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M&A Demand for Substance Abuse Providers Surge
According to the Centers for Disease Control and Prevention, as of June 2020, 13% of Americans reported starting or increasing substance use as a way of coping with stress or emotions related to COVID-19. This uptick in substance abuse appears to be driving the Behavioral Health Care (BHC) deal market with a notable increase in deals targeting substance abuse treatment centers and providers. In the last two months, 77.7% of our BHC deals have involved the purchase of addiction treatment centers — but during the same time period (June through mid-July) in 2020 and 2019, about 56% of the BHC deals included this specific target type. Most recently, BRC Healthcare, a portfolio company of... Read More »
Addus HomeCare Expands in New Mexico
Addus HomeCare Corporation announced last week the $29 million acquisition of Armada Skilled Home Health & Hospice in New Mexico. Armada currently serves an average daily census of approximately 1,100 patients for home health services and 100 patients for hospice care, with primary coverage across Bernalillo County and surrounding counties. It has $23 million in annualized revenue. This deal expands Addus’ presence in New Mexico, an important market for the company. It is yet another step toward the company’s mission to expand its home health, hospice, and personal care lines in specific regions and states, as it did in Ohio in November when it bought Queen City Hospice for... Read More »
Eli Lilly Acquires Protomer Technologies
The pharma giant Eli Lilly and Company announced a new deal last week, taking full ownership of Protomer Technologies for $1 billion. Founded in 2015, Protomer engineers next-generation protein therapeutics that can sense molecular activators in the body. The company’s proprietary chemical biology-based platform enables the development of therapeutic peptides and proteins with a tunable activity that can be controlled using small molecules. Protomer has used this approach toward advancing a portfolio of therapeutic candidates, including glucose-responsive insulins that can sense sugar levels in the blood and automatically activate as needed throughout the day. Lilly previously led an... Read More »
Waystar Buys Revenue Cycle Management Firm Patientco
With the support of three financial backers, Waystar has been steadily expanding over the past few years. The company specializes in revenue cycle management services and partners with more than 450,000 providers, 750 health systems and hospitals, and 5,000 payers and health plans. To bolster its services and network, it added eSolutions in 2020 from Francisco Partners, which has 6,000 payer connections in the healthcare and post-acute market and maintains a powerful and growing data set of billions of transactions. And last week, Waystar added Patientco, a portfolio company of Accel-KKR and The Blue Venture Fund. Patientco provides omnichannel patient payments, communications and... Read More »
Health Care M&A Deals, July 9, 2021
The Health Care M&A deals chart is a selection of transactions announced during the prior week(s). The M&A transactions presented here are from our new LevinPro Healthcare and LTC platform, which is updated daily to provide our subscribers with the most up-to-date information and trends in the healthcare industry. The largest deal of the week based on disclosed price is the acquisition of Vectura Group plc for $1.2 billion by Philip Morris International. Vectura is a provider of innovative inhaled drug delivery solutions that enable partners to bring their medicines to patients. The company has thirteen key inhaled and eleven non-inhaled products marketed by major global... Read More »
U.S. Oral Surgery Management Enters Arizona Market
U.S. Oral Surgery Management (USOSM) has cemented its position as one of the country’s most active physician medical group acquirers. With six acquisitions announced in the second quarter alone, USOSM has significantly expanded its regional portfolio from its humble beginnings in 2017 when it was formed by RiverGlade Capital and The Thurston Group USOSM is a specialty management services company focused on oral and maxillofacial surgery headquartered in Irving, Texas. It partners with smaller physician groups and provides operational, marketing and administrative support services to improve clinical and financial performance and produce steadier, more profitable growth. The practice... Read More »
Cano Health Acquires Doctor’s Medical Center
After acquiring University Health Care in mid-June for $600 million, Cano Health (NYSE: CANO) has already struck another deal. Cano Health announced last week it is acquiring Doctor’s Medical Center (DMC), which provides integrated, innovative care to Medicare, Medicaid and ACA members in South Florida. Founded in 1996, it has grown to 18 medical centers located in Miami-Dade and Broward counties. The deal is valued at $300 million cash, and concurrent with the acquisition, Cano Health borrowed $250 million through an unsecured debt facility. DMC is expected to generate $194 million in revenue and $22 million in EBITDA in 2021. The combination with DMC increases Cano Health’s... Read More »
Amedisys Buys Contessa Health
The home health and hospice giant Amedisys, Inc. (NASDAQ: AMED) is back with a new deal. Earlier in July, the company announced it was buying Contessa Health, which specializes in hospital-at-home and skilled nursing facility at-home services, for $250 million, or about 3.9x Contessa’s forecasted 2022 revenues of $64 million. And Amedisys expects that by 2025, revenues will grow by 118%. This is a good opportunity for Amedisys because it gives the company a larger foothold in the in-home services market, increasing its Total Available Market (TAM) from $44 billion to $73 billion, and provides a myriad of new services such as analytics, underwriting and care coordination. Perhaps most... Read More »
Parexel Sold in $8.5 Billion Deal
It looks like contract research organizations are still in high demand. EQT Private Equity and Goldman Sachs Asset Management Private Equity are teaming up to acquire Parexel from Pamplona Capital Management for $8.5 billion. Parexel is a leading global clinical research organization (CRO) serving sciences and biopharmaceutical clients. EQT is a purpose-driven global investment organization with more than $79 billion in assets under management across 26 active funds. Goldman Sachs Asset Management Private Equity is the primary investing area within Goldman Sachs, overseeing more than $2 trillion in assets under supervision worldwide as of March 31, 2021. This investment into Parexel will... Read More »Schedule a demo
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