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The following transactions are provided as a matter of public record

and compiled to provide an overview of the Healthcare Market Pulse™ of

recent acquisition and merger activities within the healthcare and life sciences industry.

2017 Market Pulse Outlook

The Healthcare M&A environment in 2017 is anticipated to continue its strong growth trends. Strategic and private equity acquisition appetites for strong healthcare companies continue to grow and this offers tremendous liquidity opportunities for business owners.  As strategic acquirers become increasingly aggressive in their pursuit of new sources of growth, the robust capital markets welcome the next wave of growth companies.  Despite significant challenges in reimbursement and other operating factors, many healthcare providers continue to grow profitably by scaling their businesses.  While this growth comes at a significant cost to gross margins, we see efficient companies continuing to generate strong overall profits and hence, attractive acquisition opportunities.

Interest is being further accelerated as buyers realize the opportunity presented by a growing number of healthcare beneficiaries.  This includes both aging and the newly insured under the Affordable Care Act.  When coupled with a consolidating supplier/provider base of companies and the acquisition opportunities become even more attractive. 

At Paragon Ventures, we expect these trends to continue throughout the year.  We will be at the forefront helping our clients maximize the value of their businesses within this environment.  

Browse below for completed M&A transactions or enter your search criteria below:

 

Recent Healthcare Transactions

Sources: The transactions listed herein have been compiled from publicly available information

including SEC Filings; Corporate Press Releases, Industry News Reports; IBISWorld; Capital IQ; and our Independent Research.

 

 

2017

      The following transactions further supports the consolidation activities throughout the healthcare sectors.  We expect this trend to continue as providers scale operations and position their organizations for the demographic influx from implementation of the Affordable Care Act.  For more information on how these transactions may propel the strategic options for your business, contact Paragon Ventures today at 800-719-1555.

Sector Keywords

Transaction

 
Pharmacy

McKesson Corporation announced it will acquire CoverMyMeds LLC for up to $1.4 billion, a portion of which is contingent upon the company’s future financial performance. CoverMyMeds was founded in 2008 with the mission to help patients get access to the appropriate medication they need to live healthy lives. CoverMyMeds’ electronic prior authorization (ePA) service automates and accelerates the prescription approval process, which otherwise is manual and time consuming.

By ensuring appropriate access to medications, CoverMyMeds helps customers avoid administrative waste and unnecessary medical spending caused by prescription abandonment. The pending acquisition by McKesson will allow both companies to enhance the value they provide to their customers across the healthcare spectrum. Once the transaction closes, CEO and co-founder Matt Scantland will continue to lead the company with the existing leadership team, who will run the company from its Columbus and Cleveland, Ohio operations.

 

 

Revenue Cycle Management

Drug distributor McKesson's technology business has officially merged with Change Healthcare, a revenue cycle and analytics firm.

The two companies announced the closing of the multi-billion-dollar deal Thursday before the market opened. The new company will be called Change Healthcare, combining nearly all of Nashville-based Change's business with the majority of San Francisco-based McKesson's technology business. 

McKesson owns 70% of the combined company, with the remainder being held by Change stockholders, including investment firms Blackstone and Hellman & Friedman. But McKesson has said that it plans to sell its share in the company soon after the firm completes an initial public offering, which is expected in the next 18 months. 

The deal allows McKesson to largely part ways with the majority of its technology business, including revenue cycle and analytics, while retaining technology platforms that are more in line with its much-larger drug distribution business. McKesson's technology segment was often a drag on its overall earnings when compared to the pharmaceutical business. 

 

 
Medical Supply

RoundTable Healthcare Partners (Lake Forest, IL) announced today that its portfolio company, TIDI Products LLC (Neenah, WI), acquired the J.T. Posey Company (Arcadia, CA). Posey is a manufacturer of falls management and patient safety products.

Approximately 860 Posey team members will join the TIDI organization, including a 45-person direct sales force that will expand TIDI’s direct selling footprint to nearly 70 people across the U.S. The Posey selling organization will remain standalone and continue delivering cost-effective and solutions-oriented falls management and patient safety products. The financial terms of the transaction were not disclosed.

 
Clinical Research Organization (CRO)

Pharm-Olam International Has Been Acquired by Quad-C Management  This transaction closed on February 1, 2017.  Pharm-Olam International is a leading clinical contract research organization (CRO) providing full-service solutions to help clients successfully manage and advance their clinical trials. Based in Houston, TX, and with offices worldwide, Pharm-Olam has a track record of supporting global clinical trials in more than 60 countries. Pharm-Olam has experience in all clinical phases with a focus on Phase II and Phase III global trials. Its expertise covers a wide range of therapeutic areas and major indications, addressing complex, high-growth areas such as oncology, infectious diseases, endocrinology, and orphan indications.

Founded in 1989 and based in Charlottesville, Virginia, Quad-C is a middle-market private equity firm focused on investing in well-established business services, consumer, general industrial, healthcare, specialty distribution, and transportation and logistics companies. In its 25-year history, the company has invested over $2 billion of equity across more than 50 companies. The Quad-C team is committed to partnering with entrepreneurs and management teams to accelerate growth and create long-term value.

 

Home Health Care

Geneva Glen Capital ("GGC"), a private equity firm headquartered in Chicago, IL, is pleased to announce its partnership with management in the recapitalization of Southeastern Home Health Services (“Southeastern” or the “Company”). Headquartered in Bristol, PA, Southeastern is one of the largest independent Medicare home health providers in Pennsylvania.

Founded in 1987, Southeastern operates in 16 offices across Eastern Pennsylvania and Eastern Virginia. In addition to providing traditional home health care services, the Company offers a full suite of specialty services to address patients’ needs, including Heart Failure Disease Management, Palliative Care, Wound Care, Lymphedema, Tele-Health, Geriatric Care Management, Gero-Psychiatric, and Oncology Home Health Care programs. The Company’s dedication to the care of its patients and growth and professional development of its employees serve as the foundation of its success.

 
Medical Supply

Coloplast to buy Comfort Medical for $160M

Coloplast, which has its U.S. headquarters here but is based in Denmark, has entered into a definitive agreement to acquire Coral Springs, Fla.-based Comfort Medical for $160 million in cash, the company announced Nov. 30.

The deal, if completed and approved by authorities, combines a manufacturer of ostomy, urology, continence and wound care supplies with a provider of those supplies.

“The acquisition of Comfort Medical fits very well into our overall consumer ambition for Coloplast in the U.S., securing continued access to innovative technology for end users,” said Lars Rasmussen, Coloplast’s CEO, in a release. “Comfort Medical has a strong patient acquisition model and an efficient and scalable setup, in addition to a strong management team with a good cultural fit to Coloplast.”

Comfort Medical, a subsidiary of Liberty Medical, is expected to record sales of about $38 million for 2016, according to the release.

Coloplast plans to leverage Comfort Medical’s business model of capturing patients through direct response advertisement and physician referrals. It provides patients with products from a number of manufacturers, including Coloplast.

“I am excited about the future prospects of our U.S. business and view this acquisition as an additional building block in the implementation of our U.S. strategy,” Rasmussen said.

Earlier this year, Comfort Medical acquired Wheel:Life, a digital media publication and social community for wheelchair users with more than 26,000 followers on social media, further strengthening its ties to end users.

 

 
Home Health

Medical Supply

Epic Health Services has agreed to be acquired by Bain Capital Private Equity, it announced Dec. 19.

Epic Health Services offers a full continuum of home health services, including private duty nursing, enteral nutrition, medical supplies and behavioral health services for medically fragile children.

“Because of advances in technology and health care delivery, home health care has become a preferred alternative to remaining in a health care facility for children facing difficult health obstacles and their families,” said Chris Roussos, president and CEO of Epic Health Services. “Epic Health Services enables these children to receive high quality care in the comfort of their own homes while supporting their families and helping create an environment of normalcy in the home. 

Epic Health Services has been building a national presence through acquisitions, including the October 2015 buy of Houston-based Medco and the September 2015 buy of Option 1 Healthcare Solutions. The provider, which was founded in 2001, now serves 21 states.  Roussos and the current management team will continue to lead Epic Health Services, which was previously owned by Webster Capital.  Terms of the deal, expected to close in the first quarter of 2017, were not disclosed.

 
DME/HME

Supplies

DME Express, a DME provider to hospice and nursing facilities in the Southeast, has secured an undisclosed amount of growth equity financing from WayPoint Capital Partners, it announced Dec. 19.

Concurrent with the financing, DME Express has also secured a significantly expanded credit facility from its existing lender, Bank of Oklahoma.

Funds will be used to support the company’s rapid growth and its continued expansion.

 

“This capital raise will enable DME Express to continue to make significant new investments in equipment, technology and expansion into new geographic markets,” said Mark Borneleit, CEO of DME Express, in a press release.

DME Express has more than 100,000 square feet of warehouse space across six states, has more than $20 million invested in inventory, and has more than 120 delivery technicians and vehicles, according to the release.

WayPoint Capital Partners, based in Rye, N.Y., has several billion dollars in assets under management in middle market health care, logistics and business services sectors. A so-called “balance sheet investor,” it does not have predefined holding periods or exit horizons, allowing it to focus on long-term capital appreciation, the release says.

 

 
Pharmacy

Pain Management

Premier Pain Centers and Specialty Anesthesia Associates have been acquired by National Spine & Pain Centers . Premier provides interventional pain management services to seven locations throughout New Jersey, while SAA provides anesthesia services to seven New Jersey ambulatory surgery centers.

 
Physical Therapy

Sports and Physical Therapy Associates (SPTA) has been acquired by ATI Physical Therapy (ATI).  SPTA is a group of physical therapy professionals devoted to providing the community with the most up-to-date injury detection, post injury rehab, and sports specific training.  SPTA currently has 19 physical therapy outpatient centers.  The terms of the transaction were not disclosed.

“Sports & Physical Therapy Associates’ network of greater Boston locations and hospital affiliations provide the ideal Northeast-based platform for ATI to expand its operations.  Combing ATI’s growth capabilities with Carl Gustafson and Scott Waugh’s deep-seeded relationships with local healthcare providers is the kind of partnership that can make for a dominant player in the region,” commented Scott Davis, Associate at Provident Healthcare Partners.

“Over the last 20 years, Carl, Scott and Dan Kline have built SPTA into the leading provider of outpatient therapy services in Massachusetts, and the combination with ATI will provide the resources for the practice to expand its highly reputable patient care into new markets across the Northeast,” stated Eric Major, Associate at Provident Healthcare Partners.

 

 

Healthcare

Balance Point Capital Partners has acquired a majority stake in Practitioner Support Services, LLC. ProHealth provides outsourced medical care services through a credentialed Nurse Practitioner, or equivalent Practitioner, primarily to skilled nursing and assisted living facilities within the state of Connecticut.

 

Healthcare

Urgent Care

Texan Urgent Care, an urgent care clinic operator with 14 centers throughout Texas, has been acquired by FastMed Urgent Care, the second largest and fastest growing independent urgent care organization in the U.S. FastMed is a portfolio company of ABRY Partners. Provident Healthcare Partners served as exclusive financial advisor to Texan Urgent Care.

 
Home Health

Nursing

Jordan Health Services (“Jordan”) a provider of home health, hospice and pediatric services in Texas, Oklahoma and Louisiana, recently announced that it acquired Medistar Home Health, LLC (“Medistar”), a Louisiana home health care provider caring for over 1,100 patients and their families daily.

According to Scott Herman, CEO of Jordan, “Our expansion in Louisiana will continue to grow a successful care delivery network and expand on our mission to serve the healthcare needs of chronically ill seniors. We welcome the dedicated and experienced staff of Medistar into the Jordan Health care group." “Medistar is a leading home health operation in the state of Louisiana with an elite brand and reputation, and will facilitate Jordan’s path to become the dominant home health provider in Louisiana,” remarked Jeff Fisher, EVP of Growth and Development.

About Jordan Health Services. Founded in 1975 and based in Dallas, TX, Jordan Health Services is one of the nation’s largest home care providers. With its unique blend of services including personal care, case management, skilled nursing, therapy, and hospice services, Jordan’s team of highly skilled and dedicated professionals provide care to approximately 33,000 patients throughout the states of Texas, Oklahoma, Arkansas, and Louisiana

 
Health Staffing

BelHealth Investment Partners LLC, a healthcare-focused private equity firm, acquired American HealthCare Staffing Association LLC (AHSA), a hospital VMS provider.

AHSA, founded in 2003 and headquartered in Traverse City, Mich., provides 200 member facilities nationwide with all areas of clinical and non-clinical temporary employees including: nurses, physicians, mid-level healthcare professionals, allied healthcare professionals, medical office staff, IT and other staffing specialties. “I look forward to our partnership with BelHealth and leveraging their deep healthcare network to support AHSA’s next phase of growth,” said AHSA President Tim Cerny, who will remain in charge of the firm.

We believe AHSA is well positioned to achieve exponential growth over the next several years.” New York-based BelHealth Investment Partners is a healthcare private equity firm focused on lower middle-market companies. Last October, it acquired AHS Staffing LLC, a healthcare staffing firm based in Edmond, Okla. The firm typically invests $20 million to $50 million per platform company across three core healthcare segments: Services, products and distribution.

 
Medical Device

Teleflex Incorporated (Wayne, PA) completed its previously announced acquisition of Vascular Solutions Inc. On December 2, 2016, the two companies announced a definitive agreement for Teleflex to acquire all of the issued and outstanding shares of Vascular Solutions common stock for $56.00 per share, in cash. Vascular Solutions is a medical device company that focuses on developing clinical solutions for minimally invasive coronary and peripheral vascular procedures. As previously announced, the combination is expected to meaningfully accelerate the growth of Teleflex’s vascular and interventional businesses by its entry into the coronary and peripheral vascular market, as well as increased cross-portfolio selling opportunities to both Teleflex and Vascular Solutions customer bases.

 
Medical Device

Hill-Rom Holdings Inc (Chicago, IL) has completed its acquisition of Mortara Instrument Inc (Milwaukee, WI), for $330 million in cash, primarily financed through a private offering of $300 million of senior unsecured notes. Mortara Instrument CEO Dr. Justin L. Mortara has joined Hill-Rom and will continue to lead Mortara Instrument. Mortara's portfolio of diagnostic cardiology devices is designed to serve the full continuum of clinical care, from acute care to primary care and clinical research organizations. Mortara's comprehensive range of products, operating under the Mortara, Quinton, and Burdick, brands, include resting electrocardiography, cardiac stress exercise, Holter monitoring, ambulatory blood pressure monitoring, and cardiac and pulmonary rehabilitation and multi-parameter patient monitoring. These technologies are differentiated by industry-leading diagnostic algorithms, EMR connectivity and enhanced security features. Based in Milwaukee with offices in Australia, Italy, Germany, the Netherlands, and the UK, Mortara has more than 400 employees globally and generated approximately $115 million in revenue in 2016.

 
Medical Device

Integra LifeSciences Holdings Corporation (Plainsboro, NJ) announced that it has made a binding offer to acquire the Johnson & Johnson (New Brunswick, NJ) Codman Neurosurgery business for a price of $1.045 billion in cash. Codman Neurosurgery offers a portfolio of devices focused on advanced hydrocephalus, neuro-critical care, and operative neurosurgery. If the binding offer is accepted, upon closing, Integra will be a leading global provider of neurosurgical products. Codman Neurosurgery’s more than 600 employees will join the Integra team. Codman Neurosurgery's existing portfolio and new product pipeline in advanced hydrocephalus, neuro-critical care and electrosurgery complement Integra's leading products and pipeline in tissue ablation, dural repair and cranial stabilization. Together, this comprehensive portfolio will offer customers around the world complete solutions for neurosurgery and the scale to invest and bring new technologies to patients worldwide. The transaction is expected to close in two steps: first, in the approximately 24 principal countries during Q4 2017; and subsequently, in the remaining countries on a rolling basis.

 
Medical Supplies

Medical Device

ICU Medical Inc (San Clemente, CA) completed its acquisition of the Hospira Infusion Systems (HIS) (Lake Forest, IL) business from Pfizer Inc (New York, NY). The Hospira Infusion Systems business includes I.V. pumps, solutions, and devices. According to the company, the Hospira Infusion Systems acquisition complements ICU Medical’s existing business to create a company with a complete I.V. therapy product portfolio from solutions to pumps to non-dedicated infusion sets. In addition, the acquisition gives ICU Medical a significantly enhanced global footprint and platform for continued competitiveness and long-term growth. With an integrated product offering, the company now holds industry-leading positions in key segments and has access to the full U.S. infusion marketplace with a compelling product portfolio.

 
Medical Device

Hill-Rom Holdings Inc (Chicago, IL) today announced it signed a definitive agreement to acquire Mortara Instrument Inc (Milwaukee, WI) for $330 million in cash. Mortara is a privately held leader in diagnostic cardiology and patient monitoring solutions, technologies, and devices. Mortara Instrument CEO Dr. Justin Mortara intends to join Hill-Rom and continue in his leadership capacity at Mortara Instrument. Hill-Rom anticipates the structure of the acquisition will allow the company to qualify for a significant tax benefit, which at a net present value of approximately $40 million reduces the effective purchase price to approximately $290 million. Based in Milwaukee with offices in Australia, Italy, Germany, the Netherlands, and the U.K., Mortara has more than 400 employees globally and generated approximately $115 million in revenue in 2016. The transaction is expected to close in Hill-Rom's fiscal second quarter of 2017, subject to customary closing conditions.

 
Medical Device

Ethicon Endo-Surgery Inc, part of Johnson & Johnson (New Brunswick, NJ), acquired Megadyne Medical Products Inc (Draper, UT), a privately held medical device company that develops, manufactures, and markets electrosurgical tools used in operating rooms. The deal pairs the intelligence of Ethicon's advanced energy devices with Megadyne’s portfolio of electrosurgical tools. Financial terms of the agreement were not disclosed.

 
Medical Device

Terumo Corporation (Tokyo, Japan) completed its acquisition of certain assets owned by Abbott (Abbott Park, IL) and St. Jude Medical (St. Paul, MN) on January 20, 2017. Terumo has acquired the Angio-Seal and FemoSeal vascular closure product lines and Kalila Medical Inc, a company developing next-generation access technologies, the first being the Vado Steerable Sheath, used in cardiac electrophysiology procedures. The acquired assets become part of Terumo Interventional Systems, a division of Terumo Corporation. The acquisition will enable Terumo to maximize the value of the acquired businesses and contribute to supporting safe and efficient interventional procedures. Further details regarding the impact of the acquisition will be disclosed as needed, according to the company.

 
 

Integra LifeSciences Holdings Corporation (Plainsboro, NJ) announced that its wholly owned subsidiary, Integra Derma Inc, is commencing a cash tender offer to purchase all outstanding common and preferred shares of Derma Sciences Inc (Princeton, NJ) at an offer price of $7.00 per share for Derma Sciences' common stock, $32.00 per share for Derma Sciences' Series A Convertible Preferred Stock and $48.00 per share for Derma Sciences' Series B Convertible Preferred Stock. The tender offer is being made pursuant to an offer to purchase and in connection with the agreement and plan of merger. For more information,

 
Healthcare

A federal judge ruled that the $37 billion merger between Aetna (CS) and Humana (CS) should not be allowed to go through on antitrust grounds, siding with the Justice Department, which had been seeking to block the deal. The deal is one of two mega-mergers proposed by the nation’s largest health insurers; both were challenged by the Obama administration. Another federal judge is expected to rule soon on the case involving Anthem and Cigna, the larger of the two deals, at $48 billion. Monday’s decision adds to the uncertainty facing the industry, with President Trump and the Republican-controlled Congress having vowed to repeal the Affordable Care Act and replace it with something else, the details of which are unknown. While the judge found that a merger of Aetna and Humana would not be in the interest of its consumers, companies are likely to remain interested in future combinations. Insurers view mergers as a way to gain greater clout in negotiations with hospitals and doctors, according to a report in the New York Times. An Aetna spokesman said the company was reviewing the opinion and “is giving serious consideration to an appeal.” Humana did not respond to an email seeking comment. If the deal falls apart, Aetna would have to pay Humana $1 billion, according to the terms of the merger agreement. To read more, visit www.nytimes.com/2017/01/23/business/dealbook/aetna-humana-deal-blocked.html.

 
Healthcare

Johnson & Johnson (New Brunswick, NJ) and Actelion Ltd (CS) entered into a definitive transaction agreement under which Johnson & Johnson will launch an all-cash tender offer in Switzerland to acquire all of the outstanding shares of Actelion for $280 per share, payable in U.S. dollars, as of January 25, 2017. The transaction was unanimously approved by the boards of directors of both companies. Actelion has established a franchise of differentiated, innovative products for pulmonary arterial hypertension (PAH) that is highly complementary to the existing portfolio of the Janssen Pharmaceutical Companies of Johnson & Johnson. As part of the transaction, immediately prior to the completion of the acquisition, Actelion will spin out its drug discovery operations and early stage clinical development assets into a newly created Swiss biopharmaceutical company, R&D NewCo. The shares of R&D NewCo, which will be listed on the SIX Swiss Exchange, will be distributed to Actelion’s shareholders as a stock dividend upon closing of the tender. R&D NewCo will be led by Actelion’s current scientific team with Jean-Paul Clozel, MD, CEO and founding member of Actelion, as CEO. Jean Pierre Garnier, chairman of the board of Actelion, will be chairman of the board of R&D NewCo.

 
Consumer Health

Mead Johnson Nutrition Company (Glenview, IL) has reached an agreement to be acquired by Reckitt Benckiser Group plc (RB), a consumer health and hygiene company. As a result of this transaction, Mead Johnson will become a new division of RB with its globally-recognized Enfamil and Nutramigen brands joining RB's portfolio of leading consumer health brands. RB has agreed to pay $90 cash for each share of Mead Johnson common stock in a transaction valued at approximately $17.9 billion (including net debt). The transaction has been unanimously approved by the Mead Johnson board of directors. Closing of the transaction is subject to customary conditions, including approval by shareholders of both Mead Johnson and RB and regulatory approvals, and is expected to occur during Q3 2017. Mead Johnson will continue to pay its normal quarterly dividend until closing.

 
Medical Supply

Concordance Healthcare Solutions LLC (St. Louis, MO) signed a definitive agreement to acquire Rockwell Medical Supply (Long Beach, CA). The acquisition will expand Concordance’s West Coast presence. Financial terms of the transaction were not disclosed. Commenting on the acquisition, Roger Benz, co-president and CEO of Concordance, stated, “Concordance has a simple vision – to become the most respected, innovative, national, multimarket healthcare distribution company by operating with the highest level of trust, integrity, commitment and service. To continue to bring that vision to life we are pleased to welcome Rockwell Medical Supply to the Concordance family.”

 
   
 
As Donald Trump takes the reins of American government, his policies are still unclear. But his love of the deal holds promise for the future of mergers and acquisitions.  
At Paragon Ventures we are seeing unprecedented buyer and investor interest in growing, profitable healthcare providers across the continuum of care during the Trump administration.  

 
The prime motivators for buyers and investors are efficient operating businesses, population health initiatives, technology driven and well managed operations and... as always, the continued growth of the aging demographic.   

 
Four trends to watch that may affect your healthcare M&A plans include:
  • Bank liquidity. Now may be a good time to take advantage of cheap capital.
  • A slow rise in debt costs. Consolidating may reduce the pressure of high healthcare operating costs.
  • IT leading the way. Consolidations in healthcare IT should increase. Drug companies may buy more overseas assets if Trump implements tax amnesty.
  • Pro-growth policies. If Trump can boost the GDP, healthcare entities can scale operations and gain more negotiation leverage.
We anticipate that the M&A markets for healthcare companies in 2017 shall continue the strong pace of 2016.  Although we can not predict the specifics of how the Affordable Care Act will be changed, repealed and replaced, corporate buyers and strategic investors remain well funded and positioned for acquisitions.  The demographics that have predicted continue to deliver growing populations, more effective technologies and enhanced life-spans.  These growth propellants will continue to be key factors for the M&A markets to embrace growing and profitable healthcare businesses during the Trump administration.
 
To schedule a confidential discussion on the current strategic options for your business, call Paragon Ventures or click here to schedule a confidential conference (without obligation).  
 
   

2016

 
Retail Pharmacy

Paragon Ventures announces the sale of Wilcox Pharmacy to Marble Works Pharmacy, a division of Pharmacy Health Services. An independent operator of pharmacies across the region, Marble Works Pharmacy will continue to deliver the personalized, local service that is the hallmark of Wilcox Pharmacy. Wilcox Pharmacy is strategically located across the street from Rutland Regional Medical Center and has served the local community for over 30 years. Wilcox Pharmacy, a full service retail pharmacy, also operates a long term care and a compounding pharmacy.

The company started in 1986 by Richard Wilcox. In 1993, they then expanded the pharmacy business with a long term care operation. Wilcox’s Long Term Care Pharmacy is a specialty pharmacy, providing medications to assisted living, nursing and long term care facilities. Richard Wilcox, remarked on the sale, "It was important to me to see our pharmacy transition into another independent pharmacy. I know our customers, vendors and employees are in good hands with Marble Works Pharmacy. They will continue to receive the high level of caring, service and clinical expertise that Wilcox is known to deliver.”

Maria Burns, President of Marble Works Pharmacy and Pharmacy Health Services (PHS) comments further, "We are pleased to have the Wilcox team join our family of pharmacies across Vermont. We intend to support and service each of Wilcox’s customers with the same dedication, personal caring and high quality service that made Wilcox the go-to pharmacy for thousands of patients and caregivers.”

Paragon Ventures initiated the transaction and acted at the exclusive advisor to Wilcox Pharmacy. The transaction team was led by April H. Mason, Managing Director of Paragon Ventures.

 

 

Home Health

LHC Group to acquire Halcyon Hospice for ~ $58.5 million in cash. 

LHC Group, Inc. (NASDAQ:LHCG), a national provider of comprehensive post-acute healthcare services, announced today that it has entered into a definitive agreement to acquire Halcyon Hospice LLC for approximately $58.5 million in cash. As a result of the acquisition, LHC Group expects to receive a step up in tax basis, resulting in anticipated cash tax savings to LHC Group over the next 15 years, the net present value of which is approximately $7 million. Therefore, the adjusted purchase price, net of tax benefits, is $51.5 million. The transaction, which has been approved by the Boards of Directors for both companies, is expected to close on or around October 1, 2015, subject to certain customary closing conditions.

Halcyon was founded in 2010 by Dan Kohl and Jack Draughon with a private equity partner. Based in Cumming, Georgia, Halcyon is one of the largest independent providers of hospice services in the southeastern United States. It operates 16 hospice locations across three states, including two inpatient hospice facilities, and has approximately 400 employees. Halcyon's service area covers 183 counties across Georgia, Mississippi and South Carolina, including 59 counties in which LHC is licensed for home health. Annual revenue for Halcyon is approximately $41 million. Upon completion, this acquisition will increase LHC's hospice service line to 53 locations in 12 states with over $110 million in annual revenue.

This acquisition is anticipated to be dilutive to LHC Group's fourth quarter 2015 earnings per share by approximately $0.06 due to transaction and integration costs, but accretive to LHC Group's 2016 earnings by between $0.15 and $0.20 per diluted share. LHC Group is raising its full year 2015 guidance for net service revenue to a new range of $800 million to $815 million from the previous range of $780 million to $795 million and is reaffirming its 2015 fully diluted earnings per share in the range of $1.70 to $1.80 to incorporate the impact from this transaction.

 

 

Pharmacy   Pending Press Release  

 

Pharmacy

Premier To Acquire The Specialty Pharmacy Business of Lincare

Premier, Inc., a leading healthcare improvement company, has agreed to acquire the national specialty pharmacy business of Lincare Holdings Inc., headquartered in Clearwater, FL. The $75 million acquisition includes Acro Pharmaceutical Services LLC and Community Pharmacy Services, LLC. Premier expects to fund the transaction with available cash or borrowings under its existing credit facility.

Lincare has disclosed that its specialty pharmacy business generated approximately $206 million in 2015 revenue. The transaction, projected to close by or before Sept. 30, is expected to be accretive to earnings in fiscal 2017.

“This acquisition will expand and diversify both our special pharmacy patient base and disease treatments,” said Durral R. Gilbert, president of Premier’s supply chain services segment. “The purchase will give us access to limited distribution drugs used for the treatment of oncology, multiple sclerosis and respiratory disease, and it will heighten our preferred specialty status with multiple payers. In addition, the acquisition will enable us to serve the growing needs of Medicaid patients in Arkansas and Mississippi, thanks to Acro’s locations in Philadelphia and Memphis Tenn.”

Specialty pharmacy, one of the fastest growing segments in healthcare, focuses on the long-term treatment of chronically ill patients, including those who suffer from cancer, multiple sclerosis, rheumatoid arthritis, hepatitis C and hemophilia.  These patients require complex, costly therapies with special handling, administration and monitoring, as well as patient education and clinical management.  Current trends suggest that specialty drug spending will total $400 billion by 2020, or about 9.1 percent of national health spending, according to the UnitedHealth Center for Health Reform.

“Premier is continuing to differentiate itself as we expand and integrate our specialty pharmacy services, providing more scale for our health system focused model,” said Susan DeVore, president and chief executive officer of Premier. “This comprehensive shared service approach enhances a health system’s ability to thrive in today’s alternative payment and care delivery environment. It decreases the growing challenges of specialty drug access and costs, and lessens the complexity of administering and caring for chronically ill patients.”

Acro operates in 50 states, while Community Pharmacy Services serves a 340B drug program in the Greater Philadelphia area. The companies will be integrated into Premier’s existing specialty pharmacy business as part of Premier’s supply chain services segment.  

Contact us for an overview slide deck with additional information on the transaction.

What does this transaction mean for your business? 

Call Paragon Ventures today at 800-719-1555 for more information on the current market and valuation of your business.

 

 

 

Pharmacy    Pending Press Release  

 

Home Health

National Seating & Mobility Trades PEG Investors

National Seating & Mobility has had a banner year, with a slew of acquisitions and the launch of its home accessibility business, which is why it might be the perfect time to sell.

Last week, National Seating & Mobility entered into a definitive purchase agreement with Court Square Capital Partners, a New York-based private equity firm. Court Square Capital Partners will buy NSM from Wellspring Capital Management, also a New York-based private equity firm, which bought the company in 2012.

“Sometimes it makes sense to flip to another firm, especially if you’ve owned it for awhile and it’s grown nicely,” said Jonathan Sadock, managing partner with Paragon Ventures. “Most private equity firms will return anywhere from three to four times invested capital during their hold period. That’s pretty substantial, especially if it’s a three-year term.”

Under Wellspring’s ownership, NSM has added 35 branches organically and rolled up dozens of providers, most recently the complex rehab division of Webb Medical Systems in February.

Financial terms of the deal, which is expected to be completed within 60 days, were not disclosed, but NSM is rumored to be worth $400 million.

“(Wellspring) has done very well, so now it’s gotten to a point where they’re going to take advantage of the trajectory they’ve built into another transaction,” said Sadock. While NSM has had a “very positive experience” with Wellspring, the company is looking forward to its new partnership with Court Square, says CEO Bill Mixon.  “They have a great track record of partnering with businesses and helping them be successful,” he said.

Court Square currently manages approximately $6 billion in capital commitments and has engaged in more than 200 transactions. While the firm has focused on healthcare acquisitions over the last 35 years, NSM is its first HME-specific acquisition.

“It is certainly going to be a benefit (to NSM), just based on the sheer size of the transaction and the volume that (Court Square) is managing going forward,” said Sadock. “I would think they’re probably going to plan to double or triple the size of this business.”

What does this transaction mean for your business? 

Call Paragon Ventures today at 800-719-1555 for more information on the current market and valuation of your business.

 

 

Behavioral Health

Pharmacy

Genoa, a QoL Healthcare Company, a leading behavioral health specialty pharmacy company, has acquired the behavioral health and residential care services division of Advanced Care Pharmacy Services, including 13 of its pharmacies in Michigan. Genoa is a portfolio company of Advent International. In November 2015, Genoa acquired 1DocWay, the nation’s largest outpatient telepsychiatry provider, for an undisclosed price.

Advanced Care Pharmacy Services is a privately-held Alabama-based provider of specialized pharmacy services for a variety of care settings. Genoa’s purchase, which did not disclose a price, increases its number of Michigan-based pharmacies to 24, and 325 nationally. Most of which are located on-site within community mental health centers.

This announcement follows a recent study that cited higher rates of medication adherence and lower rates of behavioral health-related hospitalizations and ER visits among patients in community mental health centers who used Genoa on-site pharmacies, compared with community pharmacies.

What does this transaction mean for your business? 

Call Paragon Ventures today at 800-719-1555 for more information on the current market and valuation of your business.

 

 

Pharmacy

Long's Expands With Acquisition of Avita

Long's Drugs Inc. ("Long's"), a portfolio company of Tailwind Capital, announced that it has acquired Avita Drugs Inc. ("Avita"). Avita is a leading specialty pharmacy serving chronically ill patient populations in Louisiana, Texas, North Carolina, South Carolina and Virginia.

Headquartered in Baton Rouge, Louisiana, Avita operates a network of pharmacies in Louisiana, Texas, and North Carolina that serve the needs of people living with chronic health conditions. The company offers a broad range of differentiated, high-touch solutions to patients and healthcare providers including (i) proprietary adherence programs, (ii) personalized patient counseling and education, (iii) extensive 340B pharmacy dispensing, administration and reporting services and (iv) comprehensive patient reporting services. 

Christi Epps, Chief Executive Officer of Long's, commented, "We are thrilled to partner with the Avita team. Avita is a market leader in the southeast, providing its patients with best-in-class service and care. This acquisition marks the continued expansion of our specialty pharmacy business and we believe it positions Long's for future growth." 

 

 

Medical Device

Skytron’s Acquires Powerful Robotic Technology for Healthcare

Providers to Proactively Reduce Hospital Acquired Infections

 

World’s Fastest Infection Prevention Robots Will Help Healthcare Providers
Save Over $35 Billion Annually in direct HAI Costs. 
 

Hospitals and other healthcare facilities are a breeding ground for antibiotic resistant bacteria. When a patient develops a healthcare acquired infection (HAI) during their treatment in the facility, the costs for the patient and facility can be significant. Over 270 people a day die from HAIs worldwide and the World Health Organization estimates it costs healthcare providers over $35 billion to treat HAI patients each year.

 

Healthcare acquired infections (HAIs) continue to be a major problem in the United States and throughout the developed world. Drug-resistant microorganisms, such as methicillin-resistant staphylococcus aureus (MRSA), C-difficile, and the norovirus, are particularly dangerous. Though the Centers for Disease Control (CDC) work with state and local officials to help contain and prevent HAIs, statistics show that effective action is needed at the institutional level to curb their deadly and costly effects.

Driven to eradicate hospital acquired infections, IPT’s NextGen UV light disinfection robots are the most powerful and effective technology available.

 

“The IPT technology allows us to present a full package of advanced UV robotic technologies to healthcare providers and our healthcare partners worldwide”, says David Mehney, Skytron’s Chief Executive Officer. “Adding this technology to our portfolio will help lessen hospital acquired infections, save lives and improved patient outcomes.”

 

Paragon Ventures initiated the transaction and acted at the exclusive advisor to Infection Prevention Technologies. The transaction team was led by Jonathan M. Sadock, Managing Partner / CEO of Paragon Ventures.

 

What does this transaction mean for your business? 

Call Paragon Ventures today at 800-719-1555 for more information on the current market and valuation of your business.

 

 

 

Pharmacy

Walgreens Goes Prime For Mail Order Pharmacy Business

Walgreens has entered into a long-term alliance with Prime Therapeutics, the nation’s fourth-largest pharmacy benefit manager, that will include the creation of a joint pharmacy services company.

Under the partnership, Walgreens and Prime will combine their central specialty pharmacy and mail service businesses, the companies said Monday. The deal also includes a new retail pharmacy network agreement for the PBM clients of Prime, which is owned by 14 Blue Cross and Blue Shield health plans.

The central specialty and mail services company will be owned by Walgreens and Prime and governed by a separate board of directors and executive team. Walgreens and Prime said they plan to announce leadership decisions for the combined specialty and mail services company later this year. The merged entity will be incorporated into the financial statements of Walgreens Boots Alliance (WBA), the parent of Walgreens.

With the new retail pharmacy network pact, Prime’s health plan and employer clients will get access to the preferred Walgreens pharmacy network.  The companies said Prime’s 22 million members also will receive access to personalized pharmacy services and cost-saving opportunities when filling prescriptions at Walgreens.

Plans call for Walgreens to become the core pharmacy provider in Prime’s national preferred pharmacy network starting Jan. 1.  Prime said it will continue to support client-specific network choices for health plans.

“The prescription drug needs of consumers are often changing, and this unique collaboration will help us deliver value, care and service to our patients and the communities we serve,” WBA co-chief operating officer Alex Gourlay said in a statement.  “Walgreens has a long history of working with our business partners to create new solutions to help improve access and patient care, and we look forward to providing a differentiated and patient-led pharmacy experience to more Prime members.”

Joining Prime’s PBM expertise with the reach and operating efficiencies of Walgreens’ nearly 8,200 drug stores, the alliance ushers in a new model that enables the pharmacy, PBM and health plans to better coordinate patient care, in turn improving health outcomes and reining in costs, Walgreens and Prime said. Payers will be able to improve cost control and health outcomes management by leveraging integrated medical and pharmacy data. In addition, Prime, Walgreens and the central specialty and mail service company can tap Walgreens’ omnichannel services and resources to bolster patients’ medication adherence and improve their health outcomes.

“With costs rising at unsustainable rates, we must take strong and decisive action to make health care more affordable,” stated Prime Therapeutics president and chief executive officer Jim DuCharme. “We’re trying to apply the brakes to this runaway freight train of rising drug costs by aligning the cost control expertise of the trusted Blue + Prime model with Walgreens’ supply chain capabilities and sending a message that we are on board with finding a solution to this issue. We believe that the care, value and commitment that we will deliver together will create benefits to our Blue Plan clients and members.”

Walgreens and Prime said the transaction to merge their central specialty pharmacy and mail service businesses is slated to close in the first half of calendar 2017, pending regulatory approval and other customary closing conditions.

 

 

 

Home Health

Palliative Care Company Secures $32 Million from Google’s VC Firm

 A Nashville-based palliative care provider co-founded by former U.S. Senate Majority Leader Bill Frist has received $32 million from an investment round led by GV, formerly known as Google Ventures, the venture capital arm of Alphabet Inc. (Nasdaq: GOOG).

The new company, Aspire Health, was founded by Frist and CEO Brad Smith three years ago after Smith realized there wasn’t a huge market for palliative care. He believed that the potential was tremendous.  Currently, Aspire has 18 locations in 12 states and provides 24/7 in- home care to patients with serious illnesses, such as cancer, severe dementia and organ failure. Aspire usually works with patients for only six to eight months, but that can vary based on the patients’ needs.

Aspire wasn’t necessarily looking to raise capital at the time GV came to them, but at a health care conference nine months ago, Smith was introduced to GV by current investors and they were very interested in investing, Smith explains. Aspire is GV’s first investment in Nashville.  This is also the largest round of funding Aspire has ever received. Previously the company received $2 million in funding, followed by $5 million and $15 million rounds.

“We are partnering with community-based oncology companies and exploring our options,” says Smith. “We plan to start rolling out the program later this year or early 2017.”

 

 

Home Health

Genesis to sell its home care and hospice businesses for $84M

Genesis HealthCare signed an agreement Tuesday to sell the majority of its home health and hospice operations to Compassus for $84 million. The sale is expected to close within the next 90 days, subject to regulatory approvals and other customary closing conditions. Genesis intends to use the sale proceeds to repay debt

Compassus, based in Nashville, Tenn., operated a nationwide network of more than 150 community-based hospice and palliative care programs in 28 states. "Home health and hospice services are non-strategic businesses for Genesis to operate at this time, and we believe we can better allocate the capital by de-levering our balance sheet," stated George V. Hager, Jr., Chief Executive Officer of Genesis Healthcare.

Based in Kennett Square, Pa., Genesis Healthcare operates more than 500 skilled nursing centers and assisted/senior living communities in 34 states nationwide. In addition, its subsidiaries supply rehabilitation and respiratory therapy to more than 1,700 health care providers in 45 states and the District of Columbia. The company acquired its home health and hospice operations — which last year generated revenues of $70 million and $9 million, respectively — early last year as part of its merger with Skilled Healthcare.

Under the terms of the agreement, Compassus in acquiring Genesis Healthcare’s home health and hospice businesses in California, Idaho, Montana, and New Mexico. The Chester County company's remaining hospice operations in Arizona and Nevada will be closed. James Deal, the CEO of Compassus, said the acquisition will further strengthen his company’s ability to provide patients with greater access to a continuum of post-acute care, including hospice, palliative, and home health care services. When the deal is completed, Compassus will operate more than 165 programs in 30 states.

 

 

Healthcare

What do these transactions mean for your healthcare business? 

Call Paragon Ventures today at 800-719-1555 for more information on the current market and valuation of your business.

 

 

Oncology

Pharmacy

McKesson Reaches Deep For Vantage

McKesson Corporation (NYSE:MCK), a leading international healthcare services and information technology company, announced today that it has signed definitive agreements to purchase Vantage Oncology, LLC, a leading national provider of radiation oncology, medical oncology and integrated cancer care, and Biologics, Inc., an oncology pharmacy services company.

The combined transactions, valued at $1.2 billion, will be funded by a mix of cash and incremental debt and are expected to close in the first quarter of Fiscal 2017, subject to customary closing conditions, including necessary regulatory clearances. Following the close of the transactions, both Vantage and Biologics will become part of McKesson’s Specialty Health business.

McKesson expects the combined impact of these transactions to be approximately 11 cents accretive to adjusted earnings per diluted share in Fiscal 2017.

Collectively, these acquisitions will increase McKesson’s specialty pharmaceutical distribution scale, oncology-focused pharmacy offerings, solutions for manufacturers and payers, and scope of community-based oncology and practice management services available to providers and patients.

 

 

Home Health

Hospice

 

Genesis to sell off home health and hospice businesses

In a bid to pay off a large chunk of its debt, Kennett Square-based Genesis Healthcare has agreed to sell its home health and hospice operations to Nashville-based Compassus for $84 million. Genesis CEO George Hager said he viewed the businesses to be sold as "non-strategic." (Philadelphia Business Journal)

Genesis HealthCare signed an agreement Tuesday to sell the majority of its home health and hospice operations to Compassus for $84 million.

The sale is expected to close within the next 90 days, subject to regulatory approvals and other customary closing conditions. Genesis intends to use the sale proceeds to repay debt. Genesis Healthcare is selling a majority of its home care and hospice businesses for $84 million.

Compassus, based in Nashville, Tenn., operated a nationwide network of more than 150 community-based hospice and palliative care programs in 28 states.

"Home health and hospice services are non-strategic businesses for Genesis to operate at this time, and we believe we can better allocate the capital by de-levering our balance sheet," stated George V. Hager, Jr., Chief Executive Officer of Genesis Healthcare.

Based in Kennett Square, Pa., Genesis Healthcare operates more than 500 skilled nursing centers and assisted/senior living communities in 34 states nationwide. In addition, its subsidiaries supply rehabilitation and respiratory therapy to more than 1,700 health care providers in 45 states and the District of Columbia. The company acquired its home health and hospice operations — which last year generated revenues of $70 million and $9 million, respectively — early last year as part of its merger with Skilled Healthcare.

Under the terms of the agreement, Compassus in acquiring Genesis Healthcare’s home health and hospice businesses in California, Idaho, Montana, and New Mexico. The Chester County company's remaining hospice operations in Arizona and Nevada will be closed.

James Deal, the CEO of Compassus, said the acquisition will further strengthen his company’s ability to provide patients with greater access to a continuum of post-acute care, including hospice, palliative, and home health care services.

When the deal is completed, Compassus will operate more than 165 programs in 30 states.

 

 

Healthcare Providers

HealthSouth acquires CareSouth

As companies in the post-acute care sector try to keep from buckling under tightening federal regulations and shrinking reimbursement rates, Birmingham, Ala.-based HealthSouth Corp. announced plans to acquire privately held home-healthcare company CareSouth Health System.

The $170 million cash transaction is expected to be completed in the fourth quarter, and HealthSouth's Encompass Home Health will combine with CareSouth's 45 home-health locations.

CareSouth, based in Augusta, Ga., chose to accept the offer because of the changing payer and regulatory climates, said Rick Griffin, president and CEO of CareSouth. “There is strength and sustainability with larger organizations that can withstand the ever-increasing cuts in reimbursement, and the ever-increasing oppressive regulatory environment,” he said.

Merger and acquisition deals are nothing new for CareSouth. In July 2013, the company entered into a joint venture with LCS, a Des Moines, Iowa-based provider of senior lifestyle products and services, including in-home care, insurance, and national purchasing consulting services. As part of this joint venture arrangement, CareSouth jointly owned the homecare division of LCS Health at Home, with LCS owning the larger portion. CareSouth has been responsible for all of the day-to-day operations of Health at Home in LCS senior living communities.

To coincide with the HealthSouth Corp. acquisition, CareSouth announced Monday it would be rebranded as Careity, effective fourth quarter 2015. CareSouth will keep the Health at Home name as an LCS partner, within LCS communities, and will build new agencies around the coordinated care model under the new Careity name, Griffin said.

The acquisition adds to HealthSouth's portfolio, which offers short-term facility-based and home-based care across 33 states and Puerto Rico, and enables it to access new markets in Alabama, Georgia, North Carolina, South Carolina and Tennessee. It reported an operating revenue of $2.4 billion in fiscal year 2014, up 5.8% from the previous year.

Operationally, CareSouth will be fully integrated into the Encompass platform, said Doug Coltharp, chief financial officer at HealthSouth. The integration will be made easier by virtue of the fact that both Encompass and CareSouth utilize the Home Care Home Base information technology platform, he said. Post-closing, clinical collaboration opportunities will be pursued in those markets in which a CareSouth location and a HealthSouth inpatient rehabilitation hospital are both present, said Coltharp.

 

 

Medical Device

Respiratory

Apax Partners Gets A Breath of Becton, Dickinson and Co.

In its announcement of the deal, BD isn’t disclosing the price, but says the transaction values the business at nearly $500 million. The transaction is expected to close late in BD’s fiscal year 2016, which ends on Sept. 30, or early in its fiscal year 2017, and it is subject to regulatory approval.

Apax and BD will split ownership of the new company, 50.1 percent to 49.9 percent, and the company will have an estimated annual revenues of $900 million and more than 5,000 employees. The respiratory business includes products for patients on ventilators or with tracheostomies, resuscitation, oxygen therapy, nebulizers, baby incubators, cardiopulmonary exercise testing, pulmonary testing and sleep therapy. The new company will also take over locations in Yorba Linda and Palm Springs, California; Plymouth, Minnesota; Mexicali, Mexico; Cotia, Brazil; Hoechberg, Germany and Shenzen, China.

