 SRS Medical Corp. Medical Devices 94 SSI Surgical Services, Inc. Medical Devices 104 St. David's HealthCare Partnership, LP Hospitals, Physician Medical Groups 55, 136 St. Vincent Jennings Hospital Hospitals 56 StaffMD e-Health 34 Standard Diagnostics Medical Devices 104 stellacure GmbH Other 161 StemTroniX, Inc. Biotechnology 16 Sterling Oaks Long-Term Care 73 Strategic alliance in COPD Biotechnology 17 Strides Arcolab Ltd. Pharmaceuticals 116, 122 Sunrise of Dunwoody Long-Term Care 74 Sunrise of Eastover Long-Term Care 74 Sunset Bay Long-Term Care 75 Sunwest portfolio Long-Term Care 75 Surgery Partners Holdings, LLC Other 162 Team Health Holdings, Inc. Physician Medical Groups 139 TeamHealth Physician Medical Groups, Other 135, 159 Technomed Europe assets Medical Devices 105 Teva Pharmaceutical Industries Pharmaceuticals 124, 126 Texas Mobile Health, Inc. Laboratories, MRI and Dialysis 64 TG4010 cancer vaccine Biotechnology 17 The Blackstone Group Long-Term Care 75 The Ensign Group, Inc. Long-Term Care 76 The Perrigo Company Pharmaceuticals 123 Therapeutic antibody collaboration Biotechnology 18
The Health Care M&A Report, First Quarter 2010
174 Name Sector Page
Thermo Fisher Scientific Medical Devices 88, 95 Thoratec Corporation Medical Devices 90 Three Agilent product lines Medical Devices 105 Three Tucson medical centers Other 162 TJM Properties, Inc. Long-Term Care 70 Topigen Pharmaceuticals Biotechnology 18 Toremifene partnership Biotechnology 19 TranSend International, LLC e-Health 34 Triton Other 151 Trustaff Management, Inc. Other 163 Two Idaho skilled nursing facilities Long-Term Care 76 Two wound healing products Biotechnology 19 U. S. Physical Therapy, Inc. Rehabilitation 145 U.S. HealthWorks Other 162 Union Imaging Center Laboratories, MRI and Dialysis 64 Univita Health Home Health Care 42 US Oncology, Inc. e-Health 26, 31 Valeant Pharmaceuticals International Pharmaceuticals 117, 129 Vanguard Health Systems, Inc. Hospitals 54 Vascular business Medical Devices 106 Visiting Nurse Managed Care Corporation Home Health Care 47 Vivalis Biotechnology 9 Washington County Memorial Hospital Hospitals 56 Watson Pharmaceuticals, Inc. Pharmaceuticals 115, 128 Wellness, Inc. Other 163 Workabroad.com e-Health 35 Wyndemere Senior Living Community Long-Term Care 76 YesTDC Medical Devices 102
The Health Care M&A Report, First Quarter 2010
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