Health Care Deals Cratered in February 2017
After a very strong performance in January 2017 with 160 transactions announced, February’s deal volume collapsed 45%, to just 88 transactions (see chart below). Compared with the same month a year ago, it’s was only down 30%, to 125 deals. Don’t forget, 2016 was a leap year, so an additional six more deals snuck into last year’s results on February 29. What difference that doesn’t make for this year’s results. Yes, it’s all because of the uncertainty around the fate of the Affordable Care Act. Many of the services sectors will be effected by what becomes of Medicaid, whether states will receive block grants, or some other solution. At least two of... Read More »KRG Capital Splits and Sells Vention Medical
Vention Medical Inc. has undergone some major changes this year, and it’s still the first quarter. Vention, a portfolio company of KRG Capital Partners, designs and manufactures complex medical devices and components used in interventional and minimally invasive surgical products. As of February 20th, its two core business units were sold to separate companies. Vention Medical consisted of the Advanced Technologies (Vention AT) business and a separate Device Manufacturing Services (Vention DMS) business, a contract manufacturing operation. Nordson Corporation (NASDAQ: NDSN) acquired Vention AT for $705 million in an all-cash transaction on February 20, 2017. This... Read More »Allergan and Hologic Add Aesthetic Devices
Two days in February, two multi-billion-dollar deals in the Medical Device sector. But these aren’t your everyday deals for prosthesis, abdominal stents or novel surgical tools. Both target companies fall into the medical aesthetics category of medical devices, which includes body contouring and other cosmetic procedures that are generally cash-pay businesses. On February 13, 2017, Allergan plc (NYSE: AGN) purchased ZELTIQ® Aesthetics, Inc. for $2.48 billion, or $56.50 per share. ZELTIQ® Aesthetics develops and commercializes products utilizing its controlled-cooling technology platform. Its flagship CoolSculpting system is FDA-cleared to affect appearance through lipolysis or... Read More »December 2016 Didn’t Deliver a Year-End Boost
The final month of the fourth quarter is typically a busy one for deal makers in all industries. Last year, some health care deal makers apparently got a rest. Deal volume in December 2016 was an anemic 119 transactions, compared with 131 deals in November and 148 in December 2015. The Services sectors accounted for 55% of the deals in December, which is on the low side. Consider that, in November, Services accounted for 69% of the month’s transactions, and even 70% of the total in December 2015. Spending on those deals reached $15.4 billion, a relatively modest amount until it is compared with November’s $8.7 billion total (+78%) and December 2015’s $12.3 billion total (+26%). Suddenly,... Read More »2016 Delivered on Health Care M and A
As health care mergers and acquisitions go, 2016 lived up to the predictions that M&A activity would stay strong. Preliminary data for year-end totals shows 1,536 announced transactions across 13 healthcare sectors. The total represents a 1% increase in deal volume compared with 2015. (See chart below.) Spending on those deals was significantly lower than the previous year, at least for now. The combined total spending in 2016 now stands at $255.7 billion, down 36% compared with 2015’s $400.3 billion. Nearly $100 billion of that total now hangs in the balance, as two of 2015’s largest deals (Anthem/Cigna and Aetna/Humana) await decisions from a federal judge regarding... Read More »Schedule a demo
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