BD, headquartered in Franklin Lakes, New Jersey, reported revenues of $2.99 billion for its fiscal quarter ended Dec. 31, 2015. Besides the respiratory division, BD sells products for diabetes care, medical lab testing, drug delivery, infection control, disease diagnosis, surgical procedures and other areas.

 

 

Oncology

McKesson Metastasizes Oncology Treatment Services

McKesson will pay $1.2 billion to buy two oncology companies that are expected to bolster its specialty health segment.

The San Francisco-based healthcare giant will purchase Vantage Oncology, a national oncology provider based in Manhattan Beach, Calif., and Biologics, an oncology specialty pharmacy. The combined transactions are expected to close in the first quarter of fiscal 2017, pending customary closing conditions.

Vantage provides radiation oncology, medical oncology and integrated cancer care in over 50 treatment facilities in 14 states. The company focuses on radiation oncology and urology and manages practices through joint ventures with physicians and hospitals.

McKesson Thursday said it hoped the Vantage deal will build upon its existing subsidiary, the U.S. Oncology Network. That would expand its practice management services and allow McKesson to provide care management and care coordination for payers.

Biologics will help McKesson increase the scale of its specialty pharmacy distribution business and improve its oncology-focused pharmacy offerings, as well as allow it to offer more value-added solutions for manufacturers and payers. Specialty pharmaceuticals have become an increasingly important business for providers, pharmacies, group purchasing organizations and distributors, as patients and physicians seek more personalized treatment, as well as treatment for serious chronic conditions like hepatitis C, cancer and diabetes.

McKesson expects the transactions to be about 11 cents accretive to adjusted earnings per diluted share in fiscal 2017.

 

 

Podiatry

KG Health Partners Steps Up With Acquisition of Access Foot Care, Inc.

KG Health Partners, Inc. (KGHP), a leading mobile podiatric care provider serving Florida's long-term care (LTC) facilities as a partner in the care continuum, announced today that it has acquired Access Foot Care, Inc., a group podiatry practice based in Tarpon Springs, Fla. With this acquisition, KGHP doubles the size of its physician and clinical support staff, allowing the company to better support its partner organizations across the state.

"Healthy feet are the foundation of good health and independence, especially for elderly residents in LTC," said Robert Metnick, DPM, principle podiatrist and founder of Access Foot Care. "Podiatrists are essential in the prevention of the vascular related complications so common in the geriatric community, but the exponential growth of the senior population and rapid advances in medical technology have become a big challenge for physicians, including myself. The resources and tools that KG Health Partners provides will allow me to better navigate this changing environment and focus on delivering my patients the care and attention they deserve."

A retired U.S. Army lieutenant colonel, Dr. Metnick has been caring for seniors in LTC for more than 25 years and has remained active in the local community, regularly visiting and supporting veterans at the local VA hospitals.

"Dr. Metnick's character and professionalism perfectly embody the values of the KGHP family," said Rob Cash, president of KGHP. "His unwavering dedication to his patients and their families will play an invaluable part in our continued mission to provide high quality patient care."

What does this transaction mean for your business? 

Call Paragon Ventures today at 800-719-1555 for more information on the current market and valuation of your business.

 

 

Medical Device

ICU Gets Infused With Business Acquisition From Hospira

ICU Medical, Inc. and Pfizer, Inc. have entered into a definitive agreement under which ICU Medical will acquire Hospira Infusion Systems (Pfizer’s global infusion therapy business) for $1 billion. The infusion systems business includes IV pumps, solutions and devices. The union is expected to create a pure-play infusion therapy company, competitive in the U.S. and global market (with direct operations in more than 20 countries), with estimated pro forma combined revenues of about $1.45 billion. It will also “eliminate our single customer concentration issue,” according to Vivek Jain, CEO of ICU Medical.

“The combination of these two businesses is the natural evolution of a productive relationship that began more than 20 years ago when Hospira began integrating ICU Medical’s needlefree technology into their infusion offering globally,” said Jain in a press release.

 

 

Home Health

Home Health Giants Merge As Sector Grows

Nashville-based Ardent Health Services and Plano, Texas-based LHP Hospital Group have agreed to merge, the companies announced Wednesday.

The combined system would create the second-largest privately owned, for-profit hospital system in the country with 19 hospitals in six states and $3 billion in revenue, the companies said in a joint statement. The system would own 3,200 beds and employ about 18,000 employees, including more than 475 physicians.

Terms of the deal, which is expected to close in early 2017 pending approval, were not disclosed. The size of the combined system may raise concerns for the Federal Trade Commission, which in the last year has aggressively fought large mergers between hospital systems. The agency recently won an appeal to halt Penn State Hershey (Pa.) Medical Center's deal with PinnacleHealth System.

Ardent Health operates 14 hospitals in New Mexico, Oklahoma and Texas. Chicago-based real estate investment trust Ventas and Equity Group Investments paid $1.75 billion in August 2015 to buy it from its private equity owner Welsh, Carson, Anderson & Stowe. That deal provided Ardent with the cash it needed to acquire more hospitals and expand to new markets.

Ardent said it expects to fund the LHP deal through secured debt financing, as well as equity capital provided principally by an Equity Group Investments affiliate. Ventas has committed to secured debt financing, according to the statement.

LHP owns five hospitals through joint ventures in Florida, Idaho, New Jersey and Texas.

The hospitals are: Panama City, Fla.-based Bay Medical Center; Montclair, N.J.-based HUMC Mountainside; Westwood, N.J.-based HUMC at Pascack Valley; Pocatello, Idaho-based Portneuf Medical Center; and Seton Medical Center in Harker Heights, Texas.

According to the statement, Ardent, which will remain headquartered in Nashville, will assume LHP's management and operational responsibilities within each joint venture. Ardent management will lead the combined company with assistance from key LHP executives.

“This transaction dramatically enhances our scale, diversity and geographic reach—creating new synergies that better position us for future growth and investment in new and existing markets,” Ardent President and CEO David T. Vandewater said in the statement.

“LHP's decisions have always been driven by our commitment to advance our mission of restoring and enhancing the health of our patients,” LHPPpresident and CEO John Holland said in the statement. “We recognized we had a unique opportunity to accelerate that mission by joining forces with Ardent and tapping into their exceptional resources, skills, track record and reach.”

 

 

Medical Insuror

WellCare Does Well In Acquisition of Care1ST

WellCare Health Plans, a publicly traded insurer that voiced its hunger for transactions earlier this year, has agreed to acquire Care1st Health Plan of Arizona for $157.5 million.

The deal, expected to close in the first quarter of next year, marks WellCare's entrance into the Arizona Medicaid managed-care market. WellCare had 2.43 million Medicaid members as of June 30, and more than half of that total resided in Florida and Georgia, two states that did not expand Medicaid under the Affordable Care Act. Arizona is one of 31 states that have expanded Medicaid eligibility to more low-income people.

Care1st Arizona is a subsidiary of Care1st Health Plan, a California-based insurer that Blue Shield of California controversially bought for $1.25 billion last October. Care1st Arizona provides Medicaid coverage to 112,000 people in the state's two largest counties and also has a small Medicare Advantage special needs plan that covers 2,000 people.

WellCare executives said in February that the company had $1.25 billion of cash reserves to spend on transactions. WellCare's first deal occurred that same month when it bought Advicare Corp., a Medicaid managed-care company in South Carolina. However, WellCare did not acquire Advicare's plan that provides coverage to low-income residents who are dually eligible for Medicare and Medicaid. That plan has since terminated its business (PDF) in South Carolina, leaving people to find new coverage.

Care1st Arizona is expected to add about $400 million of premium revenue to WellCare, according to Wall Street projections. WellCare, which also sells Medicare Advantage and Medicare Part D prescription drug plans, had $3.6 billion of revenue in the first half of this year.

 

 

Home Health

Hospice

The Ensign Group, Inc. (NASDAQ:ENSG), the parent company of the Ensign™ group of skilled nursing, rehabilitative care services, home health care, hospice care, medical transportation, assisted living and urgent care companies, announced today that Cornerstone Healthcare, Inc., Ensign’s home health and hospice portfolio subsidiary, acquired the assets of Kinder Hearts Home Health and Hospice in Abilene, Texas effective September 1, 2016.  

 

Infusion Pharmacy

Solutions Moves Its Home Into BioScrip

Following the announcement of the acquisition of HS Infusion Holdings, Inc. (Home Solutions), by BioScrip, Inc, (Nasdaq: BIOS) in June, the deal has been finalized. BioScrip, a national provider of infusion and home care management solutions will now integrate Home Solutions, also a provider of home infusion and home nursing products and services for patients with chronic and acute medical conditions.

BioScrip, Inc. (NASDAQ:BIOS) (“BioScrip” or the “Company”), a leading national provider of infusion and home care management solutions, today announced that it has entered into an agreement to acquire the business of HS Infusion Holdings, Inc. (“Home Solutions”), in a highly synergistic, transformational and accretive transaction with significant benefits for all stakeholders. Based in Hammonton, New Jersey, Home Solutions is a leading provider of home infusion and home nursing products and services to patients suffering from chronic and acute medical conditions. Home Solutions is a privately held company whose principal shareholder is KRG Capital Partners LLC.

Under the terms of the transaction, BioScrip will acquire substantially all of the assets and assume certain liabilities of Home Solutions and its subsidiaries for total transaction consideration of $85.0 million at closing (the “Closing Consideration”) and additional contingent consideration in the form of restricted stock units (“RSUs”) (the “Contingent Consideration”).

The Closing Consideration will consist of $80.0 million payable in cash, subject to certain adjustments and $5.0 million in shares of the Company’s common stock. The Contingent Consideration will consist of restricted shares of BioScrip common stock, issued in two tranches with different vesting conditions. The number of RSUs in Tranche A and Tranche B is approximately 3.1 million and 2.475 million, respectively. The RSUs would vest in two tranches when BioScrip shares exceed 20-day average trading prices of $4.00 per share and $5.00 per share, respectively, subject to certain time restrictions and under certain circumstances, in the event of a change of control.

In 2015, BioScrip and Home Solutions generated revenue of $982 million and $109 million, respectively. On a pro forma basis, the combined company is expected to generate over $1 billion in revenue. The transaction is expected to be accretive to BioScrip’s financial results and is estimated to generate $14-17 million of synergies approximately 12-18 months following the closing. The operating synergies are primarily related to supply chain efficiencies, infrastructure optimization and other corporate and organizational improvements.

The additional financial contribution from Home Solutions, including anticipated synergies, is expected to strengthen the Company’s balance sheet and leverage profile, thereby improving BioScrip’s strategic flexibility and competitive positioning and realigning the Company as a growth platform in the attractive post-acute care segment.

The combination of BioScrip and Home Solutions brings together two highly complementary core infusion services portfolios that will have greater scale and financial resources. Home Solutions is one of the largest independent home infusion providers in the country, with branches that span across the East Coast. For full year 2015, core revenue increased 8.3% and core admits increased 12.0%, both over the prior year period.

The combined company will have an enhanced national presence, providing expanded core infusion services for patients and benefitting from additional payor relationships. The addition of Home Solutions will enhance BioScrip’s revenue mix and margins, as Home Solutions’ revenues from core infusion therapies represented 81% of total gross revenues at the end of 2015.

Daniel Greenleaf, Chairman and Chief Executive Officer of Home Solutions, said, “This transaction is a terrific opportunity to combine with a complementary infusion services company that shares our passion and commitment for providing national reach and local care. Together we will be able to further deliver on our shared mission of providing cost-effective care that is driven by clinical excellence, customer service, and values that promote positive outcomes and an enhanced quality of life for patients. I appreciate Rick’s partnership and friendship, as well as the support of Carter and the entire Board as we deliver value to shareholders by building the largest independent home infusion provider.”

BioScrip will continue to be headquartered in Denver, Colorado and plans to maintain branches throughout the United States, and maintain Home Solutions’ Hammonton, New Jersey billing and operations center.

The transaction is anticipated to be financed through the net proceeds from an equity offering to be initiated promptly under the Company’s existing shelf registration statement, subject to market conditions. Any excess proceeds from the offering following the acquisition will be primarily used to reduce BioScrip’s outstanding indebtedness.

The transaction, which is expected to close in the third quarter of 2016, is subject to receipt of necessary regulatory approvals, a financing contingency and approval of certain matters by BioScrip shareholders, as well as customary closing conditions.

What does this transaction mean for your business? 

Call Paragon Ventures today at 800-719-1555 for more information on the current market and valuation of your business.

 

 

Home Health Halyard Health Inc (Alpharetta, GA) agreed to acquire privately held CORPAK MedSystems (Buffalo Grove, IL) in an all-cash transaction for a total consideration of $174 million. Corpak, a portfolio company of Linden Capital Partners (Chicago, IL), develops, manufactures, and markets a broad portfolio of high-quality, branded enteral-access devices. According to a release, the company's leading portfolio of nasogastric tubes complements Halyard's existing enteral feeding products and creates a complete offering of enteral feeding solutions for patients and caregivers. Transaction closing is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions and is expected to close in Q2 2016.  

 

Medical Device

Stryker Corp. (NYSE: SYK) is expanding its spine division by acquiring the Y-Wire and Tiger Jamshidi Needle products from SafeWire, as the buyer remains active with medical device deals.

The assets being purchased are designed to reduce the risks of wire-based complications, such as inadvertent advancement and also reduce the amount of fluoroscopy during surgery. The Jamshidi needles are designed to improve the amount of depth control in the body.

“This acquisition increases our competitive advantage as we broaden our product line and extend our customer base among teaching facilities, competitive accounts and SafeWire customers,” says Stryker spine division president Brad Paddock.

Stryker, based in Kalamazoo, Michigan, has recently completed the acquisitions of Physio-Control International Inc.; the entire neurosurgery tools portfolio of Synergetics USA Inc.; andSage Products LLC from Madison Dearborn Partners.

 

 

Pharmacy

Apothecary by Design (ABD), a rapidly growing specialty pharmacy serving patients with complex conditions such as infertility, recently announced that it has acquired Healy Pharmacy, of Warrenville, Illinois. The two pharmacies will share resources in order to better serve patients and prescribers, and will each be better positioned to succeed in the increasingly competitive specialty pharmacy marketplace, according to ABD's chief executive officer, Mark McAuliffe.  

About Apothecary by Design Apothecary by Design, a BelHealth Investment Partners portfolio company, is a rapidly growing specialty pharmacy with a high-touch service model and a focus on advocating for patients with chronic diseases. Headquartered in Portland, Maine, ABD provides intensive case management services regionally and nationally to patients who have complex medical conditions, such as infertility, hepatitis C, HIV and rheumatoid arthritis. Through support, education and advocacy, ABD puts patients on a path toward better health and quality of life.

 

 

Healthcare IT naviHealth Inc (Brentwood, TN), a Cardinal Health (Dublin, OH) company, entered into an agreement to acquire Curaspan Health Group Inc (Newton, MA), a privately held provider of care-transition tools for hospitals and post-acute healthcare providers. Approximately 20 percent of all acute care hospital discharges in the U.S. rely on Curaspan’s platform to transition smoothly into post-acute care. Complementing EMRs and clinical workflows, Curaspan creates an integrated communication hub for otherwise siloed providers, enabling seamless patient referrals between sites of care. The transaction is conditional on regulatory approvals and other customary closing conditions and expected to close before the end of June 2016.  

 

Medical Device Two companies, two strategic plans. That’s what brought Canon Inc. (NYSE: CAJ) together with Toshiba Corp. (OTCQB: TOSYY) in a deal to acquire Toshiba’s medical device business. Toshiba, which makes laptops, home appliances, nuclear power equipment and more, somehow deemed Toshiba Medical Systems as a non-core asset and decided to sell.

For its part, Canon decided earlier this year to diversify beyond cameras and copiers. Canon will pay approximately $5.9 billion for Toshiba Medical Systems, which includes diagnostic imaging systems such as MRI, X-ray and ultrasound equipment.

 

 

Home Health

Carter Healthcare, a home health provider based in Oklahoma City, acquired Recovery Home Care District 3 in The Villages, Florida. The property was added to Carter Healthcare February 29.  With the addition of The Villages, Carter Healthcare now serves 12 communities in six districts in Florida.

“We are very pleased to welcome Recovery Home Care District 3 home health care professionals into the Carter Healthcare team,” Carter Healthcare COO Brad Carter said in a prepared statement. “With these professionals joining our team, we will be able to serve a larger community in Florida and continue to help people live better lives.”

 

 

Home Health

Always Best Care Senior Services of San Diego added skilled home health care to its roster of services. The in-home care provider has been serving seniors in San Diego, Escondido, Chula Vista, La Jolla, Poway and surrounding areas since 1996.

Skilled home health care services will be added for select locations. The company already provides in-home senior care, Alzheimer’s disease and memory care and coordinates with seniors and families to find the right assisted living facility. The new branch of services aims to reduce hospital visits and increase safety standards and clinical oversights for homebound discharges, Always Best Care said.

 

 

Home Health

The West Virginia Health Care Authority issued an exemption for a certificate of need to Stonerise Reliable Healthcare LLC of South Charleston for the acquisition of a home health agency operated by Reliable Healthcare Solutions LLC. The acquisition proposal is $950,000, said James L. Pitrolo Jr., Chairman of the West Virginia Health Care Authority.

Pitrolo did not indicate why an exemption had been granted for the certification process, which is a regulatory mechanism aimed at controlling the purchase of high-cost medical equipment and the development of new health care facilities and services.

Reliable Healthcare Solutions LLC provides home health services in Monongalia, Taylor, Mario, Preston and Wetzel counties. Stonerise Healthcare is a private duty home health services, nursing care and medical supplies company.

 

 

Medical Device BioTelemetry Research Acquisition Corporation (Rockville, MD), the wholly owned subsidiary of BioTelemetry Inc (Malvern, PA), is commencing a cash tender offer to purchase all outstanding common and preferred shares of VirtualScopics Inc (Rochester, NY).

The tender offer is being made pursuant to an offer to purchase, dated April 8, 2016, and in connection with the agreement and plan of merger, dated March 25, 2016, among BioTelemetry and VirtualScopics, which BioTelemetry and VirtualScopics previously announced on March 25, 2016. Following the completion of the tender offer, BioTelemetry expects to consummate a second-step merger at the same per-share price paid in the tender offer for shares not purchased in the tender offer.

 

 

Medical Device Diversis Capital, LLC, a Los Angeles-based private equity firm focused on acquiring and growing small- and middle-market companies, today announced that it has acquired the majority of the assets of Caligor Rx, Inc. Based in Secaucus, New Jersey with an additional facility in Dartford, UK, Caligor provides services that enable pharmaceutical and biotechnology companies to maximize the value of their clinical supply chain investments. Financial terms of the transaction were not disclosed.

From its roots as a pharmacy started in 1919, Caligor has established itself as a leader in sourcing and distributing comparator drugs for clinical trials worldwide. Complementing its comparator business, Caligor provides regulatory expertise and strategic services for setting up Global Access Programs (GAP). These programs supply investigational medicines to individual patients, and groups of patients, who have life-threatening conditions but lack access to clinical trials or approved therapeutic alternatives. Caligor’s leadership team has implemented and managed these programs in more than 70 countries.

 

 

Medical Practice Premier Health, a health system based in Dayton, Ohio, made its fifth acquisition of a health care practice in the past six months. Upper Valley ENT, a two-physician practice in Troy, will join Premier HealthNet, the specialty physician group that is part of the health system. The group now has more than 150 physicians in southwest Ohio.  

 

Medical Device

StoneCalibre, LLC is pleased to announce that one of its affiliates, Edge BioSystems, Inc., has acquired the Ion Chromatography Business from Transgenomic, Inc. (NASDAQ: TBIO). The Company, which will be renamed Concise Separations, is based in San Jose, CA, and is responsible for researching, developing, manufacturing, and marketing high quality bulk resins and high performance liquid chromatography (“HPLC”) columns with applications across diverse fields such as pharmaceuticals, foods, life sciences, environmental, and forensics.

Ion chromatography (“IC”) is a chemical analysis technique that separates and analyzes different substances according to their affinities for chemically stable, highly reactive, synthetic ion exchangers. Transgenomic’s IC product line includes a wide range of specialty ion chromatography columns that are designed to run on a variety of HPLC platforms. 

 

 

Medical Practice DaVita HealthCare Partners (NYSE: DVA) announced a deal forMountain View Medical Group, a 50-physician practice that is the second largest independent group in Colorado Springs.  It operates 14 medical office locations, caring for more than 80,000 patients. None of the deals disclosed financial terms, of course.  

 

Pharmacy
Humanwell Healthcare Group and PuraCap Pharmaceuticals announced that they would be acquiring 100% of Epic Pharma’s membership interests for $550 million. The purchase of the Laurelton, N.Y.-based company will expand the two businesses’ generics footprint and manufacturing capabilities in the United States. 
 
Epic’s generics portfolio contains 15 products currently on the market and a 37-product pipeline. The acquisition will also bring the two companies a 110,000-sq. ft. GMP manufacturing facility and add 215 employees to Humanwell’s and PuraCap’s operations team. 
 
“This acquisition is a major step in the growth of our company,” PuraCap CEO and Humanwell president Dahai Guo said. “The addition of Epic is an important addition to the PuraCap family.  We look forward to it being a platform for the development of our generic pharmaceutical business, both in the USA as well as internationally.”  The transaction is expected to close in the second quarter of 2016. 
 

 

Health IT Accruent (Austin, TX) acquired Mainspring Healthcare Solutions (Boston, MA), a provider of software and technology solutions to support services departments in U.S. hospitals. Mainspring will extend Accruent’s suite of purpose-built healthcare solutions into hospital service departments to drive efficiencies in operations. With the addition of Mainspring, the company’s solutions are now used by more than 55 percent of U.S. hospitals. Integration of Mainspring Healthcare Solutions into Accruent is expected to be completed in mid-2016. Customers will see no interruption of support and services and will be invited to attend a series of webinars that provide an introduction to Accruent and learn about the expanded solution options now available to them.

 

 

 

Health IT Accruent (Austin, TX) acquired Mainspring Healthcare Solutions (Boston, MA), a provider of software and technology solutions to support services departments in U.S. hospitals. Mainspring will extend Accruent’s suite of purpose-built healthcare solutions into hospital service departments to drive efficiencies in operations. With the addition of Mainspring, the company’s solutions are now used by more than 55 percent of U.S. hospitals. Integration of Mainspring Healthcare Solutions into Accruent is expected to be completed in mid-2016. Customers will see no interruption of support and services and will be invited to attend a series of webinars that provide an introduction to Accruent and learn about the expanded solution options now available to them.  

 

Pharmacy DanDrit Biotech USA Inc. (OTCQB: DDRT) today announced that it has entered into an agreement to acquire privately-held OncoSynergy, Inc. Based in San Francisco, OncoSynergy develops novel oncology drug candidates including the first-in-class FDA orphan drug designated anti-CD29 monoclonal antibody, OS2966. The acquisition is subject to certain conditions, among others the approval from DDRT's shareholders. The acquisition of OncoSynergy is an asset purchase agreement. The purchase price for the assets is at closing 50% of the fully diluted share capital of DanDrit, including any additional shares that may be issued to the Parties for any additional equity provided prior to Closing.

Included in the broad scope of assets purchased are, notably, several platform drugs developed at world-class institutions, including those by OncoSynergy's founders at the University of California, San Francisco, as well as the synthetic small molecule invented by Drs.Nicolas Winssinger and Martin Karplus, 2013 Nobel Prize Laureate, while working at the University of Strasbourg. In addition, certain of the respective stockholders of the parties have agreed to provide an equity injection ofUS$ 3 Million each while each party's funding obligation is reduced by the equity injection already contributed by that party since November 1, 2015, until the closing. Upon the closing of the acquisition, OncoSynergy employees will be integrated into DanDrit Biotech USA Inc. OncoSynergy co-founder and CEO, Shawn Carbonell, MD, PhD will become Chief Science Officer and Anne-Marie Carbonell, MD will assume the role of Chief Medical Officer. DanDrit intends on moving global operations to San Francisco and adopting a new global name – OncoSynergy – upon shareholder approval.

 

 

Medical Supply Preferred Medical (Conway, AR) acquired Pruett Medical (Waco, TX), a privately held, family-owned medical-supply distributor, focused on Texas’ skilled-nursing facility market. The partnership will expand the company’s services to all areas of the post-acute market including home health agencies, hospice companies, Medicare part B providers, durable medical equipment providers, and assisted living communities. Preferred Medical will maintain and enhance the distribution center and delivery capabilities in the Waco, Texas fulfillment operation and service the entire state of Texas in addition to the current geographic footprint of Preferred Medical.  

 

Pharmacy McKesson Corporation completed its previously announced acquisition of Vantage Oncology LLC (Manhattan Beach, CA). Vantage Oncology is now part of McKesson's Specialty Health business. Additional details of the transaction were not disclosed.  

 

Medical Supply Medline (Chicago, IL) acquired Medical Mart (Toronto, Canada). Medical Mart is a privately held, family-owned distributor of medical supplies for the primary care, acute care, long term care, home care, and retail markets. The partnership provides the company with an opportunity to combine clinical and supply chain insight, offerings, and customer service to better serve healthcare providers across Canada.  

 

Medical Supply Kreisers Inc (Sioux Falls, SD), MMS – A Medical Supply Company (Earth City, MO), and Seneca Medical (Tiffin, OH) have completed their merger to form the new Concordance Healthcare Solutions. Concordance Healthcare Solutions is a near-national independent distributor with the ability to serve more than 67 percent of the healthcare systems in the U.S., with the ability to expand into the remaining one-third. The combined company has approximately 1,000 employees and 20 distribution centers. Concordance will be led by Tom Harris and Roger Benz, who will serve as co-presidents.  

 

Physical Therapy Advent International (New York, NY) agreed to acquire a majority ownership interest in ATI Physical Therapy (Bolingbrook, IL) from KRG Capital Partners (Denver, CO). ATI’s current management team, led by Dylan Bates, will retain a significant minority stake in the company and continue to lead ATI. Financial terms were not disclosed. The transaction is subject to regulatory approval and other customary closing conditions. It is expected to be completed in Q2 2016.  

 

Pharmacy

Riverside Invests in Bentley Laboratories

The Riverside Company has invested a minority stake in Bentley Laboratories LLC (Bentley), a specialist in the formulation and outsourced manufacturing of products for the beauty and over-the-counter pharmaceutical industries. Bentley is based in Edison, New Jersey and was founded in 1982. Bentley’s product portfolio includes creams, lotions, gels, powders and fragrances used for skin care, hair care, cosmetics, and bath and body products. Bentley boasts a strong laboratory and research department, which develops formulations for customers. “Unlike many contract manufacturers that simply fill orders, Bentley is able to help formulate and develop products as well,” said Riverside Managing Partner Hal Greenberg. “Their expertise and track record of providing value-added services help ensure customer loyalty. We see many compelling avenues for growth at Bentley.”

 

 

Hospice

LHC Group Acquires Heartlite Hospice

LHC Group, Inc. (NASDAQ:LHCG), a national provider of home health, hospice, community-based and comprehensive post-acute healthcare services, today announced that it has acquired the assets of Heartlite Hospice, a subsidiary of Hospice of America, Inc. Heartlite Hospice has four locations, two located in the Certificate of Need state of Alabama and two located in Georgia.

Heartlite’s licensed hospice service area covers eight counties in Alabama and 29 counties in Georgia, including 19 counties in which LHC is licensed for home health. The estimated population of the licensed service area is over 5.7 million with more than 652,000 over 65 years of age. Estimated annualized revenue from this transaction is approximately $6.8 million. This acquisition is anticipated to be accretive to LHC Group’s 2016 earnings by approximately $0.01 per diluted share.

Keith G. Myers, LHC Group chairman and CEO, said, “It is with great pleasure that I welcome the healthcare professionals from Heartlite Hospice into our growing LHC Group family. We are proud to be part of these communities in Alabama and Georgia and look forward to collaborating with local physicians to provide caring and compassionate services to terminally ill patients and their families within the comfort and privacy of their home.”

 

 

Home Health

Amedisys Acquire Infinity HomeCare

Amedisys acquired Infinity HomeCare for $63 million, representing 1.3X revenues and 9.8X EBITDA.  Amedisys, Inc. (NASDAQ:AMED), one of America's leading home health and hospice companies, today announced that on December 31, 2015, it has closed the previously announced acquisition of Infinity HomeCare, for $63 million in cash. 

“By coming together, Amedisys and Infinity HomeCare will form Florida’s premier home health company – with a focus on empowering our employees to continue delivering outstanding, high-quality patient care and partnering with the providers and communities we serve,” stated Amedisys President and Chief Executive Officer Paul Kusserow.

Infinity HomeCare, headquartered in Sarasota, Florida, cares for more than 14,000 patients per year and has more than 600 employees with 15 care centers in Florida. The Company generates approximately $50 million in annual revenues and was previously controlled by the principals at HealthEdge Investment Partners, LLC.

 

 

Home Health

Almost Family Picks Up Long Term Solutions

Almost Family has acquired Long Term Solutions for $37 million, representing 2.3X revenues.  Terms of the $37 million deal call for Almost Family to acquire 100 percent of LTS equity for $20 million in cash, a $6 million note payable and $11 million in Almost Family common stock. The cash payment comes from Almost Family's revolving credit facility.

LTS is expected to add between $0.20 and $0.25 to Almost Family's earnings per share in 2016. The current EPS is $2.27, according to NASDAQ.  In the release, Almost Family CEO and chairman William Yarmuth said the acquisition of LTS represents a "very strategic investment to expand our in-home assessment capabilities and to participate in providing assessments and care coordination to the long-term care insurance industry."

Last year, LTS generated about $16 million in revenue from performing more than 60,000 in-home assessment visits, the release said. "In addition to continuing its remarkable growth, we will also look for opportunities to offer its unique capabilities and service offerings to managed care, Medicaid and other payer types, all to further our Senior Advocacy Mission of enabling seniors to stay in their homes as long as possible," Yarmuth said.

 

 

Healthcare IT

Revenue Cycle Management

 

ResMed Acquisitions Get Strategic Prize: Brightree

ResMed (RMD), the world's leading tech-driven medical device company and innovator in sleep-disordered breathing and respiratory care, today announced a definitive agreement to acquire privately held Brightree®, a leader in business management and clinical software applications for the post-acute care industry. This acquisition adds to ResMed's global leadership in connected healthcare solutions.

Brightree's cloud-based software helps customers improve clinical and business performance in the post-acute care industries of home/durable medical equipment (HME/DME), home health, and hospice – all areas with high prevalence of sleep-disordered breathing, chronic obstructive pulmonary disease (COPD), neuromuscular disease, and other chronic diseases.

"This acquisition furthers ResMed's position as the leading tech-driven medical device company and gives our customers new tools to help them increase operational efficiency and improve cash-flow while delivering best-in-class patient care," said Mick Farrell, CEO of ResMed. "ResMed is already the recognized global leader in remote patient monitoring and connected healthcare solutions. This acquisition will enable us to add to our portfolio of digital solutions to drive operational excellence and improve outcomes for patients, providers and payers." 

"The Brightree team is very excited to join forces with ResMed to help post-acute care providers navigate the inherent complexities of the healthcare system and ensure that patients get the care they need," said Dave Cormack, president and CEO of Brightree. Brightree is majority-owned by Battery Ventures, a global investment firm.

Under the terms of the agreement, ResMed will acquire Brightree for $800 million in cash, which ResMed will fund primarily with debt. Brightree had net sales of approximately $113 million and EBITDA of about $43 million in calendar year 2015.

The transaction is expected to be immediately accretive to gross margins and non-GAAP diluted earnings per share after close and beyond. The transaction includes an estimated $300 million from an anticipated future tax benefit, which is expected to positively impact ResMed cash flows over 15 years. Including the present value of these expected tax benefits, the purchase price of $800 million represents a valuation multiple of 13.5 times 2015 EBITDA. 

The transaction is expected to close by the end of the fourth quarter of fiscal year 2016, subject to customary closing conditions and regulatory approvals.

Ed. Note:  Brightree was originally founded by Steve Elrod , a highly successful independent HME owner. Steve's company, OxyPlus, grew from a small two person family operation to a sizeable multi-city business...thus, the idea for Brightree was born. Steve and his team set out on a mission to create a company that would provide a complete application solution to address the specific needs of independent HME owners.  Paragon Ventures was the exclusive advisor to OxyPlus when the company was sold to a national provider and what became the genesis of Brightreee.

 

 

Medical Asset Management

MedAssets Journey Leads To Private Equity, Again

MedAssets completed a 17 year round trip voyage from Private Equity ownership, to a publicly-traded company rolling up acquisitions, and back to Private Equity ownership with its $2.8 billion sale, which represents a rich 3.6X revenues and 12.7X EBITDA.

 

 

Medical Device

SpectraScience Sees OncoScope In Acquisition

SpectraScience Inc (San Diego, CA) acquired the assets of Oncoscope Inc (Durham, NC). Oncoscope developed a proprietary optical imaging system to provide immediate, minimally-invasive detection of pre-cancerous epithelial tissues using scattered white light. Its first target indication was for Barrett's Esophagus, a precursor for cancer of the esophagus. Terms of the acquisition were not disclosed.

 

 

Managed Care

Acquisition Goes Well For WellCare

WellCare Health Plans Inc (Tampa, FL) acquired Advicare Corp (Greenville, SC), a Medicaid managed-care company. It is WellCare's first acquisition in almost two years. The deal, which is expected to close in Q2 2016, will add 32,500 SC Medicaid beneficiaries, giving WellCare more than 92,000 Medicaid members in the state. Financial terms of the acquisition were not disclosed.

 

 

Infusion Pharmacy

Pharmacy Solutions Selects Strategic Option

Paragon Ventures is pleased to announce the acquisition of Pharmacy Solutions, Your Infusion Experts.  Pharmacy Solutions is an established home infusion pharmacy services provider with strong referral relationships and a growing patient census. The company provides infusion services and related medical supplies to patients in their homes. Pharmacy Solutions’ infusion business offers anti-infective, TPN, IVIG, pain management, hydration therapy, chemotherapy and other therapies along with enteral nutrition to a growing patient census. The company is a regional provider of home infusion therapies and serves patients in multiple states including Wyoming and Idaho.

The business was sold to a strategic acquirer. No transaction details were disclosed.  Paragon Ventures initiated and structured this transaction and acted as the exclusive advisor to Pharmacy Solutions.  The sale process was managed by Scott Fife, Vice President for Paragon Ventures – Healthcare Mergers & Strategic Acquisitions.

For more information on the current strategic options and M&A market valuation for your healthcare business, contact Paragon Ventures today at 800-719-1555.

 

 

Medical Device

Stryker Stikes Again to buy Physio-Control International

Medical device maker Stryker Corp struck a deal to buy Physio-Control International Inc from private equity firm Bain Capital for $1.28 billion in cash in order to expand its emergency medical services business.

The deal comes two weeks after Michigan-based Stryker agreed to buy medical supplies maker Sage Products from private equity firm Madison Dearborn Partners for $2.78 billion.  Last week, it also agreed to buy the neuro assets of Synergetics USA, Inc for an undisclosed sum.

"Physio-Control has achieved global leadership positions with a strong brand and customer-centered solutions that can predict or intervene in life-threatening emergencies," said Stryker CEO, Kevin Lobo. Physio-Control's portfolio is highly complementary to Stryker Medical's Emergency Medical Services offering and will drive a greater balance between capital and disposables. Physio-Control will also help to expand Stryker's global footprint

Founded in 1955 by Dr. Karl William Edmark, Physio-Control develops, manufactures, and markets cardiac devices such as automated external defibrillators, or AEDs and CPR-assist devices along with data management and support services.

The Washington-based company was acquired by Eli Lilly and Company in 1980 and sold to Bain Capital in 1994, who in turn sold it to Medtronic in 1998 for $538 million. Medtronic spun off Physio-Control in 2006 and Bain Capital took it private in 2011 for $487 million.  Physio-Control had sales of $503 million in 2015.

Founded by Dr. Homer Stryker as the Orthopedic Frame company in 1946, Stryker is one of the world's leading medical technology companies offering a diverse array of medical devices, including reconstructive implants, medical and surgical equipment, and neurotechnology and spine products.  It competes with DePuy Orthopaedics, Zimmer Holdings, Medtronic, Synthes, Smith & Nephew, and Biomet, and holds a 16-per cent share in the global orthopaedic market.

The company sells its products through local dealers and direct sales force to doctors, hospitals, and other healthcare facilities, as well as through third-party dealers and distributors primarily in the US, Ireland, Germany, France, Switzerland, the UK, Japan, Canada, the Pacific region, and Latin America.  While the US market accounts for the bulk of its sales, Stryker has been recently trying to focus and expand in emerging markets like India, Brazil, and China.

What does this transaction mean to your business?  Call Paragon Ventures for more information.  800-719-1555

 

 

Home Health

Hospice

PSA Acquires Care Unlimited

PSA Healthcare (PSA), a portfolio company of J.H. Whitney Capital Partners and leading provider of pediatric home care for children with medical complexities, recently announced that it has acquired Care Unlimited, Inc. and associated entities (collectively Care Unlimited), a leading provider of home care services to medically fragile children in western Pennsylvania.

Founded in 1984 by Laurye Feller, Care Unlimited provides advanced home health and palliative care services to medically complex patients. Headquartered in Pittsburgh, Pennsylvania, Care Unlimited is one of the largest independent providers of pediatric home care services in the country. Through additional offices in Erie and DuBois, Care Unlimited is licensed to provide services in 28 western and central Pennsylvania counties.

"Care Unlimited is a natural fit with PSA as we continue to expand and add density to our existing services areas," said Rod Windley, Executive Chairman of PSA. "Both PSA and Care Unlimited share a true patient-centered approach with a consistent focus on providing the highest quality services to medically complex patients and their families in the most comfortable and cost effective setting - the patient's own home."

 
 

 

Revenue Cycle Management

Accretive Health Grows With Ascension

Accretive Health Inc (Chicago, IL) completed the transaction announced on December 8, 2015 with Ascension (St. Louis, MO) and Ascension and TowerBrook Capital Partners (New York, NY). As part of the transaction, Accretive Health and Ascension entered into a new master professional services agreement for a 10-year term, under which Accretive Health will become the exclusive provider of revenue cycle services and physician advisory services to Ascension’s hospitals, with some exceptions. Additionally, a newly formed investment vehicle owned by Ascension and TowerBrook Capital Partners has invested $200 million in Accretive Health in exchange for convertible preferred stock and warrants. Accretive Health anticipates it will begin transitioning Ascension’s currently served hospitals to the new agreement over the next six months. Ascension hospitals not currently served by Accretive will transition to the company’s platform over an expected three-year period.

 
 

 

Rehab Suppliers

Webb Medical Sits Well With NSM Acquisition

National Seating & Mobility has expanded in eastern Pennsylvania with the acquisition of the complex rehab division of Webb Medical Systems. Short-term, NSM will continue operating out of the existing Webb Medical Systems locations in Reading and Allentown, Pa., according to a press release. Christopher Kritzer, ATP, will lead the Reading office, and Sarah Adams, ATP, will lead the Allentown office. Webb Medical Systems, which has provided complex rehab products and services for 30 years, will continue to expand its offerings in respiratory, HME and home accessibility, according to the release. “Sharon and I have long known and admired the reputation of NSM,” stated Richard Webb, owner of Webb Medical Systems. “Their mission and ours are so closely aligned that they were our only choice to continue the tradition.”

 

 

Resource Management

MedAssets Sells Assets To Vizient

Pamplona Capital Management (Pamplona) is pleased to announce it has completed the sale of MedAssets’ Spend and Clinical Resource Management (SCM) segment to Vizient, Inc., the largest member-owned health care company in the country. The sale marks the final step in Pamplona’s plan to combine MedAssets’ Revenue Cycle Management (RCM) segment with Precyse, a Pamplona-owned health information management (HIM) company, to create a leader in the end-to-end revenue management services.

 

 

Medical Device

Sundance Acquisition A Solution for Mölnlycke

Mölnlycke Health Care, a world-leading provider of high-quality healthcare solutions, announced today the acquisition of Sundance Solutions, a leader in developing innovative solutions for the safe positioning and turning of patients to help prevent pressure ulcers. Sundance’s proprietary solutions include Tortoise™, a unique and simple turning, positioning and offloading system that is easy to use, safe for both patients and caregivers.

 

 

Home Health

All Metro Healthcare a Growth Transaction For One Equity Partners

Nautic Partners, LLC announced today that it has completed the sale of All Metro Health Care Services, Inc. (All Metro) to private equity firm One Equity Partners (OEP). The terms of the transaction were not disclosed.

Headquartered in Valley Stream, NY, All Metro is a leading provider of home and community based services in New York, Pennsylvania, New Jersey and Florida. All Metro is a licensed home care agency providing primarily non-skilled personal care aide services, including light housekeeping, homemaking, bathing and grooming to seniors and high needs individuals. All Metro provides its services from 10 branches in New York, 17 branches in Pennsylvania, two branches in New Jersey and two branches in Florida. In addition to its non-skilled personal care aide services, All Metro is also a leading provider under two specialty home care waiver programs in New York. These waiver programs provide the necessary services required to allow nursing home eligible individuals and individuals with traumatic brain injuries to remain in community settings rather than nursing homes.

“We have greatly enjoyed our partnership with the outstanding management team at All Metro,” said Chris Crosby, Managing Director of Nautic. “During our ownership period, the Company continued its strong growth trajectory while maintaining its high focus on patient care. The successful acquisition of CareGivers America (CGA) expanded the Company’s footprint into Pennsylvania in a meaningful way and brought strong local management talent. We continue to believe that the home care market is well positioned to grow as a result of demographic trends and the fact that the home represents the lowest cost care setting and preferred location for seniors. Due to its scale and diversified business model, All Metro is also well positioned to continue to identify and integrate acquisitions to improve scale in its existing footprint, expand into new geographies and add new service capabilities.”

 
 

 

Medical Device

Stryker Acquires Sage Products

Stryker Corp. (NYSE: SYK), a maker of medical devices, has agreed to buy Sage Products LLC for $2.78 billion in cash from its private equity owner Madison Dearborn Partners.

The purchase will come with a $500 million tax benefit for Kalamazoo, Michigan-based Stryker, the company said in a statement on Monday. Sage, based in Cary, Illinois, makes products for surgery and medical care.

Sage had sales of $430 million in fiscal 2015, compared with $9.95 billion for Stryker. Stryker’s biggest business is orthopaedics, such as artificial hips and knees used in replacement surgery. Sage makes a complementary group of surgical items, including ones meant to reduce “never events,” such as operations on the wrong leg.

Medical device companies have been consolidating to sell groups of products as hospitals and purchasing groups try to control costs. Last year, Medtronic Plc completed an about $46 billion deal for Covidien Ltd.

The deal is expected to close in the second quarter. Stryker said it will add 5 cents to its adjusted earnings for 2016, which the company predicts will be $5.55 to $5.75 a share.

There have been a handful of medical device deals in the middle-market. Conmed Corp. (Nasdaq: CNMD) is buying SurgiQuest Inc. and 3M Co. (NYSE: MMM) completed its purchase of Polypore International Inc.’s (NYSE: PPO) separations media business.

 

 

Pharmacy

Amerisource Acquires Compounding PharMedium

AmerisourceBergen (NYSE:ABC) today announced that it has signed a definitive agreement to purchase PharMEDium Healthcare Holdings, Inc., the privately held leading national provider of outsourced compounded sterile preparations (CSPs) to acute care hospitals in the United States, from Clayton, Dubilier & Rice for $2.575 billion in cash, subject to certain adjustments and on a cash-free, debt-free basis. The acquisition is expected to be $0.22 to $0.26 accretive to the Company’s adjusted earnings per share in fiscal 2016 on a net basis, and is expected to generate approximately $30 million in synergies by fiscal 2018. The transaction is subject to regulatory review and other customary closing conditions, and is expected to close in the first quarter of fiscal 2016, which ends December 31, 2015. This acquisition was not contemplated in the previous guidance the Company gave for adjusted earnings per share growth in fiscal 2016 in the low teens range on a percentage basis. Therefore, upon closing, the contribution from the acquisition will be incremental to our previous expectations.

 

 

Medical Supply

NDC Trades Hands To Court Square

Silver Oak Services Partners, LLC, a leading lower-middle market private equity firm focused exclusively on business, healthcare and consumer services companies, announced today that it has completed the sale of its equity interest in NDC to New York-based private equity firm Court Square Capital Partners.

Headquartered in Nashville, TN, NDC (“the Company”) is a leading healthcare supply chain company and distributor of consumable medical supplies. The Company operates as one of the largest master distributors in healthcare, purchasing supplies directly from manufacturers and providing a broad product line to distributors who handle the last mile delivery direct to health care providers. The Company serves as a vital partner delivering supply chain efficiency to manufacturers, GPOs and national, regional and local distributors. NDC has over 180 employees and operates distribution centers in Tennessee and Nevada.

Silver Oak made its original investment in NDC in February 2010. During Silver Oak’s ownership, NDC completed two acquisitions, strengthened its management team, expanded its product portfolio, upgraded its technology platform and launched new service offerings.

“We are extremely proud of our partnership with the NDC management team,” said Greg Barr, Managing Partner at Silver Oak. “They have done an outstanding job of driving significant top and bottom line growth over the last six years. With a strong management team and proven value proposition in the market, the Company is well positioned for continued growth.”

 
 

Medical Supply

Kreisers, Inc., headquartered in Sioux Falls, South Dakota; MMS – A Medical Supply Company, headquartered in Earth City, Missouri and Seneca Medical, headquartered in Tiffin, Ohio jointly announced they have entered into a definitive merger agreement to form Concordance Healthcare Solutions, LLC. The transaction is subject to approval by the companies' shareholders and is expected to close in the first quarter of 2016.

 

The combination will bring together three strong, growing and respected regional medical supply distributors. Concordance will have approximately 1,000 employees, 19 distribution centers and $1.1 billion in annual sales.

 

About Kreisers, Inc. In 1905, Frederick Kreiser opened a pharmacy in Sioux Falls, South Dakota. Since that time, Kreisers has focused on medical/surgical equipment and supplies. Today, Kreisers is a major regional distributor across the upper Midwest offering a complete line of medical equipment and supplies to hospitals, physicians, nursing homes, laboratory and home health providers. Kreisers has six distribution centers strategically located throughout the upper midwest to provide timely, efficient service.

 

About MMS MMS – A Medical Supply Company, founded in 1970, is one of the largest, independent, regional healthcare distributors in the U.S. The company offers products, equipment and supply chain services to healthcare providers. MMS has divisions, and experienced professionals, dedicated to nursing homes, hospitals, physician practices, government facilities, specialty products, home care, hospice, EMS and pharmaceuticals as well as healthcare industrial and redistribution businesses. MMS's broad base of business across all provider segments, has established MMS as a leader in the evolving healthcare industry. MMS is headquartered in St. Louis, with a regional corporate office in New Rochelle, NY. MMS is a Regional Distributor with a National Presence with distribution facilities in Phoenix, AZ; Tamuning, GU; West Chicago, IL; Wichita, KS; Baton Rouge, LA; Earth City, MO, Secaucus, NJ; and Spartanburg SC.

