Abbott’s $30.7B Deal Boosts Medical Device M&A
Medical device deals are back in fashion. In the first four months of 2016, 41 deals were announced in this sector, compared with just 30 for the comparable time period in 2015. Spending on deals in this sector has already hit $42.7 billion, compared with $5.7 billion in the first four months of 2015. The largest by far this year is Abbott’s (NYSE: ABT) announcement on April 28 that it would spend $30.7 billion to acquire Minneapolis-based St. Jude Medical, Inc. (NYSE: SJM). St. Jude shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock, representing total consideration of approximately $85 per share, and a transaction equity value of $25 billion. Add in... Read More »Medical Devices Deals, 2006 to 2015
Mergers and acquisitions in the medical device sector hit a rough patch in 2013. That’s when the 2.3% excise tax, mandated in the Affordable Care Act, went into effect, and the change was felt almost immediately. In 2015, the tax was lifted for a period of two years, but deal making still hasn’t gone back to the heady days of 2011. Read More »Linden Capital Exits CORPAK Medsystems
Eight years after its initial investment, Linden Capital Partners has sold CORPAK Medsystems, for $174 million. CORPAK develops and manufactures a portfolio of enteral access devices such as enteral feeding safety devices and nasogastric feeding tubes for hospitals, nursing homes and home care. The buyer is Halyard Health (NYSE: NYH), another medical device company focused on preventing infection, eliminating pain and speeding recovery for healthcare providers and their patients. CORPAK’s line of nasogastric tubes complements Halyard’s existing enteral feeding products. Based on published annual revenue of $54 million, we get a multiple of 3.2x. Not bad, for... Read More »Meridian Targets Magellan Biosciences
Lead poisoning has been a prominent news story this year, thanks to the tragic circumstances now playing out in Flint, Michigan. So it’s no surprise that Magellan Biosciences, Inc. and its subsidiary, Magellan Diagnostics, Inc., have been sold to Meridian Bioscience, Inc. (NASDAQ: VIVO) for $66 million. Majority owner Ampersand Capital Partners, together with Tekla Capital Management and Boston Community Venture Fund, made their exit from the business. Magellan has built a national reputation for point-of-care testing kits that measure levels of lead in the bloodstream. Its LeadCare® II, LeadCare Ultra and Plus systems are used by more than 6,500 physician offices and clinics in the... Read More »Canon Buys Toshiba Medical Systems
Two companies, two strategic plans. That’s what brought Canon Inc. (NYSE: CAJ) together with Toshiba Corp. (OTCQB: TOSYY) in a deal to acquire Toshiba’s medical device business. Toshiba, which makes laptops, home appliances, nuclear power equipment and more, somehow deemed Toshiba Medical Systems as a non-core asset and decided to sell. For its part, Canon decided earlier this year to diversify beyond cameras and copiers. Canon will pay approximately $5.9 billion for Toshiba Medical Systems, which includes diagnostic imaging systems such as MRI, X-ray and ultrasound equipment. Read More »Schedule a demo
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