Cardinal Health Sells Majority Stake in NaviHealth

Cardinal Health Sells Majority Stake in NaviHealth

Cardinal Health (NYSE: CAH) does a lot of business with private equity firms, but usually as an acquirer, not a seller. In August 2015, Cardinal acquired NaviHealth from Welsh, Carson, Anderson & Stowe for $290 million. In June 2018, it sold a 55% stake in NaviHealth to Clayton, Dublier & Rice for an undisclosed amount. Cardinal’s initial stake was just 71% in 2015, but it added another 17% share in 2017 for $103 million. It will retain an approximately 45% interest in the company, and will have a call right to reacquire the business. The company said it would realize proceeds of $650 million after tax. Back in 2015, NaviHealth offered software and analytics products to help... Read More »
Healthcare Services Roundup through April 2018

Healthcare Services Roundup through April 2018

It’s been quite a year for healthcare deals in general, with nearly 600 announced transactions in the first four months. That’s 7% more than there were announced in the first four months of 2017. Dollar volume has soared, too. In 2018, $141.8 billion has already been committed to fund the 588 transactions. Thanks to some mega-billion-dollar deals in 2018, the total is 30% greater than the nearly $109 billion spent in the same period of 2017. Collectively, the Services sectors are booming, which isn’t always the case. Services deals made up 63% of all deals in the first four months of 2018, and 57% of the disclosed dollars, now at $81.3 billion. The Technology sectors... Read More »
PE Firms Join to Form Home Health Care Giant

PE Firms Join to Form Home Health Care Giant

Consolidation isn’t a novel concept in the healthcare market, although it has been slow to arrive for some. The Home Health & Hospice sector has experienced a few jolts in the past six months, as three publicly traded giants merged or were split up. Now the private equity side has sent a shock wave through this sector, pulling together three separate platform companies into a major contender. Blue Wolf Capital Partners, which has backed both Great Lakes Caring and National Home Health Care for the past two years, joined with Kelso & Company to acquire Jordan Health Services from Palladium Equity Partners, LLC. Financial terms were not disclosed. Upon closing the transaction... Read More »
Q1:18 Results: Healthcare Goes Retail

Q1:18 Results: Healthcare Goes Retail

First, the easy news. Deal volume in the first quarter of 2018 was on par with the previous quarter’s total of 380 deals. Preliminary data show 378 transactions were announced in the first quarter, making for a decline of 1% that will likely be erased as more deal activity is uncovered. Compared with the first quarter in 2017, however, deal volume was down 14%, versus the 439 deals reported then. Deal value for the quarter is where the data deviates from previous norms. The first quarter in 2017 posted a very robust $59.6 billion in disclosed deal value. In the fourth quarter of the year, deal value leapt to nearly $115.0 billion, thanks largely to the $77 billion proposed acquisition of... Read More »
New Buyers Move in to Home Health & Hospice

New Buyers Move in to Home Health & Hospice

The Home Health & Hospice sector is poised for big deals in 2018. As the healthcare industry shifts inexorably toward value-based reimbursement models, this sector has become the “go-to” care protocol to help drive down costs and to keep patients out of institutions. However, the pressures that existed in 2017 are still present in 2018, and even amplified now. Mark Kulik, managing director at The Braff Group, recently gave us his view of the market. Not only will the rate of M&A activity accelerate, new buyers will enter the market. “Ten years ago, people stayed in their lane. Today, we’re going out to a wider range of buyers, such as long-term care and... Read More »