 

About Seneca Medical Founded in 1990, Seneca Medical is an independent, privately owned and operated medical surgical supply company with distribution locations in Indiana, Michigan, North Carolina, Ohio, Tennessee and West Virginia. Through a stock ownership plan launched in 1998, the company's 550 current and past employees own 90% of Seneca Medical's stock, contributing to the company's culture of trust, integrity, commitment and service. Seneca serves acute care, physician and surgery centers, long term care centers and government agencies in 11 states.

 

 

Medical Device

 

Equipment Service

 

Management

 

Wafra Partners LLC is acquiring medical equipment repair company Intermed for an undisclosed amount.   Intermed sells and repairs x-ray and ultrasound machines. The company, headquartered in Alachua, Florida, also provides record keeping and consulting services to health care providers. Wafra says the sector is highly fragmented.

 

Wafra, based in New York, usually invests in companies that have up to $150 million in enterprise value. The firm’s other health care investment is dental practice Smiles Services LLC.  In other repair services deals, Fluor Corp. (NYSE: FLR) is adding Stork Holding BV and Windjammer Capital Investors is buying Heritage Food Service Group from the Jordan Co.

 

 

Healthcare IT

naviHealth Inc (Brentwood, TN), a Cardinal Health (Dublin, OH) company, acquired RightCare Solutions Inc (Philadelphia, PA), a healthcare decision support software service provider specializing in hospital discharge planning software and readmissions management.

 

RightCare licenses its proprietary software to hospitals and health systems to assess patients for post-acute care needs, determine risk of readmission, and coordinate patient discharges to high-quality post-acute care providers. The company also licenses its software to post-acute care providers, allowing them to save time and money in managing referrals from nearby hospitals by automating many of the burdensome administrative tasks involved in accepting referrals, according to a release.

 

 

Infusion Pharmacy

PharMerica Corporation a diversified national provider of institutional and specialty pharmacy services, recently announced that it has completed two transactions.  In addition to the acquisition of Integrated Pharmacy Network, a Midland, MI based long-term care pharmacy, the Company's Amerita subsidiary acquired Alternacare Infusion Pharmacy. Alternacare, based in Olathe, KS, provides specialty home infusion services in the greater Kansas City metropolitan area.

Terms of the transactions were not disclosed. With these acquisitions, PharMerica has achieved its goal of completing acquisitions that generate at least $100 million of annualized sales, in the aggregate, in 2015.

 

 

Healthcare

Wafra Partners announced the acquisition of Interactivation Health Networks, LLC, d/b/a The Wellness Network. The Wellness Network is the third platform investment by Wafra Private Equity Fund V, L.P. Wafra and its co-investors are executing on a planned build-up in the patient education and engagement industry.

The Wellness Network is the largest and most comprehensive multi-platform hospital education network in the U.S., with over 2300 hospital relationships. Products include the Newborn Channel and the Patient Channel, delivering education ranging from baby care and postpartum to preventive health and condition-specific video education programming.

The Company also offers integrated hardware and software solutions for patient engagement and compliance.

 

 

HME/DME

National HME, Inc. announced that it has merged with Therapy Support, Inc. Therapy Support is a multi-state, full service provider of durable medical equipment for the hospice and long-term care industries. Founded in 1997 by Brian and David Pavlin, Therapy Support maintains dual headquarters in Cincinnati, OH and Springfield, MO.

 

The company services hospices, long-term care facilities, veteran's hospitals, and other post-acute healthcare organizations across its 21 branch locations in Ohio, Missouri, Michigan, Kansas, Nebraska, Oklahoma, Texas, and Pennsylvania. National HME is a portfolio company of Tailwind Capital and EDG Partners.

 

Founded in 2006, National HME delivers medical equipment to hospice caregivers either directly through its full-service locations or through its credentialed network of local providers. Through a proprietary web-based technology tool, the company also provides consolidated ordering and invoicing as well as data on utilization, cost trends and network management for reporting and analytics.

 

 

Pharmacy

Walgreens Boots Alliance Inc (Deerfield, IL) agreed to sell 56 in-store clinics in the Chicago region to Advocate Health Care (Downers Grove, IL). Walgreen said the move was intended to increase cost-savings and help streamline operations. Advocate ownership will become official in May 2016. No other terms of the agreement were released.

 

 

Healthcare Provider

Fairview Health Services (Minneapolis, MN) acquired PreferredOne Corp (Minneapolis, MN) for an undisclosed amount. The health system previously held a fifty percent share in the insurer, but has bought the remaining half from two other health organizations. Fairview also gave PreferredOne an $18.75 million loan in April 2015, a deal that included options to increase its ownership share. A Fairview statement said the acquisition would bring expertise in care management, population health, and risk management to the health system. The insurer has been taking losses in its state health exchange operations but doing comparatively well as a third-party administrator for self-insured employers.

 

 

Physiotherapy

Rehabilitation

Audax Group has acquired Toronto-based Lifemark Health and Viewpoint Medical Assessments, provider of physiotherapy, rehabilitation and medical assessments, from Centric Health Corp. (TSE: CHH) Terms of the deal were not disclosed.  Lifemark provides physiotherapy and rehabilitation treatment in more than 100 clinics and in long-term care centers, retirement homes and communities in Canada. It also provides independent medical assessments and examinations in Canada. Centric Health has a network of offices in Canada in its core businesses: specialty pharmacy and surgical centers.The PE firm recently bought Dermatology of Northern California and Zoom Media's advertising divisions

 

 

Healthcare GPO

Medical Asset

Management

 

MedAssets Inc’s (Alpharetta, GA) stockholders approved the previously disclosed agreement and plan of merger with Pamplona Capital Management LLP (New York, NY) at its special meeting of stockholders. Approximately 99.8 percent of the total votes cast, which represented approximately 89.7 percent of the total shares outstanding as of the November 24, 2015 record date for the special meeting, were voted as in favor of the approval and adoption of the merger agreement and the merger. MedAssets' stockholders also approved, on a non-binding basis, the compensation that will or may become payable to MedAssets' named executive officers in connection with the merger. The approval and adoption of the merger agreement and the merger by MedAssets' stockholders satisfies a condition to the proposed acquisition, which is expected to close by the end of January 2016 subject to certain other customary closing conditions.

 

 

Healthcare IT

Henry Schein Inc (Melville, NY) completed its acquisition of 80.1 percent interest in Vetstreet Inc (Yardley, PA), a software as a service (SaaS) provider of marketing solutions and health information analytics to veterinary practices and animal-health product manufacturers. That transaction was announced on November 2, 2015. Additionally, Henry Schein signed a separate agreement to acquire RxWorks Inc (Brisbane, Queensland, Australia), a provider of veterinary practice management software primarily to customers in Australia, New Zealand, the UK and the Netherlands, and other countries around the world. RxWorks will continue to be led by its current management team. Upon closing, RxWorks will become part of Henry Schein's Global Animal Health Practice Solutions business. Financial details and terms of the transaction were not disclosed.

 

 

HME/DME

Patient Home Monitoring Executes Definitive Purchase Agreement to Acquire Patient-Aids Inc. Under the terms of the definitive purchase agreement, Patient Home Monitoring will acquire all of the stock of Patient Aids, Inc. for total cash consideration of approximately $32,000,000 and 2,722,987 PHM common shares, representing less than 1% of Patient Home Monitoring's total outstanding common shares.

The terms of the acquisition are as follows: 65% of the total consideration is due upon closing, with 10% due in six months based on maintaining certain A/R levels. The remaining 25% due in twelve months from the date of closing is based on the Company meeting revenue requirements. A total of $6.3 million in consideration solely at PHM's option may be paid in shares valued at a 10-day VWAP at the time of payment.

The shares will be released from various holds over a two-year period. Closing of the acquisition will be subject to approval by the TSX Venture exchange and other standard conditions, including verification of trailing period financials by MNP, LLP of Canada, PHM's independent auditor.  PHM will also issue to an arms-length party 270,000 shares associated with the closing of Sleep Management and 330,000 shares upon the closing of Patient Aids, included in the purchase price.

 

 

Hospital

Prospect Medical Holdings (Santa Ana, CA) signed a definitive agreement to acquire Crozer-Keystone Health System (Springfield, PA). The deal, which includes Crozer-Chester Medical Center (Upland, PA), Delaware County Memorial Hospital (Drexel Hills, PA), Springfield Hospital (Springfield, PA), Taylor Hospital (Ridley Park, PA), and Community Hospital (Chester, PA), will convert nonprofit Crozer-Keystone to a for-profit system. It will also mark Prospect Medical Holdings' entry in Pennsylvania. It currently owns 13 hospitals in California, Texas, and Rhode Island. The deal must be approved by the state attorney general. Prospect pledged $200 million in capital toward Crozer-Keystone and committed $100 million toward the system's underfunded pension. Additional terms and an anticipated closing date were not disclosed.

 

 

Biologics

Surgical Supply

MiMedx Group Inc (Marietta, GA) signed a definitive agreement to acquire Stability Inc (dba Stability Biologics) (Nashville, TN). Stability is privately held and was founded in 2010. The company is a provider of human-tissue products to surgeons, facilities, and distributors serving the surgical, spine, and orthopedics sectors of the healthcare industry. Stability Biologics has a state-of-the-art tissue processing center in San Antonio, Texas. Following the transaction, Stability Biologics will operate as a wholly owned subsidiary of MiMedx. The transaction is expected to occur by mid-January 2016, subject to customary closing conditions.

 

 

Pharma

Shire Plc (London, UK) agreed to acquire Baxalta (Bannockburn, IL) for $32 billion in a cash and stock offer. Shire will pay about $45 per share in Baxalta, which was spun out from Baxter International Inc (Deerfield, IL) in July 2015. Baxalta rejected Shire's previous $30 billion all-stock offer in August 2015, arguing it significantly undervalued the company. The deal will create the largest maker of rare disease drugs in the world, according to Shire. Baxalta Chairman Wayne Hockmeyer will become deputy chairman of the combined company, and two additional directors will be included from Baxalta’s board. The transaction is scheduled to close in mid-2016.

 

 

Medical Device

Teleflex Incorporated (Wayne, PA) acquired Nostix LLC (Boulder, CO), a privately held developer of tip-confirmation systems that are used to increase the accuracy of vascular access device placement. Currently, Nostix’s ECG-only system is being marketed in the U.S. for use in placement of peripherally inserted central catheters (PICC) and is used as an alternative to X-ray confirmation in adult patients. According to a release, the addition of this technology will support Teleflex’s future expansion into tip confirmation for central venous catheters, chronic hemodialysis catheters, and ports, as well as access to a product development pipeline that includes integrated ultrasound capabilities that will extend the company’s ability to offer differentiated catheter tip positioning solutions. Financial terms of the transaction were not disclosed.

 

 

Medical Device

BD (Becton, Dickinson and Company) (Franklin Lakes, NJ) announced that Fresenius Kabi USA (Lake Zurich, IL) acquired the BD Rx (Franklin Lakes, NJ) business, which includes a pharmaceutical manufacturing plant in Wilson, NC, and the BD Simplist line of seven drugs in ready-to-administer prefilled glass syringes. BD and Fresenius Kabi also signed a 10-year supply and distribution agreement under which Fresenius Kabi will supply BD with a portfolio of intravenous solutions. Both companies plan to offer a range of IV solutions in the U.S. beginning in 2016. Additional financial and contractual terms of the transactions were not disclosed.

 

 

HME/DME

Nunn’s Home Medical Equipment has acquired Rothschild’s Home Health Care of Syracuse, N.Y., allowing the company to open its first additional location. Nunn’s has been operating out of Rome, serving 15 counties, for 73 years. Nunn’s will continue to offer the same products and services in the 6,000-square-foot location in Syracuse, but it will add new products and a respiratory therapist. “Acquiring Rothschild’s was a natural next step for Nunn’s as we expand and grow in our region,” said Shawn Weiman, vice president.

 

 

HME/DME

MedCare Equipment Company has added another partnership with a health system.  The company, part of Excela Health, has acquired Home Health Resource from UPMC Altoona, growing its patient base to 24,000 and its revenue base to $70 million.

“Working collaboratively with health systems across western Pennsylvania we have been able to achieve cost efficiencies, economies of scale and eliminate duplicative services,” said John Sphon, CEO, in a press release. “Ultimately, the beneficiary of these partnerships is and will remain our patients and customers.”  MedCare already partners with Conemaugh Home Medical Equipment in Johnstown, part of Conemaugh Health System/Duke Life Point. The company also has partnerships with the Heritage Valley, Butler, Washington and UPMC health systems.

Home Health Resource expands MedCare’s presence in western Pennsylvania, southern New York, eastern Ohio and northern West Virginia. With Home Health Resource, MedCare now employs 300 people at 14 locations.

It’s been a good year for MedCare: The company was named first place winner in this year’s HME Excellence Awards by HME News and was named Most Valuable Provider in the enterprise category by Brightree.

 

 

Healthcare GPO

VHA-UHC Alliance NewCo Inc, the recently combined company of VHA Inc and UHC, announced that its new name will be Vizient Inc (Irving, TX). The combined organization, which includes Novation LLC (Irving, TX) and recently acquired MedAssets Inc’s (Alpharetta, GA) Spend and Clinical Resource Management Segment, will officially align under the Vizient brand beginning January 2016. According to the company, the new name represents the full capabilities of the combined organization, from supply-chain expertise to insights into cost and quality performance. The comprehensive products, services, and expertise of Vizient will help members significantly improve their financial, clinical, and operational performance and achieve greater value for patients and communities.

 

 

Medical Device

Medtronic plc (Dublin, Ireland) acquired Aircraft Medical (Edinburgh, Scotland) for $110 million in cash. Aircraft Medical is a privately held medical device company that develops affordable, handheld high-quality video laryngoscopes used by anesthesiologists and critical care professionals to intubate patients. Medtronic will report revenue from the Aircraft Medical product line as part of its Patient Monitoring & Recovery division within the Minimally Invasive Therapies Group. Additional terms of the acquisition were not disclosed.

 

 

HME/DME

Patient Home Monitoring announced that it executed a final, binding purchase agreement to acquire Sleep Management, a company operating in 19 states and headquartered in Louisiana.  The business had annualized revenues of more than $42,500,000 and Adjusted EBITDA of more than $18,000,000. PHM retained its external auditor to conduct an independent financial review of Sleep Management.  Sleep Management currently provides home based medical services in 19 states across the US.

The Company focuses on providing high margin ventilators to patients with chronic pulmonary obstructive (COPD) conditions.   Total consideration paid is $36 million in cash and 42.75 million shares, representing less than 15% of PHM's total outstanding common shares. The shares will be released from holds over a three year period. Closing of the acquisition will be subject to approval by the TSX Venture exchange and other standard conditions.  All three owners are taking a portion of their consideration in stock and will stay on with PHM as senior executives post-acquisition.

 

 

Healthcare GPO

Asset Management

Clinical Resources

MedAssets (Alpharetta, GA) entered into a definitive agreement with Pamplona Capital Management (New York, NY), a private equity firm, through which Pamplona will acquire MedAssets for a total enterprise value of about $2.7 billion. VHA-UHC Alliance NewCo Inc (Irving, TX) subsequently signed an agreement with Pamplona to acquire MedAssets’ Spend and Clinical Resource Management (SCM) segment, which includes group purchasing, supply chain analytics, consulting, and advisory services.

The SCM segment also includes Sg2, a provider of healthcare market intelligence, strategic analytics, and clinical consulting services. The company will announce changed to its name in the coming weeks. Pamplona will retain MedAssets’ Revenue Cycle Management segment. The transaction is expected to close in Q1 2016 pending antitrust review.

 

 

2015

  • Sector:   Behavioral Health     NYCATS - New York Center for Addiction Treatment Services, Inc. was acquired by a strategic acquirer in an asset purchase.  New York Center for Addiction Treatment Services (NYCATS) has been committed to treating addiction and chemical dependency in our community for the past thirty years.   NYCATS uses the leading evidence based practices in the field of substance abuse treatment and addiction treatment.  NYCATS has the highest level of licensure from New York State Office of Alcohol and Substance Abuse Services (OASAS) with a perfect score on its most recent audit.  Terms of the transaction were not disclosed.  April Mason of Paragon Ventures was the exclusive advisor to NYCATS.

  • Sector:  Pharmacy   Walgreens Boots Alliance Inc (Deerfield, IL) sold its Hawaii location along with the nearby Heald College Building (Honolulu, HI) for a total of $73.5 million to Salem Partners (Los Angeles, CA), an investment firm. Sites at three addresses, 1460 and 1470 Kapiolani Blvd and 611 Keeaumoku Ave sold together for $54 million, while Heald College Building was sold separately for $19.5 million.

  • Sector:  Infusion Pharmacy    New York-based private equity firm Harvest Partners has completed the sale of AxelaCare Health Solutions to OptumRx, the pharmacy care services business of Optum. Terms of the transaction have not been disclosed.  Harvest initially invested in the company in April 2013. AxelaCare is a provider of specialty home infusion services based in Lenexa, Kansas. The company currently treats patients in 44 states and Washington, DC through its network of owned and contracted RNs. The company offers chronic drug therapies for conditions such as autoimmune disease and hemophilia as well as acute infusion therapies, such as antibiotics and total parenteral nutrition, through its network of 34 pharmacies.

  • Sector:  Medical Supply    C.R. Bard, a manufacturer of medical devices for vascular, urology, oncology and surgical specialty fields, announced last week that it has acquired Liberator Medical for $181 million.  Liberator is a director-consumer-provider of home medical supplies, including catheters, ostomy, diabetes and mastectomy.  “As the population ages and more healthcare is expected to occur outside of the hospital setting, we believe that having direct access to the patient in the home is strategically important,” said Timothy Ring, Bard CEO and chairman. “We look forward to adding a strong distribution platform with potential for future growth to our product and technology platforms.”  Liberator was founded by Mark Libratore, a former Liberty Medical exec, more than a decade ago and has enjoyed steady growth since. In August, the provider reported net revenues of $20.4 million for its fiscal third quarter ended June 30, 2015, a 9.7% increase compared to the same period last year. Liberator began trading on the New York Stock exchange in 2013 under LBMH.

    The transaction is structured as a merger and is expected to close in the first quarter of 2016.

     

Contact Paragon Ventures today to explore what this transaction means

for the valuation and strategic options available for your healthcare business. 800-719-1555

 

  • Sector:  Home Health    The Evangelical Lutheran Good Samaritan Society (the Society) recently announced the purchase of Heritage Healthcare Services, Inc., by Good Samaritan Society HCBS-Heritage, LLC, an affiliate of the Society. Heritage is a major provider of home care services and Medicare home health services in New Mexico and Arizona.

  • Sector:   Medical Device   Boston Scientific Corporation (NYSE: BSX), announced its acquisition of the interventional radiology business of CeloNova Biosciences, a global developer and manufacturer of endovascular and interventional cardiology technologies. The price was $70 million upfront, plus additional payments contingent on regulatory and sales milestones. BSX is taking on CeloNova’s Embozene Tandem Drug-Elutable Microspheres, which can be embedded with drugs used to treat liver cancer, and other oncology products. CeloNova has received an Investigational Device Exemption from the FDA for the Solace Trial, a randomized, controlled study of the Oncozene Microspheres loaded with chemotherapy agent doxorubicin, expected to begin in the fourth quarter of 2015.

  • Sector:   BioSciences   Meridian Bioscience, Inc., Cincinnati, Ohio (NASDAQ: VIVO) today announced that it has made a minority investment in Oasis Diagnostics® Corporation ("Oasis"), with the right to acquire Oasis in the future. The terms of the transaction were not disclosed. Oasis designs, develops, manufactures and sells pre-analytic tools for the collection, preservation, and transportation of saliva/oral fluids

  • Sector:   Healthcare Consulting   GE Healthcare (NYSE:GE) announced the acquisition of The Camden Group, one of the nation’s leading population health & strategic advisory firms. GE Healthcare Camden Group will act as the U.S. business unit of GE Healthcare’s global advisory firm, GE Healthcare Partners. GE Healthcare Camden Group will be uniquely equipped to enable U.S. healthcare organizations to navigate the transforming

  • Sector:   Pharmacy   PharMerica Corporation (NYSE:PMC), a diversified national provider of institutional and specialty pharmacy services, announced today that it has completed the acquisition of Luker Pharmacy Management (“Luker”). Terms of the transaction were not disclosed. “The acquisition of Luker Pharmacy Management further expands our hospital pharmacy management business and capabilities.” Tweet this Luker provides comprehensive pharmacy management services to hospitals and other healthcare facilities, primarily in Texas. Greg Weishar, PharMerica Corporation’s Chief Executive Officer stated, “The acquisition of Luker Pharmacy Management further expands our hospital pharmacy management business and capabilities. Mr. Weishar continued, “We look forward to working with the Luker management team and the Company’s outstanding client base to continue providing excellent service to customers and growing the business.”

  • Sector:   Medical Device   Medline Industries, Inc. and ICU Medical jointly purchased Excelsior Medical, a leading manufacturer of pre-filled saline and heparin flush syringes, syringe pumps and pump systems. Excelsior also develops and manufactures SwabCap® and SwabFlush®. Through this multi-faceted deal, Medline acquired the flush syringe and SwabFlush business and ICU Medical purchased the SwabCap and pumps/tubing business.   Medline has jointly purchased Excelsior Medical Tweet this This purchase will strengthen Medline’s ability to provide quality products that customers require, particularly combined with the company’s planned investment in technology, facilities, equipment and inventory. It also will pave the path for helping healthcare facilities standardize protocols for reducing bloodstream infections – a national healthcare priority.  “Central line associated bloodstream infections are expensive, costing a hospital as much as $40,000 per incident. As our customers began to target CLABSIs as a priority problem, we took action to bring them better solutions,” said Dante Tisci, President, Dynacor Division, Medline. “This move underscores our company’s commitment to assisting hospitals with prioritizing and implementing improved disinfection efforts by providing high quality and clinically differentiated products.”  The Excelsior medical device unit that Medline purchased has more than 400 employees based out of a 200,000 square foot manufacturing plant in Neptune, New Jersey. This is a significant step forward in Medline’s strategy to address a major pain point in the U.S. healthcare system through quality, innovative products. The acquisition aligns with the increasing demands on healthcare providers to reduce hospital acquired infections. In addition, it dramatically increases the scale and breadth of Medline’s existing medical delivery and sharps containers disposal product line.

  • Sector:   GPO   Pamplona Capital Management (Pamplona) is pleased to announce it has agreed to acquire MedAssets (NASDAQ:MDAS), a leading healthcare performance improvement company that serves four out of every five hospitals in the United States. In addition, Pamplona has entered into a separate agreement with VHA-UHC Alliance NewCo, Inc. (VHA-UHC Alliance), the nation’s largest member-owned healthcare company, to divest MedAssets’ Spend and Clinical Resource Management (SCM) segment to VHA-UHC Alliance following the completion of Pamplona’s acquisition of MedAssets. “This is a major step in delivering on our vision of expanding Precyse beyond our traditional offerings into other areas that positively impact providers’ clinical and financial outcomes, both in Health Information Management and beyond and exactly why Precyse partnered with Pamplona earlier this year” Tweet this Pamplona will combine MedAssets’ Revenue Cycle Management (RCM) segment, which currently serves more than 2,700 hospital clients and touches more than $450 billion in gross patient revenue annually, with Precyse, a Pamplona-owned company that is a leader in health information management (HIM) services, technology, and education. MedAssets and Precyse already have a strategic partnership and share a number of customers, and their offerings are highly complementary. This combined enterprise will offer an end-to-end RCM and HIM solution and will be ideally positioned to partner with health systems to meet the needs of an evolving reimbursement environment which is increasingly requiring outsourced and clinically-integrated revenue cycle solutions. In addition to the sale of MedAssets’ SCM business to VHA-UHC Alliance, Pamplona and VHA-UHC have agreed to work together in select service offerings to serve their mutual members and customers, representing further strategic growth opportunities for both businesses. Pamplona is purchasing MedAssets for $31.35 per share, which represents a total enterprise value of approximately $2.7 billion for the acquisition. The transaction will require the receipt of customary approvals, including certain regulatory approvals and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction also is subject to customary closing conditions, including the approval of the merger agreement by MedAssets stockholders.

    Sector:   Vet Med   VCA Inc. (NASDAQ: WOOF), a leading national healthcare company in the United States and Canada, today announced that Henry Schein, Inc. (NASDAQ: HSIC), the world’s largest provider of health care products and services to office-based dental, animal health and medical practitioners, will acquire a majority interest in VCA’s subsidiary Vetstreet, Inc., a leading software as a service (SaaS) provider of marketing solutions and health information analytics to veterinary practices and animal health product manufacturers. Following the closing of the transaction Henry Schein Animal Health, the U.S. animal health business of Henry Schein, Inc., will own 80.1 percent of Vetstreet, with the remaining interest owned by VCA. Financial details and terms of the transaction were not disclosed. The transaction is expected to close in the first quarter of 2016 and VCA anticipates that it will record a gain of $30 million to $35 million, subject to transaction costs. In addition, by reinvesting the proceeds of the sale in animal hospital acquisitions and share repurchases, the impact of this divestiture is expected to have an immaterial impact upon the Company’s 2016 operating results.

  • Sector:   Medical Transport   Envision Healthcare Holdings, Inc. (Envision) (NYSE: EVHC) announced that it has completed the previously announced acquisition of Rural/Metro Corporation (Rural/Metro) through Envision’s medical transportation segment, American Medical Response (AMR). Rural/Metro's operations generate annual revenue of approximately $590 million, and Envision expects to realize efficiencies of $25 to $28 million through 2017 from the integration. “The addition of Rural/Metro allows us to more rapidly expand Envision’s mobile integrated healthcare delivery offering” Tweet this “The addition of Rural/Metro allows us to more rapidly expand Envision’s mobile integrated healthcare delivery offering,” said William A. Sanger, chairman, president and chief executive officer of Envision. “We are focused on working with our healthcare partners to build a more sustainable model that is centered on patient needs, with paramedics and EMTs playing an important role.” AMR consistently delivers innovative, high-performance healthcare services and superior patient care and the addition of Rural/Metro will enhance those abilities. “As a former Rural/Metro employee, this feels like a bit of a homecoming for me,” said Edward Van Horne, AMR president and chief executive officer. “I am excited to start working with our new team members to bring enhanced offerings to our community partners as we build synergies and expand capabilities – particularly in mobile integrated healthcare. The population health-centric models at Envision will also allow our team members additional opportunities to grow across AMR as well as at Evolution Health and EmCare.”  The acquisition was funded through committed financing led by Barclays and Goldman, Sachs & Co.

  • Sector:   Pharmacy   Walgreens Boots Alliance, Inc. (Nasdaq: WBA) and Rite Aid Corporation (NYSE: RAD) today announced that they have entered into a definitive agreement under which Walgreens Boots Alliance will acquire all outstanding shares of Rite Aid, a U.S. retail pharmacy chain, for $9.00 per share in cash, for a total enterprise value of approximately $17.2 billion, including acquired net debt. The purchase price represents a premium of 48 percent to the closing price per share on 26 October 2015, the day before the agreement was signed. The combination of Walgreens Boots Alliance and Rite Aid creates a further opportunity to deliver a high-quality retail pharmacy choice for U.S. consumers in an evolving and increasingly personalized healthcare environment. The boards of directors of both companies have approved the transaction, which is subject to approval by the holders of Rite Aid’s common stock, the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. The transaction is expected to close in the second half of calendar 2016.   The transaction is expected to be accretive to Walgreens Boots Alliance’s adjusted earnings per share in its first full year after completion. Additionally, Walgreens Boots Alliance expects to realize synergies in excess of $1 billion.   Upon completion of the merger, Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance, and is expected to initially operate under its existing brand name. Working together, decisions will be made over time regarding the integration of the two companies, ultimately creating a fully harmonized portfolio of stores and infrastructure. Walgreens Boots Alliance expects to finance the transaction through a combination of existing cash, assumption of existing Rite Aid debt and issuance of new debt.  Walgreens Boots Alliance will hold a one-hour conference call to discuss its fourth quarter results and the acquisition announcement beginning at 8:30 a.m. Eastern time tomorrow, 28 October 2015. The conference call will be simulcast through the Walgreens Boots Alliance investor relations website at: http://investor.walgreensbootsalliance.com. A replay of the conference call will be archived on the website for 12 months after the call.

Contact Paragon Ventures today to explore what this transaction means

for the valuation and strategic options available for your healthcare business. 800-719-1555

 

  • Sector:   Pharmacy   PharMerica Corporation (NYSE:PMC), a national provider of institutional, specialty home infusion, hospital and oncology pharmacy services, announced today that it has completed the acquisition of McGuire Group Pharmacy (“McGuire”). Terms of the transaction were not disclosed.

  • Sector:   Behavioral Health   H.I.G. Growth Partners ("H.I.G."), the dedicated growth capital investment affiliate of H.I.G. Capital, a leading global private equity investment firm, is pleased to announce that its portfolio company, Community Intervention Services, Inc. ("CIS" or the "Company"), has completed the acquisition of Northstar Psychological Services, Inc. (“NPS”). CIS was established by H.I.G. in partnership with behavioral healthcare executive Kevin Sheehan, to acquire, develop and operate a national network of specialized behavioral health treatment facilities and programs. NPS marks CIS's seventh acquisition and further expands the Company’s geographic footprint into Georgia. NPS currently provides services across 38 counties, employs a clinical staff of over 90, and provided treatment to well over 2,600 patients in 2014.  Community Intervention Services, Inc. ("CIS") was formed to acquire, develop and operate a national network of specialized, community-based behavioral health programs. Currently, CIS has diversified operations across seven states, employs a clinical and support staff of approximately 3,000, and provides care to well over 50,000 patients/consumers on annual basis. CIS was founded by H.I.G. Growth Partners and Kevin P. Sheehan, CEO.

  • Sector:   Medical Device   Caymus Equity Partners LLC ("Caymus Equity") announced today the completion of its sixth equity investment. A group formed by Caymus Equity, including Caymus Equity, NewSpring Mezzanine Capital II, L.P. ("NewSpring"), Graycliff Partners L.P. ("Graycliff") and management, has completed the recapitalization of Alpha/AXS Holding Company, LLC ("Alpha Imaging" or the "Company"). Headquartered in Willoughby, OH, Alpha Imaging is one of the largest independent sales and service providers of advanced medical imaging equipment in the United States.

  • Sector:  Pharma    Zoetis Inc. (NYSE:ZTS) today that it has completed the purchase of PHARMAQ, the global leader in vaccines and innovation for health products in aquaculture, for a price of $765 million on a debt-free basis, having fulfilled all closing requirements. Zoetis purchased PHARMAQ from a company owned by Permira IV, a fund managed by the global investment firm Permira, which has been the majority owner of the company since 2013.

  • Sector:   Medical Consulting   Definitive Healthcare (Natick, MA), acquired Major Accounts Exchange (The MAX) and US Lifeline (Carlisle, PA) from Medical Distribution Solutions Inc (MDSI) (Lawrenceville, GA). The complementary nature of these products means that the acquisition will benefit the customers of both companies. “As [MDSI] focuses on our core publishing business, we know our MAX customers will continue to have the data they need to research the market and maximize their sales opportunities,” said John Pritchard, managing director at MDSI. “We aligned with Definitive Healthcare because they have the highest quality data and cover every aspect of the healthcare market, from hospitals and physicians to accountable care organizations and population health initiatives. The breadth and quality of data they provide is truly unmatched in the marketplace.” The deal closed October 30, 2015. The companies have already begun to integrate the organizations. Terms of the deal were not disclosed.

  • Sector:   Medline Industries Inc (Mundelein, IL) and ICU Medical (San Clemente, CA) completed their joint purchase of Excelsior Medical (Neptune, NJ), a manufacturer of pre-filled saline and heparin flush syringes, syringe pumps, and pump systems. Excelsior also develops and manufactures SwabCap and SwabFlush. Medline acquired the flush syringe and SwabFlush business and ICU Medical purchased the SwabCap and pumps/tubing business. The Excelsior medical device unit purchased by Medline has more than 400 employees based out of a 200,000-sq-ft manufacturing plant in Neptune, New Jersey.

  • Sector:   Quest Diagnostics (NYSE: DGX), the world's leading provider of diagnostic information services, today announced it has entered into a definitive agreement to acquire the outreach laboratory service business of Clinical Laboratory Partners (CLP), a wholly-owned subsidiary of Hartford HealthCare (HHC). HHC is an integrated health care system with five hospitals inConnecticut. The transaction, once completed, is expected to enhance access to quality, affordable and convenient laboratory services for people in Connecticut.

  • Sector:   Adult Daycare    Senior Care Centers of America, the largest operator of adult day health service centers in the United States, announced the acquisition of the adult day health services center of ElderWatch Plus, Inc. The newly acquired adult day health center is located in the Overbrook Park neighborhood of Philadelphia, Pennsylvania. “We are committed to ensuring a smooth transition so all members will continue to receive the highest level of care they have come to expect and deserve. We welcome our new members and employees to the Senior Care family.” Tweet this Consistent with its branding process, the name of the newly acquired center has been changed to Senior Care of Overbrook Park. With this acquisition, Senior Care now operates 11 adult day health centers in Pennsylvania, and its fourth in Philadelphia County.

  • Sector:   Physical Therapy   MOTION PT Holdings, Inc. (“MOTION”), a leading provider of physical therapy and occupational therapy services in New York, announced today it has acquired Bradley & Monson Physical Therapy (“Bradley & Monson”). MOTION, formed in June 2015, is a portfolio company of Pharos Capital Group, LLC (“Pharos”). Terms of the transaction were not disclosed. Founded by Maggie Bradley and Lori Monson in 1981, Bradley & Monson offers physical therapy, massage, independent fitness workouts and other customized services to treat and prevent a wide range of orthopedic conditions as well as injuries from sports, dance or the performing arts. Ms. Bradley and Ms. Monson will join Motion PT, as will the other Bradley & Monson staff.

  • Sector:   Pharmacy LTC     CVS Health (Woonsocket, RI) completed the $12.9 billion acquisition of Omnicare Inc (Cincinnati, OH), a Fortune 500 company that provides pharmacy service for LTC facilities. Omnicare's shareholders approved the deal August 18, 2015, which followed approval from federal regulators earlier in August 2015. CVS Health did not disclose details regarding the integrated operation or of the future employment of Omnicare's 600 corporate employees and 13,000 workers.

Contact Paragon Ventures today to explore what this transaction means

for the valuation and strategic options available for your healthcare business. 800-719-1555

 

  • Sector:   Health Management     Cardinal Health (Dublin, OH) will acquire a 71 percent share of naviHealth (Brentwood, TN) for approximately $290 million. naviHealth is a privately held company that partners with health plans, health systems, and providers to manage the post-acute segment of the care continuum. naviHealth’s executive management team will continue to lead the naviHealth business. naviHealth’s principal investor, Welsh, Carson, Anderson & Stowe (New York, NY), along with management, will continue to have an ownership interest in the business. However, Cardinal stated in a release that it intends to acquire the entire business within four years, in accordance with a series of call/put rights during that period of time. Cardinal expects the transaction to close later this week.

  • Sector:   Medical Device     Medtronic plc (Dublin, Ireland) signed a definitive agreement to acquire Twelve Inc (Redwood City, CA) for up to $458 million, including $408 million at closing and $50 million on achievement of CE marking. Twelve Inc is a privately held medical device company working to develop a transcatheter mitral valve replacement (TMVR) device. Medtronic will manage the Twelve product line as part of its Coronary & Structural Heart division within the Cardiac and Vascular Group. The cash- and debt-free transaction is subject to customary closing conditions. It is expected to close in October 2015.

  • Sector:  HME     H.I.G. Capital, LLC a leading global private equity investment firm with $19 billion of equity capital under management, is pleased to announce that its affiliate has recapitalized United States Medical Supply, Inc. (“US MED” or the “Company”), a leading direct-to-consumer mail-order medical supply business, focused on patients with chronic conditions, in partnership with management. Headquartered in Miami, FL, US MED provides medical supplies to patients suffering from chronic conditions, including diabetes, sleep/respiratory disorders, and urological conditions who need such supplies daily. US MED is among the largest and most efficient direct-to-consumer providers of medical supplies in the nation, with a best-in-class IT, compliance, and operating platform. The Company provides a compelling value proposition to all healthcare constituents, including patients, payors, physicians, and manufacturers. US MED delivers outstanding customer service and quality medical supplies to patients in order to help them effectively control their conditions and improve the quality of their lives. Camilo E. Horvilleur, Managing Director at H.I.G. Capital, commented, “We identified US MED as an industry leader with a proven track record, patient-centric model, incredibly efficient operating platform, and a talented metrics-driven management team.”

  • Sector:   Pharma     Pfizer Inc (New York, NY) received approval from U.S. regulators for its acquisition of Hospira Inc (Lake Forest, IL), pending the divestiture of some sterile injectable drugs. Pfizer has agreed to divest four U.S. sterile injectable assets: Acetylcysteine, Clindamycin, Voriconazole, and Melphalan. The deal is now expected to close in early September 2015.

  • Sector:   Dialysis     DaVita HealthCare Partners Inc (Denver, CO) entered into an agreement to acquire Renal Ventures Limited LLC (Lakewood, CO) for $415 million. The transaction includes a 100 percent interest in all dialysis centers owned by Renal Ventures. Renal Ventures operates 36 dialysis clinics in six states. Multispecialty Physician Partners and Physician Venture Partners, divisions of Renal Ventures, operate infusion and vascular centers, respectively, in three states.

  • Sector:   Medical Device     NN Inc (Johnson City, TN) entered into a definitive agreement to acquire Precision Engineered Products Holdings Inc (PEP) (Attleboro, MA) for $615 million in cash. PEP is a maker of orthopedic surgical instruments and reusable and disposable surgical devices. The transaction is expected to close by the end of October 2015 subject to customary closing conditions and regulatory approval.

  • Sector:  Behavioral Health    Sunspire Health (“Sunspire” or the “Company”), a leading provider of behavioral health services for the treatment of substance abuse and other co-occurring disorders, today announced the completion of a significant transaction and partnership that positions the Company for accelerated growth. Kohlberg & Company, L.L.C. (“Kohlberg”), a leading private equity firm specializing in middle-market investing, has acquired majority ownership of the Company and intends to support Sunspire’s growth initiatives from its $1.6 billion fund, Kohlberg Investors VII.

  • Sector:   Pharmacy     A&P is seeking approval to sell pharmacy assets for several of the stores it is immediately closing to Rite Aid in a transaction valued at $8.1 million, according to a Dow Jones report. According to the report, A&P on Thursday filed a report with U.S. Bankruptcy Court in White Plains, N.Y. noting that Rite Aid has agreed to buy the prescription files for 12 stores that are closing.  "When a pharmacy is closing, the value of pharmacy related assets, particularly customer prescriptions, is unstable and the transactions must occur on an accelerated timeline to avoid permanent and significant diminution of value," A&P said in its Thursday filing.  Rite Aid is paying $5.7 million for the pharmacy records at 12 stores and up to $2.3 million for the inventory at those stores. 

  • Sector:   Health Management    Inovalon (Bowie, MD) entered into a definitive agreement to acquire Avalere Health (Washington, DC), a healthcare consulting firm, for $140 million. Avalere will operate as a subsidiary of Inovalon. Avalere CEO Dan Mendelson will continue to lead Avalere's day-to-day operations. The transaction is expected to close on or about September 1, 2015 subject to customary closing conditions and antitrust clearance.

  • Sector:   HME/Hospice    Millennium Healthcare Inc (Melville, NY) signed a LOI to acquire MedX Group (Miami, FL), an HIT company focused on patient engagement, practice management, and data sharing. A Millenium official said the acquisition, expected to take effect in 25 days, would provide an important addition to its technology service portfolio and also bring in new service lines like rural hospital management and telemedicine. No financial terms were released.

  • Sector:   Health Insurance    Anthem acquiring Cigna in largest-ever health insurance deal: $54.2B.  Anthem will acquire Cigna for $188 per share, the health insurance companies announced Friday. The deal, including Cigna's debt, will be worth $54.2 billion. It is the largest-ever health insurance transaction, and part of the mass-scale merger race that is fundamentally changing the industry and fueling concerns over costs and competition.  The definitive agreement comes a little more than a month after Indianapolis-based Anthem went public with an offer of $184 per share, which Bloomfield, Conn.-based Cigna rejected. The two sides had sharp disagreements over who would lead the combined company, which will have $115 billion in revenue if Anthem receives required approval from its sponsor, the Blue Cross and Blue Shield Association.  The merger of Anthem and Cigna, expected to close in the second half of 2016, will bring the private health insurance market from five big players down to three.  UnitedHealth Group will remain the largest by revenue, projecting $154 billion this year. However, Anthem will have a larger customer base. Anthem will have 53 million medical members, compared with UnitedHealth's 46 million. The combined Aetna and Humana company, a deal announced earlier this month, will have 33.4 million health plan members and $115 billion in revenue.  The Affordable Care Act has put pressure on health insurers to cut costs and improve care coordination, which analysts believe ignited the current firestorm of mergers and acquisitions.

  • Sector:   Pharma    Teva Pharmaceutical Industries Ltd (Petach Tikva, Israel) signed a definitive agreement with Allergan plc (Dublin, Ireland) to acquire Allergan Generics in a transaction valued at $40.5 billion. Allergan will receive $33.75 billion in cash and shares of Teva valued at approximately $6.75 billion, representing an estimated under 10 percent ownership stake in Teva. The transaction was unanimously approved by the boards of directors of both companies and is expected to close in Q1 2016.

  • Sector:   Home Health    Almost Family, Inc. (NASDAQ: AFAM) made a strategic acquisition last week that moves it into the growing health assessment market. The company paid $13,354,200 ($2 million in cash and approximately 260,000 shares of AFAM common stock) to buy Ingenios Health Co. of Jacksonville, Florida. Ingenios provides technology-enabled in-home clinical assessments for Medicare Advantage, Managed Medicaid and Commercial Exchange lives in seven states and Washington, D.C. Last year it performed more than 10,000 in-home assessment visits, which works out to $1,335 per visit, for Almost Family.    

  • Sector:   HME Mfg    Vestar Capital Partners a leading U.S.-based private equity firm, today announced that an investor group which included affiliates of Vestar, Park Avenue Equity Partners, and GoldPoint Partners, as well as senior management of DeVilbiss Healthcare has sold DeVilbiss to Drive Medical, effective July 2, 2015. Terms of the transaction were not disclosed. DeVilbiss, headquartered in Somerset, PA, is a global manufacturer of respiratory and sleep products distributed in more than 80 countries throughout the world. Drive Medical is one of the fastest-growing manufacturers of durable medical equipment in the healthcare industry. Drive’s corporate headquarters are located in Port Washington, NY, and has manufacturing and distribution facilities located throughout North America, Europe and Asia.

Contact Paragon Ventures today to explore what this transaction means

for the valuation and strategic options available for your healthcare business. 800-719-1555

 

  • Sector:   Behavioral Health    H.I.G. Growth Partners ("H.I.G."), the dedicated growth capital investment affiliate of H.I.G. Capital, a leading global private equity investment firm, is pleased to announce that its portfolio company, Community Intervention Services, Inc. ("CIS" or the "Company"), has completed the acquisition of Futures Behavior Therapy Center, LLC (“Futures”). CIS was established by H.I.G. in partnership with behavioral healthcare executive Kevin Sheehan, to acquire, develop and operate a national network of specialized behavioral health treatment facilities and programs. Futures marks CIS's sixth acquisition and further expands the Company’s treatment capabilities for children with Autism Spectrum Disorders (“ASDs”) and other developmental disabilities.  Headquartered in Beverly, MA, Futures was founded in 2006 and has since grown into a leading clinic-based provider of treatment and education services for children with ASDs and other developmental disabilities. Futures utilizes the research-based principles of Applied Behavior Analysis (“ABA”) across a wide range of programs which include 1:1 therapy, social skills groups, speech and language therapy, occupational therapy and transitional/life skills training. Throughout Future's 9-year operating history, they have developed a strong brand name as well as an excellent reputation for clinical quality and effectiveness with payors, referral sources and clients.

  • Sector:   Medical Mfg    Stryker Corporation (Kalamazoo, MI) entered a definitive agreement to acquire Muka Metal (Kayseri, Turkey), a manufacturer and vendor of standard and specialty hospital beds, stretchers, and other assorted patient furniture. Stryker has distributed Muka Metal products in Latin America since 2012, and the acquisition will expand Stryker's presence there as well as in Turkey. The merger, expected to close later in the year, will be neutral to Stryker's earnings per share for 2015. No financial details were disclosed.

    Sector:   Pharma    Merck & Co Inc (Kenilworth, NJ) purchased cCam Biotherapeutics (Misgav, Israel) for $605 million. cCam is an oncology company focused on developing cancer immunotherapies such as its lead product CM-24, a monoclonal antibody that targets a protein, which may treat advanced malignant cancers. Terms of the agreement include a $95 million cash payment from Merck to cCam and an additional $510 million to shareholders. There were no additional details on the expected completion date of the deal.

  • Sector:   Pharma    BelHealth Investment Partners, a healthcare-focused private equity firm, announced the acquisition of the business and assets of Geritrex Corp. (“Geritrex” or the “Company”). Founded in 1978 and headquartered in Mt. Vernon, New York, Geritrex is a manufacturer and distributor of primarily topical generic OTC products and pharmaceuticals to patients in institutional healthcare settings. Geritrex’s prominent list of customers includes: the Veterans Administration, Columbia Presbyterian Hospital, Albert Einstein Hospital, St. Jude Hospital, Mayo Clinic and Duke University Hospital. Nathan Kronforst, BelHealth Managing Director, stated, “Given BelHealth’s deep experience in generic OTC products and pharmaceuticals, we have actively pursued investments in this segment and are excited to partner with Geritrex and build upon the success that the Company has achieved over the past thirty years. Geritrex’s product mix and customer base of over 5,000 hospitals and nursing homes positions it perfectly to take advantage of the aging demographic trends. We look forward to growing Geritrex into a national platform in this fragmented and growing industry segment.”

  • Sector:   HME    Tailwind Capital, a leading middle market private equity firm investing in growth-oriented companies in healthcare, business and communications services, announced the acquisition of National HME, Inc. NHME is the largest provider of outsourced medical equipment management solutions to the hospice market.  In addition to managing the challenging logistics of delivering medical equipment to the site of care, NHME's technology provides its clients with consolidated ordering and invoicing as well as data on utilization, cost trends and network management for reporting and analytics. Based in Dallas, Texas, NHME provides services to over 225 agencies operating in 35 states.  Geoff Raker, partner at Tailwind, said, "Tailwind is excited to partner with NHME to continue providing this high-quality service to the growing hospice end market. We believe there are substantial growth opportunities for the company - through both organic initiatives and add-on acquisitions. We look forward to working closely with NHME's top-tier management team to drive future growth." 

