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August 2018 Sets New Record for Health Care Deals
Did any of you deal makers take a vacation last month? I know for a fact that many of you did, but the pace of deal announcements didn’t slow for a moment in August 2018. Deal volume reached 144 and still counting, a new record for the month. The total got a boost from a suddenly hot Long-Term Care sector, which logged 46 transactions. That’s a 70% boost compared with the 27 deals reported in both July 2018 and August 2017. Looking back through our database, August has been fairly quiet for the past 20 years, as far as deal volume is concerned. Way back in August 1997, 113 transactions were announced, and that was before we began tracking the technology sectors—Biotechnology, eHealth,... Read More »
Health Care M&A Deals, Week Ending August 31, 2018
The Health Care M&A Weekly chart is a selection of transactions announced during the prior week(s). The deals presented here are from our Deal Search Online database, which is updated every business day, in the quarterly report. Visit www.dealsearchonline.com to see how Deal Search Online can help you stay up-to-date on the healthcare market overall, or in a particular sector of interest to your firm. Biotechnology Acquirer Target Price Genentech, Inc. Collaboration on immunotherapeutics $96 million eHealth Acquirer Target Price Alliance MMA, Inc. SCWorx Corp. $50 million True Nature Holding, Inc. ClariCare, Inc. $3 million Harris Healthcare Iatric Systems, Inc. N/A Laboratories, MRI... Read More »
Physician Practice Deals Are Set for New Record
Private equity firms can’t get enough of physician medical gropus, especially the specialty practices. In the first eight months of 2018, 153 deals have been announced in this sector. With four months left to go, there’s plenty of time to top last year’s total of 168 transactions. Private equity firms made 21 direct acquisitions this year, about 14% of the 153 announced deals. Companies owned by private equity firms accounted for 51% of the total. You can bet that, if private equity-sponsored deals made up 65% of the year’s total, valuations are going through the roof. And you’d be right. Sources tell us that the fevered-pitch interest in specialty physician... Read More »Emergent BioSolutions Surges
Emergent BioSolutions Inc. (NYSE: EBS) waited until August to announce its first transactions of 2018, but its stock has been rising all year. On August 9, we reported the company acquired specialty vaccine maker PaxVax, Inc. for $270 million. EBS followed that up on August 28 with a $635 million deal for Adapt Pharma, maker of Narcan® (naloxone HCI) Nasal Spray, the only FDA-approved nasal form of naloxone indicated for the emergency treatment of opioid overdose. Upon closing, Emergent will acquire Narcan and a development pipeline of new treatment and delivery options to address opioid overdose. Narcan is expected to generate revenues of $200 million and be accretive to adjusted net... Read More »
Stryker Strengthens Its Spinal Division with K2M Deal
Stryker Corporation (NYSE: SYK) announced its third deal of the year on August 30, acquiring K2M Group Holdings (NASDAQ: KTWO), based in Leesburg, Virginia. Stryker will pay $27.50 per share in an all-cash transaction. The purchase price of approximately $1.4 billion represents a 27% premium over K2M’s average closing price in the 90 trading days ended August 29, 2018. K2M shares rose nearly 26% on news of the deal, opening at around $27.40 per share on August 30, 2018. Stryker’s shares were down nearly 1%, to approximately $170. K2M makes complex and minimally invasive spine “solutions,” which are implants, disposables, and instruments primarily to hospitals for... Read More »
HCA Keeps the Title for Average Price per Hospital Bed
After months of deliberations, for-profit HCA Healthcare (NYSE: HCA) signed a definitive agreement to acquire western North Carolina’s largest health system, not-for-profit Mission Health. The price, approximately $1.5 billion, includes substantially all of Mission Health’s assets. The proceeds of the sale combined with Mission Health’s remaining cash and investments–after all debts and obligations have been paid–will ultimately be transferred to the newly formed Dogwood Health Trust. Under the agreement, HCA will acquire Mission Hospital (763 beds) and CarePartners Rehabilitation Hospital (80 beds), both in Asheville; Mission Hospital McDowell (49 beds) in Marion; Angel... Read More »
Connecticut Cannabis Company Sold to Tuatara Capital
Tuatara Capital didn’t travel far to find its latest investment. While several companies recently have targeted Florida medical cannabis growers (and their licenses), the New York City-based cannabis investor took a drive up I95 to bag Connecticut Pharmaceutical Solutions (CTS). CTS is a licensed medical cannabis cultivator in the state of Connecticut. It manufactures pharmaceutical-grade medical cannabis products, including dried flower, extracted concentrates, vaporizers, tinctures, oral tablets and sprays, and topical treatments. Tuatara Capital is a specialized alternative investment manager founded in 2014 to support the legal cannabis industry. It currently manages more than... Read More »
SOC Telemed Adds Psych Services
SOC Telemed, formerly Specialists On Call, Inc., has added telepsychiatry provider JSA Health to its roster of specialties. SOC Telemed bills itself as the largest national provider of provides video-based specialty physician consultations to acute care hospitals, health systems, post-acute care providers, physician networks, value-based care organizations and health plans. Through its Telemed IQ platform, it provides 24/7 coverage in neurology, psychiatry, critical care and managed services solutions to more than 300 hospitals across 25 states. It’s been in Warburg Pincus’ portfolio since 2014. Houston-based JSA Health provides telepsychiatry services in emergency settings,... Read More »
Brookdale Sells Battery Park Property
Ventas, Inc. (NYSE: VTR) is now in the Long-Term Care record books. On August 20, the REIT announced it will pay $194 million, or $894,000 per unit, for Brookdale Senior Living’s (NYSE: BKD) Brookdale Battery Park property. We think that’s a record per-unit price. It was opened in 2000 at an approximate cost of $50 million. This 14-story, 240,000 square-foot independent living community overlooks the Hudson River in the Battery Park City neighborhood of Manhattan. Occupancy was in the low 90s. The acquisition was valued below replacement cost and represents an approximately 5% going-in yield on net operating income as reported by Ventas. Brookdale will stay on as operator under... Read More »Schedule a demo
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