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 »

2015 Health Care M&A Beats All Records

by | Jan 28, 2016 2:55 pm | Behavioral Health Care, Biotechnology, eHealth, Home Health & Hospice, Hospitals, Laboratories, MRI & Dialysis, Long-Term Care, Managed Care, Medical Devices, Other Services, Pharmaceuticals, Physician Medical Groups, Rehabilitation

It’s déjà vu all over again. 2014 was a record-breaker for health care M&A, with 1,317 transactions and spending at an astronomical $387 billion. Then 2015 came and went and, once again, we’re writing about a record-breaking number of transactions, 1,460 currently, and astronomical spending of $563 billion. Read More »
J&J Slices Its Medical Device Division

J&J Slices Its Medical Device Division

by | Jan 21, 2016 9:12 pm | Medical Devices

Johnson & Johnson (NYSE: JNJ) announced the restructuring of its medical devices business on January 19, 2016. Its 8K filing noted pre-tax restructuring charges of $2.0 billion to $2.4 billion, expected to be incurred this year, as well as a Q4:15 charge of approximately $600 million. About 4% to 6% of the division’s global workforce will get walking papers over the next two years, resulting in a $500 million charge for severance. On a more upbeat note, JNJ expects to see annualized pre-tax cost savings of $800 million to $1.0 billion. This move comes as the market for medical devices has slowed, particularly in the United States. As one of many cost-cutting measures, U.S.... Read More »

Private Equity in Health Care M&A, 2015

by | Dec 17, 2015 9:43 pm | eHealth, Long-Term Care, Medical Devices, Other Services, Private Equity

It’s been a superlative year for health care M&A overall, and private equity firms have made a significant contribution. With two (busy) weeks left to go in 2015, PE buyers have announced 129 deals, and that’s not including all the portfolio companies that were building their platforms in the various sectors. Below are some preliminary stats we’ve put together on PE activity in 2015. Private equity buyers account for 9% of the present deal volume of 1,395 transactions, which is typical in recent years. Deal value is a less substantial measure of PE activity, because the majority of deals don’t disclose financial terms. As of December 17, $9.1 billion has been... Read More »

Medtronic Leads Medical Device M&A in 2015

by | Nov 23, 2015 8:30 am | Medical Devices

The Medical Device sector has experienced some ups and down, as M&A goes. Last year, the sector posted 111 transactions and $85.6 billion in spending, which was an 8% and 620% improvement, respectively, over 2013’s performance. This year doesn’t look like a knock-out year for spending, with a sector total of just $36.2 billion as of November 20. Deal volume could still reach last year’s levels, since it stands at 103 deals as of that date. Medtronic plc (NYSE: MDT) has been the busiest acquirer by far, with 10 deals announced. Seven of those disclosed prices, totaling $1.25 billion through November 20. Here’s our list of the top Medical Device deals to date.... Read More »