  • Sector:   Respiratory/HME   Elm Creek Partners has acquired The Care Group of Texas a provider of in-home, pediatric respiratory therapy and enteral feeding services and supplies in the Houston, Texas market. The Care Group is committed to providing outstanding services to all of its customers while simultaneously exploring opportunities for growth through geographic expansion and additional services. Elm Creek has additional committed equity capital to support the company’s future initiatives. Commensurate with the transaction, Elm Creek retained Roy Spradlin as chief executive officer. Spradlin is the former CEO of Senior PsychCare and US Physical Therapy. He brings over thirty years of healthcare industry experience to the company and has an extensive track record of successfully growing and developing various healthcare related businesses.  Bowside Capital, 747 Capital and Spradlin invested in The Care Group alongside Elm Creek.

  • Sector:  Health IT     Marlin Equity Partners announced that it has acquired e-MDs, a leading provider of electronic medical record and practice management software and services to ambulatory care organizations. The company offers clinical, financial and document management software designed to automate medical practice processes, optimize patient encounters and streamline clinic operations. e-MDs has been merged with MDeverywhere, a Marlin portfolio company, creating a market leading provider of fully integrated office management and revenue cycle management solutions. Following the merger, the combined entity now operates as e-MDs.

    Sector:   Pharmacy      Cardinal Health Inc. plans to acquire pharmaceutical distributor The Harvard Drug Group (THDG) from private equity firm Court Square Capital Partners for $1.115 billion.  Cardinal said Friday that it will use cash and new debt to finance the transaction, which is expected to close in the beginning of its 2016 fiscal year, pending regulatory approvals and other customary closing conditions.  Based in Livonia, Mich., The Harvard Drug Group is a distributor of generic drugs, over-the-counter medicines and related products to retail, institutional and alternate care customers. The company had revenue of about $450 million last year. The acquisition includes 450 employees and two distribution facilities. Cardinal noted that besides adding to its generic drug distribution business, the acquisition of THDG expands Cardinal’s telesales programs and capabilities as well as its portfolio of OTC products. THDG also brings specialized packaging offerings to meet the needs of hospital systems and other institutions.  The purchase of THDG marks Cardinal’s second acquisition this year. In March, the company announced a $1.944 billion deal to buy Johnson & Johnson’s Cordis, a global manufacturer of cardiology and endovascular devices. Last week, Cardinal said its binding offer to acquire Cordis was formally accepted, and the transaction is slated to close in the United States and key non-U.S. countries towards the end of 2015, pending regulatory clearances and other customary closing conditions.  Fremont, Calif.-based Cordis had 2014 sales of approximately $780 million. The United States is its largest single market, but 70% of total sales come from overseas. Cordis’ has operations in more than 50 countries, including China, Japan, Germany, Italy, France, the United Kingdom and Brazil.

    Contact Paragon Ventures today to explore what this transaction means

    for the valuation and strategic options available for your healthcare business. 800-719-1555

     

  • Sector:   Medical Supply    Alere Inc (Waltham, MA) announced two recent transactions. Alere signed an agreement to sell its BBI business to Exponent Private Equity LLP (London, England) for a total purchase price of approximately $164 million including up to $47 million in contingent consideration. The final purchase price is subject to a working capital adjustment. The close of the BBI sale is subject to regulatory approvals. Additionally, Alere has acquired substantially all of the assets of US Diagnostics (USD) (Huntsville, AL) for $60 million in cash. USD is a provider of drug testing devices and is currently a distributor of Alere Toxicology products. The company expects the acquisition of USD to be immediately accretive, deliver strong returns, and provide access to an expanded customer base with additional opportunities for selling other Alere Toxicology solutions and other business synergies.

  • Sector:  Homecare/Hospice     Clearview Capital Fund III, LP ("Fund III") announced today that its portfolio company, St. Croix Hospice, LLC ("St. Croix" or the "Company"), has acquired certain assets of Saint Jude Healthcare, LLC and its subsidiaries ("Saint Jude"). Headquartered in Urbandale, Iowa, Saint Jude provides hospice services from 12 offices across four states: Wisconsin, Iowa, Kansas and Nebraska. Heath Bartness, CEO of St. Croix, commented, "The Saint Jude acquisition is highly complementary, solidifying St. Croix's presence in the Wisconsin and Iowa markets, while expanding our footprint into two new states, Kansas and Nebraska. We are excited about the opportunity this acquisition presents to continue to offer the highest quality of care to our entire patient base throughout the greater Midwest region, and we will continue to aggressively seek out additional acquisitions within our footprint."   Based in Oakdale, Minnesota, St. Croix is a Medicare-certified, CHAP-accredited provider of hospice services throughout the Midwest region. Led by an experienced management team, the Company operates across five states: Minnesota, Wisconsin, Iowa, Nebraska and Kansas. The Company's commitment to clinical excellence and a robust compliance function has firmly established St. Croix as one of the premier providers of hospice services throughout the Midwest.

    Sector:    Medical Device     Medtronic plc (NYSE: MDT) is buying medical device business RF Surgical Systems Inc. for $235 million.  The Carlsbad, California-based target focuses on detecting and preventing surgical items, such as sponges, gauze or towels, from being left inside patients after surgery. RF's system uses a low radio frequency signal embedded in towels and other surgical items, that can be traced so the objects are not left behind. The idea behind the technology is to improve patient outcomes, one of the things health care providers are focused on now that the Affordable Care Act has been implemented.   Medtronic, a Dublin, Ireland-based medical technology business, plans to include RF in its minimally invasive technologies group. The company's other deals include the sale of patent rights for a heart-failure treatment to Capicor Therapeutics in October, and divestment of some medical instrument lines to Integra Life Sciences Holdings Corp. (Nasdaq: IART) in September. In the ACA age, medical technology businesses have been hot targets for dealmakers. Recent transactions include GTCR's investment in pharmacy technology business Rx30, in June, and FujiFilm Medical Systems USA's deal for health care archiving techbusiness TeraMedica. For more on the trend, see 5 Technologies that Drove Health Care M&A in 2014.

  • Sector:   Pharma     Bunker Hill Capital, a leading Boston based private equity investor in lower middle market companies, announced that it has made a growth equity investment in Courtagen Life Sciences, Inc. Headquartered in Woburn, MA, Courtagen is a diagnostic testing services business founded in 2009 by Brian and Brendan McKernan, who currently serve as CEO and President, respectively.  The current funding round will accelerate the expansion of Courtagen’s commercial operations, including expanding sales and marketing and laboratory capacity while also providing working capital to meet the growing needs of the business.  Courtagen is a privately held life sciences and molecular information company that converts genomic data into actionable clinical information for the diagnosis of critical pediatric neurological and metabolic disorders. Specifically, Courtagen focuses on mitochondrial disorders, epilepsy, and intellectual disability, including autism spectrum disorders. Courtagen’s state-of-the art Next Generation Sequencing clinical laboratory integrates cloud-based computing and custom analytical methods to provide the most comprehensive genetic information to clinicians, patients, and their families to help diagnose diseases and guide treatment decisions. 

  • Sector:   Rehab    Brooks Rehabilitation's home healthcare division will soon become Brooks AmeriCare Home Health with the acquisition of a large Jacksonville-based agency serving 23 counties in Northeast and Central Florida.  Brooks Rehabilitation, which has the larger administrative structure, will absorb AmeriCare Home Health and its assets, which includes 10 satellite office locations. The purchase is expected to close in July.  Brooks CEO Doug Baer would not disclose the terms of the deal, which he said was initiated by AmeriCare.  Baer said in a phone interview Wednesday with the Business Journal that the move makes sense for Brooks, which operates an extensive network of post-acute rehabilitation services across Northeast Florida, while extending its geographic reach under both the Brooks and AmeriCare names.  Launched in 2004, AmeriCare serves about 5,200 patients as far as Volusia County and west to Gainesville and Ocala. Brooks Rehab runs an inpatient hospital, 26 outpatient clinics, as well as other ancillary services, including Brooks Home Care.

  • Sector:   Pharmacy     Diplomat Pharmacy Inc. (NYSE: DPLO), the nation’s largest independent specialty pharmacy, shas an agreement to acquire a smaller specialty pharmacy, Cincinnati-based BioRx LLC.  Under the agreement, Diplomat will purchase BioRx for $210 million cash and $105 million in Diplomat common stock upon the closing of the transaction. The transaction will provide Diplomat with an expected future tax benefit of approximately $50 million.  Under the terms of a one year contingent earnout, BioRx can earn an additional $35 million in Diplomat common stock upon achieving a set level of earnings before interest, taxes, depreciation and amortization.  In 2014, BioRx generated approximately $227 million in revenue and $23 million in EBITDA.  The transaction is expected to be accretive to Diplomat’s earnings per share in the first full year following the closing of the transaction.  Diplomat said the acquisition broadens its product offerings and makes Diplomat one of the nation’s top specialty infusion providers.  Said BioRx co-founder Phil Reilly: “Since we started BioRx in 2004, our goal has been to build the country’s most patient-centered specialty pharmacy that focuses on chronic and complex therapies. Diplomat shares this focus and represents the right partner, at the right time, for us to continue our mission into the future.”  The companies said both BioRx co-founders, Phil Rielly and Eric Hill, have made multi-year commitments to help lead the combined organization going forward.  In connection with the pending transaction, Diplomat has obtained committed financing from GE Capital, the agent under Diplomat’s existing revolving line of credit. Subject to market conditions, Diplomat expects to fund the cash component of the purchase price with the financing led by GE Capital along with cash on hand.  BioRx is a highly specialized pharmacy and infusion services provider that provides treatments for patients with ultra-orphan and rare, chronic diseases. In addition to pharmacy and infusion services, BioRx also serves health plans and payer organizations with comprehensive data analytics and outcomes reporting. The company’s clinical staff reaches patients in all 50 states and operates dispensing facilities in Ohio, Massachusetts, North Carolina, Iowa, Minnesota, Arizona and California.

Contact Paragon Ventures today to explore what this transaction means

for the valuation and strategic options available for your healthcare business. 800-719-1555

 

  • Sector:   Health IT    Millennium Healthcare Inc (Melville, NY) signed a LOI to acquire MedX Group (Miami, FL), an HIT company focused on patient engagement, practice management, and data sharing. A Millenium official said the acquisition, expected to take effect in 25 days, would provide an important addition to its technology service portfolio and also bring in new service lines like rural hospital management and telemedicine. No financial terms were released.

  • Sector:  Behavioral Health     Waud Capital Partners announced that its portfolio company, Acadia Healthcare Company, Inc. (NASDAQ: ACHC) announced three acquisitions – two in the United Kingdom and one in the United States – which include 17 inpatient behavioral health facilities with approximately 500 beds.  Acadia purchased the behavioral health operations of Care UK and another inpatient behavioral health facility from Choice Lifestyles in the U.K. on June 1, 2015.  In addition, Acadia announced an asset purchase agreement with Belmont Behavioral Health.

  • Sector:  Pharmacy     – BelHealth Investment Partners, a healthcare-focused private equity firm, announced the sale of Aureus Health Services a  BelHealth portfolio company since December 2012, to Meijer, a leading grocer headquartered in Michigan.   Aureus has grown into a national specialty pharmacy and health management company with over 20 years of experience assisting patients, families, and medical professionals to cope with and treat a wide range of chronic health conditions. Aureus is headquartered in Pittsburgh, Pennsylvania, and operates facilities located in New York, New Jersey, Missouri, California and Pennsylvania.  Richard Friedman, Chairman of Aureus and BelHealth Operating Partner said, “We are very proud of what we accomplished at Aureus. The Company grew revenue 10x under our stewardship and has become a leading national provider of specialty pharmacy and Hub services. Our executive team, led by Michael Nameth, did an excellent job in executing the strategic plan and driving tremendous growth. Meijer, with its strong retail footprint and focus on customer service, is the perfect partner for Aureus.”  Harold S. Blue, BelHealth Founder and Managing Partner added, “Richard and Michael did a terrific job in taking Aureus from a New York based, local business, to a national specialty pharmacy and Hub services platform. During BelHealth’s ownership, Aureus completed two acquisitions that provided both geographic and disease state diversification. Aureus established a national Hub to service patients through grocery  chains, group purchasing organizations, independent pharmacies and wholesalers. Aureus’ exceptional financial results led to outstanding investment returns for our limited partners.”
    About Aureus Health Services Aureus Health Services, a portfolio company of BelHealth Investment Partners, is a national specialty pharmacy and health management company with over 20 years of experience assisting patients, families, and medical professionals to cope with and treat a wide range of chronic health conditions. Aureus is headquartered in Pittsburgh, Pennsylvania, and operates facilities located in New York, New Jersey, Missouri, California and Pennsylvania.

Paragon Ventures LLC

 

Healthcare Market Pulse

The increase in strategic corporate healthcare sector acquisitions occurring in 2015 is not surprising.  Corporate entities and private equity sponsors recognize the synergistic value that is created with diversification of product lines, payors and customers throughout the healthcare continuum.  We expect these trends to continue and accelerate for top tier providers nationwide.  

For more on what this acquisition activity means for your company, contact us at Paragon Ventures - 800-719-1555.

  • Sector:   Medical Supply     ResMed (San Diego, CA) acquired CareTouch (Westminster, CO). CareTouch will be rebranded as ResMed ReSupply. CareTouch employees, including CEO Matthew Dolph, joined ResMed's commercial team in the Americas. The CareTouch 360 portal provides a live, multi-lingual call center contact with patients via their preferred mode of communication; checks therapy adherence, takes orders, handles payments or collections, and provides customized reports; and enables HMEs to customize patient engagement protocols for both automated and live call center outreach.

  • Sector:   Hospice     Hospice Partners of America, a nationwide hospice services provider, announces its acquisition of Harrison's Hope Hospice.

  • Sector:   Medical Supply     Medline Industries Inc (Mundelein, IL) acquired the Compat line of pumps and administration sets in the U.S. and Canada from Nestlé Health Science (Covington, LA). The Compat pumps and sets deliver nutrition formulas or hydration to an enteral access device (feeding tube). The sale includes the following products sold to customers in the U.S. and Canada: Compat Enteral Feeding Pump, Compat Dualflo Enteral Feeding Pump, Compat Pump Administration Sets, and Compat Dualflo Pump Administration sets. The deal closed June 1, 2015 with a transition through August 2015.

  • Sector:   Medical     Patterson Companies Inc (St Paul, MN) signed a definitive agreement to sell Patterson Medical (Warrenville, IL) to Madison Dearborn Partners (Chicago, IL) for approximately $715 million in cash. The sale is expected to close in Q2 of FY 2015 following the satisfaction of regulatory requirements and other customary closing conditions. Upon completion of the sale, Patterson Medical will operate as Patterson Medical for a transition period before rebranding to reflect its new owner.

  • Sector:   HME  /Manufacturing   Drive Medical (Port Washington, NY) completed its acquisition of DeVilbiss Healthcare (Somerset, PA) effective July 2, 2015.   DeVilbiss is a global manufacturer of respiratory and sleep products distributed in more than 80 countries. In the short term, Drive and DeVilbiss will operate independently. Upon completion of the companies’ North American integration, the new company will be known as Drive DeVilbiss Healthcare Inc. In the rest of the world, Drive and DeVilbiss will continue to operate as independent entities. Terms of the transaction were not disclosed.

  • Sector:  Home Health     The Ensign Group Inc. acquisition of Managed Care at Home by its home health and hospice subsidiary -- Cornerstone Healthcare. Milpitas, CA-based Managed Care at Home is a Medicare and Medi-Cal certified home health agency that serves the San Jose area.  The Ensign Group, through its operating subsidiaries, offers skilled nursing, rehabilitative care services, home health, home care, hospice care, assisted living and urgent care services. As of Mar 31, 2015, the company operated 143 facilities, 13 home health and 12 hospice operations, two home care businesses, one transitional care management company, 16 urgent care centers and a mobile x-ray and diagnostic company.  The recent acquisition expands Cornerstone’s number of offerings to 10 home health and hospice operations, four home health only operations, two hospice only operations, and three private duty homecare operations. The addition will help the company serve the nine western states effectively. The company also expects the buyout to prove accretive to earnings in 2015.  Acquisitions have been a key growth catalyst for The Ensign Group for years. Over the last two years, the company has taken over 29 facilities across eight states. Transitional, skilled and assisted living revenues generated by these facilities increased by approximately $57.5 million to almost $90 million in 2014. Year to date, the company has acquired 18 new operations.  As of May 1, 2015, The Ensign Group had 32 operations in its recently-acquired portfolio, which marks the highest number in its history. Meanwhile, we believe that the company will continue to pursue acquisitions that will expand its customer base and market share going forward.

  • Sector:   Health Insurer     UnitedHealth Group has agreed to buy Catamaran Corp., a publicly traded pharmacy benefits manager, for almost $12.8 billion in cash.  Catamaran would become part of OptumRx, UnitedHealth's pharmacy subsidiary. The acquisition reflects UnitedHealth's ongoing commitment to being more than just a health insurer as it pours major investments into its Optum companies.  The combined pharmacy management entity would become one of the largest in the country, right behind Express Scripts Holding Co. and CVS Health Corp. OptumRx already fills about 600 million prescriptions every year, most of them for patients enrolled in UnitedHealthcare coverage. With Catamaran, that number jumps to 1 billion prescriptions. OptumRx recorded $32 billion in revenue in 2014, the most of any Optum company. Catamaran's revenue totaled $21.6 billion.  “The acquisition makes tremendous strategic sense as the (pharmacy benefit manager) business is a scale business and drives Optum's revenue mix,” Sterne Agee analyst Brian Wright said in a research note.  Financial analysts also believe the deal goes beyond gaining the scale of more pharmacy customers and the leverage to extract lower prices for high-cost drugs, such as those that treat hepatitis C. UnitedHealth executives believe Optum's data analytics component combined with Catamaran's highly regarded technology platform will help predict pharmaceutical costs for specific populations and lead to new drug “use and care protocols.” “Catamaran and UnitedHealth shared a desire to bring the best data capabilities,” Josh Raskin, an analyst at Barclays Research, said in note to investors “While this will clearly help reduce pharmaceutical costs for UnitedHealth's members, this will likely have a larger long-term impact on medical costs for their populations.”

    UnitedHealth is the largest health insurer in the country by revenue, specializing in Medicare Advantage and large group accounts. But Optum has grown its footprint within the Minnetonka, Minn.-based conglomerate over the past few years. In 2014, more than one-third, or $47.7 billion, of the
    UnitedHealth's $130.5 billion in revenue was attributed to an Optum subsidiary.  The two other Optum subsidiaries, OptumInsight and OptumHealth, work with hospitals, doctors, payers, governments and other employers on consulting, technology and population health. In September, Optum acquired MedSynergies, a physician practice consulting firm.

    The Catamaran deal is expected to close by the fourth quarter. UnitedHealth estimates it would boost earnings per share by about 30 cents in 2016. The purchase price of $61.50 is 27% higher than Catamaran's closing price last Friday.  Catamaran CEO Mark Thierer will become CEO of OptumRx once the transaction closes. OptumRx's current CEO, Timothy Wicks, will serve as president.  If the deal doesn't close by the end of this year and is terminated, Catamaran would have to pay UnitedHealth $450 million.

  • Sector:   Health IT     Universal Software Solutions announced a partnership with Prometheus Group, an outcomes-based billing services provider. The partnership will benefit healthcare providers using Universal Software Solutions’ HealthcareData Management System (HDMS), in the home healthcare markets of Durable Medical Equipment (DME), Home Infusion, Pharmacy and Mail Order.

  • Sector:   TeleMedicine     New Capital Partners  NCP is pleased to announce the initial public offering of Teladoc. Teladoc is the nation's first and largest telehealth company. NCP was the first institutional investor in Teladoc: investing in the company in 2006. Shares began trading this morning under the ticker symbol "TDOC".

  • Sector:   HME     Rotech Healthcare Inc. (Rotech) announced it has purchased the respiratory equipment assets of Alert Medical in Ft. Myers and Naples Florida.  Rotech currently operates in 23 markets in Florida.

  • Sector:   Home Health     Brooks Rehabilitation's home healthcare division will soon become Brooks AmeriCare Home Health with the acquisition of a large Jacksonville-based agency serving 23 counties in Northeast and Central Florida. Brooks Rehabilitation, which has the larger administrative structure, will absorb AmeriCare Home Health and its assets, which includes 10 satellite office locations. The purchase is expected to close in July. Brooks CEO Doug Baer would not disclose the terms of the deal, which he said was initiated by AmeriCare. Baer said in a phone interview Wednesday with the Business Journal that the move makes sense for Brooks, which operates an extensive network of post-acute rehabilitation services across Northeast Florida, while extending its geographic reach under both the Brooks and AmeriCare names. Launched in 2004, AmeriCare serves about 5,200 patients as far as Volusia County and west to Gainesville and Ocala. Brooks Rehab runs an inpatient hospital, 26 outpatient clinics, as well as other ancillary services, including Brooks Home Care.

  • Sector:   Medical Supply     Hill-Rom Holdings Inc. said Wednesday that it has agreed to buy privately held Welch Allyn Inc. for about $2.05 billion in cash and stock, adding diagnostics to the medical company’s portfolio.  Chicago-based Hill-Rom provides wound care, surgical safety and respiratory health products, among other items. Welch Allyn, Skaneateles Falls, N.Y., makes medical-diagnostic equipment.  The combined company will have $2.6 billion in revenue and a portfolio of diagnostics, sensing and patient monitoring technologies.  Under the terms of the deal, Welch Allyn shareholders will receive about $1.6 billion in cash and about 8.1 million newly issued shares of Hill-Rom stock.  After the deal closes, expected by the end of September, Welch Allyn shareholders will have a 13% stake in the combined company.

  • Sector:   HME     Respira Medical has acquired Respiratory Therapy Associates of PA, a move that will allow the provider to expand geographically and add new insurance networks. “They also do some lines of business that we’ve done, but are not our area of expertise,” said John Welch, president and COO.  The Chadds-Ford, Pa.-based RTA offers long-term care, ventilation and hospice care—a complement to Respira’s sleep business. RTA is now part of Respira, with President Chuck Ciccone now acting as vice president at Respira. A large immigrant community in the area is also a draw, says Respira founder and CEO Maria Martinez. “We have an understanding of different cultures and a patient base that is growing,” she said. “We want people to feel comfortable and our team reflects the community. When I see someone caring for an older Hispanic woman that can speak to her in her language, I am so happy.” Respira launched in 1991 when Martinez, who got her start in home care with a one-day per week job doing billing for a healthcare franchise, decided she could provide better, more compassionate care. Today, Respira serves more than 80,000 patients in the Mid-Atlantic region. Although the provider offers a full line of DME and is diversified across payers, it does the bulk of its business in sleep (75%), with TriCare and private insurers. It relies on Medicare for only 18% of its business. With the deal, Respira has increased its employee rolls from 60 to about 100. The provider attributes its success to a “domino culture” of caring and team building among employees, whom they call “business partners.” “Dominoes have to stand up straight and in a row,” said Martinez. “If one is out of whack, it won’t work. Without our business partners, none of this would be possible.” Despite chaos in the HME industry, Respira believes investing in the company—in employees, in processes—allows it to get out in front of the competition, says Welch. “It allows Respira to be more aggressive in a marketplace where a lot of people are pulling back investing money,” he said. “It’s how we invest in our infrastructure that allows us to better serve patients and create new opportunities with our referral sources.”

    Sector:   Medical     Chicago-based private equity firm Madison Dearborn Partners plunked down $715 million for Patterson Medical, a division of Patterson Companies (NASDAQ: PDCO). The parent company wants to focus on its dental and animal health businesses, and was looking for a buyer. Patterson Medical provides rehabilitation, assistive and splinting products around the world.  After weeks of shopping for a buyer, Patterson Companies announced it will sell its medical therapy division for $715 million to Madison Dearborn Partners, a Chicago-based private equity firm.  Mendota Heights-based Patterson said in May that it planned to sell the long-held therapy equipment division as a way to finance its recent expansion into the farm animal equipment sector.  Patterson last month closed on its $1.1 billion purchase of Dallas-based Animal Health International, a move that doubled the size of its veterinary supply business. Patterson officials said they intend to grow that division and to continue focusing on its largest and most profitable business — dental equipment.  The sale of the therapy equipment division helped the company narrow its focus to dental and animal health, officials said.  The acquisition of Animal Health International and divestiture of Patterson Medical are transformational moves for Patterson Companies and a key component of our strategic intent to take a broadened view of our markets,” said CEO Scott Anderson in a statement. “We believe that we can accelerate returns on invested capital and increase shareholder value by focusing on our closely aligned dental and animal health units.”  The sale of the therapy and rehabilitation business, called Patterson Medical, will close in Patterson’s fiscal second quarter, which ends in October. The unit had sales of $464 million and before-tax profit of $67 million during the last fiscal year.  Without the medical division, and with the newly added $1.5 billion Animal Health, Patterson has become a product distribution behemoth with about $5.4 billion in annual revenue.  Anderson said he believed the medical unit will thrive under new ownership.

  • Sector:   Pharmacy     Care Services announced its acquisition of Rx24/7 On Call. Rx24/7 On Call provides after-hours pharmaceutical requests to healthcare facilities.

  • Sector:  Medical Equipment     Winco Mfg LLC (Ocala, FL) acquired all assets of TransMotion Medical Inc (Sharon, OH) from EBO Group Inc (Sharon Center, OH). Transmotion is a manufacturer of specialty medical treatment stretcher-chairs. With operations in Sharon Center, Ohio, TransMotion has developed the TMM3, TMM4, TMM5, and TMM6 line of medical patient handling equipment along with a complete line of accessories. The combined company will be headquartered in Ocala, Florida. Winco will continue to operate out of Ocala, Florida and TransMotion Medical will continue operations from Sharon Center, Ohio. Financial terms of the agreement were not disclosed.

  • Sector:  Healthcare     Select Medical (Mechanicsburg, PA) completed the acquisition of Concentra Inc (Addison, TX) for slightly over $1 billion through a joint venture with a private equity fund. The deal covers all outstanding stock of Concentra, which operates more than 300 occupational health, physical therapy, and travel health clinics in the U.S.

  • Sector:  Medical Supply     Claflin Medical Equipment (Warwick, RI) acquired RSI Equipment Inc (Elmont, NY) effective May 29, 2015. Claflin also merged with Hospital Associates (Anaheim, CA) in February 2015. By combining forces, the three companies now cover the entire country with three branches, 31 service centers, and 30 sales representatives. All three companies will continue to do business under their current names.

  • Sector:  Medical Supply     Johnson & Johnson (J&J) (New Brunswick, NJ) formally accepted Cardinal Health’s (Dublin, OH) March 1, 2015 binding offer to acquire Cordis (Fremont, CA) for $1.944 billion in cash. The transaction is expected to close in the U.S. and key non-U.S. countries towards the end of 2015, subject to regulatory clearances and other customary closing conditions.

  • Sector:   HME     Nordic Capital, the private equity firm that formerly owned Permobil, has bought Sunrise Medical.  Nordic Captial, along with IK Investment Partners, was rumored to be in the running to buy Sunrise Medical from Equistone Partners, a European-based investment firm that bought the company from Vestar Capital Partners in 2012.  Nordic Capital sold Permobil to Investor AB for $842.3 million in 2013, but it also owns Handicare, a Swedish-based manufacturer of wheelchairs, rollators, scooters, manual transfer aids and lifts.  While Nordic Capital and Sunrise Medical did not disclose terms of the deal, its value could be close to $507 million, according to an article published in May by Reuters.  Under Equistone’s ownership, Sunrise Medical has completed four add-on acquisitions, most recently Switch-It in March of 2015 and RGK Wheelchairs in April 2015. It’s a strategy that will continue under Nordic Capital.  “This new partnership puts Sunrise Medical in a perfect position to significant grow the business over the coming years, organically and also by way of acquisitions,” stated Thomas Rossnagel, president and CEO of Sunrise Medical.

  • Sector:   HME     Stealth Products, a Quantum Rehab company, has acquired Accessible Designs, Inc. San Antonio-based ADI is best known for its ultralight wheelchair seating systems and aftermarket accessories, including disc brakes that increase functionality and safety. “Stealth and ADI have worked together for many years with complementary mobility-related products,” stated Lorenzo Romero, president of Stealth Products. “With shared visions of furthering product innovation, our companies align so well that we feel strongly that this acquisition can serve the market even better.” All manufacturing, distribution and sales responsibility for ADI products will transfer to Stealth Products effective July 1, 2015. Todd Hargroder, the founder and CEO of ADI, will move to Stealth in a senior engineering role. Dylan Springfield, the company’s national sales manager, will also move into a new sales role with Stealth.

    Sector:   Medical Device     Welch Allyn (Skaneateles Falls, NY) acquired substantially all the assets of Scale-Tronix Inc (White Plains, NY). Scale-Tronix is a manufacturer of medical scales and patient weighing systems for hospitals, clinics, and extended-care facilities around the world. The acquisition will allow Welch Allyn to offer a variety of clinical-grade scales that capture a vital piece of patient-specific information at the point-of-care. All employees and contractors will be retained by Scale-Tronix and have been asked to remain with the company in their current capacity as it transitions the business into Welch Allyn. The company’s current products will continue to be developed and sourced by Scale-Tronix in the short term and, for the most part, it will be business as usual for all Scale-Tronix suppliers and customers.

    Sector:   Medical Supply     Fox Three Partners LLC (Virginia Beach, VA) acquired Burlington Medical Supplies Inc (BMS) (Newport News, VA). BMS provides a range of radiation products for medical professionals as well as patient comfort products. Terms of the deal were not disclosed.

    Sector:   Medical Specialty     Cardinal Health (Dublin, OH) completed its acquisition of Metro Medical (Nashville, TN), an independent specialty distributor. Terms of the acquisition have not been disclosed.  Cardinal Health Inc. has confirmed a trade journal’s report that it has acquired specialty pharmaceutical distributor Metro Medical Supply Inc. The Nashville, Tennessee, company had been the largest independent supplier in specialty – which includes chemotherapy drugs and higher-priced medications for rare diseases – according to a report on the acquisition last week by Adam Fein, a consultant and founder of the online pharmaceutical industry report Drug Channels.  At the time, neither company had announced the deal. Cardinal spokeswoman Debbie Mitchell confirmed it to me via email Tuesday, but said the company is not releasing terms or details of Metro Medical’s size. Dublin-based Cardinal (NYSE:CAH) has projected its specialty drug business would reach $5 billion in sales this year, propelled by advances such as new Hepatitis C treatments. Cardinal by far is the smallest of the big three health-care distributors in the space: AmerisourceBergen Corp. (NYSE:ABC) and McKesson Corp. (NYSE:MCK) together control two-thirds of specialty distribution. But CEO George Barrett told me in an exclusive interview in Friday’s Columbus Business First that he likes Cardinal’s position in the marketplace and doesn’t see a need to get bigger just to catch the two rivals. Fein said Metro Medical could increase Cardinal’s presence in specialties of rheumatology and kidney disease.

  • Sector:   GPO     Intermountain Healthcare (Salt Lake City, UT) reached an agreement in principle to acquire Administrative Resources Inc’s (ARI) (Warrendale, PA) 50 percent ownership of Amerinet Inc (St Louis, MO). Intermountain Healthcare already owns the other 50 percent of Amerinet. The agreement is subject to ARI shareholder approval. According to a release, “Intermountain Healthcare’s vision is to continue the focus of Amerinet, which will result in enhanced services, positive industry momentum, and significant opportunities and benefits to current and potential customers and vendors.”

  • Sector:   Medical Manufacturing     ATL Technology LLC (Springville, UT) acquired MedConx Inc (Santa Clara, CA). The acquisition will incorporate MedConx's manufacturing facility in Costa Rica with ATL Technology's existing facility in Costa Rica. According to a release, the MedConx facility will grant ATL Technology additional manufacturing capabilities. ATL Technology will add MedConx's proprietary Smart Technology into its product and service offerings. Other new additions to the ATL portfolio include the Smart Block connector family of products and mechanical use-limiting technology.

  • Sector:   HME     BBMK Enterprises DBA Sleep Circle was acquired by Lincare.  Sleep Circle's affiliate companies are one of the  North East’s premier providers for the treatment of sleep disorders and oxygen therapy.

  • Sector:   Medical Supply     Audax Private Equity together with management announced the acquisition of Katena Products. Katena Products ("Katena"), headquartered in Denville, New Jersey, is a global provider of precision ophthalmic instruments, devices, and therapeutics. Founded in 1975, Katena's complementary product segments include instruments, biologics, and devices serving hospitals, ambulatory surgery centers, and physician offices.

  • Sector:  Medical Device     Medtronic plc (Dublin, Ireland) acquired the assets of Aptus Endosystems Inc (Sunnyvale, CA) for approximately $110 million. Aptus is a privately held medical device company focused on developing advanced technology for endovascular aneurysm repair (EVAR) and thoracic endovascular aneurysm repair (TEVAR). Medtronic will report the Aptus business as part of its Aortic and Peripheral Vascular division within the Cardiac and Vascular Group. Additional terms of the acquisition were not disclosed.

  • Sector:   Pharmacy / HME     Ascendant Solutions, an investment firm, and its healthcare subsidiary, Dougherty’s Holdings, have acquired The Medicine Shoppe pharmacy in McAlester, Okla.  It’s the fourth recent acquisition for Ascendant, which trades on Pink Sheets and is focused on acquiring, managing and growing community-based pharmacies in the Southwest region under Doughtery’s Holdings.  “Given its excellent reputation as the premier independent pharmacy in McAlester, we intend to continue to operate this pharmacy under The Medicine Shoppe name,” stated Mark Heil, president and CFO of Ascendant, in a press release.  The Medicine Shoppe is expected to add about $3 million in revenues to Ascendant’s results for 2015 and $6 million to its annual revenues on a full-year basis.  Together, the four recent acquisitions should boost sales for Dougherty’s Holdings 45% to more than $42 million in 2015 compared to $29 million in 2014.  The Medicine Shoppe provides retail prescriptions, non-sterile compounded prescriptions and home health products.

  • Sector:   HME     BritKare Home Medical has acquired Pillar Equipment Services, a diversified DME business based in Lubbock, Texas. The acquisition gives BritKare, which has been serving the Texas Panhandle region since 1995, three locations in Northwest Texas. “The acquisition of Pillar gives us expanded regional capability to continue providing exceptional service to our patients and referral sources in the Texas Panhandle,” stated Josh Britten, president of BritKare, in a press release. BritKare will change Pillar’s name and continue to operate at its existing location. Duckridge Advisors served as the adviser for Pillar Equipment.

  • Sector:   HME     Invacare has sold its device rentals business for long-term care facilities.  The business, comprised of Invacare Outcomes Management and Dynamic Medical Systems, sold for $15.5 million in cash. The buyer was not disclosed.  The deal will allow Invacare, which has struggled under the weight of a consent decree with the Food and Drug Administration, to refocus on its core businesses, says Matthew Monaghan, president and CEO.  ''The sale of our United States rentals businesses allows us to narrow our focus on improving profitability in our core business, including the design, manufacture and distribution of medical devices,” he said in a press release.  Monaghan took the reins April 1, and announced a 90- to 100-day plan to begin a turnaround of the North America HME business.  The rentals businesses had net sales of approximately $7.2 million for the first quarter of 2015.

  • Sector:  HME    With eight acquisitions in a one-year span, including DeVilbiss Healthcare last week, Drive Medical is unarguably the most active manufacturer in the HME industry right now.  Drive Medical’s acquisition of DeVilbiss Healthcare, its largest yet, gives the company a solid platform in the respiratory and sleep markets. Previously, in 2011, it bought Inovo/Chad Therapeutics“There are fewer manufacturers out there than when we started and our customer base has a lot on its plate,” said Jeff Schwartz, co-founder and executive vice president of sales. “They want a manufacturer that can not only compete on price but also go deeper into product lines.”  Earlier this year, in April, Drive Medical acquired two companies: U.K.-based Park House Healthcare and Santa Fe Springs, Calif.-based Columbia Medical. Like most of its acquisitions, these allow the manufacturer to round out existing lines, this time in the bed and mobility markets, respectively.  Drive Medical has also made two other acquisitions in the bed and mobility markets (Primus Medical and Specialised Orthotic Services, respectively), as well as acquisitions in the respiratory market (Medquip) and the DME market (Dupont Medical and Days Healthcare).

  • Sector:  HME   Patient Home Monitoring has been looking to grow its core Coumadin business and boost its stock price by rolling up HME companies.  Its most recent acquisition: Louisiana-based Sleep Services, which serves 19 states and focuses on providing vents to COPD patients. Other buys include Maine-based Black Bear Medical, Kentucky-based Legacy Oxygen, and Georgia-based Care Medical Partners.

  • Sector:  Pharmacy    Target is selling its pharmacy business to CVS Health for $1.9 billion and will rebrand its nearly 1,700 prescription departments as CVS/pharmacy in a blockbuster deal that stunned the healthcare world.  In addition to the pharmacies, CVS Health also will acquire Target’s 80 clinic locations and rebrand them as MinuteClinic, moving the company closer to its goal of operating 1,500 clinics by 2017. The companies also announced plans to develop five to 10 small, flexible format stores during the next two years that will be branded as Target Express and contain a CVS Health pharmacy.  The transaction enables CVS Health to reach more patients, adding a new retail channel for its offerings, and expanding convenient options for consumers, according to a statement by the companies. Given CVS Health's success in growing its business, the relationship is expected to benefit Target's long-term traffic and sales growth. "This strategic relationship with Target supports the highly complementary customer base, brand and culture we share," said Larry Merlo, CVS Health president and CEO. "When we introduced the new name for our company, CVS Health, we began a new era of growth with a broader healthcare focus and an appreciation of the rise of healthcare consumerism with consumer choice and accountability growing. This relationship with Target will provide consumers with expanded options and access to our unique healthcare services that lead to better health outcomes and lower overall healthcare costs.” CVS Health expects the transaction to generate significant sales and prescription volumes upon closing, and to generate significant operating profit over the long term.  Target expects to realized after tax proceeds from the deal of approximately $1.2 billion, which it expects to deploy in support of its long-standing capital priorities, including share repurchase. Upon closing, the companies said in-store changes at Target locations will be rolled out over a period of several months thereafter, as CVS Health and Target work to ensure the smoothest possible transition for all pharmacy and clinic patients.  CVS Health said it is committed to offering the approximately 14,000 in-store Target healthcare professionals comparable positions with CVS Health as part of the transition, while Target said it would evaluate the business impact and related support needs at its headquarters locations.

  • Sector:  Post Acute Care    Genesis HealthCare (Genesis), one of the nation's largest providers of post-acute care, today announced that it has signed an asset purchase agreement with Revera Inc. (Revera), a leading owner, operator and investor in the senior living sector, to acquire 24 of its skilled nursing facilities along with its contract rehabilitation business for $240 million. The transaction is expected to close by this calendar year-end, subject to additional due diligence, regulatory and licensing approvals, and other customary conditions. Under the agreement, Genesis will acquire the real estate of 20 of the 24 facilities and will enter into a long-term lease agreement with Health Care REIT, Inc. (HCN) for the remaining properties. Genesis will also acquire the operations of Premier Therapy, Revera's contract rehabilitation business. Genesis expects to finance the transaction utilizing a bridge loan from HCN and will subsequently refinance the bridge loan utilizing the HUD financing program or other traditional mortgage financing. Genesis expects the transaction will be accretive to 2016 earnings. The 24 centers are located in the following states: eight in New Jersey, five in Vermont, three inWashington, two in Connecticut, two in Massachusetts and one in each of Maryland, Virginia, New Hampshire and Rhode Island. The 24 centers encompass an aggregate of 3,056 beds, employ approximately 3,800 full and part-time employees and had aggregate revenue totaling approximately $280 million in 2014.

  • Sector:  Rehab    HealthSouth Corporation’s (NYSE: HLS) acquisition of Reliant Hospital Partners LLC for $730 million was a tremendous boost for the sector’s year-to-date spending, bringing the total to $850 million through June 12, 2015. But the real action, as always, is in the deal volume. In the same period, 12 acquisitions of rehabilitation facilities and occupational therapy clinics have been announced. Compare that to the same period in 2014, and only seven deals were reported, with just $11 million spent.

  • Sector:  HME    Nordic Capital, the private equity firm that formerly owned Permobil, has bought Sunrise Medical. Nordic Captial, along with IK Investment Partners, was rumored to be in the running to buy Sunrise Medical from Equistone Partners, a European-based investment firm that bought the company from Vestar Capital Partners in 2012. Nordic Capital sold Permobil to Investor AB for $842.3 million in 2013, but it also owns Handicare, a Swedish-based manufacturer of wheelchairs, rollators, scooters, manual transfer aids and lifts.  While Nordic Capital and Sunrise Medical did not disclose terms of the deal, its value could be close to $507 million, according to an article published in May by Reuters. Under Equistone’s ownership, Sunrise Medical has completed four add-on acquisitions, most recently Switch-It in March of 2015 and RGK Wheelchairs in April 2015. It’s a strategy that will continue under Nordic Capital.

  • Sector:  HME    Stealth Products, a Quantum Rehab company, has acquired Accessible Designs, Inc. San Antonio-based ADI is best known for its ultralight wheelchair seating systems and aftermarket accessories, including disc brakes that increase functionality and safety.

  • Sector:   Pharmacy     CVS Health (Woonsocket, RI) and Omnicare Inc (Cincinnati, OH) entered into a definitive agreement for CVS Health to acquire Omnicare. CVS Health Corp. agreed to acquire nursing-home pharmacy Omnicare Inc. in a transaction valued at $12.7 billion, adding services for the elderly to bolster its position as the biggest U.S. retailer of prescription drugs.  CVS will pay $98 per share in cash, the companies said in a statement on Thursday. Omnicare, with a market value of about $9.2 billion, hired advisers to explore a sale earlier this year. The deal includes about $2.3 billion in debt.  The acquisition will significantly expand CVS' ability to dispense prescriptions in assisted living and long term care facilities, as well as expand the company's presence in the specialty pharmacy business. According to the company, Omnicare's specialty pharmacy platform and clinical expertise will augment CVS' capabilities. The transaction has been approved by the boards of both companies. The deal is subject to approval by Omnicare shareholders as well as other customary closing conditions, including applicable regulatory approvals.

Contact Paragon Ventures today to explore what this transaction means

for the valuation and strategic options available for your healthcare business. 800-719-1555

 

  • Sector:  Pharmacy Benefit Management    UnitedHealth Group has agreed to buy Catamaran in a transaction worth approximately $12.8 billion, in order to improve its pharmacy benefits operations (OptumRx). The transaction will add approximately $0.30 per share to UnitedHealth’s profit in 2016 and is expected to close in Q4 2015.

  • Sector:   Medical Equipment/Supply  Claflin Medical Equipment (Warwick, RI) and Hospital Associates (Anaheim, CA) announced a merger effective February 1, 2015. The merger will allow the combined company to cover the entire country logistically with two branches and 31 service centers. Claflin will gain even greater reach with its government program and e-commerce platform. For the immediate future, both companies will continue to do business under their current names.

  • Sector:  Pharmacy     Discount retailer, Fred’s, has agreed to acquire Reeves-Sain Drug Store, a TN-based specialty and retail pharmacy, for approximately $66 million. The transaction includes EntrustRx, which will provide Fred’s with access to expanded specialty networks and limited distribution drugs.

  • Sector:  Pharmacy PBM    Catamaran has agreed to buy Healthcare Solutions from Brazos Private Equity for $405 million in cash. The transaction will improve Catamaran’s medical cost management services to customers in the workers’ compensation and auto liability sectors.

  • Sector:   Pharmacy PBM   OptumRx and Catamaran Corporation [NASDAQ:CTRX, TSX:CCT], a leading provider of pharmacy benefit management (“PBM”) services and technology solutions, announced today they have agreed to combine. OptumRx is UnitedHealth Group’s [NYSE:UNH] free-standing pharmacy care services business. The agreement calls for the acquisition of Catamaran’s outstanding common stock for $61.50 per share in cash. The transaction is expected to close during the fourth quarter of 2015, subject to Catamaran shareholders’ approval, regulatory approvals and other customary closing conditions. The combination diversifies OptumRx’s customer and business mix, while accelerating its technology leadership and flexible service offerings. The acquisition is expected to be accretive to UnitedHealth Group’s net earnings in the area of $0.30 per share in 2016. UnitedHealth Group plans to finance the acquisition from existing cash resources and new debt. The company affirmed its $6.00 to $6.25 per share earnings outlook assuming the absorption of all merger costs, the ongoing commitment to advance its dividend policy as planned, and a continued but moderated level of share repurchase.   OptumRx and Catamaran will create significant value for their combined customer base beyond the scale and enhanced service resulting from integration of their businesses. This combination is expected to create a dynamic competitor in the PBM market by combining the strengths of Catamaran’s industry-leading technology platform with the data and analytics capabilities of Optum.

  • Sector:   Medical Supply     InfuSystem Holdings Inc (Madison Heights, MI), through a subsidiary, closed the acquisition of substantially all of the assets of Ciscura Holding Company Inc (Alpharetta, GA) and its subsidiaries. Ciscura is a privately held Southeastern regional provider of ambulatory infusion pumps and services to medical facilities. It was the result of the previous merger of Ciscura Infusion Services and Triad Medical Supply. Ciscura will become the foundation of InfuSystem's new Southeast facility, located near Atlanta, Georgia.

  • Sector:   Medical Services  United Medical Systems (Westborough, MA) acquired Litho of America (Oklahoma City, OK), a privately held mobile lithotripsy and GreenLight laser service provider. Litho of America provides services for treatment of kidney stones and benign prostatic hyperplasia to hospitals and ambulatory surgical centers in Texas and Oklahoma.

  • Sector:   Health Services  TeamHealth Inc (Knoxville, TN) acquired Ruby Crest Emergency Medicine (Elko, NV), which manages and provides staffing for Northeastern Nevada Regional Hospital (Elko, NV). The clinicians Ruby Crest provides to Northeastern serve more than 24,000 patients annually. TeamHealth has more than 13,000 affiliated healthcare professionals providing emergency and hospital medicine, anesthesia, urgent care, and pediatric staffing and management services to healthcare services in 47 states.

  • Sector:   Medical Device    Globus Medical Inc (Audubon, PA) entered into an agreement to acquire Branch Medical Group Inc (Eagleville, PA), a third-party manufacturer of high-precision medical devices. Under the terms of the agreement Globus agreed to pay $52.9 million in cash, subject to certain closing adjustments, for BMG on a cash-free, debt-free basis. Closing is expected to occur in March 2015 following satisfaction of the applicable closing conditions.

  • Sector:  Medical Supply    Pfizer Inc (New York, NY) and Hospira Inc (Lake Forest, IL) entered into a definitive merger agreement under which Pfizer will acquire Hospira for $90 a share in cash for a total enterprise value of approximately $17 billion. The boards of directors of both companies have unanimously approved the merger. The combination will add a growing revenue stream and a platform for growth for Pfizer’s GEP business. The transaction is subject to customary closing conditions, including regulatory approvals in several jurisdictions and approval of Hospira’s shareholders, and is expected to close in the second half of 2015.

