Another Billion-Dollar Stryker Deal

by | Feb 17, 2016 3:19 pm | Medical Devices, Private Equity

It’s been one-a-week for Stryker Corporation (NYSE: SYK). The medical device maker announced two deals in February, including one for $2.77 billion. That was for Madison Dearborn Partners’ portfolio company, Sage Products LLC, which makes and distributes disposable products aimed at reducing hospital-acquired infections, primarily in the ICU and Med/Surg unit. The third week in February brought another big announcement, the acquisition of Physio-Control International, Inc. for nearly $1.3 billion, from Bain Capital. Physio-Control makes and markets monitors, defibrillators and CPR-assist devices, as well as data management and support services. This acquisition complements... Read More »

CryoLife Refocuses on Cardiac Surgery Devices

by | Feb 12, 2016 4:09 pm | Medical Devices

Acquisitions often lead to divestitures, and that’s just what happened when CryoLife Inc. (NYSE: CRY) paid $130 million for privately held On-X Life Technologies Holdings, Inc. in December 2015. The medical device maker also processes and distributes implantable human tissues for use in cardiac and vascular surgeries, while On-X Life specializes in mechanical heart valve replacements. That deal strengthened CryoLife’s focus on aortic and mitral valve surgery, as it more than doubled the size of its U.S. cardiac sales force. That made its Hemodialysis Reliable Outflow Graft (HeRO) product line less vital to its core business, and so the HeRO product line was sold to Merit... Read More »

Busy Week for Home Health Care M&A

by | Feb 11, 2016 9:42 pm | Home Health & Hospice

Nine deals in one week is more than we see in one month, typically. Although most did not disclose prices, here is the breakdown on the week’s Home Health & Hospice transactions. AcquirerTargetPrice St. Joseph Health26 Nurse Next Door franchisesN/A Addus HomeCare CorporationSouth Shore Home Health Services, Inc. N/A PSA HealthcareCare Unlimited Inc. N/A MultiCare Health SystemHospice of Kisap CountyN/A Kindred Healthcare, Inc. Samaritan Care Hospice of Osceola, Inc. N/A Kindred Healthcare, Inc. HopeBridge Hospice, LLCN/A Kindred Healthcare, Inc. 9 home health offices in South Carolina$18 million One Equity PartnersAll Metro Helth Care Services, Inc. N/A Amedysis, Inc. Associated... Read More »

Stryker Strikes Two Deals in Two Weeks

by | Feb 10, 2016 8:42 pm | Medical Devices, Private Equity

Medical device maker Stryker Corporation (NYSE: SYK) announced its second deal in two weeks, buying the neurosurgery tools portfolio of Synergetics USA Inc. for an undisclosed sum. The portfolio consists of Synergetics’  Malis generator, Spetzler Malis disposable forceps, and Stryker’s existing Sonopet tips and RF generator. The products will complement Stryker’s neuro, spine and ear-nose-throat business, as well as expand its neurosurgical offerings. The first deal, announced on February 1, was Stryker’s nearly $2.8 billion acquisition of Sage Products, LLC, a portfolio company of Madison Dearborn Partners, LLC. Sage develops, manufactures and distributes... Read More »

Hospital M&A Keeps Pace with Medicaid Expansion

by | Feb 9, 2016 9:20 pm | Hospitals

Hospitals in states that expanded Medicaid coverage under the Affordable Care Act typically are healthier, financially, than those in states that have not expanded that coverage. What about hospital mergers and acquisitions in the expanded states, compared with those that haven’t expanded Medicaid? With only two years of data, it’s too soon to spot a trend, on the surface. Effective in April 2010, the ACA provided states the option to receive federal Medicaid matching funds to cover adults with incomes up to 133% of the Federal Poverty Level to get an early start on the 2014 Medicaid expansion. When the first open enrollment period ended in March 2014, 25 states had expanded... Read More »