RN Staffing Firm Sells for $88 Million
Cross Country Healthcare, Inc. (NASDAQ: CCRN) hasn’t announced an acquisition in more than a year. The company posted some rather soft numbers in Q1:17, owing to the slow pace of ramping up some new business wins in 2016. CEO William Grubbs told analysts on the following earnings call on May 4 that he still wasn’t satisfied with the results. What better remedy for slow organic growth than to make an acquisition? On June 13, the company announced it will pay an aggregate price of $88 million to acquire substantially all of the assets and business of Advantage RN, LLC and its affiliates, Advantage On Call, Advantage Locums and Advantage RN Local Staffing... Read More »
Investors Want Health Care Services with No Strings Attached
Preliminary data for the month of May shows an encouraging uptick in deal volume, with the services sectors making up 66% of the total. Some 134 transactions were announced last month, a 30% increase over April’s anemic 103 deal volume total. But monthly transaction totals in 2017 are not keeping pace with those in 2016. A year ago, 151 transactions were announced, 11% higher than in May 2017. There’s no question that the ongoing uncertainty surrounding the American Health Care Act hangs heavily on healthcare investors. The Senate Republicans have been at work behind closed doors to craft a different deal than the one sent to them by the House Republicans in mid-May. From the handful of... Read More »PE Firms Team Up to Buy CROs
The contract research organization (CRO) industry continues to consolidate at a rapid pace in response to growing demand from pharmaceutical and biotechnology companies. But pharma and biotech serve as the customers in this industry, not the acquirers. Nearly all the buyers in 2017 are other CRO companies that are seeking scale. Private equity is also joining the party, accounting for the remaining portion of deals, including the largest disclosed deal this year. Last month, INC Research Holdings (NASDAQ: INCR) paid $4.6 billion for inVentiv Health, a CRO that also counts Advent International and Thomas H. Lee Partners as equal equity holders. The firms will retain their stakes following... Read More »Patheon Bought, Again
There has been a lot of interest in contract research organizations (CROs), contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs), especially in the M&A market. Half-way through May 2017, 19 of these deals have been announced. With 14 deals and $14 billion spent this year, CROs have taken the spotlight. But CDMO deals are picking up pace, accounting for 21% of the 19 deals and $7.3 billion spent this year. Most of that total derives from one deal. On May 15, 2017, Thermo Fisher Scientific, Inc. (NYSE: TMO) acquired Patheon N.V. (NYSE: PTHN), a CDMO focused on active pharmaceutical ingredients (APIs) and finished drug product... Read More »CRO Consolidation Tops $13 Billion in 2017
2017 is the year of the CRO deals. In the first four-and-a-half months of 2017, 17 deals targeting a CRO (contract research organization) have been announced, with disclosed spending of approximately $13.8 billion. Just a few weeks after Hellman & Friedman LLC took over the majority stake in Pharmaceutical Product Development, LLC (PPD) for $9.05 billion in April, the CRO market witnessed another mega deal. On May 11, 2017, INC Research Holdings, Inc. (NASDAQ: INCR) a contract research organization providing Phase 1 to Phase 4 clinical development services, announced that it merged with privately-held inVentiv Health in an all-stock transaction valued at $4.6 billion. The combination... Read More »Schedule a demo
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