  • Sector:   AxelaCare Health Solutions, a national provider of specialty home infusion services that is backed by Harvest Partners, has acquired Ambient Healthcare, which has locations in FL, AL, GA, NC, and SC. The acquisition expands AxelaCare’s network in the Southeast and increases its number of pharmacies to 34 nationwide. Terms of the transaction have not been disclosed.

  • Sector:   Infusion Pharmacy   Amerita, a wholly owned subsidiary of PharMerica Corporation, has acquired Coastal Pharmaceutical Services, dba InfusionRx. InfusionRx is a leader in Southern California, offering a full range of home infusion and pharmacy services. It serves patients in their homes, doctors’ offices, and other non-hospital settings. No transaction terms have been announced.

  • Sector:  Medical Device    BD (Becton, Dickinson and Company) (Franklin Lakes, NJ) completed its acquisition of CareFusion Corporation (San Diego, CA) pursuant to the terms of the previously announced agreement from October 5, 2014. CareFusion is now a wholly owned subsidiary of BD. As a result of the completion of the acquisition, CareFusion shares will cease trading, and it will be delisted from the NYSE. Beginning in the second half of FY 2015, BD will report a new Medical segment structure, which will include CareFusion.

  • Sector:  Pharmacy    Omaha, NE-based Kohll’s Pharmacy has acquired Wagey Drug Company, which is headquartered in Lincoln, NE. Wagey Drug is a retail community pharmacy, also providing prescription packaging for independent living residents. Terms of the transaction are undisclosed.

  • Sector:   Specialty Pharmacy   Catamaran, a provider of technology and PBM services, has acquired Salveo Specialty Pharmacy for $260 million in cash, which represents a TTM EBITDA multiple of approximately 13x. Salveo manages approximately $400 million in annual drug spend through its FL headquarters, as well as its NY (Echo Salveo Specialty Pharmacy) and CA (Mission Road Pharmacy) operations.

  • Sector:  Medical Device     Medovex Corp (Atlanta, GA) closed the acquisition of Streamline Inc (Minneapolis, MN). According to the company, Medovex will combine Streamline's expertise in patient safety-oriented specialty medical equipment with its own vision for acquiring and developing medical technology that solves significant challenges faced by healthcare providers.

  • Sector:  Pharmacy PBM   UnitedHealth Group (Minnetonka, MN) announced that its subsidiary, OptumRx (Costa Mesa, CA), signed an agreement to acquire Catamaran Corporation (Lisle, IL) for approximately $12.8 billion. The transaction is expected to close in Q4 2015, subject to Catamaran shareholders’ approval, regulatory approvals, and other customary closing conditions. UnitedHealth Group plans to finance the acquisition from existing cash resources and new debt. Upon closing, Mark Thierer, Catamaran’s chairman and CEO, will serve as CEO of OptumRx and Timothy Wicks, the current CEO of OptumRx, will become president. Jeff Park, who currently serves Catamaran as EVP of operations, will become the COO for OptumRx. Jeffrey Grosklags, currently the CFO of OptumRx, will continue in that role.

  • Sector:   Medical Device    Orthofix International NV (Lewisville, TX,) entered into an option agreement that provides the company with an 18-month option to acquire eNeura Inc (Baltimore, MD), a maker of portable, non-invasive Transcranial Magnetic Stimulation (TMS) devices for the treatment of migraine headache. In May 2014, eNeura received FDA (Silver Spring, MD) 510k clearance for its SpringTMS migraine treatment device. In consideration for the option to acquire eNeura, Orthofix has agreed to provide a $15 million collateralized loan to support commercialization of SpringTMS in the U.S. and Europe. If the option to purchase eNeura is exercised, Orthofix will pay $65 million to consummate the merger and eNeura will repay to Orthofix the unpaid principal payable under the loan. In addition, Orthofix may make future milestone and royalty payments to eNeura.

  • Sector: Medical Device    Pyrexar Medical (Salt Lake City, UT) began operations following its acquisition of hyperthermia assets held by Perseon (Salt Lake City, UT), formerly BSD Medical (Salt Lake City, UT). The acquisition included substantially all hyperthermia assets, products, services, and related intellectual property. The company also named Mark Falkowski as CEO.

  • Sector:  Health Services  SpecialtyCare (Nashville, TN) completed its previously announced acquisition of ProNerve (Nashville, TN), an intraoperative neuromonitoring (IONM) company. This broadens the range of clinical outsourced services SpecialtyCare offers that help ensure patient health and safety in the operating room. The combined organization will handle more than 67,000 IONM procedures annually at hospitals in 42 states.

  • Sector:  Medical Supply    Medtronic plc (Dublin, Ireland) acquired Diabeter (The Netherlands), an independent diabetes clinic and research center dedicated to providing comprehensive and individualized care for children and young adults with diabetes. Diabeter will operate as part of the Diabetes Services & Solutions business unit but maintain its professional autonomy and independence in clinical decision making, therapy, and brand choice. Medtronic and Diabeter will further develop and expand Diabeter's model of care so more people with diabetes can enjoy greater freedom and better health. Terms of the acquisition were not disclosed.

  • Sector:   Medical Records/IT  Gennius, a prominent healthcare software provider that automates analytics to support accountable care process delivery and risk management, has been acquired by Quality Systems.  Quality Systems is publicly-traded with a market value of approximately $940 million, and provides computer-based practice management and electronic health records solutions primarily under the NextGen brand servicing over 85,000 physicians and dentists, which spans more than 4,000 group practice customers nationwide.

  • Sector:   Pharmacy    Madison Dearborn Partners, LLC (MDP) and Walgreen Co. have signed a definitive agreement that will give MDP a majority interest in Walgreens Infusion Services, Inc. The Company is a provider of home and alternate treatment site infusion services through 89 pharmacies and 110 alternate sites in 40 states. The financial terms of the deal were not released.

  • Sector:  Healthcare IT    Audax Group, Inc. (Audax) has announced it made a significant investment in Corepoint Health LLC (Corepoint). Corepoint delivers a simplified approach to internal and external health data integration and exchange. Audax’ investment will fund continued growth and ongoing support of its customer base. The financial terms of the deal were not released.

  • Sector:  Medical Device    Shore Capital Partners, LLC (Shore) is pleased to announce it has completed the acquisition of Summit Medical, Inc. (Summit). Summit has been a leading medical device manufacturer for over 30 years. Shore will enhance operations and drive an acquisition growth strategy at the Company. The financial terms of the deal were not released.

  • Sector:   Health Services  J.H. Whitney & Co., LLC has announced it has acquired Pediatric Services Holding Corporation, the parent company of Pediatric Services of America, Inc. (d/b/a PSA Healthcare). PSA Healthcare is a home healthcare company that provides services through it’s 65 locations to clients of all ages. The financial terms of the deal were not released.

  • Sector:  PBM   Rite Aid Corp. (RAD) announced that it would acquire private equity-backed Envision Pharmaceutical Holdings Inc. for $2 billion, following rival CVS Health Corp. into the pharmacy-benefit manager business. Terms of the deal call for Camp Hill, Pa.-based Rite Aid to pay $1.8 billion in cash and $200 million in stock for Envision, which is owned by TPG Capital LP. Rite Aid will issue about 27.9 million of its shares to complete the deal. Twinsburg, Ohio-based Envision provides pharmacy benefit management services including claims processing, formulary management, mail-order delivery, benefit-design consulting and related services. The company, according to Rite Aid, should generate 2015 Ebitda of between $150 million and $160 million on sales of $5 billion. Rite Aid, which operates 4,569 retail locations in 31 states and the District of Columbia, said the purchase would open up a new stream of revenue for the company.

    "The acquisition of EnvisionRx meaningfully expands our health and wellness offerings, enhancing our ability to provide a higher level of care to the patients and communities we serve," company chairman and CEO John Standley said in a statement. "With the addition of EnvisionRx, we will create a compelling pharmacy offering across retail, specialty and mail-order channels, enabling us to deliver cost-effective solutions to employers and health plans while driving growth and creating long-term value for our shareholders." The company is following in the footsteps of CVS, which bought Caremark Rx Inc. in 2007 and ranks as one of the largest pharmacy-benefit managers in the U.S. At CVS, the benefits management business enjoys higher margins than the retail unit.

  • Sector:  Hospice    Hospice Compassus, a local network of palliative care programs, has acquired Life Choice Hospital, a Pennsylvania hospice company.  Though specific terms of the deal were not disclosed, Hospice Compassus has secured $210 million in a senior secured credit facility for the acquisition from CIT Bank.  "The combination of Hospice Compassus and Life Choice creates a leading hospice platform with a national scope," Jim Deal, Hospice Compassus CEO, said in a statement. "CIT has been a financing partner since our inception in 2006, supporting our efforts to grow our organization. We look forward to our continued partnership with CIT."  Following the acquisition of Life Choice's 24 facilities in 11 states, Hospice Compassus now has 90 locations in 25 states.

  • Sector:  Infusion Pharmacy   Ambient Healthcare has been acquired by AxelaCare.  AxelaCare Health Solutions, a leading national provider of specialty home infusion services, announced the acquisition of Florida-based Ambient Healthcare, which offers home intravenous therapies and nursing care in the southeastern United States. The acquisition expands AxelaCare’s national home IV therapy network into the Southeast and follows AxelaCare’s recent acquisition of Advanced Care, a home IV therapy company in the New York-New Jersey metro area.   AxelaCare has been growing in excess of 40 percent annually since its inception in 2008. The Ambient acquisition increases AxelaCare's number of intravenous solutions pharmacies to 34 nationwide. Local pharmacies increase responsiveness to acute infusion service needs as well as broaden market coverage for national managed care accounts.  Ambient Healthcare operates 16 pharmacy locations in Florida, Alabama, Georgia, North Carolina and South Carolina.  “We are pleased to continue as investors with this great team of clinicians and business builders that focuses on keeping patients healthy, said Robert Haft, managing partner, Morgan Noble Healthcare Partners, an Ambient Healthcare investor.  AxelaCare is a Harvest Partners portfolio company.  Transaction terms were not disclosed.

  • Sector:  Pharmaceutical    Pfizer Inc.  and Hospira Inc entered into a definitive merger agreement under which Pfizer will acquire Hospira for $90 a share in cash for a total enterprise value of approximately $17 billion. The boards of directors of both companies have unanimously approved the merger. The combination will add a growing revenue stream and a platform for growth for Pfizer’s GEP business. The transaction is subject to customary closing conditions, including regulatory approvals in several jurisdictions and approval of Hospira’s shareholders, and is expected to close in the second half of 2015.

  • Sector:  Sector: Healthcare Healthcare Group Purchasing $50 Billion Spend Giants To Merge VHA Inc (Irving, TX) and UHC (Chicago, IL) signed an agreement to combine into a single organization that will be the largest member-owned healthcare company in the country. Financial terms of the deal were not disclosed. The combined company will serve more than 5,200 health system members and affiliates, provide services to nearly 30 percent of the nation's hospitals, and boast more than $50 billion in purchasing volume.

  • Sector:  Specialty Pharmacy    NewSpring Capital announced that it has successfully exited Salveo Specialty Pharmacy, Inc. ("Salveo"), a portfolio company of its dedicated healthcare fund, NewSpring Health Capital ("NewSpring"). The exit was a result of the previously announced transaction with Catamaran Corporation. Since the initial investment in 2011, Salveo has been able to effectively capitalize on the tremendous growth within the specialty pharmacy market. A robust geographical footprint, intense commitment to service and a well-disciplined commercial growth strategy enabled the Company to capitalize on the dramatic increase in individuals with chronic diseases. As a result, the Company grew revenue from $50 million in 2011 to a run rate in excess of $500 million at exit. Brian G. Murphy, General Partner of NewSpring Capital and former Board Member of Salveo stated, "The Salveo team has demonstrated exceptional passion and talent for delivering complex medications to individuals with difficult medical conditions such as cancer, organ transplants, hepatitis C and HIV. We are pleased to have been able to work with CEO, Jeff Freedman and COO, Chuck Brown as well as the entire Salveo management team. The Company's vision was executed flawlessly and produced an attractive outcome for our Limited Partners. We believe Salveo will be a great complement to Catamaran and will continue on its strong growth trajectory." "We have worked closely with the team at NewSpring who committed significant strategic resources and provided access to healthcare business leaders in their network to help us grow our business," said Jeff Freedman, CEO of Salveo Specialty Pharmacy. "Becoming part of Catamaran will enable us to better realize the full potential of our products while complementing the resources NewSpring and our syndicate investors already committed. The entire Salveo team is excited about the prospects of this combination."   Salveo Specialty Pharmacy, Inc., a private company headquartered in Saint Petersburg, Florida, was formed to create a leading specialty pharmacy organization serving patients and customers across the country. Salveo will acquire, integrate and grow select specialty pharmacy organizations that share its philosophy of providing superior customer service and clinical patient care to the chronically ill population. With its initial acquisition of Echo Specialty Pharmacy Services in New York, Salveo currently serves over 6,500 chronic patients across multiple disease states.

  • Sector:  Pharmacy    Amerita Inc (Irvine, CA), a wholly owned subsidiary of PharMerica Corporation (Louisville, KY), completed the acquisition of Coastal Pharmaceutical Services Corporation (Oxnard, CA), dba InfusionRx. InfusionRx provides a complete range of home infusion and pharmacy services, including home infusion therapies, pain management, nutritional therapies, and specialty pharmacy services. Financial terms of the transaction were not disclosed.  InfusionRx provides a complete range of home infusion and pharmacy services, including home infusion therapies, pain management, nutritional therapies, and specialty pharmacy services. The company serves patients in their homes, doctors’ offices, and other non-hospital settings.  “This is an important milestone for both Amerita and PharMerica,” said Greg Weishar, PharMerica’s Chief Executive Officer. “InfusionRx advances Amerita’s market breadth and is consistent with our strategy to drive growth through acquisitions. We will remain disciplined and opportunistic in our pursuit of acquisitions to drive shareholder value.”  May Kuo Barry, a founder of InfusionRx said, “In Amerita, we have found an ideal partner. Like InfusionRx, Amerita adheres to the highest standards for patient care and delivers a superior pharmacy experience. We look forward to working with Amerita to ensure a smooth transition and to realizing the significant benefits that this transaction will bring to our patients, providers and employees.”

  • Sector:  Infusion Pharmacy    The sale of Walgreens home infusion business to a private equity firm will give Walgreens the chance to double down on the growing market.  Announced Jan. 20, Madison Dearborn Partners, a Chicago-based private equity firm, will acquire a 51% majority stake in Walgreens Infusion Services. The firm will take the company private, according to a release.  Walgreens entered the home infusion space when it acquired OptionCare for $850 million in 2007. It traded its long-term care pharmacy business for OmniCare’s home infusion business in 2010, making it the largest provider in the space.

  • Sector:  Healthcare Consulting    Chicago-based Huron Consulting Group is acquiring well-known healthcare consultant Studer Group, in a $325 million deal, creating a healthcare consulting operation that will have more than 1,500 employees, Huron announced Tuesday.  Studer will become part of Huron Healthcare, which accounts for more than 50% of Huron's overall revenue, Huron said. The deal is expected to close in February. Huron is paying $323 million in cash and $2 million in Huron common stock.  The combined companies will have pro forma annual revenue of $904 million and pre-tax earnings of roughly $190 million, Huron said.  Pensacola, Fla.-based Studer Group has roughly 235 full-time employees and works with more than 750 partner hospitals, the firms said.

  • Sector:  Medical Supply    Drive Medical has acquired U.K.-based Specialized Orthotic Services (SOS), a manufacturer and distributor of specialized seating and mobility products. “The acquisition of Specialized Orthotic Services extends our already significant presence in Europe and expands our portfolio of products in the specialized seating and rehabilitation market,” stated Harvey Diamond, CEO of Drive Medical, in a press release. The acquisition complements Drive Medical’s Wenzelite line of mobility and seating products. Specialized Orthotic Services is known for its P Pod, Nessie and a wide range of other postural seating systems. “(These products) will enhance our global product offering in this market segment,” stated Richard Kolodny, president of Drive Medical, in the release. “We are confident that we will achieve additional growth in this area through the introduction of Drive’s complementary product lines to the SOS customers.” Terms of the deal were not disclosed.

  • Sector:  Home Health Care    Extendicare Inc. announced the Company has entered into a definitive agreement to acquire the Revera Home Health business from Revera Inc. for $83 million in cash, before working capital adjustments. The completion of the Transaction is subject to customary closing conditions and regulatory approvals, including assignment of government contracts, and is expected to close following receipt of regulatory approvals.   The Transaction is expected to be temporarily financed with a fully committed bridge loan of up to $80 million (the "Bridge") and cash on hand. The purchase price of $83 million represents a multiple of approximately 6.5 times estimated 2015 EBITDA.   Revera Home Health is a leading private-sector home health care provider in Canada, serving 31 communities across six provinces (Ontario, British Columbia, Alberta, Quebec, Manitoba and Nova Scotia) and employing approximately 5,700 people.  Extendicare, through its ParaMed Home Health Care division (ParaMed), is currently the largest private-sector home health care provider in Ontario, with approximately 98% of its revenue generated from government contracts. Through close to 5,200 dedicated individuals serving 21 communities, ParaMed provided 5.1 million hours of service during the trailing twelve month period ended September 30, 2014, generating revenue of $182.7 million. We anticipate that the acquisition will initially generate revenue of approximately $189 million.

  • Sector:  Revenue Cycle    Leeds Novamark Capital ("Leeds Novamark") is pleased to announce that it has provided subordinated debt and an equity co-investment for the recapitalization of Quick Med Claims, LLC (“QMC”) by BB&T Capital Partners, management, and Wasena Capital Management. Headquartered in Pittsburgh, PA, QMC is a national leader in emergency medical ground and air transportation billing and reimbursement services to hospitals, municipalities, and private emergency transportation businesses. The company’s service offerings include fully integrated turn-key claims processing, accounts receivable management, and reimbursement/compliance consulting. QMC serves customers in over 30 states across the U.S.

  • Sector:  Health Imaging    Welch Allyn Inc (Skaneateles Falls, NY) acquired Hubble Telemedical Inc (Knoxville, TN), a privately held healthcare company that enables remote diabetic retinopathy screening and analysis in primary care and other convenient settings. Using Hubble’s network, retinal images are acquired and quality-checked at the point of care and then sent to specialists for over-read. The specialist generates a complete diagnostic report and sends it back to the ordering physician or clinic. Hubble Telemedical’s current product will continue to be developed, sourced, and sold by its existing workforce. It will be business as usual for all Hubble Telemedical partners and customers.

  • Sector:  Home Health Care    Accelera Innovations, Inc. signed an agreement to acquire Traditions Home Care Inc. ("Traditions Home Care") for a price of $6,000,000. Traditions Home Care is engaged in the business of providing home health care services, offering Skilled Nursing, Certified Home Health Aides, Physical and Occupational therapists.  Traditions Home Care achieved revenues of approximately $6,300,000 in 2013 and is expected to generate future annual revenue increases as they are introduced into the Accelera family. We believe the agreement reflects a favorable valuation and creates a geographical footprint in the state of Oklahoma.  "The acquisition of Traditions Home Care will extend our services outside of Illinois. We plan to provide access to community services and grow the medical-related resources in Oklahoma," said Geoff Thompson, Accelera's Chairman.   Accelera plans to integrate the acquired assets into its existing platform and offer patients a way to self-monitor and track common ailments and conditions, and in turn share that data with their primary care physician to facilitate ongoing communications around condition management, both online, and in-person. Both patients and physicians will access the communication and self-tracking features via a shared permission-based and opt-in environment

  • Sector:  HME   Rotech Healthcare has purchased the respiratory assets of a local DME provider in the Gulfport, Miss. area. “We are pleased to expand our existing services in the Gulfport area,” said CEO Tim Pigg in a press release. “Rotech will continue to look for expansion opportunities and pursue asset purchase agreements with the best local providers across the country.” In the last two months, Rotech has acquired assets from Specialized Medical Services in Cody, Wyo., and an unnamed company in Natchitoches, LA.

  • Sector:  HME    Allegheny Health Network (AHN) has acquired majority ownership of Klingensmith Healthcare (KHC), one of western Pennsylvania’s leading suppliers of respiratory and home medical equipment (HME) and related services, officials announced today. Financial terms of the transaction were not disclosed. According to John Paul, President and Chief Executive Officer of AHN, the acquisition of Klingensmith represents another significant step forward in efforts to establish more comprehensive community and home based services to complement AHN’s broad spectrum of inpatient and outpatient programs.  In early November, AHN also announced a joint venture with Celtic Healthcare to create the region’s second largest provider of home health and hospice services. “Our strategy is to build a first-in-class, fully-integrated set of high quality, efficient and lower cost home based services that allow us to provide patients with the full continuum of care they may need outside the four walls of the hospital. With Celtic Healthcare and now Klingensmith, we have embraced innovative and highly successful leaders in their respective industries to make that vision a reality,” said Mr. Paul.  AHN has assumed a controlling interest in Klingensmith, with a minority ownership stake taken by the Johns Hopkins Home Care Group, which brings to the partnership more than 30 years of experience in providing home medical equipment and complex clinical respiratory services to patients. Headquartered in Ford City PA, Klingensmith is one of the largest independent providers of home medical supplies and services in the tri-state region of Pennsylvania, West Virginia and Ohio, encompassing respiratory, recovery and rehab product lines with a strong reputation for same day delivery, innovative technology, and patient-centered programs. The company has served the respiratory and home medical equipment market for more than three decades and currently touches greater than 9,000 patients annually in 18 western PA counties, six WV counties and four OH counties. It also has three retail store fronts across the region and employs 195 people.

  • Sector:  HME     Patient Home Monitoring Corp. focused on rolling-up annuity-based healthcare service companies in the US and Canada, announced it has executed a binding Purchase Agreement for the acquisition of Black Bear Medical ("BB Medical"), a profitable Maine-based company focused on providing home-based healthcare services, including mobility solutions, through several retail locations in Maine and New Hampshire. Black Bear Medical generated more than $8.5 million in revenue for 2014 calendar year with just over $1 million in Adjusted EBITDA over the same period, based upon unaudited due diligence.  Under the terms of the Definitive Purchase Agreement, PHM will acquire 100% of the stock of the Black Bear Medical entities for a total consideration of (1) $622,680 in cash to the sellers and (2) 7,072,472 shares of PHM issued to the sellers, subject to TSX approval.

  • Sector:  Healthcare Revenue Cycle Mgmt     Adreima, a national provider of healthcare revenue cycle management solutions, today announced the acquisition of HealthCPA, a leader in patient advocacy and consumer engagement services. Using its proprietary cloud-based technology, HealthCPA helps patients navigate and understand their health insurance bills and medical costs, improving both patient satisfaction and cash collections for providers.  Based in San Mateo, California, HealthCPA combines proprietary technology, an online patient portal, and a nationwide team of advocates to assist clients with cash collections on self-pay receivables, overturn denied claims, and increase patient satisfaction. HealthCPA serves healthcare providers throughout the country, including industry leaders such as Cedars-Sinai Medical Center.

  • Sector:  Home Health     HealthSouth Corp (Birmingham, AL) completed its acquisition of Encompass Home Health & Hospice (Dallas, TX). HealthSouth purchased the home health company for $750 million.

  • Sector:  Medical Device    Stryker Corporation announced the asset acquisition of privately-held CHG Hospital Beds, Inc. ("CHG") in an all cash transaction. CHG, headquartered in London, Ontario, Canada, sells innovative hospital beds that serve markets across Canada, the United States and the United Kingdom.   Founded in 2003, CHG designs, manufactures and markets a series of low-height hospital beds and related accessories. CHG's beds allow a patient's feet to sit flat on the floor while he/she is sitting at the edge of the bed. The low-height design helps reduce the risk of patient falls that are related to entering and exiting hospital beds. Among CHG's innovative offerings is the recently launched Spirit One bed which is an expandable low-height bariatric bed for the acute care segment.   "The acquisition of CHG aligns with Stryker's commitment to offering products that enhance the quality of care for both patients and healthcare professionals; in this case, aiding in the prevention of patient related injuries resulting from a fall from a hospital bed," said Timothy J. Scannell, Group President, MedSurg and Neurotechnology. "This acquisition will bolster Stryker Medical's bed offerings and allow us to offer additional solutions to our customers."   The transaction is expected to be neutral to Stryker's 2015 earnings per share excluding acquisition, integration-related and intangible amortization charges and accretive thereafter.

  • Sector:  Medical Equipment/Supply     Community HME LLC, a durable medical equipment business with locations in Baraboo and Richland Center, Wisconsin, has been acquired by Midwest Respiratory & Rehab, headquartered in Omaha, Nebraska. Midwest Respiratory & Rehab currently has ten operations in Nebraska, Iowa, Missouri and South Dakota, with Community HME being their first acquisition in Wisconsin. Community HME will retain its name and continue to operate at its existing locations. Terms of the transaction were not disclosed.

  • Sector:  Medical Supply     Henry Schein Inc (Melville, NY) will acquire scil animal care company GmbH (Viernheim, Germany), a distributor of animal health laboratory and imaging diagnostic products and services to veterinarians primarily in North America and Europe. Hartmut Jaissle, who has served as CEO of scil animal care since May 2012, will continue to lead the business. Jaissle and the scil animal care employees will become part of Henry Schein's global Animal Health business. The transaction is expected to close in Q2 2015 subject to regulatory approval. Financial details of the transaction were not disclosed.

  • Sector:  Home Healthcare    Addus HomeCare Corporation (NASDAQ: ADUS), a comprehensive provider of home and community-based services that primarily are social in nature, provided in the home and focused on the dual eligible population, today announced that the Company has acquired Priority Home Health Care, Inc., effective January 1, 2015. Headquartered in Cleveland, Ohio, Priority operates six offices in the Cleveland, Akron and Columbus areas, which are expected to produce revenues of approximately $11 million for the year ended December 31, 2014. Addus anticipates the transaction to be accretive to earnings in 2015. Mark Heaney, President and CEO of Addus HomeCare, said, "We are pleased to announce the purchase of Priority Home Health Care, which substantially expands our footprint in Ohio, a state we first entered a year ago through the acquisition of two locations from Medical Services of America. Ohio is on the forefront of transitioning its Medicaid long-term care programs to managed care organizations, and all of Priority's offices are located in areas designated for participation in the state's dual eligible demonstration pilots. This transaction is consistent with our overall acquisition strategy of both expanding our footprint in existing states and focusing our efforts in states implementing or planning the near-term transition of care for this population to MCOs, which we believe represents a significant long-term growth opportunity for Addus. We are pleased to have this well respected organization, its leadership and all the employees of Priority Home Health Care join the Addus team.

  • Sector: Homecare/Hospice     The Ensign Group, Inc.  the parent company of the Ensign™ group of skilled nursing, rehabilitative care services, home health, home care, hospice care, assisted living and urgent care companies, announced today that it acquired Hospice of the South Plains located in Lubbock, Texas and serving patients throughout the South Plains area of Northwest Texas.  The acquisition was effective December 31, 2015. This purchase brings Ensign's growing portfolio to 140 facilities, eleven hospice agencies, thirteen home health agencies, two home care businesses and fifteen urgent care clinics across 12 states.

  • Sector:  Pharmacy     Nyer Medical Group, Inc. announced today that D.A.W., Inc., a wholly-owned subsidiary of Nyer which does business under the name Eaton Apothecary, and Nyer entered into a definitive agreement with Walgreen Eastern Co., Inc. for the sale of a substantial portion of DAW's operating assets, including prescription files and inventory of a total of 12 neighborhood pharmacies which includes the assignment of eight leases, for a purchase price, subject to certain adjustments, of $12.0 million plus up to $5.75 million of qualifying inventory and $1.1 million of operating equipment.   In addition, Nyer also announced today that Nyer and DAW entered into a definitive agreement with certain management investors for the sale of the stock of DAW following the closing of the Walgreens transaction, under which Nyer will receive a benefit of $1,500,000 after giving effect to liabilities to be retained by DAW.  In conjunction with these transactions, following which Nyer would have no remaining assets other than the cash received from the transactions, Nyer intends to proceed with the orderly liquidation and dissolution of Nyer Medical Group, Inc.

2014

      The following transactions further supports the consolidation activities throughout the healthcare sectors.  We expect this trend to continue as providers scale operations and position their organizations for the demographic influx from implementation of the Affordable Care Act.  For more information on how these transactions may propel the strategic options for your business, contact Paragon Ventures today at 800-719-1555.

  • Sector:  Retail Pharmacy   Camp Hill-based Rite Aid Corp. has acquired the assets of nine Kopp pharmacies from Kopp Drug Inc. "The acquisition fits nicely with our strategy to focus our growth in existing markets and will help create a stronger presence in the Altoona market," said Ashley Flower, Rite Aid spokeswoman.     Financial terms of the transaction were not disclosed, but the transaction includes the purchase of nine Kopp Drug locations and all pharmacy files. Kopp Drug, which was inducted into the Blair County Chamber of Commerce Business Hall of Fame in 2007, was the oldest drug store in Altoona giving continuous service since its inception. The company was established in 1878 by W.H. Irwin and was taken over by Yocum Kopp in 1920.  In 1945, Joseph Cohn bought the business at 1515 11th Ave. Morley Cohn, Joseph's son, took the reins from his father in 1970. "We surely expect RiteAid to pick up the torch from Kopp Drug and continue as a community-oriented business. They will do their best to keep up our tradition of operating a community neighborhood business and be involved in the community just like we were," Cohn said.   Jonathan M. Sadock of Paragon Ventures acted as the exclusive advisor to Kopp Drug for this transaction

  • Sector: Medical Supply    Owens & Minor, Inc. (NYSE:OMI) announced it has completed the previously announced acquisition of Medical Action Industries Inc. Owens & Minor acquired all outstanding shares of Medical Action for $13.80 per share in cash, or approximately $207 million, including assumed debt, net of cash. Owens & Minor funded the transaction with cash on-hand, which included proceeds from its recently completed public offering of Senior Notes.  "We are excited with the acquisition of Medical Action, which enhances our capabilities, opens new channels to our healthcare customers and adds new teammates with great expertise in healthcare," said James L. Bierman, president & chief executive officer of Owens & Minor. "By giving our provider and manufacturer customers a more open, cost-effective and scalable solution for unitized delivery of products to the patient, we are increasing our value to customers and shareholders. We are very pleased to welcome the Medical Action teammates to Owens & Minor."

  • Sector:  Hospice / Home Health   Hospital operator HealthSouth Corp said on Monday it bought privately held EHHI Holdings Inc, which owns Encompass Home Health and Hospice, for about $750 million to expand its home health business.  HealthSouth bought Encompass from healthcare-focused private investment firm Cressey & Company LP.  The acquisition is the latest in a string of deals in the home and health hospice sector. Kindred Healthcare Inc bought Gentiva Health Services Inc last month for $1.8 billion in a cash-and-stock transaction.

  • Sector:  Pharmacy   CVSHealth has acquired Miami based drugstore Navarro Discount Pharmacy, as well as Navarro Health Services, a specialty pharmacy.  Navarro is the largest Hispanic-owned drug store in the U.S., with 33 retail stores and annual sales of $340million.  CVS seeks to gain more business from the growing Hispanic market, as well as expand its specialty pharmacy operations.  The Navarro stores will keep their name rather being rebranded as CVS stores. Terms of the transaction were not disclosed.

  • Sector:  Mobility HME  National Seating & Mobility (NSM) has acquired Hudson Seating & Mobility, it announced today, absorbing nine branches and approximately 200 employees. Based in Newington, Conn., and founded in 1980, Hudson’s has nine branches in six states from New Jersey to New Hampshire, according to a press release.  “The timing was right to join this outstanding company,” he said. “Opportunities for increased scale, efficiencies and industry best technology solutions will improve the overall customer experience and serve our staff well.”   NSM has made several buys this year, including Pennsylvania-based Able Mobility Center in September, Oklahoma-based Advantage Mobility in August and Rhode Island-based Major Medical Supply in June.

  • Sector:  HME    Rotech Healthcare announced its first acquisition in several years and the company has indicated that’s only the beginning.  “Rotech is looking to leverage its platform to expand its presence in existing and new markets,” said CEO Tim Pigg in a release. “Unlike many of our smaller distressed competitors, we have the staying power to ride the current market difficulties and capital available to invest in our core products.”  Rotech acquired “certain assets” from Specialized Medical Services in Cody, Wyo., which it said will allow the company to serve respiratory-related patients.

  • Sector:  Medical Device   Medtronic Inc (Minneapolis, MN) will still buy Covidien Plc (Mansfield, MA) but will use $16 billion in debt rather than cash held overseas. The move is a reaction to changes made by U.S. tax authorities to cut the benefits of such inversion deals. In June 2014, Medtronic announced plans to buy Covidien for cash and stock worth $43 billion. Using debt made the transaction more expensive, but the deal would still add to cash earnings in FY 2016 and increase them "significantly" after that. Medtronic still plans to create an Irish holding company, Medtronic Plc, with executive offices in Ireland and operational headquarters in Minnesota. It expects the deal to close in late 2014 or early 2015.

  • Sector:  Home Health    The Ensign Group, Inc acquired Angeles Home Health Care located in Los Angeles, California.  Established by founder and owner Rita Doll in 1980, Angeles Home Health Care has been a trusted home care resource to the Los Angeles healthcare community for over three decades.

  • Sector:  HME    AeroCare has merged with MergeWorthRx and will become a publicly traded company, it was announced today. Under the terms of the agreement, MergeWorthRx, a special purpose acquisition company, will issue approximately 11.3 million new shares and .5 million options to existing AeroCare stockholders, according to a press release. Those stockholders will own 53% of the company, and will have the right to receive up to $30 million of additional shares of MergeWorthRx common stock. "This is an exciting time for AeroCare,” stated Steve Griggs, CEO and founder. “The agreement with MergeWorthRx and AeroCare's emergence as a public company will increase our visibility in the market and provide the capital we will need to accelerate our growth and take further market share." In 2013, AeroCare acquired 23 companies.

  • Sector:  Medical Device   Cantel Medical Corp (Little Falls, NJ) acquired International Medical Service Srl (IMS) (Pomezia, Italy) for $24.5 million. IMS is a manufacturer of automated endoscope reprocessors (AERs) and disinfectant chemistries used in AERs. Cantel will integrate IMS into the Medivators Inc (Minneapolis, MN) business unit and it will be reported as part of the endoscopy segment.

  • Sector:  Medical Device   The Cooper Companies' (Pleasanton, CA) women's healthcare division, CooperSurgical, acquired EndoSee Corporation (Los Altos, CA) for $44 million. EndoSee Corp is the developer of the EndoSee HandTower and Diagnostic Hysteroscope Cannula, a handheld hysteroscopy system designed for office use. The product received FDA (Silver Spring, MD) approval and will be sold in the US market starting in 2015. The acquisition will be neutral to CooperSurgical's FY 2015 earnings.

  • Sector:  Medical Device   Siemens AG (Munich, Germany) said it will sell its hearing-aid business to private-equity firm EQT Partners (Stockholm, Sweden) and Santo Holding (Pöcking, Germany) in a deal valued at $2.68 billion. Through the proposed transaction, EQT will acquire a majority stake in Siemens Audiology Solutions, a division of Siemens Healthcare (Malvern, PA), with Santo Holding acting as a minority co-investor. Siemens will retain a preferred-equity investment of $250.4 million in the business. According to a release, EQT aims to position the hearing-aid business for an eventual initial public offering.

  • Sector:  Health Services   Global Healthcare Exchange (GHX) completed the acquisition of Vendormate (Atlanta, GA), a privately held company specializing in vendor relationship management solutions for healthcare providers and suppliers. GHX will operate Vendormate as a wholly owned subsidiary and identify opportunities to improve automation, efficiency, and accuracy of the complementary solutions through analytics and integrated data flow. Financial terms of the deal were not disclosed.

  • Sector:  BioTech   Bio-Techne Corporation (Minneapolis, MN) agreed to acquire CyVek Inc (Wallingford, CT) for $60 million in cash, plus a potential earn-out payment of up to $35 million based on CyVek revenue over the 30-month period following the closing and an additional potential earn-out payment based on CyVek revenue through 2020 in excess of $100 million. The transaction will be financed through a combination of cash on hand and a revolving line of credit facility. The closing of the acquisition is the result of CyVek having met pre-agreed commercial milestones for developing an immunoassay technology, CyPlex, which, according to the company, integrates an microfluidic cartridge with an analyzer to deliver the most advanced and efficient bench top immunoassay system.

  • Sector:  Medical Supply   Kimberly-Clark Corporation (Irving, TX) announced the record date, distribution date, and distribution ratio for the previously announced tax-free spin-off of its healthcare business. The spin-off will form a new publicly traded company known as Halyard Health Inc (Roswell, GA). Kimberly-Clark shareholders will receive one share of Halyard Health common stock for every eight shares of Kimberly-Clark common stock held as of the close of trading on October 23, 2014, the record date for the spin-off. The spin-off is expected to be effective October 31, 2014, the distribution date for the spin-off, with 100 percent of the shares of Halyard Health distributed to Kimberly-Clark shareholders. Halyard Health has applied to list its shares on the NYSE under the symbol HYH.

  • Sector:  Home Health    The Ensign Group, Inc. (Nasdaq:ENSG), the parent company of the Ensign™ Group of skilled nursing, rehabilitative care services, home health and hospice care, home care, assisted living, and urgent care companies, announced that it acquired Guardian Angel Hospice, a Medicare and Medi-Cal certified hospice agency located in San Diego, California. This acquisition was completed concurrent with Ensign's previously announced acquisition of nine skilled nursing and assisted living operations, a home health agency and a private home care business from Shea Family Care, the largest provider of a complete continuum of post-acute healthcare services in the San Diego market. Through these acquisitions, Ensign operating entities will be able to deliver the full continuum of post-acute care services, including skilled nursing, assisted living, home health, hospice, and personal care services to patients and their families in San Diego.

  • Sector:  Hospice  Apollo Medical Holdings, Inc. (ApolloMed) (OTC-QB: AMEH), an integrated physician-centric healthcare delivery company, announced the launch of a new subsidiary, Apollo Palliative Services (APS), with the acquisition of majority stakes in both a hospice agency and a home health company. In conjunction, the Company appointed Liviu Chindris, M.D., as President of APS.   APS will serve as a single source for hospice, palliative care and home health services for ApolloMed's health plan, hospital and IPA clients in addition to its own subsidiaries and affiliated medical groups: ApolloMed ACO, Maverick Medical Group, AKM Medical Group, ApolloMed Care Clinics and ApolloMed Hospitalists. The hospice agency serves three counties in Southern California, with an average daily census of 40-60 patients, while the home health agency services three counties in California with an average daily census of 100-140.

  • Sector: Home Medical Equipment Littleton Home Care Supply, Inc. has been acquired by local entrepreneurs, Robert and Cynthia Bevan. The full service retail store has been serving the HME needs of the Wilmington, Ohio area since 1979. “Our goal is to take the business to the next level by continuing to provide high-quality service while offering new products and skills for the community,” said the new operations manager, James Long. Terms of the transaction were not disclosed.

  • Sector:  Home Health   Care At Home Connections, a private duty nursing service was sold to Grayhawk Partners, a private investment firm. Terms of the transaction was not disclosed. The transaction team was led by Scott Fife, Vice President and Jonathan Sadock, Managing Partner of Paragon Ventures who initiated the transaction and acted as strategic advisors to Care At Home Connections.

  • Sector:  Home Health   LHC Group, Inc. a national provider of home health, hospice and comprehensive post-acute healthcare services, announced it has signed a definitive asset purchase agreement with Life Care Home Health, Inc. and its operating subsidiaries, headquartered in Cleveland, Tennessee, to purchase 14 home health agencies across seven states for $10 million in cash. The transaction will increase LHC Group's geographical footprint to 352 locations across 30 states. The transaction, which is expected to close on September 1, 2014, subject to customary closing conditions, is anticipated to be accretive to LHC Group's 2015 earnings, with a neutral impact expected for 2014.  The combined service area of Life Care Home Health, Inc., which began its home health operations in 1996, includes 48 counties with an estimated 65 and older population of 2 million in the states of Arizona, Colorado, Massachusetts, Rhode Island, Tennessee, Utah and Washington. The states of Rhode Island, Tennessee and Washington are Certificate of Need (CON) states. The home health agencies to be purchased produced revenues of approximately $28.5 million for each of the calendar year 2013 and the trailing twelve months ended in May 2014, with approximately 90% coming from Medicare.

  • Sector:  Healthcare   The Ensign Group has agreed to purchase nine skilled nursing and assisted living facilities, a home health agency and a private home care business from Shea Family Care, the largest provider of a complete continuum of post-acute healthcare services in the San Diego market. The asset acquisition includes:  Shea Family Care Grossmont, an 86-bed skilled nursing facility located in, La Mesa, California; Shea Family Care La Jolla, a 59-bed skilled nursing facility located in La Jolla, California; Shea Family Care Mission Hills, a 68-bed skilled nursing facility located in San Diego, California; Shea Family Care South Bay, a 94-bed skilled nursing facility located in Chula Vista, California; Shea Family Care Parkside, a 52-bed skilled nursing facility located in El Cajon, California; Shea Family Care Somerset, a 65-bed skilled nursing and sub-acute care facility located in El Cajon, California; Shea Family Care Victoria, a 120-bed skilled nursing facility located in El Cajon, California; Shea Family Care Magnolia, a 99-bed skilled nursing facility located in El Cajon, California; Shea Family Living LoHar, a 68-unit assisted living located in El Cajon, California; Shea Family Home Health, an operating Medicare/Medicaid certified home health agency with a home office located in El Cajon, California; and Shea Family at Home, a private pay home care operation also based in El Cajon, California. "Shea Family has a long history of serving the San Diego community and we are honored to be continuing and advancing the exceptional work that they have been doing for generations," said Christopher Christensen, Ensign's President and Chief Executive Officer. Kenneth Lund, Shea Family's Chief Executive Officer, commented, "With healthcare reform accelerating, we searched for an organization with aligned values that could help continue the mission of excelling in personalized healthcare, expanding our integrated care continuum throughout more of San Diego County. We were impressed by Ensign's focus on quality of life for its team of healthcare providers, quality of care for residents, and quality outcomes across all levels of care, making this relationship a win for the greater San Diego region for generations to come," he said. Ensign will purchase and retain the real estate in two of the nine operations and will assume long-term leases on the remaining facilities, two of which will include an option to purchase the real estate. The facilities will be purchased with cash and will be operated by Ensign's California-based subsidiaries. The acquisition is expected to be effective in the fourth quarter of 2014 and remains subject to the completion of certain regulatory approvals and other closing conditions. Ensign expects the operations to be operationally accretive to earnings in 2015. The closing of the Shea Family transaction will bring Ensign's growing portfolio to 136 healthcare facilities (nine of which will be owned), nine hospice companies, twelve home health agencies, two home care businesses and fourteen urgent care clinics across 12 states.

  • Sector:  Hospice   Halcyon Healthcare, a portfolio company of Health Evolution Partners (HEP), and parent company to Halcyon Hospice, has acquired Community Hospice of Mississippi, headquartered in Tupelo, MS.  Community Hospice was founded by the brother and sister team of Charles “Buck” Boatner and his sister Marilyn Hicks, and has seven locations throughout the state of Mississippi. Locations include Tupelo, Batesville, Hattiesburg, Yazoo City, Philadelphia, Clinton, and an inpatient unit, Darlington Oaks, based in Tupelo.

  • Sector:  Medical Equipment   Oncologix Tech Inc. a diversified medical holding company with operating businesses units in medical device, healthcare services and medical products and technologies, announces the purchase of Esteemcare Inc. ("Esteemcare") and Affordable Medical Equipment Solutions Inc. ("Affordable Medical"), two companies in the medical products industry.  Wayne Erwin, OCLG's Chief Executive Officer, remarked, "Oncologix is extremely delighted to complete the acquisition of Esteemcare and Affordable. Both companies are strong distributors of home medical equipment in respiratory and sleep therapy."  Esteemcare and Affordable Medical's mission is to meet the customer needs by the delivery of high quality, cost effective, CPAP products and services. The Company has a diverse payer mix, is accredited by the Joint Commission on Healthcare Organizations and a winner of 45 Medicare Competitive Bids for CPAP and related supplies. Esteemcare and Affordable Medical began its operations in 2003 and have office locations in both Columbia and Charleston South Carolina. Mr. Erwin further added that, "With over 45 additional MSA markets awarded for sales and distribution, the company is uniquely positioned for rapid growth and expansion. These acquisitions are the first of several we intend to close within the next four months continuing our expansion and growth strategy in our medical products and technologies division."   April H. Mason of Paragon Ventures acted as the exclusive advisor to EsteemCare and Affordable Medical for this transaction.

  • Sector:  Medical Equipment    Patient Home Monitoring (PHM), a company focused on rolling up annuity-based healthcare service companies in the U.S. and Canada, has acquired Care Medical Partners, a Georgia-based HME provider, for about $5.5 million, according to a press release. Under the terms of the deal, PHM will acquire 100% of Care Medical in exchange for $144,243 in cash and 5,655,476 in shares of PHM at $0.26 per share. As part of the deal, PHM will acquire $3.15 million in medical equipment placed with patients. Care Medical, which generated more than $13.1 million in revenue from March 31, 2013, to March 31, 2014, joins other recent acquisitions by PHM in Georgia, as well as South Carolina and Florida. 

  • Sector: Medical Device   ActiveForever has been acquired by an East Coast investment firm specializing in direct marketing of health products, according to a press release. Larry Fugleberg and Erika Feinberg purchased Independent Living Products in 2003, and rebranded it ActiveForever. It provides medical, fitness and assistive technology equipment and devices. The firm is keeping the current management team in place, with Feinberg as CEO and chief outcomes officer, and Fugleberg as director of programming and IT infrastructure.

  • Sector:  Healthcare   Solana Surgical has been acquired by Wright Medical Group for $90 million.

    Sector:  Home Care   LHC Group Inc. (Nasdaq:LHCG), a national provider of home health, hospice and comprehensive post-acute healthcare services, announced today that it has signed a definitive stock purchase agreement with BioScip®, Inc. (Nasdaq:BIOS) to purchase two of its operating subsidiaries, doing business as Deaconess HomeCare and Elk Valley Health Services, for $60 million. The transaction will add 33 locations in five states, increasing LHC Group's geographical footprint to 342 locations across 27 states. The transaction, which is expected to close by the end of the first quarter of 2014, subject to customary closing conditions, is anticipated to be accretive to LHC Group's 2014 earnings by between $0.05 and $0.10 per diluted share.  The combined service area of Deaconess HomeCare and Elk Valley Health Services, collectively one of the nation's largest home health providers, includes 121 counties for home health, 30 counties for hospice and 95 counties for community-based services in the states of Mississippi, Tennessee, Kentucky, Illinois, and Nebraska. Annual revenues are approximately $72.6 million.

  • Sector:  Home Care   Advanced Home Care and Macon, Ga.-based Central Georgia Home Care Services have merged, the providers announced this week.  Central Georgia Home Care Services, a provider of home medical equipment, home infusion and specialty pharmacy services to a 20-county region of central Georgia, will become a branch of Advanced Home Care.  The merger allows Advanced Home Care, which has already partnered with 13 other health systems and hospitals, to further strengthen its presence in the Southeast. 

