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PharMEDium Healthcare Sold for $2.6 Billion

Last week’s largest deal came from AmerisourceBergen Corporation (NYSE: ABC). The pharmaceutical distributor agreed to pay $2.575 billion for PharMEDium Healthcare Holdings, a portfolio company of Clayton, Dublier & Rice. PharMEDium  provides outsourced compounded sterile preparations to acute care hospitals in the United States. It maintains four compounding facilities and serves over 3,000 U.S. hospitals.  The acquisition is expected to be $0.22 to $0.26 accretive to ABC’s adjusted EPS in fiscal 2016 on a net basis, and is expected to generate approximately $30 million in synergies by fiscal 2018. Read More »

Q3:15 Health Care M&A, By Sector

Health care M&A in the third quarter was quite robust, with 385 transations reported across 13 sectors. That’s a new record for any third quarter, by the way. We’ll have the full break-out in The Health Care M&A Report, Third Quarter 2015, due to be published by the end of this month. In the meantime, here’s how the sectors fared in Q3:15. Read More »

Personalized Medicine Isn’t All Biotech

There are many sides to personalized medicine, and genetic testing is just one. Another cropped up last week in an acquisition made by Restore Health, a privately held Wisconsin company that provides personalized medicines to health care providers across the United States. Its target was Diplomat Pharmacy’s (NYSE: DPLO) compounding pharmacy business, which includes preparation of personalized medicines for patients, and compounding pharmacists who work with prescribers to customize medication to meet specific patient health needs. The deal frees up Diplomat to focus on its core specialty pharmacy operations, which were bolstered with its acquisition of Burman’s Specialty Pharmacy for $82.8... Read More »

Cardinal Health Buys NaviHealth

Rumors surfaced last week that Nashville-based NaviHealth, a portfolio company of Welsh, Carson, Anderson & Stowe, was about to be acquired by Cardinal Health (NYSE: CAH). Our friend in Nashville, Milt Capps, published the story on his Venture Nashville Connections blog on August 24. Sure enough, the story was verified on August 25 when Cardinal issued a FAQ statement about the $290 million deal. What does a medical products distributor like Cardinal see in a post-acute care coordinator like NaviHealth? Quite a lot, since its sweet spot is managing bundled payments in the post-acute continuum of care. The acquisition of even 71% of NaviHealth gives Cardinal Health scale and the... Read More »

Chinese Health Care Company Still Growing Strong

Chinese stock markets may be tumbling, but the country’s largest preventive healthcare services company, iKang Healthcare Group (NASDAQ: KANG), is growing strong. Last week it announced its sixth acquisition of the year, this time for three medical centers in three major cities in Shandong province. The targets were three franchises of a rival private preventive services provider, Ciming Checkup Group. iKang was happy to boast this is its third acquisition this year of former Ciming franchises. Financial terms were not disclosed for any of the transactions. Read More »

Deal Volume Rose in July

July’s combined transaction total hit 127 deals, up 2% compared with the bang-up month of July 2014, which had 124 transactions. The Services sector had a strong performance, accounting for 60% of deal volume. Long-Term Care made up 27% of the volume overall with 34 announced transactions. That equalled the record set last July for the sector, and will probably break it as more deals come to light. The Managed Care sector posted some extra activity, although seven deals versus two deals the month prior and a year ago isn’t moving  the needle very high. July 2015 DealsShare of Total Services Behavioral Health Care32% Home Health & Hospice23% Hospitals76% Labs, MRI & Dialysis43%... Read More »