HCR ManorCare Offloads Some Assets
HCR ManorCare, the second largest skilled nursing operator in the United States, has sold Heartland Rehabilitation and MileStone Staffing Services to Grant Avenue Capital, a healthcare-focused private equity firm in New York. Terms of the deal were not disclosed. HCR went through a Chapter 11 bankruptcy restructuring in 2018 and was purchased for a total of $3.3 billion by a joint venture between Welltower (NYSE: WELL) and ProMedica, a not-for-profit health system. All the organizations are based in Toledo, Ohio. Welltower owns 80% of the HCR real estate and ProMedica owns 20%. ProMedica owns 100% of HCR’s operating company, for which it paid $470 million in cash and used a $1.15... Read More »
Hot Healthcare Sectors for Investment, Growth & Consolidation in 2020
Every year, starting in November, the crystal balls come out and the prognostications begin. What will the new year bring? Who or what will make out better and who or what will not? We talked with Gary Herschman, a member of Epstein Becker Green’s Healthcare and Life Sciences practice, about the healthcare sectors he and his firm are watching in 2020. Here are their predictions for 2020. Health Care M&A: What do you see as the biggest themes in the healthcare industry this year? There are a lot of moving parts, from the discovery of new drugs to the shifting attention to post-acute care. Gary Herschman: We see three key “drivers” of health industry transformation that are already... Read More »
Feeling Distressed? You’re Not Alone
For the past two years, the volume of healthcare deals has soared to new heights. Much of the growth has been powered by financial buyers, private equity firms in particular, piling into the healthcare services sectors. In 2018, a new record for annual deal volume was hit, now standing at 1,917. The services sectors accounted for 65% (1,242 deals), slightly higher than the typical 60% to 62%. Last year’s total deal tally now stands at 1,824 transactions, the second highest total ever recorded, and 70% of that comes from healthcare services deals. Why, then, have Chapter 11 bankruptcy filings among the services sectors spiked along with that activity? Since the second quarter of 2017, the... Read More »
2019’s Biggest Healthcare Deals, by Sector
2020 has just begun, which means it’s time to look back at the healthcare M&A landscape of 2019. Just three days into the new year, nearly 1,780 deals are already on the books for 2019. More deals will turn up as we search our many sources, but the number likely won’t top the record of 1,900-plus set in 2018. Thanks to the multi-billion-dollar deals announced in the Biotech and Pharmaceutical sectors, 2019 will set a new spending record. Preliminary data show $399.1 billion was spent on healthcare acquisitions last year, about 20% higher than in 2018. We expect that number to rise as we go through the year and the 10Ks and quarterly reports come out. It’s possible the... Read More »
Ventas Goes Big for Canadian Independent Living Portfolio
Mergers and acquisitions in the Long-Term Care sector have been humming this year, with more than 200 transactions on the books through mid-June. But the sale prices, when disclosed, haven’t been as impressive. Finally, the first billion-dollar-plus deal was announced on June 3. Ventas, Inc. (NYSE: VTR) paid $1.8 billion (C$2.4 billion) for an 85% stake in a seniors housing portfolio located throughout the Canadian province of Quebec. The portfolio consists of 28 stabilized independent living communities (7,885 total units) in urban markets, with an average age of eight years. Three assets are set to open in 2019 with another 1,032 units, and four developments are expected to open in... Read More »Schedule a demo
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