  • Sector:  Home Infusion     Amerita, Inc., a wholly owned subsidiary of PharMerica Corporation recently announced that it has acquired Altius Healthcare. Financial terms of the transaction were not disclosed.  Altius provides home infusion and specialty infusion services from two locations in Prescott and Tucson, Arizona. The company treats patients at home, doctor's offices, assisted living facilities, ambulatory infusion centers and other non-hospital settings.

  • Sector: Healthcare    The Providence Service Corporation a leader in the management and provision of human social services, innovative global employment services and non-emergency transportation through a variety of government-sponsored programs, announced today that it has entered into an agreement to acquire CCHN Group Holdings, Inc. ("Matrix Medical Network"), a Scottsdale, Arizona provider of in-home health assessment and care management services and a portfolio company of Welsh, Carson, Anderson & Stowe XI, L.P. ("Welsh Carson").  Matrix is a leading provider of health risk assessments for Medicare Advantage health plans and risk bearing providers with a national footprint across 33 states.  The acquisition expands Providence's clinical capabilities and home based services with the addition of operations which include over 600 nurse practitioners.  Providence will acquire Matrix for an aggregate purchase price of $400 million, comprised of $360 million in cash payable at closing and 946,722 shares of Providence common stock with a value of $40 million as of close of trading yesterday.  Of the shares issued, the majority of which will be held by Welsh Carson, 50% will be subject to a one-year lock-up agreement and the remaining 50% will be subject to a two-year lock up agreement.  The acquisition is anticipated to close as early as the fourth quarter of 2014, subject to customary regulatory approvals and closing conditions, and is expected to be accretive to earnings per share in 2015.

  • Sector:   Home Medical Equipment    AeroCare has merged with MergeWorthRx and will become a publicly traded company. Under the terms of the agreement, MergeWorthRx, a special purpose acquisition company, will issue approximately 11.3 million new shares and .5 million options to existing AeroCare stockholders, according to a press release. Those stockholders will own 53% of the company, and will have the right to receive up to $30 million of additional shares of MergeWorthRx common stock. "This is an exciting time for AeroCare,” stated Steve Griggs, CEO and founder. “The agreement with MergeWorthRx and AeroCare's emergence as a public company will increase our visibility in the market and provide the capital we will need to accelerate our growth and take further market share."  The provider plans to achieve growth through organic growth, strategic acquisitions and opening new locations. In 2013, AeroCare acquired 23 companies.  “We are eager to support the AeroCare management team as they execute on their strategic growth initiatives as a prime consolidator of this large, growing, and highly fragmented market," stated Stephen Cichy, MergeWorthRx’s cofounder, president and COO.  AeroCare was launched in 2002 and has grown at an annual compounded rate of 31%. The provider offers respiratory products and services to more than 150,000 patients through 175 locations in 20 U.S. states. AeroCare generates about $150 million in annual revenues, according to the release.  The deal is expected to close by the end of 2014.

  • Sector:  Home Health   National Nursing & Rehab, Inc. announced today that it has acquired the assets of Home Health Services of Texas, Inc. The transaction includes the acquisition of all Home Health Services of Texas, Inc. home health operations, including Home Health Services of Houston, Inc. and Home Health Services of Dallas, Inc.  Home Health Services of Texas has provided home care services in Texas for over 40 years and is one of the longest operating non-profit home health companies in Texas. The transaction includes one Houston office, and four Dallas-Fort Worth area offices providing adult and pediatric home health services. The acquisition broadens National Nursing & Rehab’s footprint into two major metropolitan areas. With the additional new markets, National Nursing & Rehab will have ability to reach 90% of Texas residents.  “The opportunity to expand our programs into Dallas-Fort Worth and Houston simultaneously is part of our goal of becoming the statewide provider of choice for adult and pediatric home care services,” stated Steve Wallace, CEO of National Nursing & Rehab. “We are honored that we were given the opportunity by the Home Health Foundation of Texas to acquire their home care agencies and to continue the mission of quality they have served for over 40 years”. National Nursing & Rehab has been providing quality, innovative, outcomes-based care for over 18 years in south Texas.

  • Sector:  Homecare   Caring Brands International, which includes Interim HealthCare Inc., a national network of home care, hospice and health staffing franchises founded in 1966 and known for its continuum of care in the United States, today expands its global operations with the acquisition of Australia-based Just Better Care. The company is based in Manly, New South Wales, Australia and is a well-known franchisor of in-home non-medical and medical care services in that country. Today’s announcement follows the company’s initial international expansion last year with UK-based Bluebird Care Franchises Limited.

  • Sector:  Urgent Care   HCA Holdings Inc (Nashville, TN) intends to acquire CareNow (Coppell, TX), a provider of urgent-care services with 24 locations in the Dallas-Fort Worth area. HCA's board authorized the repurchase of up to $1 billion of its outstanding shares. The acquisition is set to close in Q4 2014. Terms of the deal were not disclosed.

  • Sector: Home Medical Equipment    Valley Healthcare Group has acquired Heartland Health Therapy, adding a total of six sleep centers and four DME locations in Arizona and Nebraska. “We can now service patients from the southern border of Arizona to Prescott, covering 75% of the state’s population,” said owner Ron Evans. The company plans to open three new Infinity Sleep Solutions sleep centers in Phoenix and Tucson in the next 2 months, raising their total number of facilities to 20 and annual revenue to $20 million.

  • Sector:  Pharmacy   Elwyn Pharmacy Group, a diversified pharmacy service provider headquartered in Pennsylvania recently completed the acquisition of Glen Rock Medical Pharmacy, a New Jersey based pharmacy that specializes in Fertility Medications. 

  • Sector:  Home Health    Accelera Innovations, Inc. ("Accelera") announced that they have closed on the acquisition of SCI Home Health, Inc (d/b/a Advance Lifecare Home Health) ("SCI"), this decision was based on SCI's growth rate of 30 to 40% annually. The agreement reflects a favorable valuation and creates efficiencies for all of the Accelera companies, by leveraging the strength of the Advance Lifecare Medicare certification.  SCI is 100% Medicare certified, and is engaged in the business of providing home health care services. The programs offered are Speech Therapy, Occupational Therapy, Physical Therapy, Skilled Nursing by Registered Nurses, Medical Social Workers, Rehabilitation Services, Home Health Aides and providing Medical Supplies and Equipment.

  • Sector:  Medical Device   Abbott Laboratories (Abbott Park, IL) entered into an agreement to purchase Topera Inc (Menlo Park, CA), a private, venture-backed medical device company focused on developing electrophysiology technologies to improve the diagnosis and treatment of atrial fibrillation. Abbott will acquire all outstanding equity of Topera for $250 million upfront, plus potential future payments tied to performance milestones. Completion of the Topera acquisition is subject to customary closing conditions, including antitrust clearance. It is expected to close in Q4 2014

  • Sector:  Behavioral Health  Acadia Healthcare announced a definitive agreement for the acquisition of CRC Health Group Inc., the nation’s largest specialized behavioral healthcare provider. CRC, headquartered in Cupertino, California, provides substance abuse treatment and other specialty programs through 36 residential facilities and 84 comprehensive treatment facilities that currently treat approximately 40,000 patients daily. These facilities are expected to produce aggregate revenues for 2014 of approximately $450 million and adjusted EBITDA of approximately $115 million. Consideration for the acquisition of privately held CRC is $1.175 billion, consisting of up to approximately 6.3 million shares of Acadia’s common stock and the assumption of CRC’s debt. We expect to complete this accretive transaction, which is subject to normal closing conditions, in the first quarter of 2015

  • Sector: Pharmacy:  Pharmacy   Bristol-Myers Squibb Company (New York City, NY) and Galecto Biotech AB (Copenhagen, Denmark) entered into an agreement that provides Bristol-Myers Squibb the exclusive option to acquire Galecto Biotech AB for up to $444 million, including subsequent clinical and regulatory milestone payments. The acquisition would give Bristol-Myers Squibb worldwide rights to Galecto’s lead asset TD139, a novel inhaled inhibitor of galectin-3 in Phase 1 development for the treatment of idiopathic pulmonary fibrosis (IPF) and other pulmonary fibrotic conditions.

  • Sector:  HME Medical Device    Invacare that it has sold Altimate Medical, maker of the EasyStand stationary standing assistive devices, to Rockwood Equity Partners, a private investment firm, for $23 million in cash. Invacare estimates it will realize net proceeds of about $21.7 million from the sale of Altimate Medical, net of tax and expenses. It will use the proceeds to reduce debt outstanding under its revolving credit facility. For the six months ended June 30, 2014, Altimate Medical’s net sales were about $8.9 million and earnings before tax before any pro forma adjustments were about $2.3 million, according to the release. The Morton-Minn.-based Altimate Medical has 40 independent reps and 2,500 dealers across the United States and sells its products in more than 30 countries. New York City-based Rockwood Equity Partners focuses on investing in lower middle market companies with revenues typically between $10 million and $100 million. It teamed with St. Cloud, Minn.-based Granite Equity Partners to acquire Altimate Medical, according to the Times.  The sale of Altimate Medical is subject to a $1 million escrow arrangement and further subject to certain post-closing adjustments.

  • Sector:  Healthcare    MedAssets, Inc. announced it signed a definitive agreement to acquire privately held SG-2, LLC (Sg2) for approximately $142 million. Based in Skokie, Ill., Sg2 is a leading provider of healthcare market intelligence, strategic analytics and clinical consulting services that help more than 1,400 hospitals, health systems, as well as pharmaceutical and medical device companies understand current and future market dynamics in order to capitalize on growth and performance improvement opportunities. "In today's rapidly evolving healthcare environment, industry leaders cannot rely alone on analysis of past performance or even current best practices to drive strategic business decisions and adequately prepare for future market dynamics," said John Bardis, chairman, president and chief executive officer, MedAssets. "Sg2's predictive analytics, market intelligence and consulting expertise help healthcare executives formulate and forecast a highly-informed strategic path for future growth.

  • Sector:  Medical Device  Rockwood Equity Partners, a private investment firm based in Cleveland and New York, announced today that a partnership of senior management, Rockwood and Granite Equity Partners has acquired Altimate Medical, Inc. (www.easystand.com), a market leading manufacturer of standing solutions to support therapy for adults and children with disabilities.

  • Sector:  Pharmacy   Diplomat Pharmacy, which operates the fourth largest specialty pharmacy in the US, filed on Thursday with the SEC to raise up to $100 million in an initial public offering. The company distributes drugs that require coordinated regimens required by patients with complex chronic diseases. Diplomat is one of the largest independent specialty pharmacy in the US and competes with multinational pharmacies Express Scripts ( ESRX ), Walgreens ( WAG ) and CVS Caremark ( CVS ). The company is controlled by its founder and CEO, Philip Hagerman (73% pre-IPO stake), and other primary shareholders include EVP of Operations Jeffrey Rowe (7%), T. Rowe Price and the Janus Capital Group. The Flint, MI-based company was founded in 1975 and booked $1.6 billion in sales for the 12 months ended March 31, 2014.

Paragon Ventures LLC

 

 

Healthcare Market Pulse

Sector:          Specialty Pharmacy

Buyer Type:   Public

Transaction IPO

TargetDiplomat Specialty Pharmacy is currently an the nation's largest independently held Specialty Pharmacy.  The Company focuses on complete medication management programs for patients with serious and chronic conditions. Key programs include: Oncology,  HIV/AIDS, Hepatitis C, Multiple Sclerosis, Rheumatoid Arthritis, Crohn's and Psoriasis. Other specialty areas include Transplant, Fertility, Dialysis Medication Management, Bio-Identical Hormone Replacement Therapy and Specialty Compounding. The company also specializes in Disease Management programs for Chronic Kidney Disease patients, as well as Home and Out-Patient Infusion.  With locations in Flint, Swartz Creek and Grand Rapids, MI; Cleveland, OH;  Chicago, IL; and Ft. Lauderdale, Florida; Diplomat services the specialty pharmacy needs of patients and physicians nationwide.

 

Comment:     From the time specialty pharmacy emerged from a cottage industry in the mid-1990s to become one of the most exciting areas of healthcare today, specialty pharmacy has been – and continues to be – very special.  This proven, patient-centric high-touch model of care delivers unparalleled outcomes, superior levels of satisfaction, and appropriateness of use for the most complex and costly medications. The specialty pharmacy sector continues to consolidate expand and scale rapidly as the pipeline of new pharmaceuticals and patient populations grow.

 

The pharmacy services sector is very active across a wide variety of niche businesses including specialty, retail, institutional, infusion, compounding, and other related services. While most recently CVS Caremark successfully completed its acquisition of Coram in the infusion niche, most national and regional strategic buyers and private equity groups (PEs) are highly acquisitive with established pharmacy platforms and rich coffers for premium valuations.  These transactions underscore the unprecedented interest that buyers and investors have across the pharmacy sectors.  We anticipate this M&A activity to continue throughout 2014 and beyond.  For more information, contact Paragon Ventures LLC - 800-719-1555.   

  • Sector:  Medical Services    Clayton, Dubilier & Rice (New York, NY), a private equity firm, acquired Healogics (Jacksonville, FL) from Metalmark Capital and Scale Venture Partners (Jacksonville, FL) for $910 million. Healogics operates about 600 hospital outpatient wound care centers across the country.

  • Sector: Medical Marketing  Baird Capital announced that its private equity portfolio company Myelin Health (Myelin) has acquired AVID Design (AVID), a provider of online marketing, communication and technical products and services to hospitals, healthcare systems and physician groups.

  • Sector:  Dental    Blue Sea Capital LLC ("Blue Sea") and CITIC Capital Partners in partnership with management, made a significant investment in DDS LAB, LLC a leading dental laboratory, to position the Company for continued growth. DDS Lab is a leading National Board Certified full-service dental laboratory that sells custom dental prosthetic appliances to dental service organizations, mid-size group practices and sole practitioner dentists across the United States. The Company is headquartered in Tampa, Florida, and has additional distribution facilities in El Segundo, California, and Dallas, Texas.

  • Sector:  Optomology    The Cooper Companies, Inc. (NYSE: COO) announced it will pay $1.2 billion for Sauflon Pharmaceuticals Ltd., the privately owned British soft contact lens and solutions maker. It will be combined with its CooperVision business unit, which can now offer a multi-tier daily strategy for contacts wearers. Sauflon has three manufacturing plants, sales offices in more than 10 countries, and products sold in more than 50 countries.

  • Sector:  Medical Device    Small Bone Innovations, Inc. (SBi) today announced that Stryker Corporation (NYSE:SYK) will acquire substantially all the assets of SBi in an all cash transaction for up to $375 million.  The transaction is expected to close in the third quarter of 2014, subject to customary closing conditions including the expiration or termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period.

  • Sector:  Medical Device    Drive Medical has acquired Medquip which positions it as a leader in the nebulizer and respiratory disposable product categories. Bluffton, S.C.-based Medquip is best known for its Airial line of pediatric nebulizers, according to a press release. Craig Bright, the principal owner of Medquip, will join Drive Medical’s management team as senior vice president of business development, respiratory products. He will direct the nebulizer and respiratory disposable product categories in North America for the combined companies.  Medquip’s operations will be integrated into Drive Medical’s southeast distribution center in Atlanta.

  • Sector:  Medical Device    SP Industries Inc. has acquired Bel-Art Products, a maker of laboratory products including plastic petri dishes, bottles and other items. Based in Warminster, Pa., SP designs and manufactures laboratory equipment and specialty glassware at facilities in the U.S. and Europe.   Bel-Art, formerly privately held and headquartered in Wayne, N.J., operates a custom injection molding facility in Pocomoke City, Md., called NuTech Manufacturing, and also has blow molding, rotomolding and compression molding capabilities. Its end markets include the scientific, industrial and healthcare industries.

  • Sector:  Medical Device    Hasco Medical has sold its Certified Medical business so that it can focus on its mobility vehicle business, it announced last week. "The divestiture represents our complete departure from the durable medical equipment business and makes HASCO the only public company operating in the retail market for handicap-accessible vehicles," said Hal Compton, Hasco CEO, in a release. Hasco offers handicap accessible vans, parts and services through 19 locations.

  • Sector:  Medical Device    Roscoe Medical (roscoemedical.com) and Carex Health Brands (carex.com)announced the new name and brand identity of their parent holding company, Compass Health Brands. The new brand includes an evolved corporate logo, new website (compasshealthbrands.com) and updated message platform.

  • Sector:  Pharmaceuticals    Actavis and Forest Labs announced that the U.S. Federal Trade Commission has voted to approve Actavis' proposed acquisition of Forest. The transaction was officially closed Tuesday in a cash and equity transaction currently valued at approximately $28 billion. The combination creates one of the world's fastest-growing specialty pharmaceutical companies, with annual revenues of more than $15 billion anticipated for 2015.

Paragon Ventures LLC

 

 

Healthcare Market Pulse

 

Sector:          Pharmacy

Buyer Type:   Strategic

Transaction:  Stock Acquisition

Comment:     The pharmacy services sector is very active across a wide variety of niche businesses including specialty, retail, institutional, infusion, compounding, and other related services. While most recently CVS Caremark successfully completed its acquisition of Coram in the infusion niche, most national and regional strategic buyers and private equity groups (PEs) are highly acquisitive with established pharmacy platforms and rich coffers for premium valuations.  These transactions underscore the incredible amount of interest that buyers and investors have in across the pharmacy sectors.  We anticipate this to continue throughout 2014 and 2015.   

  • Sector:  Medical Device    Johnson & Johnson (J&J) (New Brunswick, NJ) completed the divestiture of its Ortho-Clinical Diagnostics (Rochester, NY) business to The Carlyle Group (Washington, DC) for approximately $4 billion, subject to customary adjustments. The Ortho-Clinical Diagnostics business generated net sales of approximately $1.9 billion in 2013. Johnson & Johnson will discuss the financial impact of this divestiture during its scheduled quarterly earnings call on July 15, 2014.

  • Sector:  Pharmacy    Kroger and Vitacost.com on Wednesday announced a definitive merger agreement under which Kroger will purchase all outstanding shares of Vitacost.com for $8 per share in cash, or approximately $280 million.

  • Sector:  Medical Revenue Cycle    Serent Capital, a private equity firm focused on investing in profitable, high-growth businesses, announced today that its portfolio company, Cardon Outreach, has completed the acquisition of Via Health, a company based in Colorado Springs that is focused on patient-friendly resolution of medical bills.

  • Sector:  Medical Services    Merz Inc (Greensboro, NC) entered a definitive merger agreement to acquire Ulthera Inc (Mesa, AZ). According to a release, the a deal will accelerate Merz’s growth in the aesthetics area and expand the company’s portfolio of treatment options in facial aesthetics. The acquisition is valued at up to $600 million in cash and milestone payments. The transaction has been approved by the boards of both companies and is subject to customary closing conditions. The transaction is expected to close in Q3 2014.

  • Sector:  Medical Services    Fresenius Medical Care AG & Co. (NYSE: FMS) is set to become the majority shareholder of Sound Inpatient Physicians Inc. as part of a $600 million recapitalization deal. Sound Physicians has more than 1,000 doctor partners that provide care in hospitals and acute care centers in the U.S. For Fresenius, the deal adds to its services which so far include dialysis clinics, vascular care centers, renal pharmacies and laboratories. The Waltham, Massachusetts-based company also recently acquired MedSpring Urgent Care Centers, which operates 14 centers in Illinois and Texas. Private equity firm TowerBrook Capital Partners will still own a minority stake in sound after the transaction closes within the next 10 days. The transaction underscores the physician-group M&A activity trend. Recent physician group deals include Envision Healthcare Holdings Inc.'s (NYSE: EVHC) acquisition of Phoenix Physicians LLCin June, and Surgery Center Holdings Inc.'s purchase of Symbion Holdings Corp., also in June. For more on why physician groups are consolidating, see "ACA Reshuffles the Deck" and "ACA Accelerates Physician Group Consolidation." 

  • Sector:  Pharmacy    AmerisourceBergen Corporation (Valley Forge, PA) completed the acquisition of a minority stake in Profarma Distribuidora de Produtos Farmacêuticos S.A. (Profarma) (Rio de Janeiro, Brazil). Additionally, AmerisourceBergen and Profarma launched a joint venture to provide enhanced specialty distribution and services to the Brazilian marketplace. The company has invested a total of approximately $110 million in an approximately 19.9 percent minority stake in Profarma and a 50 percent stake in the specialty joint venture. Craig Miller will serve as CEO of the specialty JV. Miller previously led AmerisourceBergen's U.S. BioServices unit.

  • Sector:  Medical Supply    Owens & Minor Inc (Mechanicsville, VA) signed a definitive agreement to acquire all outstanding shares of Medical Action Industries Inc (MDCI) (Brentwood, NY). The total transaction is valued at approximately $208 million, including assumed debt, net of cash. Owens & Minor expects that the transaction will be accretive to non-GAAP net income per diluted share in 2015 and beyond. The acquisition will allow Owens & Minor to advance its service offering to provider and manufacturer customers. "We have a long and productive history working with Medical Action as their largest channel partner and understand the organization well," said James Bierman, president and chief operating officer of Owens & Minor. "We are confident in our ability to achieve identified synergies and in the enhanced value we can deliver together for patients, providers and manufacturers. Our two companies share similar cultures, and we look forward to welcoming the Medical Action employees to the Owens & Minor team as we build an industry leader." The transaction is subject to customary closing conditions, including Medical Action shareholder approval and regulatory clearances, and is expected to close in Q4 2014.

    Paragon Ventures LLC

     

     

    Healthcare Market Pulse

     

    Sector:          Medical Supply

    Buyer Type:   Strategic

    Transaction:  Stock Acquisition

    Comment:     The medical supply sector continues to consolidate as strategic buyers and private equity firms scale operations and expand customer bases.

  •  Sector:  Homecare    Five Points Healthcare announced that it acquired BestCare Home Care on April 30, 2014. BestCare is a home health provider of Medicare-certified, Medicaid-waiver and personal care services throughout Northern and Western Virginia.  Equity financing for the acquisition was provided by Fulcrum Equity Partners. This marks the third acquisition completed by Five Points and Fulcrum and serves as the company's initial entry into the state of Virginia. 

  • Sector:  Hospice    Hospice Advantage, LLC today announced its acquisition of non-profit, faith based Hope Hospice, with five locations in Owasso, Claremore, Checotah, Muskogee, and Tahlequah. This is Hospice Advantage’s first venture in Oklahoma and its seventh in a series of acquisitions that have positioned the Michigan-based agency as one of the nation’s leading providers of hospice services. Financial terms of the deal were not disclosed. Hospice Advantage President Rod Hildebrant stated, “The vision of Hope Hospice truly reflects our own values as a company and we look forward to offering the Tulsa community an even wider array of services and more areas of expertise as well as contributing to the local economy.” Former Hope Hospice Administrator Armondo Duke will join Hospice Advantage as Executive Director, overseeing the day-to-day operations of the five locations. Under his leadership, the agency will continue to provide quality hospice services for patients and families and also diversify their offerings through Hospice Advantage’s signature “Journey” programs, which are aimed at providing disease-specific, customized care to families in need of hospice care.

  • Sector:  Homecare    Kindred Healthcare Increases Bid for Gentiva to $534 Million Long-term care provider Kindred is now offering $14.50 a share for Gentiva, which provides skilled nursing, physical, occupational, speech and neuro rehabilitation therapies.

  • Sector:  Pharmacy    Modern Healthcare, Inc., which is backed by Altamont Capital Partners, has acquired New Orleans-based Total Life Care Rx Pharmacy and Orlando-based Legacy Rx Holdings. These acquisitions expand Modern Healthcare’s disease coverage and geographical footprint and will more than double the Company’s size. Terms of the transaction were not announced.

  • Sector:  Homecare    Health & Comfort Home Care Agency, a home care agency in North Brunswick, NJ that provides services throughout the state of New Jersey, was recently acquired by C & M Health Services, LLC. The principals of the new company have years of experience in the home health care industry, including extensive familiarity with advanced technological solutions that help individuals age-in-place and provide continuity of care. The newly acquired company will still operate under the Health & Comfort Home Care Agency name.

  • Sector:  Pharmacy    AxelaCare Health Solutions, a leading provider of specialty home infusion services, has acquired ARC Infusion Corp., a privately held provider of home infusion services. AxelaCare now has 15 pharmacies and the acquisition increases the company’s services in Southern CA. Current ARC management and staff are remaining with AxelaCare. Terms of the transaction were not disclosed.

  • Sector:  Healthcare Support Services Steris recently acquired Life Systems, an independent endoscopy sales and repair company based in Chesterfield, Mo. They will be part of Spectrum Surgical, a subsidiary of Steris. In 2012, Steris began making a series of successive acquisitions, starting with the privately held US Endoscopy, as an attempt to enter the gastrointestinal devices market. That purchase was made for a reported $270 million.   That acquisition was quickly followed by the purchase of two independent surgical instrument repair companies: Spectrum Surgical Instruments Corp. and Total Repair Express. Steris said it paid $110 million for these two companies.   More recently, April 1, Steris announced that it entered into an agreement to purchase the independent endoscope repair, surgical instrument management and sterile processing consulting company, Integrated Medical Systems International Inc., for $165 million, plus approximately $10 million for the purchase of real estate.  All of the newly acquired companies are part of Steris' specialty services business, which provides services like space decontamination solutions, chamber cleanings and instrument repairs

  • Sector:  Behavioral Health    Acadia Healthcare has announced the acquisition of Riverside Center for Behavioral Medicine for $10.5 million in cash. Based in Riverside, CA – RCBM is a 68-bed acute inpatient psychiatric facility which will fit well into the strong inpatient treatment footprint that Acadia continues to develop across the country. After an active 2013, the transaction is the first of an expected busy 2014 for Acadia. The deal not only expands Acadia's in-state presence in CA, but exhibits the business’s continued commitment to acquiring psychiatric facilities in the fragmented sector.

  • Sector:  Hospice   Myrtle Beach hospice Mercy Care will become a division of the Wilmington-based Lower Cape Fear Hospice & LifeCareCenter Two regional nonprofit healthcare agencies with more than 60 years combined experience are merging.  Mercy Care, based in Myrtle Beach, will become a division of Wilmington, N.C.-based Lower Cape Fear Hospice & LifeCareCenter, according to a news release.  The merger is effective April 1.  “It is with great excitement we announce that Mercy Care has found an excellent partner in Lower Cape Fear Hospice & LifeCareCenter,” Sara-Jo Faucher, executive director and CEO of Mercy Care, said in prepared comments. “Our missions and programs are similar, and we are both nonprofit hospices.”  While Mercy Care will become part of the Lower Cape Fear Hospice & LifeCareCenter team, it will retain the Mercy Care name and brand.

  • Sector:  Medical Device:   OPKO Health Inc (Miami, FL) entered into a definitive agreement to acquire Inspiro Medical Ltd (Tel Aviv, Israel), a medical device company developing a new platform to deliver small molecule drugs such as corticosteroids and beta agonists or larger molecules to treat respiratory diseases. Inspiro’s Inspiromatic™ is a powder inhaler which just successfully completed a double-blinded study.

  • Sector:  Behavioral Health    Pharos Capital Group has acquired Seaside Healthcare - financial terms of the transaction were not disclosed. Based in Shreveport, LA, Seaside is a provider of behavioral health services including inpatient psychiatric treatment, partial hospitalization programs and outpatient programs, with a focus on the adult population. Long term plans include the expansion of outpatient programs, the addition of 36 beds to an existing inpatient facility, and remaining aggressive in developing complementary facilities. Seaside's founder and Chief Executive Officer, Franklin Roemer, rolled significant equity in the transaction and will continue on with the business.

  • Sector:  Hospice   Chicopee VNA and Great to be Home Care will become part of Porchlight VNA/Home Care, serving western Massachusetts.

  • Sector:  Homecare    All Care Home Health has been acquired by SCL Health System and its joint venture partner Univita Health, Inc. All Care Home Health is a home healthcare company that provides skilled nursing, physical therapy, occupational therapy and social work services in metro Denver. This acquisition helps SCL expand its healthcare services to consumers with customized care in the home. Terms of the transaction were not disclosed.

  • Sector:  Medical Services    Summit Partners has invested $95M in CityMD Urgent Care, which has 8 urgent care centers in the New York City area. The Company provides convenient, walk-in medical services as a cost-effective alternative to an emergency room. CityMD plans to utilize Summit Partners’ capital resources and their experience in the urgent care sector to expand the business through both de novo growth and acquisitions.

  • Sector:  Pharmacy     Diplomat Pharmacy has acquired American Homecare Federation, Inc. (AHF), a hemophilia pharmacy based in Enfield, CT. Diplomat is based in Flint, MI but serves patients in all 50 states. Prior to the acquisition, Diplomat already had a strong hemophilia care management program, but this acquisition helps strengthen its presence in the northeast and underscores its commitment to the bleeding disorder community. Terms of the transaction were not disclosed..

  • Sector: Medical Device   Cardinal Health (Dublin, OH) signed an agreement to acquire AccessClosure Inc (Santa Clara, CA), a privately held manufacturer and distributor of extravascular closure devices, for $320 million in cash. Subject to customary closing conditions and regulatory clearances, the transaction is expected to close by June 2014.

  • Sector:  Revenue Cycle   WestView Capital Partners has invested in Xtend Healthcare LLC.  Xtend Healthcare, headquartered in Hendersonville, Tenn., provides services to the hospital market, including managing unpaid claims and predicting incoming revenue. Terms of the deal were not disclosed.

  • Sector:  Medical Device   Trescal, which is backed by private equity firm Ardian, has acquired Instrument Calibration Services and Test Equipment Repair Corp.  Both companies are based in Atlanta, Ga., and provide calibration and repair services to measurement and test equipment. Both acquisitions will expand Trescal's geographical footprint and enhance its calibration and repair capabilities in North America.

  • Sector:  Pharmacy   Rite Aid announced it has acquired Houston-based RediClinic, one of the nation’s leading operators of retail clinics. RediClinic currently operates 30 clinics in the greater Houston, Austin and San Antonio areas. Through the acquisition, RediClinic will operate as a wholly owned subsidiary of Rite Aid.  Details of the transaction were not disclosed.  “Retail clinics play a critical role in today’s health care delivery system and will play an important role in Rite Aid’s overall health and wellness strategy. We are committed to working with RediClinic to expand its current footprint in Texas and, in the near future, begin to bring its expertise in delivering convenient healthcare and wellness programs to Rite Aid customers in select Rite Aid markets.”  RediClinics are staffed by board certified nurse practitioners and physician assistants, who are trained and licensed to treat common conditions and provide preventive services, in collaboration with local physicians who are affiliated with a leading healthcare system in each market. Patients can be treated for more than 30 common medical conditions and RediClinic’s clinicians are able to write prescriptions for these conditions when appropriate.

  • Sector:  HME     Aeroflow Healthcare recently acquired Air-Care Home Health, Inc. of Easley, SC.  Aeroflow will now be the primary oxygen supplies and service provider for Air-Care patients, extending their presence in Greenville, Spartanburg, and surrounding areas.  The opportunity for merger manifested as a result of Aeroflow’s strong presence in the Medicare competitive bidding program.  “This program has presented us with new opportunities. The reason for the acquisition was to expand Aeroflow’s footprint in South Carolina. While they are recognized as a premier DME and service provider in the Southeast, their patient database continues to grow nationwide. Aeroflow is an accredited Medicare and Medicaid provider and accepts most commercial insurances. Aeroflow is also the parent company of FetchRx Pet Pharmacy and CheapCPAPSupplies.com.

  • Sector:  Medical Device   Stryker Corporation (Kalamazoo, MI) completed its previously announced acquisition of Berchtold Holding AG (Schaffhausen, Germany). Berchtold`s product portfolio includes surgical tables, equipment booms, and surgical lighting systems. As previously announced, the transaction is expected to be neutral to Stryker`s 2014 earnings per share excluding acquisition, integration-related, and intangible amortization charges.

  • Sector:   Home Health/Hospice    Cornerstone Healthcare, Inc. acquired Boise-based Life's Doors Hospice, Life's Doors Home Health, and Life's Doors Home Care Solutions from Life's Doors' founder and President, Dr. Mary L. Langenfeld.    Life's Doors has been a fixture in Southwestern Idaho's healthcare community for two decades. Dr. Langenfeld's deep commitment to compassionate, dignified end-of-life care resulted in her founding of Life's Doors Hospice in 1994. Through the ensuing years, she expanded Life's Doors to meet community needs for quality home health, in-home personal care, and non-emergency transport services.   

  • Sector:  Home Health    ViaQuest, Inc., a leading regional health services provider, announced that it has acquired the Indiana operations of TriStar Home Health and Hospice, a division of Trilogy Health Services, LLC, of Louisville, Ky. Terms were not disclosed.  The acquisition, effective immediately, includes TriStar operations known as Vibrant Home Health Care, serving 22 Indiana counties from locations in Evansville, Huntingburg and Terre Haute; Care One Homecare Services, serving 11 central Indiana counties from its Muncie office; and Serenity Hospice, serving 25 counties from branches in Lafayette, Fowler and Terre Haute. The 180 people employed by Vibrant, Care One and Serenity now are employees of ViaQuest.  ViaQuest will leverage its home health and hospice expertise to forge post-acute care partnerships with senior living communities, assisted living and other long-term healthcare facilities, physicians, hospitals and health systems, as well as with families and caregivers in Indiana.  

  • Sector:  Home Health    LHC Group LLC announced that it has acquired the assets of a home health and hospice provider in the Certificate of Need (CON) state of West Virginia and signed a definitive purchase agreement to acquire the assets of a home health and community-based service provider in the CON state of North Carolina. Annual combined revenue for the two transactions is approximately $2 million.  LHC Group acquired St. Joseph Hospital Home Health and Hospice located in Buckhannon, West Virginia, effective April 1, 2014. The service area includes seven counties for home health and six counties for hospice. The Home Health services division is now known as "West Virginia Home Health" and Hospice continues to be known as "St. Joseph's Hospice."   LHC Group has also signed a definitive purchase agreement to acquire the assets of Professional Nursing Services, which is expected to close on May 1, 2014, subject to customary closing conditions. The acquisition comprises a home health provider and four community-based service providers located near Raleigh, North Carolina. The service area includes nine counties for home health and four counties for community-based services. Upon closing of the transaction, the Home Health services division will be known as "North Carolina Home Health" and the Community-Based services division will continue to be known as "Professional Nursing Services."

  • Sector:  Medical Device    Medline Industries Inc (Mundelein, IL) acquired the anterior cervical fusion distraction pin business, including acquiring the design and regulatory pathway, from Amendia (Marietta, GA). With the addition of the distraction pin, Medline now offers a comprehensive offering of surgical instruments for ACDF procedures, including a full line of retraction and distraction instruments and a wide array of sizes and styles of Kerrison Rongeurs and surgical procedure packs. Terms of the agreement were not disclosed.

  • Sector:  Medical Transport   Priority Ambulance announced its intention to purchase Kunkel Ambulance Service of Utica, N.Y., subject to approval of the sale by the New York State Department of Health.  Kunkel Ambulance provides emergency and nonemergency ambulance services in the City of Utica and Oneida County in the Mohawk Valley of Upstate New York. Priority Ambulance is the only locally headquartered national ambulance company in Knox County. It currently operates more than 45 customized Mercedes-Benz ambulances with the latest medical technology and staffs more than 300 licensed paramedics and EMTs in Tennessee, operating as Priority Ambulance, and in Florence and Birmingham, Alabama, operating as Shoals Ambulance.

  • Sector:  Pharmacy  Sun Pharma announced it will acquire 100% of Ranbaxy in an all-stock transaction valued at $4 billion. The combination of Sun Pharma and Ranbaxy creates the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India, Sun Pharma stated. The combined entity will have operations in 65 countries, 47 manufacturing facilities across five continents, and a significant platform of specialty and generic products marketed globally, including 629 abbreviated new drug applications.

  • Sector:  Pharmacy   McKesson Specialty Health, a division of McKesson Corp (San Francisco, CA), will acquire a majority stake in Oncology Rehab Partners (Northboro, MA), an oncology rehabilitation services company. With the addition of Oncology Rehab Partners’ training and certification services, McKesson Specialty Health will now offer solutions to support cancer care providers at nearly every stage of patient care, including clinical decision-making, prehabilitation, treatment, and rehabilitation. Terms of the agreement were not disclosed.

  • Sector:  Healthcare IT   Varian Medical Systems (Palo Alto, CA) completed the acquisition of certain assets of Velocity Medical Solutions LLC (Atlanta, GA) a privately held developer of specialized software for cancer clinics. The acquisition includes software that enables clinicians to aggregate unstructured treatment and imaging data from diverse systems and use this information to make more informed treatment decisions. Varian will continue development of the oncology software platform. Financial terms of the acquisition were not disclosed.

  • Sector:  Home Medical Equipment   Bemes Home Medical was acquired by Steve Bagwell.  BEMES is a durable medical equipment Provider that serves the Cardiopulmonary and Sleep Community by providing medical equipment, service, training, and education, along with comprehensive disease management programs. Bemes Home Medical performs its services in the homes of both pediatric and adult patients in Saint Louis and surrounding communities.  The business was acquired by Steve Bagwell, Owner of Advantage Medical Systems.

  • Sector:  Healthcare IT   Brightree has acquired Strategic AR Solutions, a provider of private-pay billing and collections solutions.  Kevin Winkley, founder and CEO of Strategic AR, will continue to lead the company, which will operate as a separate entity, according to a release.  For Brightree customers, the deal means additional integration, such as the automatic posting of payments back into the billing system, the release notes.

  • Sector:  Medical Device    AirStrip (San Antonio, TX) acquired the assets of Sense4Baby Inc (La Jolla, CA), the developer of a wireless fetal/maternal monitoring system to perform non-stress testing (NST) for high-risk pregnancies. AirStrip also licensed the associated technology from the Gary and Mary West Health Institute (La Jolla, CA). According to a release, the acquisition will initially allow women to undergo non-stress testing to monitor fetal and maternal heart rate and contraction patterns using non-invasive sensors in physicians’ offices, clinics, and ambulances. AirStrip plans to seek FDA (Silver Spring, MD) clearance for home-based monitoring for the Sense4Baby technology. Terms of the deal were not disclosed.

  • Sector:  Healthcare IT  ProPharma Group, a compliance services company serving the pharmaceutical, biotechnology and medical device industries, today announced the acquisition of Professional Information Ltd an international leader in Medical Information services.  The acquisition establishes a comprehensive, global Medical Information (MI) service by combining Professional Information (PI) with Advanced Response Management (ARM), a subsidiary of ProPharma Group, which provides MI services from the U.S. The strategic consolidation of ARM and PI will result in one of the largest, globally integrated organizations exclusively focused to provide Medical Information services.

  • Sector:  Pharmacy     Safeway and Albertsons announced a definitive agreement under which AB Acquisition will acquire all outstanding shares of Safeway in a deal valued at more than $9.1 billion. The transaction is expected to close in the fourth quarter of this year. The companies will operate independently until closing.

  • Sector:  Healthcare IT Quest Diagnostics (NYSE: DGX), a provider of diagnostic information services, today announced that it has entered into a definitive purchase agreement under which Quest will acquire Summit Health. Terms of the transaction were not disclosed. Summit Health is a leading provider of on-site prevention and wellness programs primarily for employers.

  • Sector:  Home Infusion   Home Solutions Infusion Therapy (“Home Solutions”), a leading provider of specialty home infusion pharmacy services, today announced the acquisition of the home infusion division of Riverside Health System (“Riverside”), Based in Newport News, Virginia. Riverside is a not-for-profit healthcare organization that consists of an integrated network of physician practices, acute care hospitals, innovative older adult programs, and other health services.

  • Sector:  Home Health     Transition Capital Partners (“TCP”) is pleased to announce the sale of its portfolio company, Coordinated Home Health Care (“CHHC”), to Addus HomeCare Corporation (NASDAQ: ADUS), a national provider of home care services based in Palatine, IL.  TCP acquired CHHC in 2007 and grew it to become the largest provider of home health caregiver services in the state of New Mexico. With 12 offices providing services to over 1,300 Medicaid patients, CHHC perfectly complements Addus’ multi-state home health business. The transaction closed on December 2, 2013.

  • Sector:  Pharmacy   Elwyn Pharmacy Group, a diversified pharmacy service provider headquartered in Pennsylvania recently completed the acquisition of Glen Rock Medical Pharmacy, a New Jersey based pharmacy that specializes in Fertility Medications.  Elwyn Pharmacy Group is a diversified provider of pharmacy products and services including specialty Rx and long term care pharmacy.  From locations in Garnet Valley, Pennsylvania, Media, Pennsylvania, Charleston, West Virginia, and Glen Rock, New Jersey, the company serves thousands of patients living with hepatitis, cancer, HIV/AIDS, inflammatory conditions, multiple sclerosis, and other specialty disease states.  Additionally, the company provides fertility medications and is launching its newly developed Infusion Division to include IVIG, Hemophilia, and other home infusion therapies

  • Sector:  Healthcare Systems   Duke Lifepoint Healthcare (DLP Healthcare) (Brentwood, TN) signed an LOI to acquire Conemaugh Health System (Johnstown, PA). Under the proposed deal, DLP Healthcare will invest more than $500 million in Conemaugh over the next 10 years, retain its existing employees, and allow its board of directors to control local operations. A Conemaugh spokesman said the acquisition was part of the system's plan to partner with a larger organization to better position itself for changes in healthcare delivery. Pending due diligence and regulatory approvals, the acquisition is expected to close in fall 2014.

  • Sector:  Medical Device   Patient Safety Technologies Inc (PST) (Irvine, CA) stockholders voted to approve the merger to make PST a wholly owned subsidiary of Stryker Corporation (Kalamazoo, MI). PST stockholders also approved the proposal to approve, on an advisory (non-binding) basis, specified compensation payable to the company's named executive officers in connection with the merger.

  • Sector:   Home Health    Accelera Innovations, Inc. ("Accelera") announced that they have signed a purchase agreement ("PA") to acquire 100% of At Home Health Services LLC and All Staffing Services, LLC, ('Subject LLC's") for $1.42 million in cash. Furthermore, Accelera's wholly owned subsidiary At Home Health Management LLC executed an agreement to operate both entities moving forward.  At Home Health Services is engaged in the business of providing home healthcare services for mental health, seniors, children, skilled nursing, therapists, wellness education, physical assistance, and special care situations. All Staffing Services is engaged in the business of providing staffing for clerical and industrial positions.

  • Sector:   Home Healthcare    Centene Corp. (CNC) agreed to acquire a roughly 68% interest in U.S. Medical Management LLC, a provider of in-home health services, for $200 million in cash and stock as the Medicaid insurer continues to expand its stable of services.  Centene also said it is forming a new health-care enterprise holding company that will connect Centene and other health solution providers in conjunction with the deal, which is expected to close in the first quarter. Further details weren't provided.  The acquisition of U.S. Medical Management is expected to be funded with a combination of about one-third cash and two-thirds Centene stock.  The Michigan-based company serves individuals with complex health needs and conducts more than 400,000 physician house calls annually.  U.S. Medical Management founder and Chief Executive Mark Mitchell will continue to lead that company and retain his existing management team.  Centene is expected to provide additional details during its investor presentation on Friday.  Shares closed Wednesday at $55.73 and were inactive premarket. The stock is up 36% this year.

  • Sector:   Hospice    Infinity Hospice, located at 225 Barnwell Ave. W., has been acquired by Halcyon Healthcare.  It’s Halcyon’s first hospice acquisition in South Carolina, according to a press release, and Halcyon will initially operate under the Infinity name. Halcyon was formed in 2010 by Kohl, Jack Draughon and Health Evolution Partners, to build the hospice group in the Southeastern U.S.  Halcyon currently serves 55 counties in the state of Georgia.

  • Sector:   Medical Equipment/Sleep    Copper Creek Medical, Inc. a provider of sleep therapy equipment, oxygen and supplies was acquired in a private transaction.  Terms were not disclosed.  Paragon Ventures was the exclusive advisory to Copper Creek Medical in this transaction. 

  • Sector:  Behavioral Health    Acadia Healthcare Company, Inc. announced the acquisition of inpatient psychiatric facilities in Seattle, Washington, and Riverside, California, expanding the Company’s geographic presence to two new states. Effective, December 1, 2013, the Company completed the purchase of an acute inpatient psychiatric facility from Highline Medical Center, a nonprofit healthcare system headquartered in Seattle. The facility, which was purchased for $20.0 million in cash, has a certificate of need for 135 beds and currently operates 63 inpatient psychiatric beds. Acadia is adding 22 inpatient psychiatric beds in a unit that had not been in use and will transition an additional 50 beds to inpatient psychiatric beds from other uses upon the expiration of third-party provider leases at the end of 2014.  Acadia also purchased the Riverside Center for Behavioral Medicine, a 68-bed acute inpatient psychiatric facility in Riverside, California. Consideration for this purchase, which was effective January 1, 2014, was $10.5 million in cash.

  • Sector:  Physical Therapy    Silver Oak Services Partners portfolio company Physical Rehabilitation Network (PRN), a leading physical therapy clinic platform in the western U.S., has completed the recapitalization of Rehab Authority a leading independent outpatient physical therapy provider in Idaho and North Dakota.

  • Sector:   Pharmaceuticals    Chemicals company American Pacific Corp. has agreed to be acquired by investment firm HIG Capital LLC for about $392 million.  American Pacific makes fine and special chemicals for the pharmaceutical, aerospace and defense and fire-protection industries, among others.  HIG will begin a tender offer to acquire all American Pacific's shares at $46.50 each, a 19% premium to Thursday's closing price. Those shares not tendered will be acquired in a second-step merger at the same cash price.

  • Sector:  Behavioral Health     Pharos Capital Group, LLC, a private equity firm based in Dallas and Nashville, has acquired behavioral health services provider Seaside Healthcare, Inc. The acquisition was done in partnership with the company's founder, Franklin Roemer, who rolled a significant equity stake in conjunction with the transaction. Seaside, founded in 2009 and headquartered in Shreveport, Louisiana, is a leading behavioral health services provider that specializes in treatment services for the adult and geriatric population. The company's network of regional facilities offers a comprehensive suite of behavioral health services, including inpatient psychiatric treatment, partial hospitalization programs and intensive outpatient programs.

  • Sector:   Medical Equipment    Wheelchairs Plus, a provider of state-of–the-art power wheelchairs and customized manual wheelchairs for special needs clients, has been acquired by Hope Medical Supply, Inc. of San Antonio. The announcement was made by Kathleen Weir Vale, CEO of Hope Medical Supply, Inc., which has provided medical equipment for patients living at home since 1941. The acquisition of Wheelchairs Plus gives Hope Medical a prime South Texas Medical Center location. Specializing in complex rehabilitation equipment for clients with disabilities such as spina bifida and cerebral palsy, Wheelchairs Plus was founded in 1982 and has developed a specialty niche in pediatric mobility equipment. Hope Medical purchased the company from Tom Cottle, who will remain as director of the professional team.

