MOB Deals Accelerate in the Third Quarter

MOB Deals Accelerate in the Third Quarter

Medical office building (MOB) transactions have been flowing steadily throughout the third quarter, with 11 deals on the books so far according to DSO. Most deals are focused on facilities in the Southeastern region of the United States, such as Alabama, North and South Carolina, and Georgia, and the buyers are a mix of REITs, private real estate investment firms, and developers. So far in the third quarter, over 376,000 square feet of MOBs have been sold, with disclosed prices totaling approximately $113.6 million. Unlike other sectors in healthcare, MOBs seem to have benefited from a COVID-19 environment, as noted by JLL ( NYSE: JLL) in a report published in July. The COVID-19 pandemic... Read More »
Healthscope Changes Hands Again

Healthscope Changes Hands Again

Healthscope Ltd. (ASX: HSO), Australia’s second largest private hospital chain, is being sold once again, this time for $4.14 billion, or 1.8x revenue. The Melbourne, Victoria-based company owns 43 hospitals across all states in Australia and is the largest pathology services provider in New Zealand, with 24 laboratories. Three buyers are involved, two of them real estate investment trusts (REITs). First, Brookfield Business Partners LP (NYSE: BBU), a subsidiary of Brookfield Asset Management Inc. (NYSE: BAM), will acquire 100% of Healthscope’s shares, priced at $1.81 (AU$2.50) per share. That returns approximately $1.0 billion in equity. The remainder will be paid with $1.4... Read More »
Digital Health Deals Are Blooming

Digital Health Deals Are Blooming

The eHealth sector is on a roll, and the momentum seems to be gaining every month. Deal volume in the first quarter of 2018, at 45 announced transactions, was 50% higher than in the fourth quarter of 2017. With only four deals fewer than the same quarter in 2017, the 8% dip in deal volume hardly counts as a sell-off. Deal values, which aren’t a solid measure of growth in mergers and acquisitions, were still impressive. In Q1:18, digital health transactions totalled approximately $3.9 billion, up 96% compared with the same quarter a year earlier. That puts the eHealth sector ahead of the Pharmaceuticals sector, which has endured at least 18 months of slow M&A activity. Pharma’s dollar... Read More »
Charles River Labs Adds MPI Research

Charles River Labs Adds MPI Research

The CRO deals just keep coming. Four have been announced since the beginning of the year,  targeting contract research organizations (CROs). The latest announcement came from Charles River Laboratories International (NYSE: CRL), which is paying $800 million for Mattawan, Michigan-based MPI Research. This is the highest disclosed price for an acquisition by Charles River since 2011. MPI is a premier non-clinical contract research organization (CRO) that provides comprehensive testing services to biopharmaceutical and medical device companies worldwide. Its acquisition enhances Charles River’s ability to partner with clients across the drug discovery and development continuum. This... Read More »
Stat of the Week: PE Firms Accounted for 10% of 2017 Deals

Stat of the Week: PE Firms Accounted for 10% of 2017 Deals

2017 was a busy year for healthcare mergers and acquisitions, with 1,566 transactions announced. At this early date, that total is 2% below the previous year’s total of 1,593 (a record year, by the way). Private equity firms contributed to that total, announcing 158 transactions, or 10% of the annual total, according to data obtained from our DealSearchOnline.com database. That total is equal to the previous year’s 156 announced transactions. Private equity firms typically don’t disclose financial terms when they announce transactions (if they announce them at all), so it’s interesting to see these firms did disclose some $22.0 billion on healthcare transactions in... Read More »