  • Sector:  Behavioral Health    Highline Medical Center has sold its inpatient psychiatric facility in Seattle to Acadia Healthcare Company Inc. of Tennessee for $20 million.  The Seattle facility currently operates 63 inpatient psychiatric beds and is adding 22 inpatient beds. It's also moving 50 beds to inpatient psychiatric beds from other uses.  "The purchase of the Seattle facility represented our seventh acquisition for 2013," said Joey Jacobs, chairman and CEO of Acadia, in a statement.

  • Sector:   WoundCare    Candescent Partners, LLC, is pleased to announce the merger of its portfolio company Candescent Healing, LLC with a subsidiary of RestorixHealth, Inc. Candescent Healing was formed in 2009 by Candescent Partners, Harbert Capital, Gemini Investors and management.  Candescent Healing and RestorixHealth, both based in Tarrytown, NY, develop and manage comprehensive advanced wound care and hyperbaric treatment centers in collaboration with general acute care hospitals. The combined company, which will operate under the name RestorixHealth, represents one of the largest providers of wound care management services in the United States.

  • Sector:  Medical Device    Endo Health Solutions (Nasdaq: ENDP) announced it has entered into a definitive agreement to sell its HealthTronics business to Altaris Capital Partners, LLC for an upfront cash payment of $85 million, subject to cash and other working capital adjustments. In addition, Endo will receive rights to additional cash payments of up to $45 million based on the future operating performance of HealthTronics for a total consideration of up to $130 million. The company previously divested two operating divisions of HealthTronics, its image guided radiation therapy and its anatomical pathology laboratory businesses, for total consideration of approximately $25 million.

  • Sector:  Medical Device    Cantel Medical Corp (Little Falls, NJ), through its Crosstex International (Hauppauge, NY) subsidiary, acquired Sterilator Company Inc (Cuba, NY). Sterilator Company is a manufacturer of biological indicators and supplies for sterility assurance products, which are used to monitor the effectiveness of sterilization processes. Sterilator serves both the medical and industrial markets.

  • Sector:  Healthcare IT    WellnessFX, a leading cloud-based consumer health and wellness technology firm, has been acquired by Health Elements, a provider of proprietary health management systems for patients and healthcare professionals.  Under the WellnessFX brand, the merger will create a comprehensive technology platform for consumer health products, services, and information.  In addition, WellnessFX will be partnering with Thorne Research, a leading medical grade nutrition company and majority shareholder of Health Elements.

  • Sector:   Medical Device    Medtronic Inc (Minneapolis, MN) acquired TYRX Inc (Monmouth Junction, NJ), a privately held developer of implantable combination antibiotic drug and implanted medical devices. The all-cash transaction included an initial payment of $160 million plus potential earn out and performance-based milestone payments. TYRX's offerings include the AIGISRx R Fully Resorbable Antibacterial Envelope, designed to reduce surgical site infections associated with Cardiac Implantable Electronic Devices (CIEDs), and the AIGISRx N Antibacterial Envelope, for use with spinal cord neuromostimulators.

  • Sector:   Healthcare IT    Press Ganey, the leading patient experience improvement firm, announced the acquisition of On The Spot Systems®, a point-of-care survey technology firm that enables organizations to capture real-time patient feedback. The acquisition advances Press Ganey's Patient Voice™ portfolio for health care organizations by adding Point of Care to existing modes of mail, phone and eSurvey. Point of Care expands feedback via any tablet or mobile device enabling providers to improve patient engagement across the continuum of care.

  • Sector:   Pharmacy    Charlotte-based Mosaic Capital Partners, LLC announced that it closed its first investment after structuring and funding the leveraged employee stock ownership plan ("ESOP") buyout of Lees Specialty Compounding, LLC ("LSC" or "The Company").  The transaction resulted in the acquisition of The Apothecary Shoppe and affiliates, through which the ESOP will own 100% of The Company.  The Apothecary Shoppe's founder Dr. Deril J. Lees, Sr. explained, "Mosaic's strategy allowed our family to obtain the economic value we wanted while preserving a legacy for our employees.  We are very proud of our history here in the Tulsa community, and we've always worked to keep our focus on serving our customers.  It's quite meaningful that we can continue that mission."

  • Sector:   Medical Device    Stryker Corp. says it will pay $120 million to buy Patient Safety Technologies Inc., a maker of surgical safety systems.  Kalamazoo-based Stryker said Tuesday that it will pay $2.22 a share for the Irvine, Calif.-based company.  Stryker says that the Patient Safety Technologies subsidiary SurgiCount Medical Inc. makes the Safety-Sponge System. It’s a system intended to prevent retained foreign objects during surgery.  Those objects can include surgical sponges, needles, and instruments or instrument fragments left inside a patient’s body during an operation.  Stryker says it expects to close the deal in the first quarter of 2014.

  • Sector:  Medical Supply    Ansell Ltd (Iselin, NJ) reached an agreement to acquire BarrierSafe Solutions International (Lake Forest, IL) for approximately $615 million. BarrierSafe’s CEO Michael Mattos and COO/CFO Joseph Kubicek will become part of the Ansell leadership team once the transaction is finalized. The agreement is subject to U.S. anti-trust clearance and customary closing conditions. It is expected to be completed during Q1 2014

  • Sector:  Medical Supply    180 Medical, a leader in the home delivery of intermittent catheters and other medical supplies, announced today that it has acquired Symbius Medical, a national home medical supply company.    Phoenix-based Symbius provides urological and other medical supplies nationally, as well as durable medical equipment on a regional basis. Terms of the acquisition were not disclosed.

  • Sector:   Medical Device    AtriCure, Inc. (Nasdaq: ATRC), a leading Atrial Fibrillation (Afib) medical device provider, and Endoscopic Technologies, Inc. d/b/a Estech (“Estech”), today announced that they have entered into a definitive merger agreement under which AtriCure has agreed to acquire Estech for a cash-free, debt-free up-front payment of approximately 2.1 million shares or $34 million of AtriCure common stock and up to $26 million in additional consideration based on the achievement of certain revenue-based milestones. The transaction is subject to customary closing conditions and is expected to close in the next several weeks. AtriCure shareholder approval is not required.  Estech, a privately held company based in San Ramon, California, develops and markets a portfolio of innovative surgical ablation devices that enable physicians to perform a variety of traditional and minimally invasive procedures using Estech’s proprietary temperature controlled RF energy.

  • Sector:   Medical Device  GE Healthcare (Waukesha, WI) and Thermo Fisher Scientific (Waltham, MA) entered into an agreement for GE Healthcare to acquire Thermo Fisher’s HyClone™ cell culture media and sera and gene modulation and magnetic beads businesses for approximately $1.06 billion. The acquired businesses will enable GE Healthcare to manufacture biological medicines and vaccines and to expand and accelerate the development of "end-to-end" technologies for cell biology research, and cell therapy.

  • Sector:   Medical Device    Polymer Technology Systems Inc (PTS Inc) (Indianapolis, IN) acquired the A1CNow family of products from Bayer Diabetes Care (Whippany, NJ). The A1CNow+ Multi-test A1C System and A1CNow SELFCHECK At-Home A1C System are devices for monitoring A1C levels. The tests give healthcare providers and people with diabetes an indicator of a patient’s average blood glucose control for approximately a three-month period. The A1CNow system’s rapid results and mobility features enable healthcare providers to communicate face-to-face with patients about their diabetes control for better point-of-care convenience.

  • Sector:   Medical Device    Orthopedics giant Stryker agrees to pay $2.22 per share for Patient Safety Technologies, a 59% premium over PST's closing value at the end of last week.  Medtech giant Stryker (NYSE:SYK) announced this week plans to pay $2.22 per share for California safety-sponge maker Patient Safety Technologies (OTC:PSTX), a deal valued at about $120 million. The per-share offer, to be paid in cash, represents a 59% premium over PSTX's $1.40 close at the end of last week. The news sent PSTX shares up to $2.20 as of about 1 p.m. today.

  • Sector:  Medical Device    AtriCure Inc (Schiphol, The Netherlands) completed the acquisition of Endoscopic Technologies Inc (dba Estech) (San Ramon, CA). Estech develops and markets a portfolio of innovative surgical ablation devices that enable physicians to perform a variety of traditional and minimally invasive procedures using the company’s temperature-controlled RF energy. AtriCure expects the transaction to increase sales and marketing expense as well as research and development expenditures in order to accelerate clinical development and commercial sales of the combined product portfolio. While these expenses will increase on absolute dollar basis, AtriCure expects these expenses to decrease as a percentage of sales beginning in 2015.

  • Sector:   Medical Device     CareFusion (San Diego, CA) completed its acquisition of the Vital Signs (Totowa, NJ) division from GE Healthcare (Waukesha, WI) in the U.S., China, and certain other regions. CareFusion agreed to purchase Vital Signs for $500 million. In connection with this first closing, CareFusion paid GE approximately $470 million in cash. The balance will be paid upon completion of the acquisition of the remaining international operations of Vital Signs pending regulatory review and customary closing conditions.

2013

  • Sector:   Pharmacy    Sedell Pharmacy sold three of their original nine pharmacies to CVS, closing shop on their stores in Assonet Village, Lakeville and Carver.  CVS on North Main Street in Fall River has taken on the customers and prescriptions of all Freetown Sedell customers. The CVS store is only about two miles south of Sedell's.

  • Sector:  Medical Supply    Ansell Ltd (Iselin, NJ) reached an agreement to acquire BarrierSafe Solutions International (Lake Forest, IL) for approximately $615 million. BarrierSafe’s CEO Michael Mattos and COO/CFO Joseph Kubicek will become part of the Ansell leadership team once the transaction is finalized. The agreement is subject to U.S. anti-trust clearance and customary closing conditions. It is expected to be completed during Q1 2014.

  • Sector:  Home Medical    Advanced Home Care has merged with WellStar HME & Infusion to expand its footprint in Georgia, the provider has announced.  Marietta, Ga.-based WellStar HME & Infusion provides home infusion, specialty pharmacy and home medical equipment and services in the greater Atlanta area.  “We entered the Atlanta market at the beginning of 2013 with the purchase of a company in Norcross,” said Joel Mills, CEO of Advanced Home Care, in a release. “Our new relationship with WellStar strengthens our commitment to this region.”  The merger also allows Advanced Home Care to broaden its services to WellStar Health System, an integrated healthcare delivery system that includes numerous medical centers, hospitals, urgent care centers and other providers.  WellStar Home Health is not part of the merger and will continue to provide in-home nursing for infusion patients, according to the release.  Advanced Home Care will continue to operate its Norcross location. In all, it has 34 locations throughout Georgia, North Carolina, South Caroline, Tennessee and Virginia.

  • Sector:  Medical Supply    Henry Schein, Inc. recently announced the acquisition of a 60% stake in BioHorizons, a U.S based manufacturer of advanced dental implants with sales of $115 million. However, the financial terms of the agreement remain undisclosed.  Post the takeover, BioHorizons will continue to operate as an independent company. The transaction involves a two-step process: a recapitalization through which Henry Schein will lend approximately $145 million to BioHorizons to fund distribution to shareholders, which will occur prior to the deal’s closure, followed by the equity investment. The transaction is expected to be sealed by the end of the year, subject to regulatory approval. Henry Schein expects the acquisition to be dilutive to its earnings per share by 3–5 cents in 2014 and accretive by 3–4 cents in 2015. The acquisition of BioHorizon marks Henry Schein’s entry into the global implant market, which is estimated to touch $4.2 billion by 2016. Combined together, the U.S and Canadian markets alone reveal a potential of $1.5 billion in 2016, up from $1 billiion in 2012.

  • Sector:  Home Infusion Pharmacy    CVS Caremark announced the acquisition of Coram, the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group, for roughly $2.1 billion. Coram provides infusion therapies and nutrition services to more than 20,000 patients each month.  The acquisition is a significant move for CVS Caremark given the growth of the home infusion business and specialty pharmacy. Furthermore, it enables CVS Caremark to further leverage its “integration sweet spots” and is in line with the company’s strategy of investing in core businesses that will help drive growth. The infusion services market is estimated to be around $11 billion and the acquisition will undoubtedly enable CVS Caremark to compete in the growing market as specialty infusion drugs account for a significant portion of new drugs in the pipeline.  CVS Caremark executives have long expressed the company’s commitment to expanding its role in specialty pharmacy. Specialty currently represents about 20% of the total drug spend today, but that number is projected to rise to more to than 30% by the end of the decade.

  • Sector:  Healthcare IT/Revenue Cycle Management   Brightree LLC, the leading provider of cloud-based clinical, billing and business management software solutions for the post-acute care industry, announced that it has acquired MedAct LLC, a provider of home medical equipment (HME) and durable medical equipment (DME) software solutions. As the software vendor space continues to consolidate, Brightree expands its market presence by adding 330 HME customers to its growing family of more than 3,000 providers.

  • Sector:  Medical Device   CareFusion Corp. agreed to acquire the Vital Signs division of General Electric for $500 million as the medical-equipment company looks to expand its anesthesiology and respiratory business. CareFusion has been working to change its specialty-disposables business from being a specialty distributor to having a higher percentage of its products made in-house, a move that should help improve margins. CareFusion said it will acquire respiratory care and anesthesiology product manufacturer Vital Signs from GE Healthcare, a GE medical technologies and services business, adding that Vital Signs has $250 million in annual revenue.

  • Sector:  Healthcare IT   Streamline Health Solutions announces the acquisition of SaaS Solutions Company.  The acquisition price reported was $6.5 million.

  • Sector:  Medical Dev ice  Teleflex Inc (Limerick, PA) completed the acquisition of Vidacare Corporation (San Antonio, TX). The acquisition is not expected to significantly impact Teleflex’s 2013 revenue or adjusted earnings per share expectations. The transaction is expected to contribute approximately $68 million to $72 million of revenue and approximately $0.10 to $0.15 in adjusted earnings per share in FY 2014, excluding non-recurring purchase accounting items and other acquisition and integration related costs.

  • Sector:  Medical Devices    Water Street Healthcare Partners (Chicago, IL) sold Medical Specialties Distributors LLC (MSD) (Stoughton, MA) to New Mountain Capital (New York, NY). MSD is a distributor and solutions provider to the alternate-site home infusion therapy market. This is Water Street's fourth divestiture in the past two months. It recently sold its pharmaceutical services company AAIPharma Services Corp (Wilmington, NC) to Cambridge Major Laboratories (Germantown, WI). In October 2013, Water Street sold two laboratory services companies: ConVerge Diagnostic Services (Peabody, MA) to Quest Diagnostics (Lawrenceville, GA), and PLUS Diagnostics (Union, NJ) to Miraca Life Sciences (Irving, TX). Water Street also recently invested in Temptime Corporation (Morris Plains, NJ).

  • Sector:  Homecare    Kindred Healthcare Inc (Louisville, KY) completed the previously announced acquisition of Senior Home Care Inc (Clearwater, FL) for $95 million. Senior Home Care is one of the largest home health providers in Florida and Louisiana, with 47 locations. It generates annualized revenues of approximately $143 million. Kindred expects that the transaction will be accretive to earnings in 2014. Kindred financed the transaction with operating cash flows and proceeds from its revolving credit facility.

Q4 - 2013 Market Pulse Update

So far in 2013, healthcare M&A markets delivered robust activity and an increasing numbers of closed transactions.  We expect this activity to continue through 2014 as the healthcare markets begin rapid expansion of the covered population.  Corporate buyers and strategic private equity firms are actively pursuing both platform and accretive acquisitions as evidenced by strategic  acquisitions and recent private equity portfolio exits shown below. 

There are numerous factors which are influencing this activity including strategic initiatives, strong corporate coffers, availability of capital and low interest rates.  The unprecedented demographics  and opportunities created by the Affordable Healthcare Act, regardless of how flawed, are also driving the scope and breadth of the current market. 

As the demand and consumption of healthcare in the US surges, the providers across the healthcare supply chain will have increasing opportunities to significantly drive revenues.  The key will be to implement best practices to properly scale operations and initiatives to protect profitability amidst declining gross margins.  These dynamics will continue to propel M&A opportunities and strategic options for the owners of healthcare businesses.

 

  • Sector:  Infusion Pharmacy   Water Street Healthcare Partners, a strategic investor focused exclusively on the health care industry, announced today that it has sold Stoughton, Mass.-based Medical Specialties Distributors, LLC ("MSD") to New Mountain Capital. Water Street partnered with MSD's management team in 2010 to build the company into the nation's leading distributor and solutions provider to the growing alternate-site home infusion therapy market.  MSD has achieved strong double-digit growth annually since Water Street invested in the company. Working with management, Water Street developed and executed a strategic plan that expanded MSD's capabilities and extended its offering into new markets as demand for intravenous (IV) therapy in the home increased. In June 2013, MSD acquired Medical Technology Resources, LLC ("MTR") to further its leadership position in the home infusion market. Today, MSD serves more than 4,000 health care providers across North America with a total enterprise solution comprised of infusion therapy products, supplies, biomedical services and information technology solutions.

  • Sector:  Pharmacy    The Medicines Company (NASDAQ: MDCO) today announced that it has acquired Rempex Pharmaceuticals, Inc., a company with multiple potential new therapies focused on multi-drug resistant gram-negative bacteria.

  • Sector:  Home Infusion Pharmacy   Private equity-backed AxelaCare Health Solutions has acquired SCP Specialty Infusion for an undisclosed amount. SCP is the parent company of home-based infusion service Sirona Infusion Inc., as well as Access IV, HomeCare IV and InfuSource. The companies provide services to patients who have been discharged from hospitals and need to receive antibiotics, hydration, antiemetic, nutrition and other intravenous therapies at their homes. The transaction doubles AxelaCare’s number of pharmacies. The Lenexa, Kan.-based company has pharmacies in Arizona, California, Colorado, Kansas, Louisiana, Maryland, New Mexico, Oklahoma, Oregon, Pennsylvania, with branches scheduled to open in Nebraska and New England.

  • Sector:  Laboratory Devices    Scientific Industries Inc (Bohemia, NY) proposed an agreement with Fulcrum Inc (Clifton, NJ) a privately-held company, to acquire its laboratory and pharmacy balance and digital scale business, including the Torbal DRX3 mechanical scale. Scientific estimates the total value of the deal to be approximately $1.7 million. The transaction is subject to completion of a purchase agreement which would provide for a consideration of cash, shares of common stock, and commissions on future sales of the products through the year ending June 30, 2017.

  • Sector:  Medical Device   Cantel Medical Corp (Little Falls, NJ) acquired Jet Prep Ltd (Herzliya, Israel). Jet Prep is the developer of the Jet Prep Flushing Device, a single-use irrigation and aspiration catheter intended to improve visualization during colonoscopy procedures. The Jet Prep Flushing Device has FDA (Silver Spring, MD) 510k and CE Mark clearances. Jet Prep will be integrated into Cantel’s Medivators Endoscopy (Minneapolis, MN) business, but will maintain its offices in Israel.

  • Sector:  Home Health   Kindred Healthcare Inc (Louisville, KY) signed an agreement to acquire Senior Home Care Inc (Clearwater, FL) for $95 million. The transaction will be financed with operating cash flows and proceeds from Kindred's revolving credit facility. Senior Home Care is a home health provider that operates through 47 locations in Florida and Louisiana. Senior Home Care currently generates annualized revenues of approximately $143 million. Kindred expects that the transaction will be accretive to earnings in 2014.

  • Sector:  Home Health    Gentiva Health Services Inc (Atlanta, GA) closed on its acquisition of Harden Healthcare (Austin, TX) on October 18, 2013. Under the terms of the merger agreement, Gentiva acquired Harden's home health, hospice and community care businesses for $408.8 million, consisting of $355 million in cash and $53.8 million in Gentiva common stock. Harden retained its long-term care business.

  • Sector:  Pharmacy     ScripsAmerica Inc (Tysons Corner, VA) signed an agreement to acquire PIMD International LLC (Miami, FL). PIMD International serves as a pharmaceutical wholesaler to pharmacies, hospitals, and physician's offices in the U.S., in addition to selling medical supplies in all healthcare settings and online. PIMD will become part of ScripsAmerica upon the close of the transaction, which is expected later this quarter.

  • Sector:   Medical Equipment    Eternity Healthcare Inc (Vancouver, Canada) signed a letter of intent with Global Medical Equipment of America (GMEA) (Phoenix, AZ) to acquire all of the company through share exchange agreement. Under the agreement, Eternity will issue GMEA, and all of the shareholders of GMEA approximately 40,000,000 of its shares in exchange for all of the shares of GMEA and all of its shareholders. These new shares will be issued by ETAH at the time of the transaction. The share exchange agreement is expected to complete in Q1 2014. Eternity will move its headquarters from Vancouver, Canada to Phoenix, Arizona where it will become sequestered under the existing management of GMEA. GEMA’s current president and CEO, Harold Halman, will take the position as president and CEO of Eternity Healthcare. Dr. Hassan Salari will serve as executive chairman.

  • Sector:  Medical Device     Theragenics Corporation (Buford, GA) announced that its stockholders voted to approve the previously announced merger agreement whereby Juniper Holdings (Houston, TX) will acquire all of the outstanding common stock of the company for $2.20 per-share in cash. After the close of the transaction, the company’s common stock will no longer be publicly traded, and Theragenics will become a wholly-owned subsidiary of Juniper.

  • Sector:  Laboratory   Spectra Laboratories Inc (Milpitas, CA), a subsidiary of Fresenius Medical Care (Waltham, MA), signed a definitive agreement to acquire substantially all of the operating assets of Shiel Medical Laboratory Inc (Brooklyn, NY). The acquisition will expand Spectra’s existing laboratory services capabilities in the metropolitan New York market and allow it to serve a broader base of healthcare providers. Terms of the purchase were not disclosed. The transaction is expected to close in Q4 2013, pending regulatory approval.

  • Sector:  Pharmacy     McKesson Corp (San Francisco, CA) signed a deal to purchase the 50.01 percent stake in Celesio AG (Stuttgart, Germany) owned by the diversified holding company Franz Haniel & Cie (Duisburg, Germany) and is offering to buy the remaining shares for $31.70 each. Celesio is an international wholesale and retail company and provider of logistics and services to the pharmaceutical and healthcare sectors. The total transaction, including McKesson’s assumption of Celesio's outstanding debt, is valued at about $8.3 billion. McKesson plans to fund the deal from cash reserves and bridge financing, and expects the deal to result in annual savings of between $275 million and $325 million by the fourth year.

  • Sector:  Medical Mfg    Vention Medical has purchased Fast Forward Medical for an undisclosed amount. Fast Forward, headquartered in Minneapolis, makes technology for catheter manufacturing.  Vention specializes in minimally invasive surgical products, including medical balloons, catheters, heat shrink tubing, polyimide, clean rom injection molding and other products. The acquisitions should expand Vention’s portfolio.  Vention is owned by KRG Capital Partners, a Denver-based private equity firm. KRG has about $4.4 billion in capital under management, and invested in Vention in May 2008.

  • Sector:  Surgical Supply   Integra LifeSciences Holdings Corporation (Plainsboro, NJ) entered into a definitive agreement with Covidien (Mansfield, MA) to acquire the Confluent Surgical product lines, including surgical sealants, adhesion barrier, and DuraSeal. Covidien will receive an initial cash payment of $235 million from Integra upon the closing of the transaction. Additionally, Covidien may receive up to $30 million, contingent upon the achievement of certain performance measures related to the transition of the Confluent Surgical business to Integra. The agreement is expected to be completed by the end of Q1 2014, subject to receipt of regulatory approvals.

  • Sector:  Healthcare   Water Street Healthcare Partners sold its anatomic pathology company, PLUS Diagnostics, to Miraca Life Sciences. According to a release, the acquisition of PLUS makes Miraca the largest independent anatomic pathology laboratory company in the U.S. PLUS' laboratories in New Jersey and California will be added to Miraca Life Sciences' national network of seven labs, serving more than 5,500 patients each day.

  • Sector:  Pharmaceutical   Teleflex Inc (Limerick, PA) entered into a definitive agreement to acquire Vidacare Corporation (San Antonio, TX).  Vidacare is a provider of intraosseous (IO) (inside the bone) access devices, which incorporate a patented power driver and needle system to access the intraosseous space for a variety of medical, diagnostic, and therapeutic purposes. Vidacare’s product line includes the EZ-IO Intraosseous Vascular Access System, the OnControl™ Bone Marrow System, and the OnControl™ Bone Access System. Teleflex will initially fund the transaction with borrowings from its revolving credit facility. The transaction is valued at $262.5 million, net of cash acquired, and is expected to be completed in late Q4 2013, following customary closing conditions including receipt of certain regulatory approvals.

  • Sector:  Pharmacy Services    Magellan Health Services, Inc. has completed the acquisition of Partners Rx Management, LLC, a commercial PBM with a focus on health plans and self-funded employers. The $100 million cash transaction was announced in September and closed on October 1st. The transaction complements Magellan’s medical and specialty pharmacy capabilities and will allow the company to improve its PBM capabilities and expand its presence in the market. Partners Rx has over 300,000 covered PBM lives and expects 2013 revenue of $240 million.

  • Sector:  EMS Services     EMS Capital Partners has acquired Mansfield Ambulance Service, Critical Life Services, and Smith Ambulance to be combined to create a new entity called American EMS. This consolidation is meant to diversify the service offerings in each while taking advantage of an integrated approach among the three existing companies. Fifth Third Bank provided the senior debt financing while Bay Capital Investment Partners provided the subordinate debt financing. Combined revenues are estimated to exceed $10MM.

  • Sector:  Hospice     Hospice of Palm Beach County and Hospice by the Sea, two non-profit hospice services providers, are merging in an effort to lower their administrative costs and expand their combined offerings to clients. Hospice by the Sea and Hospice of Palm Beach County announced an agreement to operate under a single parent company. Hospice by the Sea offers home health services, caregiver support services and a palliative care program. Hospice of Palm Beach County offers a pharmacy program, a durable medical equipment service, central distribution facilities and a payment of patient services foundation.

  • Sector:  Physical Therapy     ATI Physical Therapy acquired North River Physical Therapy, an eight clinic practice with locations in Tennessee and Georgia. With the transaction, ATI now has over 275 clinics in ten states. Financial terms were not disclosed.

  • Sector:  Behavioral Health    Bregal Partners announced that it has acquired U.S. Community Behavioral, LLC as a platform in the community-based behavioral health sector. With U.S. Community Behavioral's strong management team, Bregal Partners intends to grow aggressively through organic growth and acquisitions to become a national provider while continuing to deliver high quality care to its clients.

  • Sector:  EMS Services     Acadian Ambulance Service, a provider of medical transportation to millions of residents in Louisiana, Texas and Mississippi, has acquired Care Ambulance, an emergency and non-emergency ground ambulance provider serving the Tulane healthcare system in Louisiana. The acquisition will expand Acadian’s operations in the New Orleans market.

  • Sector:  Behavioral Health     People Resources, Inc. (PRI) was acquired by E4 Health, a portfolio company of Kinderhook Industries LLC and Mansa Capital LLC. This deal represents a push to further integrate E4 Health's EAP platform, specifically on the student behavioral services side. PRI has recognized strength and expertise in the student assistance market, in which E4 is rolling out a new service platform.

  • Sector:  Laboratory     BelHealth Investment Partners has formed a new entity named General Genetics Corporation and has acquired three genetic testing laboratories in New Mexico: Genetics Testing Laboratories, Forensic Testing Laboratory, and Clinical Testing Laboratories. General Genetics Corporation will provide services such as DNA confirmations, forensic analysis, and genetic predisposition testing to the law enforcement and legal communities. The Company will serve as BelHealth Investment Partners’ platform in the sector as the group looks to embark upon a roll-up growth strategy. The financial terms of the deal were not disclosed.

  • Sector:  EMS Services     American Medical Response has announced the acquisition of Life Line Ambulance. Life Line provides emergency and non-emergency ambulance services in a 9,000 square mile service area in Northern AZ. The Company deploys 30 ambulances with a staff of nearly 200 members. The acquisition will expand AMR’s AZ operations while providing Life Line with the operational support and resources of a national organization.

  • Sector:  Physical Therapy     Professional Physical Therapy, a portfolio company of Great Point Partners, acquired Joint Effort Physical Therapy, a provider in NYC. The acquisition expands Professional’s presence in the city and enhances the treatment plans for it’s patients. Financial terms of the transaction were not disclosed.

  • Sector:  Home Health   Alegis Care, a multi-specialty, medical health services organization dedicated to creating a comfortable medicinal home experience for homebound Medicare and Medicaid patients, has been acquired by Cigna Corporation. Financial terms of the transaction were not disclosed. By the end of 2013, Alegis Care will provide services to nearly 31,000 seniors across 10 states, including Cigna-HealthSpring customers in Delaware, Illinois, Maryland, Pennsylvania and Washington, D.C.

  • Sector:  Home Health  No Place Like Home Senior Care LLC (No Place Like Home) has been acquired by EmRes Healthcare Management, LLC (EmRes Healthcare), a 100% employee owned company providing management consulting and other services to healthcare communities that offer quality long-term care and specialty healthcare services. No Place Like Home provides personal services to assist the elderly with staying independent and enjoying life as long as possible.

  • Sector:  Home Health & Hospice    Gentiva Health Services Inc and Harden Healthcare Holdings Inc entered a definitive merger agreement whereby Gentiva will acquire Harden for $408.8 million. Gentiva will acquire Harden's home health, hospice, and community care businesses; however Harden's existing shareholders will retain the company's long-term care business. The agreed-upon purchase price is approximately $408.8 million, consisting of $355 million in cash and approximately $53.8 million in Gentiva common stock. As part of the transaction, Gentiva will become a preferred provider for Harden's 49 skilled nursing and assisted living facilities in Texas. The transaction was approved by the board of directors of each company and by Harden's shareholders. The transaction is scheduled to close Q4 2013, subject to customary closing conditions. Gentiva expects the acquisition to be accretive to adjusted income per share, exclusive of one-time costs, within the first 12 months following closing.

  • Sector:  Healthcare Services    Interim HealthCare Inc completed the acquisition of Bluebird Care Franchises Ltd.  Founded in 2004, Bluebird Care has more than 180 franchise operations providing non-medical care services in England, Wales, Scotland, Northern Ireland, and the Republic of Ireland. Paul and Lisa Tarsey, Bluebird Care’s founders, and Simon Dalziel will continue in leadership roles in the company. Interim HealthCare and Bluebird Care will continue to operate as separate entities, under their own brand names, in their respective countries. With the acquisition, Interim HealthCare now has approximately 500 locations and 250 franchise owner groups in six countries, for a combined network sales of more than $850 million.

  • Sector: Home Health      Almost Family, Inc. a leading regional provider of home health nursing services, announced plans to acquire the assets of the home health agencies owned by Indiana Home Care Network (IHCN). Almost Family will pay a purchase price of $12.5M. IHCN provides home health services in six locations throughout Indiana.

  • Sector:  Home Health  Oncologix Tech Inc. has purchased Angels of Mercy, Inc. (Angels of Mercy). Angels of Mercy began operations in 2001 in Louisiana and delivers training and education to Personal Care Assistants who provide routine health and personal care support and assistance with Activities of Daily Living (ADL) to patients with physical impairments or disabilities in private homes, nursing care facilities, and other residential settings. Terms of the transaction were not disclosed.

  • Sector:  Laboratory    John Muir Health System entered an agreement to sell its 26 MuirLab locations and the client list of office-based physicians and hospitals served by the labs, to Laboratory Corporation of America Holdings (LabCorp) (Burlington, NC). Under the agreement, LabCorp will also become the preferred provider of reference lab services for John Muir Health and its affiliates. Terms of the agreement, expected to close in November 2013, were not disclosed.

  • Sector:  Healthcare IT      Marlin Equity Partners® announced that it has acquired 6N Systems, Inc. a leading provider of financial and clinical software solutions that streamline workflow, information management and operations for the long-term and post-acute care market. The company’s solutions include a comprehensive suite of fully integrated financial billing, order and workflow management, point-of-care documentation and reporting tools that help providers improve patient outcomes. 6N has been merged with SigmaCare, a Marlin portfolio company, creating a market leader in financial and clinical software solutions to the long-term and post-acute care market.

  • Sector:  Medical Device   Salt Creek Capital completed the acquisition of Ultra Solutions. Located in Ontario, California, Ultra is one of the largest providers of high-quality, pre-owned ultrasound equipment in the industry. The company repairs and sells its extensive inventory of refurbished ultrasound equipment to hospitals, imaging centers, physician practices and wholesale distributors throughout North and South America, Europe and Asia.

  • Sector:  Physician Services    DaVita HealthCare Partners, Denver, is expanding its multispecialty medical group operations into a fifth state with the acquisition of Arizona Integrated Physicians.  HealthCare Partners—a DaVita subsidiary since last November—already operates physician networks in California, Nevada, Florida and New Mexico. Its latest buy adds 700 physicians and allows it to join forces with one of the largest independent medical organizations in Arizona.

  • Sector:  Pharmacy    Walgreen Co announced the acquisition of Kerr Drug's 76 retail drugstores and its specialty pharmacy business to expand its North Carolina presence. The deal also includes a distribution center, but does not include Kerr's long-term care pharmacy business, a privately held regional chain. Kerr's retail and specialty business recorded $381 million in sales for FY 2012. The deal is expected to close by the end of 2013. Financial terms were not disclosed, but Walgreens did say it will have no material impact on FY 2014 earnings per share.

  • Sector:  Medical Device Dialysis   Baxter International agreed on Tuesday to buy the Swedish medical equipment manufacturer Gambro for $2.8 billion.  Under the terms of the deal Baxter will gain access to the Swedish company’s lineup of medical equipment to expand its own range of dialysis products and build global market share.

  • Sector:  HomeCare   Best of Care Inc., a Quincy, MA based home care firm, has acquired Boston-based Independence Home Care. The merger boosts Best of Care’s resources across Eastern Massachusetts from the North Shore to Cape Cod, serving a total of 115 towns. Terms of the deal were not disclosed.  Both firms are privately held, family run businesses. Best of Care will take on 30 new employees from IHC.  Best of Care, launched in 1981. The company provides services including personal care services, homemakers and companions, hospice care, private nursing, nursing care management and specialty services for patients with dementia, mental illness and acquired brain injury care.

  • Sector:  Hospice    Huntsville Hospital Health System and Hospice Family Care have embarked on a merger which leaders promise will provide better care for terminally ill patients and, ultimately, a new full scale inpatient hospice facility for the region, the two non-profits jointly announced

  • Sector:  Home Health    Livingston County officials announced the county’s public health department decision to sell the county’s certified home health agency to Visiting Nursing Association of Western New York.

  • Sector:  PBM Pharmacy    WellCare Health Plans Inc (Tampa, FL) will acquire Windsor Health Group Inc (Atlanta, GA). Windsor serves Medicare beneficiaries with Medicare Advantage, Prescription Drug Plan (PDP), and Medicare Supplement products. Windsor offers Medicare Advantage plans primarily in Mississippi, Tennessee, Arkansas, and South Carolina, and serves about 59,000 members. Members and policyholders will experience no change in their plan benefits and coverage as a result of the acquisition. The acquisition is expected to close in early 2014, subject to customary regulatory approvals. Financial terms were not disclosed.

  • Sector:  Specialty Pharmacy    BelHealth Investment Partners , a healthcare-focused private equity firm, announced it has completed its acquisition of Linden Care LLC. Linden Care, headquartered in Syosset, NY, provides specialty pharmacy services to the pain management industry. Since inception, the Company has distinguished itself by providing robust and differentiated compliance practices as well as a full suite of "specialty" services to meet the needs of patients, physicians, pharmaceutical manufacturers and professional sports teams. The Company will continue to expand this successful strategy, currently focused on the Northeast, throughout the rest of the country, becoming the national center of excellence for pain management.

  • Sector:  Healthcare IT    Partners HealthCare System has joined with the investment arms of Kaiser Permanente and Indiana University in an $8 million equity placement in a Utah data warehousing and analytics firm, Health Catalyst, reflecting what some predict will be the next big category in health information technology spending.

  • Sector:  Healthcare Facilities    Kindred Healthcare, Inc. (NYSE: KND) announced today that it has signed an agreement to sell 17 of its facilities to an affiliate of Vibra Healthcare, LLC, for $187 million.  The facilities consist of 15 transitional care hospitals containing 1,052 beds, one inpatient rehabilitation facility containing 44 beds and one skilled nursing facility (SNF) containing 135 beds.  Six of Kindred’s transitional care hospitals and the lone SNF are owned, whereas the remaining facilities are leased—each facility is outside of the company’s 21 designated integrated care markets.  Together, the facilities generated revenues of approximately $289 million and earnings before interest, income taxes, depreciation and amortization (EBITDA) of $20 million for the year ended December 31, 2012. 

  • Sector:  Pharmaceutical    Teva Pharmaceutical Industries will spend up to $165 million to buy a company developing a drug to prevent viral respiratory infections.  Teva said it would acquire MicroDose Therapeutx for $40 million, plus up to $125 million in milestone payments and sales milestones and royalties from its lead product, MDT-637, an inhaled treatment for respiratory syncytial virus, or RSV.

  • Sector:  Home Health  LHC Group Inc. (NASDAQ: LHCG) has entered into a purchase agreement to acquire select assets of AseraCare Home Health. The transaction will expand LHC Group’s geographical footprint to 310 locations across 26 states.  The acquisition will include four home health agencies located in Atlanta, GA; Bloomington, MN; Milwaukee, WI; and Pittsburgh, PA.  The agencies’ annual revenue is around $5 million.  With the acquisition, LHC now has 310 locations in 26 states.

  • Sector:  Healthcare IT/Rev Cycle Mgmt.    Mediware Information Systems, Inc. announces that it has acquired Fastrack Healthcare Systems, Inc., a home medical equipment (HME) and home infusion therapy software solutions company. Mediware acquired more than 300 new customers and the related expertise, products, services and contracts of Fastrack.  Mediware plans to combine the Fastrack business with its existing Alternate Care Solutions business line. Mediware has operated in the HME, home infusion therapy and home health nursing software sector by building a portfolio of homecare solutions through acquisitions that began in 2008.  Mediware was founded in 1970 and began offering software solutions in 1980 to help providers excel in high-growth, complex patient care environments that remain underserved by existing vendors. The company employs more than 400 subject matter experts who deeply understand business and care processes in highly specialized acute, non-acute and community-based care settings and have years of experience integrating systems. Mediware's portfolio of solutions currently includes blood services, cellular therapy, medication management, physical rehabilitation, respiratory therapy, behavioral health and homecare.

  • Sector:  Mobility Products    Harmar is pleased to announce its new partnership with Cortec Group, a leading investor which focuses on high-growth investment opportunities in the health care and wellness markets. Over the last 14 years Harmar has become an undisputed leader in the design and manufacture of mobility and accessibility products. Through this new partnership with another industry leader it expects to improve every aspect of its customers’ experiences, broadening its already extensive high quality product offering and providing unmatched service to its loyal and extensive customer base. The company says it is excited to have Cortec Group as a partner as it enters its next stage of growth and has no doubt this will lead to a bigger, stronger and better Harmar. Harmar is one of the world’s leading manufacturers of mobility and accessibility products. As “America’s Lift Leader,” the company has over 3000 dealers throughout the U.S. and worldwide. They represent auto lifts, stair lifts, vertical platform lifts, incline lifts, elevators, pool lifts and other specialized mobility solutions.

  • Sector:  Pharmacy    Loblaw and Shoppers Drug Mart announced on Monday a definitive agreement under which Loblaw will acquire Shoppers Drug Mart for C$12.4 billion in cash and stock.

  • Sector:  HME/Sleep    Sanomedics International Holdings has entered into a definitive agreement to acquire its second sleep services business, Baytown, Texas-based Duke Medical, for $7 million. Duke Medical generated about $4 million in revenue and an EBITDA of $1.5 million in 2012, and is on target to hit an EBITDA of $2 million this year. Duke Medical provides medical products and supplies to patients with sleep apnea throughout Houston and Galveston. Vann Duke, who has held positions at Rotech Healthcare, Apria Healthcare and Lincare, leads the company. “This acquisition will take Sanomedics into new geographic markets and expand our efforts to build out a national platform of our sleep apnea service and product offerings,” stated Keith Houlihan, co-founder and president of Sanomedics, in a press release. The purchase price includes cash, the issuance of common shares of Sanomedics and debt consideration. The deal is expected to close by Sept. 30, 2013. In 2012, Sanomedics signed letters of intent to buy two unnamed sleep services businesses on the East and West coasts. Earlier this year, it also acquired Prime Time Medical, a Largo, Fla.-based HME provider, for $3 million. 

  • Sector:  Home Infusion Pharmacy    BioScrip announced last week that it plans to acquire Cincinnati, Ohio-based CarePoint Partners for $223 million. Under the deal, BioScrip will gain approximately 20,500 patients, bringing its total to 100,000, mostly in the eastern half of the country.  “With the market as robust as it is right now, they are wise to do an opportunistic transaction,” said Jonathan Sadock, managing partner with Paragon Ventures. “It’s a nice price and they have been growing this business.”  It’s the third buy in home infusion in the past year for BioScrip: In July 2012, it acquired InfuScience for approximately $38.3 million; and in early 2013, it acquired HomeChoice Partners for $70 million. BioScrip also sold its specialty and mail-order pharmacy divisions to Walgreens for $225 million in May of 2012, narrowing its focus to home infusion even further.   CarePoint, which came onto the scene in 2008, has 28 locations in nine states in the East Coast and Gulf Coast regions. The provider, backed by Chicago-based private equity firm Waud Capital Partners, formed with the intent of rolling up smaller mom-and-pop providers and, under the leadership of CEO Dana Soper, it has made more than a dozen acquisitions.

  • Sector:  Homecare/Hospice    Kindred Healthcare Inc (Louisville, KY) signed a definitive agreement to sell eight non-strategic nursing centers to affiliates of Signature HealthCARE LLC (Louisville, KY) for approximately $49 million. Kindred will use the net proceeds of the Signature transaction to pay the outstanding balance on its revolving credit facility. Kindred expects the transaction to be slightly dilutive to earnings in 2013. The facilities Kindred is selling to Signature contain 996 licensed nursing center beds. Five of the facilities are owned and the rest of the facilities are leased. RBC Capital Markets (Montreal, Quebec, Canada) served as the exclusive financial advisor to Kindred on the Signature transaction. In addition, Kindred purchased the previously leased real estate of 73-bed Kindred Hospital Bay Area Tampa (Tampa, FL) for approximately $25 million. One of Kindred’s subsidiaries signed a definitive agreement to acquire the assets of Arrowhead Home Health Inc (Phoenix, AZ) and Arrowhead Hospice Centers Inc. Another Kindred subsidiary signed a definitive agreement to acquire the assets of All Hearts Home Health Agency (Norfolk, VA). Terms of the transactions were not disclosed. Kindred expects all aforementioned transactions to close in Q3 2013,

  • Sector:  Hospice LHC Group Inc. has acquired the assets of Infirmary Hospice Care in the State of Alabama, which is a Certificate of Need (CON) State for hospice services. The acquired hospice agency, located in Mobile, Alabama, will continue to operate under the name Infirmary Hospice Care through the remainder of 2013 and serve Mobile and Baldwin counties. Current annual revenue for this agency is approximately $2.5 million.  This hospice acquisition continues LHC Group's strategy of acquiring hospice providers located within the Company's current home health markets. LHC Group currently owns 34 hospice locations across 10 states.

  • Sector: Medical Mfg    Vention Medical, announced its acquisition of RiverTech Medical, a supplier of polyimide tubing, braided polyimide, composite tubing and wire coatings for numerous medical devices and medical device applications. 

  • Sector:  Medical Device    ZOLL Medical Corp (Chelmsford, MA) acquired LIFEBRIDGE Medizintechnik AG (Ampfing, Germany). LIFEBRIDGE Medizintechnik makes medical devices for emergency use that provide circulatory support and extracorporeal oxygenation to patients in acute circulatory or respiratory failure.

  • Sector:  Nursing Services    Abington (Pa.) Health announced that the acquisition of the North Penn Visiting Nurse Association has been finalized, effective April 1, according to a news release.  The NPVNA’s 100 professional staff members have joined Abington Health Home Care and Hospice, which employs 200 professionals who provide home care and hospice to residents in parts of Bucks, Montgomery and Philadelphia counties.  Along with staff members, the NPVNA services transitioning to Abington Health include a chronic care management program, Meals on Wheels, clinics for children and dental services, and health education classes, support groups, health screenings and CPR training. These services will continue to be provided at the Medical Campus Drive facility on the Lansdale Hospital campus.

  • Sector:  Medical Device    ArthroCare Corp., an Austin-based developer and manufacturer of surgical products, has completed its acquisition of San Antonio’s ENTrigue Surgical Inc., a privately held medical device company.  ArthroCare says it paid $45 million in cash to acquire ENTrigue, which primarily develops materials and medical devices for sinus-related surgeries. ENTrigue designs and develops innovative implants, disposables and instruments for endoscopic sinus surgery including balloon dilation. The company will now operate within ArthroCare’s ENT product area as a complement to the company’s Coblation and Rapid Rhino product lines currently being used by ENT surgeons worldwide.

  • Sector:  Medical Device    LeMaitre Vascular Inc (Burlington, MA) acquired the assets of Clinical Instruments International Inc (Southbridge, MA) for $1.1 million. Clinical Instruments manufactures carotid shunts and embolectomy catheters. The acquisition brings two new products to LeMaitre Vascular - latex-free carotid shunts and latex-free dual-lumen embolectomy catheters.

  • Sector:  Medical Device    Stinger Medical - a manufacturer and provider of mobile clinical workstations and medical technologies known for its advanced power systems - has merged with Enovate, a manufacturer and provider of mobile and wall-mounted clinical work station solutions known for its aesthetics and ergonomically advanced design technologies.  The combined companies will be named Enovate Medical and will be the largest provider of mobile clinical workstations in the country. Stinger Medical CEO Nick Mendez will lead the combined organization. The company will maintain locations in Michigan and Tennessee.

  • Sector:  Medical Lab    Roche (Basel, Switzerland) will buy Constitution Medical Investors (CMI) (Boston, IL). CMI is developing a testing system for blood diseases like anemia and leukemia. Roche will have an upfront payment of $220 million, in addition to future payments dependent on certain milestones.

  • Sector:  Medical Device    Hawkeye Distributing LLC (Lakeland, FL), the management company for the Cool-View medical lighting product line, was acquired by OptiLight LLC (Austin, TX). OptiLight was formed specifically to acquire Hawkeye assets, including the intellectual property rights for Cool-View, and global sales and distribution agreements. Brad Hummel, founder and managing member of OptiLight, will serve as Hawkeye’s CEO, and VP Linda Donaldson will continue to manage the company’s offices in Lakeland, Florida.

  • Sector:  Medical Device    Boston Scientific Corporation (Natick, MA) signed a definitive agreement to acquire Bard EP (Lowell, MA), the electrophysiology (EP) business of C.R. Bard (Murray Hill, NJ), for $275 million in cash. The company expects to complete the transaction in the second half of 2013. Bard EP will become part of Boston Scientific’s existing EP business in the company's Rhythm Management unit. Boston Scientific expects the net impact of this transaction on adjusted earnings per share to be immaterial for 2013, slightly accretive in 2014, and dilutive on a GAAP basis in both years as a result of acquisition-related net charges and amortization, which will be determined following the closing.

  • Sector: Healthcare IT    EDG Partners Fund II recently completed a majority recapitalization of Peak Health Solutions, a leading provider of end-to-end health information management services to health plans and providers. As part of Peak's strategy to expand on its industry leading retrospective and prospective risk adjustment solutions, the company completed the acquisition of Health Data Essentials (HDE). The acquisition of HDE delivers expertise as well as the company's flagship product, EssentialStars™, enabling Peak to offer Medicare Advantage plans with advanced analytics and services built around risk adjustment and Stars quality improvement. Steve Roberts, an experienced healthcare executive, will lead the combined company as President and Chief Executive Officer. Roberts, who brings 20 years of health information technology experience, will ensure Peak is the reliable and innovative partner health plans and providers demand. Previously, Roberts was President of Practice Technologies at Henry Schien, the largest provider of services and products to office based practitioners, and Chief Operating Officer at Healthport, the nation's largest provider of release of information services. HDE founder Richard Lieberman and Peak co-founders Gabe Stein and Justin Schmidt will maintain key leadership roles within the organization.

  • Sector:  Senior Living/Hospice    The Ensign Group, Inc., the parent company of the Ensign™ group of skilled nursing, rehabilitative care services, home health care, hospice care, assisted living and urgent care companies, announced today that it acquired Santa Maria Terrace, a 110-unit assisted living facility in Santa Maria, California.   The Asset acquisition was effective Friday, May 31, 2013 and the transfer of operations was effective Saturday, June  1, 2013. Bridgestone expects operations in Santa Maria Terrace, which had an occupancy rate of approximately 51% at acquisition, to be mildly accretive to earnings in 2013.  In a separate transaction on the same day, an Ensign subsidiary also acquired Lake Ridge Senior Living, a 69-unit assisted living facility in Orem, Utah, which will be operated by a subsidiary of Bridgestone.  The purchases were made with cash and bring Ensign's growing portfolio to 118 healthcare facilities, 95 of which are Ensign-owned, seven hospice companies and nine home health businesses across 11 states.

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  • Sector:  Medical Device     Mindray Medical International Limited (Shenzhen, China) completed the acquisition of ZONARE Medical Systems Inc (Mountain View, CA) for a total purchase price of $101.7 million in cash. Mindray will maintain ZONARE's brand and existing operations under its current management team. Mindray expects the deal to be slightly dilutive to its full-year 2013 and 2014 earnings.

  • Sector:  Medical Device    Cynosure Inc (Westford, MA) completed its acquisition of Palomar Medical Technologies Inc (Burlington, MA) through a cash transaction of approximately $287 million. The acquisition is expected to be accretive to Cynosure in calendar year 2014. Michael Davin will serve as chairman and CEO; Joseph Caruso will join Cynosure's board of directors as vice chairman and also serve as president; and Timothy Baker will serve as EVP, COO, and CFO. Cynosure plans to relocate its headquarters to Palomar’s facility in Burlington, Massachusetts.

  • Sector:  Medical Device    Wright Medical has agreed to sell its OrthoRecon hip and knee business to MicroPort Scientific for $290 million in cash. Wright's OrthoRecon business generated about $269 million in revenue for 2012 and proceeds from the sale will be used to further growth in its Extremity ankle and biologic segment. The medical device maker said it expects about $235 million to $240 million of revenue in 2013 for its Extremity segment and will revise its previously issued outlook.

  • Sector:  Orthopedics    Pharos Capital Group, LLC, a private equity firm based in Dallas and Nashville, announced it has sold its stake in portfolio company Pioneer Surgical Technology, Inc. ("Pioneer") as part of the company's acquisition by RTI Biologics Inc. for $130 million of cash proceeds. Pioneer, based in Marquette, MI, is a leading manufacturer and distributor of metal and synthetic implant products for the orthopedics, biologics, spine, trauma and cardiothoracic markets.  Pharos first invested in the company in December 2006, leading a syndicate of investors in a $30.5 million Preferred Equity private placement. Pharos later led a follow-on Series B investment of $17 million in December 2008.

  • Sector:  Medical Lab    Techne Corporation (Minneapolis, MN) finalized its acquisition of Bionostics Holdings Limited (Devens, MA) and its operating subsidiary Bionostics Inc, for approximately $104 million in cash. Bionostics manufactures and distributes control solutions that verify the proper operation of in vitro diagnostic (IVD) devices primarily utilized in point of care blood glucose and blood gas testing.

  • Sector:  Retail Pharmacy Bartell Drugs has purchased the purchase of the pharmacies — in Everett and Marysville, Wash. — from The Everett Clinic. Bartell will begin operating them on June 10, bringing its total number of stores to 60.  "The Everett Clinic is well-respected and shares many of our values regarding serving patients and customers," Bartell chairman and CEO George Bartell said. "The acquisition of these pharmacies allows both organizations to work together to strengthen their presence in Snohomish County."  Snohomish County is to the north of King County, where Seattle is located, and together with King and Thurston counties is part of Washington state's Puget Sound region. Most of the pharmacists and technicians from The Everett Clinic will remain employed at the pharmacies following the transition.

  • Sector:  Healthcare IT  Healthland (Minneapolis, MN) acquired American HealthTech (Jackson, MS), an integrated software and electronic health records (EHR) solutions provider for post-acute facilities. Each company will continue operating under its own brand and serving its traditional markets, the companies will collaborate to link resources in order to expand offerings to customers. Together, the combined business will provide a shared health record covering the entire care continuum, including preventive, outpatient, inpatient, post-acute, and in-home care.

  • Sector:  Pharmacy  DW Healthcare Partners-backed ASL Pharmacy has acquired Sinus Dynamics. BB&T Capital Partners invested $10 million of subordinated notes and $3 million of preferred equity through its BB&T Capital Partners Mezzanine Fund II to support the transaction. ASL is a compounding pharmacy focused on topical treatments for chronic sinusitis and received an investment from DWHP last year.

  • Sector:  Pharma   Actavis will acquire Warner Chilcott for $8.5 billion. Actavis said its acquisition of the Dublin-based company would result in combined sales of about $11 billion, with a focus on women's health, gastroenterology, urology and dermatology products. Actavis announced its intention to acquire Warner Chilcott two weeks ago, saying at the time that a deal had not been reached, though it announced last week that it had filed for approval of the deal with Irish regulators. As of Monday, the boards of directors of both companies have approved the deal, and it is expected to close by the end of this year.

  • Sector:  Senior Living   Chartwell Retirement Residences (TSX: CSH.UN) accepted an offer of $80.9 million from Brookdale Senior Living Inc. (NYSE: BKD). The price paid, $61 million in debt (mostly assumed) and the rest in cash, was for seven senior living communities located in Alabama (1), Arizona (2), Georgia (2), Louisiana (1) and Oklahoma (1). Brookdale has been managing all but the Alabama community since its September 2011 acquisition of Horizon Bay. The deal adds 613 units, with 493 assisted living, 80 independent living and 40 Alzheimer’s units.

  • Sector:  Healthcare Finance   Fifth Street Finance Corp. (Nasdaq: FSC) announced that it has entered into a definitive agreement to acquire Healthcare Finance Group, LLC ("HFG") as a portfolio company. HFG is a specialty lender providing asset-based lending and term loan products to the healthcare industry. Since its founding, HFG has financed in excess of $21 billion in receivables.  To effect the acquisition, Fifth Street anticipates investing approximately $110 million and intends to finance the purchase with available liquidity, including operating cash and borrowings under Fifth Street's existing credit facilities. HFG's senior management team has an average of 24 years of healthcare finance or related industry experience and will provide continuing leadership to HFG going forward. Fifth Street expects that the HFG acquisition will be accretive to net investment income.  HFG's total outstanding loan portfolio, as of May 6, 2013, consisted of 57 loans with a value of approximately $270 million. Fifth Street believes that HFG's niche focus in the healthcare industry offers the potential for strong asset quality and attractive yields, even during challenging economic or debt capital market conditions. HFG has a quality track record of managing credit risk since inception in 2000.

  • Sector:  Home Health   Kindred has signed a definitive agreement to acquire Caring Hearts Home Health ("Caring Hearts"), a provider of home health services that operates two locations in Big Spring, Texas and Odessa, Texas that serve the West Texas market. Caring Hearts currently generates annualized revenues of approximately $1.6 million. Kindred at Home, through its affiliate IntegraCare, currently provides Home Health or Hospice services in 46 cities in Texas, including the Company's Dallas Integrated Care Market.  Terms of the transaction were not disclosed. The transaction is subject to several regulatory approvals and other conditions to closing and is expected to close in the second quarter of 2013.

  • Sector:  Sleep    National Sleep Therapy (NST) has acquired Rest Ensured Medical (REM), kicking off a “growth phase” for the four-year-old company. NST believes that changing regulations and decreasing reimbursements have created significant opportunity for “innovative healthcare companies,” the company stated in a press release. “National Sleep Therapy is perfectly positioned to expand on its success and raise the quality of sleep therapy service in this country by acquiring niche sleep companies that can fit our unique model,” stated Eric Cohen, president and co-found of National Sleep Therapy. Terms of the deal were not disclosed.

  • Sector:  Home Health   Kindred has signed a definitive agreement to acquire QStaff Home Healthcare and Advanced Care Hospice ("QStaff"). Terms of the transaction were not disclosed. QStaff is a high-quality provider of home health and hospice services that operates one location in the Houston, Texas market and provides services in five counties.  QStaff currently generates annualized revenues of approximately $2 million. The QStaff operations will allow Kindred to expand its services in the Company's Houston Integrated Care Market, where it currently operates 13 Transitional Care Hospitals, two Inpatient Rehabilitation Hospitals and, through its RehabCare division, one hospital-based Acute Rehabilitation Unit.  The transaction is subject to several regulatory approvals and other conditions to closing and is expected to close in the second quarter of 2013. The Company expects that the transaction will be slightly accretive to earnings in 2013.

  • Sector:  DME   Preferred Home Health Care & Nursing Services, Inc. (PHHC), a leader in providing home care to residents of New Jersey and Pennsylvania, announces the acquisition of Acelleron Medical Products, a durable medical equipment (DME) company that focuses on the distribution of nebulizers, breast pumps and other medical products.  The acquisition of Andover, Massachusetts-based Acelleron will allow PHHC to expand its home care expertise and geographic reach into New England. "We are very happy to bring the Acelleron team into the Preferred family," said Joel Markel, President of PHHC. "We look forward to the opportunity to bring excellent home health care to many families and communities in New England." Preferred, which anticipates Acelleron's full integration by the third quarter of 2013, will export its home care expertise to the New England region, while simultaneously importing Acelleron's knowledge of medical equipment to its core home care markets of New Jersey and Pennsylvania. "We anticipate this acquisition to be truly symbiotic," remarked Todd Thiede, CFO of PHHC. "Our product lines complement each other, and Preferred can take one more step toward broadening our reach and meeting more of our clients' direct needs."

  • Sector:  HME  Sanomedics International, a medical technology holding company, has acquired Prime Time Medical, a Largo, Fla.-based HME provider, for $3 million, according to a press release. The acquisition is Sanomedics’ third in the HME industry. “Prime Time Medical is another step in our continual process of expanding our portfolio while we implement our growth strategy,” stated Keith Houlihan, co-founder and president of Sanomedics. Sanomedics seeks to acquire sleep therapy operating businesses to develop a portfolio of products and services in this growing market. Its goal: to provide sleep apnea patients with an “end-to-end” service platform, according to the release.  Prime Time Medical, a provider of mobility devices, portable oxygen concentrators, compressors, diabetic supplies and respiratory products, posted about $5 million in revenue for 2012, according to the release.

  • Sector:  HME    Global Medical Equipment of America (GMEA) announced that it has acquired Allen Medical Supply in Opelousas, La. Allen Medical Supply offers durable medical and respiratory equipment, power wheelchairs and orthotics. It's the third acquisition for GMEA. Terms of the deal were not disclosed.

  • Sector:  Ambulance Transport    Emergency Medical Services Corp., the largest U.S. provider of ambulance services, has selected underwriters for a $750 million initial public offering.  The Greenwood Village, Colorado-based company, is backed by private equity firm Clayton, Dubilier & Rice LLC.  An IPO would bring EMSC back to the stock market just two years after it was taken private. Clayton, Dubilier & Rice acquired EMSC in 2011 for $2.9 billion. It also assumed $300 million of the company’s debt.  EMSC was founded in 2005 when Canadian private equity firm Onex Corp. (OCX.TO) acquired medical transportation company American Medical Response and physicians services provider EmCare and merged the two. EMSC went public that same year. EMSC reported adjusted earnings before interest, tax depreciation and amortization of $404.7 million in 2012, up from $345.4 million in 2011.

  • Sector:  Sub-Acute Services  Roper Industries Inc (Sarasota, FL) entered a definitive agreement to acquire Managed Health Care Associates Inc (MHA) (Florham Park, NJ) in a cash transaction valued at $1.0 billion. MHA provides services and technologies to support the needs of alternate site healthcare providers who deliver services outside of an acute care hospital setting, including long-term care pharmacies, assisted living facilities, long-term care facilities, infusion and specialty pharmacies, and other alternate site providers. Roper expects the acquisition of MHA to be immediately cash accretive and generate $95 million of EBITDA during the first year of ownership, excluding the impact of acquisition-related fair value accounting. The transaction should be completed within 30 days, subject to regulatory approval and customary closing conditions.

  • Sector:  Pediatric Homecare  Child Health Holdings, Inc. (d/b/a Pediatric Health Choice), has acquired The Children's Secret Garden, Inc. ("TCSG"). Headquartered in Dover, DE, TCSG operates a combined prescribed pediatric extended care ("PPEC")/Day Care facility for children with chronically ill and/or medically complex conditions. TCSG's founder, Pam Harper, will stay onboard as the facility's administrator. Going forward, the center will do business in Delaware as Pediatric Health Choice at The Children's Secret Garden. The closing of the TCSG transaction represents Pediatric Health Choice's first add-on acquisition under Clearview's ownership, and marks the Company's successful expansion into a fourth state.  "The PPEC market is a highly fragmented, growing sector within the healthcare services industry and we will continue to actively pursue add-on acquisitions throughout the country, while maintaining rapid organic growth through de novo expansion."

  • Sector:  Medical Device  Argon Medical Devices has completed the acquisition of the Interventional Products Business of Angiotech Pharmaceuticals. The Interventional Products Business manufactures and markets disposable and re-usable biopsy products for the diagnosis of cancer, drainage catheter products, and vascular interventional products.  The acquisition of the Interventional Products Business bolsters Argon's existing portfolio of interventional vascular products, adds additional biopsy product lines, and further leverages the company's sales force within core call points. As part of the transaction, Argon will also acquire three dedicated manufacturing facilities in Wheeling, Illinois, Gainesville, Florida, and Rochester, New York. Argon currently manufactures its products in facilities in Athens, Texas and Singapore.

  • Sector:  MedSurg/Pharmacy    McKesson Corp (San Francisco, CA) announced the completion of its acquisition of PSS World Medical Inc (Jacksonville, FL) for a total purchase price of approximately $2.1 billion. McKesson and PSS World Medical signed a definitive agreement for McKesson to acquire all outstanding shares of PSS World Medical at $29.00 per share, in cash in October 2012. Stanton McComb, president of McKesson's Medical Surgical business, will serve as president of the combined organization, and Gary Corless, president and CEO of PSS World Medical, will serve as COO.

What do these transactions mean for the market value of your business?

Call Paragon Ventures for a confidential evaluation of your strategic options

800-719-1555

  • Sector:  MedSurg    Cardinal Health announced its plans to acquired AssuraMed, a privately held, leading provider of medical supplies to patients in the home. The acquisition will cost Cardinal $2.07 billion, or $1.94 billion, net of the present value of tax benefits.  According to the company, the transaction is expected to close in early April 2013.

  • Sector:  Hospice    Visiting Nurses Association and Hospice and Inland Hospice Association have merged. Created in 1979, Inland Hospice is a nonprofit organization and provides services in the Claremont, California area.

  • Sector: Homecare  The Ensign Group, Inc. announced it has acquired Elite Home Health and Hospice from Tri-State Memorial Hospital located in Clarkston, Washington. Elite will be operated by Ensign’s Northwest home health and hospice subsidiary, Paragon Healthcare. The purchase was made with cash, and reflects Ensign’s commitment to actively acquiring both well-performing home health and hospice companies.

  • Sector:  Healthcare    CarePartners and Mission Health went public with the future of their working relationship today when leaders from the two health care providers announced that CarePartners will seek an affiliation with Mission Health — and work on this affiliation is already under way. CarePartners and Mission Health signed a non-binding memorandum of understanding today, April 4. According to CarePartners President and CEO Tracy Buchanan, if all goes well, the affiliation with the state's sixth-largest health system will be official by October. However, she was quick to note that the agreement was borne out of collaboration, not conflict. CarePartners will be an affiliate of Mission Health, much like other hospitals in the Mission Health System. But CarePartners will retain its name and branding. A local nonprofit, CarePartners currently serves close to 3,000 patients each day and specializes in post-acute care in services, ranging from home health to prosthetics.

  • Sector: Homecare    Infinity Homecare announced the acquisition of AHC Southwest and Advanced Homecare as already complete. Infinity whose main base of operations is in Sarasota, Florida was founded back in 2006. The company provides home care health services mainly in the state of Florida through licensed and Medicare certified agencies. Their services are being offered from twenty-seven location in eight districts of Florida.  Advanced Homecare, founded in 2010, provides patient care operations in both District 6 and 8 in Florida including primary locations in Sarasota and Tampa. It provides a wide-range of home health care services that includes rehabilitation, nursing services and specialized programs required for patients with orthopedic, pulmonary, cardiac and neurodegenerative conditions.  "We are excited about this acquisition and its strategic fit with Infinity. The team at Vitalcare shares our commitment to clinical excellence and quality of care. Together, we will reach more patients and join two high-performing teams with one shared mission. Infinity will continue to pursue many growth strategies, including add- on acquisitions and other innovative approaches to the changing landscape of healthcare", Infinity President and COO Steve Karasick said in a statement.

  • Sector:  Homecare    Salus Homecare, a California-based company focused on providing coordinated home-based services including skilled nursing, physical therapy, occupational therapy, speech therapy and medical social services combined with caregiving services, today announced the completion of the acquisition of home health agency Aspen Home Health and Rehab in Artesia, Calif.  The acquisition strengthens Salus’ position in the home health market in the Orange, Los Angeles and Riverside counties and expands its current team of skilled nurses and doctors to help homebound elderly and disabled patients, according to Salus’ Chief Executive Officer Mark Mortensen.

  • Sector:  Sleep Therapy    SleepMed, Inc., the largest private sleep diagnostics and therapy provider and Watermark Medical, the leading home sleep technology services company for the diagnosis and treatment of sleep breathing disorders, announce the merger of their companies. Operating under the SleepMed name, the united strengths of SleepMed and Watermark Medical combine to establish a business uniquely poised to address the sleep issues affecting millions of Americans and establish the first national high performing sleep health system.  The merger of SleepMed and Watermark Medical is an important development for the future of the sleep industry and the delivery of sleep related services. Utilizing Watermark's leading edge technology enabled platform and Enterprise relationships and SleepMed's stellar team of sleep experts and hospital partners, the new SleepMed will address the issues associated with the diagnosis and treatment of the widespread sleeping disorders in the U.S.  Through its combined current annual patient population of over 200,000 patients and its estimated 15,000 independent physician and hospital network partners, the new SleepMed will offer sleep services (i.e. patient engagement integration tools and patient "wellness" products) focused on improving quality sleep via an integrated health-systems company that delivers a continuum of sleep care. As sleep health is a part of a patient's overall health profile, the new SleepMed will embrace and support "Community Sleep Management."  This encourages local expertise, diagnostic pathways and appropriate therapy coordinated by SleepMed.  SleepMed University educational and clinical activities will advance sleep awareness to physicians, employers, other providers, and the general population throughout these healthcare "Sleep Communities."

  • Sector:  Pharmacy    Centene Corp. has purchased specialty pharmacy provider AcariaHealth for a combination of cash and stock, Centene said Tuesday.  Monday's purchase of AcariaHealth, formally known as Specialty Therapeutic Care Holdings, was financed through a combination of 1.7 million shares of Centene stock, cash and up to $15.3 million of Centene stock from an equity offering related to funding.  Centene said it expected the acquisition to be neutral to earnings per share in the first 12 months, and that it was working with AcariaHealth to ensure a seamless transition for customers and others.

  • Sector:  HME    Home Care Medical Inc (New Berlin, WI) acquired HomeCare Resources LLC. The acquisition of this durable medical equipment retail store expands Home Care Medical’s footprint into Sheboygan County and surrounding counties, and joins Home Care Medical’s two other southeastern Wisconsin retail stores.

  • Sector:  Nursing  Transition Capital Partners announced the sale of its portfolio company, Santé Pediatric Services, to Epic Health Services, a portfolio holding of Webster Capital.  TCP acquired Santé in 2009 in partnership with Enhanced Equity Funds of New York, Petra Capital Partners of Nashville and Eagle Private Capital of St. Louis. Under the day-to-day leadership of CEO Mike Fricke, the Company grew to become the largest provider of pediatric speech, physical and occupational therapy in the state of Texas. With 11 clinics covering 10 markets, 460 employees, and 2,600+ children under care, Santé perfectly complements Epic’s multi-state pediatric health care business.

  • Sector:  Physician Practice Group    MEDNAX National Medical Group (Sunrise, FL) acquired Neonatology Associates Ltd (NAL) (Phoenix, AZ), a neonatal physician group practice. The practice consists of 24 neonatologists, five pediatric hospitalists, 39 advanced practitioners, and 35 other clinical and administrative support. The practice will become part of MEDNAX's Pediatrix Medical Group (Sunrise, FL).

  • Sector:  HME    Numotion, formerly ATG Rehab and United Seating & Mobility, announces the acquisition of the complex rehab business of Ultimate Mobility, Inc., a regional provider based in Worcester, MA.

  • Sector:  Healthcare    RLH Equity Partners is pleased to announce our investment in The Chartis Group, a premier strategy consulting firm that helps the senior executives and Boards of Directors of leading hospitals and Integrated Delivery Networks address their most important and pressing challenges.  The Company assists its clients with key strategic decisions on economic matters such as developing or participating in an accountable care organization, acquisitions of physician groups, geographic expansion of the care delivery footprint, and achieving efficient care delivery processes at each site.  Chartis’ lengthy roster of blue chip clients includes over 60 nationally renowned academic medical centers, 9 of the top 10 children’s hospitals in the US,  81% of US News honor roll hospitals, and 20 of the top 25 cancer centers nationwide.

  • Sector:  Lab Services    Beckman Coulter Inc (Fullerton, CA), a wholly owned subsidiary of Danaher Corporation (Washington, DC), entered into an agreement to acquire IRIS International Inc (Chatsworth, CA). Danaher acquired IRIS, an automated in-vitro diagnostics systems and consumables manufacturer, through its wholly owned subsidiary, Daphne Acquisition Corporation

  • Sector:  Medical Device    Hayward, Calif., medical device company Solta Medical Inc. announced Tuesday, Jan. 29, it will acquire ultrasound device manufacturer Sound Surgical Technologies LLC of Louisville, Colo., for $30.5 million. Terms of the deal call for a $25.5 million payment in Solta common stock and a $5 million payment in cash. The deal also includes a $9.5 million earnout based on the target's revenue.

  • Sector:  Medical Imaging    Samsung Electronics America, Inc., a subsidiary of Samsung Electronics Co. Ltd, today announced its acquisition of NeuroLogica, a leading Computed Tomography (CT) company headquartered in Danvers, Massachusetts. Established in 2004, NeuroLogica develops cutting-edge medical imaging products and is known for its world-class portable CT scanners, such as BodyTom and CereTom. Terms of the deal were not disclosed.  The acquisition of NeuroLogica is another important step in the expansion of Samsung’s medical imaging business. Samsung will continue to strengthen its capabilities and product portfolio to establish itself as a trusted leader in the health and medical equipment industry.

  • Sector:  Medical Supply    Alere Inc (Waltham, MA) has acquired Epocal Inc (Ottawa, Ontario, Canada), a blood-gas and electrolyte testing technology provider. In 2009, Alere signed a definitive agreement with Epocal to acquire all of its issued and outstanding equity securities, contingent upon the achievement of gross margin and other financial milestones on, or prior to, October 31, 2014. Alere paid approximately $166 million in cash for Epocal, including a $15 million payment for achieving the first two financial milestones specified in the agreement. If Epocal reaches other product milestones, they could trigger additional payments of up to $75.5 million.

  • Sector:  Healthcare IT    Genpact has acquired JAWOOD, a leading provider of business services to the healthcare payer industry that is headquartered in the Detroit suburb of Bingham Farms, Michigan.  This acquisition is a strategic fit for Genpact because it adds domain expertise and capabilities in the healthcare payer industry – a focused growth vertical for us.  This transaction also includes Genpact's purchase of India-based Felix Software, a key subcontracted service provider to JAWOOD.

  • Sector:  HME    MedCare Equipment Company, a provider of medical equipment and respiratory therapy services, has purchased Great Lakes Home Healthcare Services’ home medical equipment division, according to a press release. The new partnership expands MedCare’s service area to include the northwest corner of western Pennsylvania, as well as portions of southern New York. In August, MedCare, which is part of the Excela Health System, partnered with St. Clair Hospital in Pittsburgh, the provider’s fourth such agreement since 2008.

  • Sector:  Biomedical    Crothall Healthcare (Wayne, PA) acquired CREST Services (Coppell, TX), a medical equipment maintenance company.

  • Sector:  Home Infusion Pharmacy    AxelaCare Health Acquires Equinox Healthcare.  Excellere’s investment in AxelaCare is a result of the firm’s disciplined top down investment strategy. In 2008, Excellere targeted the specialty pharmacy sector (including home infusion) as an attractive buy-and-build opportunity and spent the subsequent two years carefully seeking a partnership with an industry leading management team who shared a vision to build a truly differentiated company.  AxelaCare competes within the specialty infusion sector of the specialty pharmacy industry. Specialty infusion services primarily involve the intravenous (i.e., directly into veins or muscles, or under the skin) administration of medications to treat a wide range of acute and chronic health conditions. Physicians, hospital discharge planners and case managers generally refer patients to specialty infusion providers to continue their therapies at home or in other non-acute settings.

  • Sector: Home Healthcare    Addus HomeCare Corporation, a provider of home-based social and medical services focused on the elderly dual eligible population, recently announced that it has completed the sale of substantially all of the assets of its home health division to LHC Group, Inc. The sale encompasses 19 home health agencies and two hospice agencies in five states. Specifically, LHC Group will acquire 100 percent of the assets of the business in Arkansas, South Carolina and Nevada. In Illinois and California, LHC Group will acquire 90 percent of the business, with Addus retaining a 10 percent ownership interest in those locations. The business represents approximately $36.7 million in annual revenues for the twelve month period ended September 30, 2012. Net proceeds from the transaction will be used to pay off outstanding debt and for general corporate purposes. LHC paid $20 million in cash under the agreement

  • Sector:  Medical Mfg Supply  Kimberly-Clark Corp (Irving, TX) acquired the anesthesia business of Life-Tech Inc (Stafford, TX). The acquisition is comprised of needles, catheters, and accessories associated with peripheral nerve block procedures. The assets will become part of Kimberly-Clark Health Care (Roswell, GA) and added to Kimberly-Clark Health Care's ON-Q family of products. Other business segments of Life-Tech are not included in this transaction. The financial details of the transaction were not disclosed.

  • Sector:  Medical Device    Cardiac Science (Waukesha, WI) signed a definitive agreement to sell its diagnostic cardiology product line to Mortara Instrument Inc (Milwaukee, WI). The business consists of the Burdick and Quinton brands and associated products. The transaction does not include MySense or the resuscitation business unit, which markets automated external defibrillators (AEDs). The boards of directors of both companies have approved the transaction. Cardiac Science customers will continue to receive technical, sales, and customer service through the existing channels until otherwise notified.

  • Sector:  Medical Mfg  AmerisourceBergen Corp (Chesterbrook, PA) signed a definitive agreement to sell its contract packaging business, AndersonBrecon (Rockford, IL), to an entity formed by affiliates of an investor group led by Frazier Healthcare VI LP (Seattle, WA) for the purpose of acquiring AndersonBrecon. The purchase price for the transaction is $308 million in cash, subject to customary adjustments for, among other things, the working capital of the business. The investor group includes affiliates of Greenspring Associates (Owings Mills, MD), QIC Global Private Equity (Brisbane, Australia), and Thomas McNerney & Partners (Stamford, CT). The transaction is subject to customary closing conditions, including receipt of certain regulatory reviews, and is expected to close in Q3 of FY 2013, which ends June 30, 2013.

  • Sector:  Diagnostic Imaging   New York Imaging Service (NYIS) (Newburgh, NY) recently acquired GXC Imaging Specialists (Tonawanda, NY), its fourth acquisition since March 2012. NYIS plans to expand beyond New York and into the mid-Atlantic and New England regions this year.

  • Sector:  Pharmacy   Valeant Pharmaceuticals International, Inc. (NYSE: VRX and TSX: VRX) announced that it has entered into a definitive agreement under which Valeant will acquire all of the outstanding common stock of Obagi Medical Products, Inc. (NASDAQ: OMPI) for $19.75 per share in cash, which represents a 28% premium to Obagi’s closing share price on March 19, 2013, the last trading day prior to announcement. The transaction is expected to close in the first half of 2013 and Valeant expects the transaction, once completed, to be immediately accretive to Valeant’s cash earnings per share. The combination is expected to yield cost synergies at an annual run rate of at least $40 million within six months of closing.

  • Sector:  Home Infusion/Specialty Pharmacy    MediLink Homecare, a leading home infusion and specialty pharmacy located in Hammonton, NJ was acquired in a private transaction.  MediLink has served the unique needs of the patient, family, physician and payor communities since 1994.  Paragon Ventures, a leading healthcare mergers and acquisitions advisory,  was the exclusive advisory to MediLink and initiated the transaction.  Transaction details where not disclosed.

  • Sector:  Pharmacy   JHP Pharmaceuticals, a specialty pharmaceutical company based out of Parsippany, NJ, has been acquired by Warburg Pincus from Morgan Stanley Principal Investments for $195 million. JHP acquires, develops, manufactures and sells sterile injectable products, with therapeutic solutions for the anesthesiology, gastroenterology, infectious diseases and women's healthcare markets, among others. The investment will allow JHP to pursue unique partnership and acquisition opportunities in both the branded and generic segments of the market

  • Sector:  Hospice   North Mississippi Hospice, Inc., a prominent hospice provider in northern Mississippi, has been acquired by Gentiva Health Services, Inc. North Mississippi Hospice has three locations in northern Mississippi and provides traditional hospice services. North Mississippi Hospice believes that everyone deserves access to quality, compassionate end of life care whether it is in the patient's home or in a nursing home. The terms of the transaction was not disclosed.

  • Sector:  HME    Dynamic Healthcare Services, Inc., a portfolio company of GMH Ventures LLC, announced that it acquired the operating assets of APO2 of Hazleton, PA. . The terms of the acquisition were not disclosed. APO2 is a full service HME (Home Medical Equipment) company providing home oxygen delivery systems, CPAP, sleep apnea products, consumer power mobility products which include scooters as well as power wheelchairs. APO2 was founded in 2004 by its President William Pavlick and has experienced significant growth during each year of operation.

  • Sector: Hospice   Hearts for Hospice, LLC, (Hearts) a provider of hospice and home health services to patients in Utah, Idaho, and Arizona, has been acquired by Abode Healthcare, a portfolio company of Frazier Healthcare. Hearts is a Medicare certified, and Medicaid approved organization providing end of life care to terminally ill patients and their families, as well as comprehensive restorative care to patients recovering from illnesses and injuries. The Company consists of several divisions including a hospice division (Hearts for Hospice) and a home health division (Hearts for Home Health). In addition to traditional home health and hospice services, Hearts provides non-emergency medical transportation services to its hospice patients and their families. Hearts has an excellent reputation in the healthcare community and throughout its service areas. The terms of transactions were not disclosed.

  • Sector:  Medical Products   Henry Schein, Inc. (NASDAQ: HSIC), the world's largest provider of health care products and services to office-based dental, medical and animal health practitioners, today announced the acquisition of the Maddox Practice Group (MPG), a leading practice transition group that serves the California dental market. Financial and other terms of the transaction were not disclosed.

  • Sector:  Labratory  Willow Laboratories announced that it has been acquired by Ampersand Capital Partners. Willow is one of the country’s leading clinical and forensic toxicology laboratories providing urine, hair and saliva testing services to a wide range of healthcare providers including treatment centers, physician practices and other laboratories. Using state-of-the-art technology, Willow provides qualitative and quantitative alcohol and drugs-of-abuse test results to aid clients in the diagnosis and treatment of substance abuse.

  • Sector:  Healthcare IT    PeriGen Inc., a developer of clinical decision support software for hospitals, has raised $6.4 million in a round of financing from 10 investors. The company, earlier known as ECMI Holdings Inc.,raised $4.6 million in January 2010.

  • Sector:  Clinical Research   PRA, a leading clinical research organization, today announced it has acquired privately held ClinStar, LLC, a clinical research organization managing Phase I-IV clinical research trials in the Russian Federation, Ukraine, Belarus and the Baltic States. Through its operations in the region, ClinStar provides clinical development services to a wide range of pharmaceutical and biotechnology companies

  • Sector:  Healthcare IT   Athenahealth (Watertown, MA) completed its acquisition of Epocrates (San Mateo, CA). Athenahealth announced plans to acquire Epocrates in September 2012 for $293 million cash, or $11.75 per share. The acquisition expands Athenahealth's current base from 40,000 clinicians to more than one million, and allows Athenahealth to build on its data network with the mobile capabilities afforded by Epocrates.

  • Sector: General Healthcare   H.I.G. Capital Partners has made a strategic investment in California Forensic Medical Group, Inc. (CFMG). CFMG specializes in correctional healthcare exclusively in the State of California. Services are provided to 61 facilities with a combined average daily population of approximately 14,550 inmates.

  • Sector: Hospice   Hospice Advantage Inc. has completed a recapitalization with Sentinel Capital Partners. Hospice Advantage is a Medicare, Medicaid Certified hospice and homecare program providing superior end-of-life care and skilled nursing services. Hospice Advantage currently has 56 hospice locations across 10 states throughout the Midwest, Southeast and South. The terms of the recapitalization were not disclosed

  • Sector  HME   Edge Medical Supply has purchased the assets of Jones Medical Equipment, a Corsicana, Texas-based respiratory and home medical equipment provider. The deal strengthens Edge Medical Supply’s position in the north central Texas market, stated President Brian Bersano in a press release. Edge Medical Supply, which has 10 locations, will move Jones Medical Equipment’s operations to its existing location in Corsicana.

  • Sector  HME   Roberts Home Medical Equipment acquired Frederick Memorial Hospital Home Medical Equipment, according to a message to customers on the hospital’s website. In the letter, Frederick Memorial ensured customers they are “working to make the transition seamless,” adding that there will be no disruption in services and that Roberts Home Medical has the existing prescription and billing information necessary for continued service.

  • Sector:  HME   Advanced Home Care has acquired Extrakare, a Norcross, Ga.-based home medical equipment provider. "The addition of Extrakare LLC to the Advanced Home Care family enables us to expand our commitment of providing extraordinary care to patients in the greater Atlanta area," Joel Mills, CEO of Advanced Home Care, said. Extrakare was founded in 2004 and provides home oxygen, PAP devices for treating sleep apnea, devices used during knee rehabilitation and other home medical equipment. With the acquisition, Advanced Home Care is creating a new region of operations in northern Georgia. It will be headed by Scott Lloyd, Extrakare's co-founder and president, with Extrakare co-founder and vice president Kevin Goodwin serving as branch manager.  Extrakare employs 35, all of whom will join Advanced Home Care.

  • Sector:  Healthcare IT   - NetDimensions, a global provider of performance, knowledge, and learning management systems, announces today that it has acquired the assets, goodwill and business of eHealthcareIT for a total consideration of approximately US$3.5m. The acquisition is in line with NetDimensions’ strategy to become a premier global provider for talent management solutions for highly-regulated industries.

  • Sector:  Medical Supply  Ansell Limited (ASX:ANN), a global leader in protection solutions, today announced the acquisition by Ansell Healthcare Products LLC of substantially all of the assets of Preferred Surgical Products, L.L.C. (“PSP”), a privately held US product and technology company with innovative solutions in infection prevention. The PSP range aims to improve infection control, protect the patient’s skin, and optimize room turnover time, while reducing total cost per procedure.  “This technology fits well within our SANDEL brand of Healthcare Safety Devices and strategically expands our perioperative safety offering,” said Anthony Lopez, President and General Manager, Ansell Medical Solutions. The transaction is expected to be earnings per share neutral in F’13 and slightly accretive in F14.

  • Sector:  Pharma  Montreal-based Valeant Pharmaceuticals International Inc. (NYSE: VRX) has acquired the U.S. rights to Targretin, medication used to treat skin problems, for $65 million. The company bought the rights from Eisai Inc., the U.S. pharmaceutical subsidiary of Eisai Co. Ltd, which is based in Japan. Targretin treats skin problems caused by cutaneous T-cell lymphoma, which can cause skin legions. The medication comes in pill and gel forms. In September, Valeant agreed to buy Medicis Pharmaceutical Corp. (NYSE: MRX) for $2.6 billion.

  • Sector:  Senior Living   Texas private equity firm TPG Capital on Tuesday, Feb. 26, provided a lifeline to troubled Assisted Living Concepts Inc., agreeing to buy the operator of senior living residences in a deal valued at $278 million. Terms of the deal call for holders of Menomonee Falls, Wis.-based Assisted Living to receive $12 per share in cash, a premium of 23.7% over the target's Monday close of $9.70.

  • Sector: Medical Device   EQT Partners agreed to acquire BSN Medical from Montagu Private Equity and management for approximately $2.27 billion. BSN Medical designs, manufactures, and markets medical devices in the areas of fracture management, compression therapy, wound care, and physiotherapy in Germany and internationally. The deal is projected to trade at an implied EV / LTM EBITDA multiple of 10.9x and LTM Revenue multiple of 2.7x.

  • Sector:  Medical Device  DMH International (Austin, TX) acquired all of the outstanding shares of Touch Medical Solutions Inc (TMSI) (Coral Springs, FL). TMSI develops and markets software for the medical community. As a result of the merger, Rik J Deitsch has assumed the position of CEO and director, and Jason Barry assumed the position of president and director. DMH expects to be able to roll out all of its software solutions by the end of 2013.

  • Sector:  Medical Device   Quest Diagnostics is selling its HemoCue business to Danaher's Radiometer Medical unit for $300 million. The diagnostics giant announced its plan to sell off the unit back in January, part of its overall strategy to minimize its presence in the point-of-care diagnostics product business and focus on information services. Quest will use the $300 million to repurchase shares through its stock buyback program, CEO Steve Rusckowski said. The HemoCue sale comes on the heels of Quest's December divestiture from OralDNA, the lab salivary diagnostics business it sold to Access Genetics for an undisclosed sum. The deals are all part of Quest's efforts to realign its business and reinstate revenue growth. But it's an uphill battle: Last year's $7.4 billion in revenue was essentially unchanged from 2011, and the company is projecting just 0% to 1% growth for 2013.

  • Sector:  Medical Device  Wright Medical Group Inc (Arlington, TN) completed its acquisition of BioMimetic Therapeutics Inc (Franklin, TN). Wright acquired BioMimetic Therapeutics for an upfront purchase price of approximately $190 million in cash and stock plus additional milestone payments of up to approximately $190 million in cash, which are payable upon receipt of FDA (Silver Spring, MD) approval of Augment Bone Graft and upon achieving certain revenue milestones. In conjunction with closing the transaction, a total of about $42.5 million in cash will be paid, and approximately 7.0 million shares of Wright common stock and 28.1 million contingent value rights will be issued. The CVRs will be listed under the symbol WMGIZ, and are expected to begin trading on March 4, 2013. BioMimetic’s common stock ceased trading as of March 1, 2013.

  • Sector:  Homecare/Hospice  LHC Group (Lafayette, LA) completed its acquisition of the home health service line of Addus HomeCare Corp (Palatine, IL) for $20 million, effective March 1, 2013. The deal includes 100 percent of the assets of three home health agencies in AR, one home health agency and two hospice agencies in California, and one home health agency in Nevada.  The company also acquired 90 percent of the assets of eight home health agencies in Illinois and six in California, with Addus retaining a 10 percent ownership interest in those locations. With this acquisition, LHC Group now operates more than 300 locations in 23 states nationwide.

  • Sector:  General Healthcare  MDSI (Lawrenceville, GA), publishers of The Journal of Healthcare Contracting, The MAX, Repertoire and the Dail-E News, acquired the Association of National Account Executives (ANAE) (Laguna Niguel, CA). With the acquisition, MDSI plans to create a high-value, membership-driven organization focused on professional development for corporate and national accounts executives calling on group purchasing organizations (GPOs), regional purchasing organizations (RPCs), accountable care organizations (ACOs), integrated delivery networks (IDNs), individual hospitals, national and regional distribution companies, and managed care organizations.

  • Sector:  Healthcare IT   Allscripts acquired dbMotion, Ltd., a leading supplier of community health solutions and Jardogs LLC, the top-rated patient engagement solution provider, both privately held. Combined with the existing Allscripts Community solution, these new capabilities deliver comprehensive care coordination and population health management across acute, ambulatory, and home care systems. These acquisitions advance Allscripts' strategy to offer full integration of heterogeneous systems across the care continuum, enabling solutions for a Connected Community of Health™. Leading healthcare organizations, such as Sharp Healthcare, Orlando Health, and Phoenix Children's Hospital have embraced these solutions to gain actionable insights from data to improve their medical decision-making and overall population outcomes. dbMotion provides a strategic platform for care coordination and population health management that integrates discrete patient data from diverse care settings, regardless of IT supplier, into a single patient record. It provides a longitudinal clinical data repository with semantically normalized patient data, point of care tools, a physician portal, population tools and an analytics gateway. This reduces the cost of care delivery and enables better physician-to-physician care coordination.

  • Sector:  Homecare/Hospice  The Ensign Group, Inc. (Nasdaq:ENSG), the parent company of the Ensign™ group of skilled nursing, rehabilitative care services, home health and hospice care, assisted living and urgent care companies, announced today that it has acquired Elite Home Health and Hospice from Tri-State Memorial Hospital located in Clarkston, Washington. Elite will bring Ensign's community-based home health and hospice care to the communities of Eastern Washington and Northern Idaho.   Elite will be operated by Paragon Healthcare, Ensign's home health and hospice subsidiary for the Northwest. "We are excited to have the Elite team join us, and are grateful for the outstanding foundation of quality care and teamwork we inherited," said Steve Burningham, Paragon's President. The purchase was made with cash, and brings Ensign's growing portfolio to 109 healthcare facilities, 87 of which are Ensign-owned, seven hospice companies and seven home health businesses across 11 states. Mr. Christensen reaffirmed that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling home health and hospice operations across the United States.

  • Sector:  Homecare/Hospice  Pioneer Home Health Care, Inc. and Hospice of The Owens Valley have joined forces under Pioneer’s roof. The merger, according to both administrators, is expected to enhance both entities in a variety of ways. Hospice, serving Owens Valley residents since the 80s, will be able to expand its patient base,and Pioneer, in operation since 1990, gains a hospice program.

  • Sector:  Homecare/Hospice  The Ensign Group, Inc. the parent company of the Ensign™ group of skilled nursing, rehabilitative care services, hospice care, assisted living and urgent care companies, announced that it has acquired Emblem Hospice, located in Mesa, Arizona, and Vesper Hospice, located in Pasadena, California, from Saint Jude Hospice, a well-regarded hospice operator headquartered in Iowa. Effective January 1, 2013, these two agencies will be operated by a subsidiary of Cornerstone Healthcare, Inc., Ensign's home health and hospice-based portfolio subsidiary. "We admire the great work done by the former owners and look forward to working together with an incredible team of caregivers to provide exceptional care to our patients and their families," said Daniel Walker, Cornerstone's President. He added that Ensign expects these newly-acquired agencies to be accretive to earnings in 2013. The purchases were made with cash and bring Ensign's growing portfolio to 108 healthcare facilities, 86 of which are Ensign-owned, six hospice companies and six home health businesses across 11 states. Ensign affiliates hold purchase options on two of its 22 leased facilities. Mr. Christensen reaffirmed that Ensign is actively seeking additional opportunities to acquire both well-performing and struggling skilled nursing, assisted living and other healthcare related businesses across the United States.

  • Sector:  Healthcare Trade    The National Association of Independent Medical Equipment Suppliers (NAIMES) announces that it has acquired the Committee to Save Independent HME suppliers (CSIHME) and merged it into the national trade association. “We are pleased with this merger which will combine the resources of CSIHME with NAIMES,” according to NAIMES Chairman Wayne Sale. “This effectively doubles our resources and will improve the effectiveness of NAIMES as an advocate for its members in the independent supplier community.

  • Sector: Healthcare IT     McKesson, Corp.’s connectivity business, RelayHealth, announced it has acquired Ahi Software, Inc., a provider of patient access solutions. The addition of Ahi Software’s technology will complement RelayHealth’s software platform, and enhance patient engagement and satisfaction.

  • Sector:  Homecare/Hospice  Halcyon announces the completion of the first hospice acquisition in South Georgia. The acquired company is Grace Hospice, located in Valdosta, GA.  Halcyon was formed in 2010 by Health Evolution Partners (HEP), Dan Kohl, and Jack Draughon to build the leading hospice and home health company in the Southeastern U.S. Halcyon completed their first two acquisitions in 2011 covering more than 40 counties in North Georgia. This acquisition marks the first entry into South Georgia, expanding the footprint of Halcyon by twelve counties.

  • Sector:  Healthcare IT      Arcadia Solutions, LLC, a provider of data-driven health IT services, has been acquired by Connecticut-based private equity firm Ferrer Freeman & Company, LLC (FCC). FCC’s relationships and expertise within healthcare IT provides the resources necessary to promote continued success and growth for Arcadia.

  • Sector: Healthcare IT     Humana, Inc. announced they have acquired Certify Data Systems, Inc., a leader in health information exchange (HIE) technology. While focused on technological enhancements that provide a more coordinated patient experience, Humana acquired Certify Data Systems for their robust software technology that ultimately improves the delivery of care.

  • Sector: Pharmacy, Specialty    BelHealth Investment Partners acquired Town Total Health, a specialty pharmacy treating patients with chronic conditions such as HIV, Hepatitis C and transplant maintenance therapy. Town Total services patients across the entire New York metro and upstate New York markets from four locations. With the transaction, BelHealth will provide the capital for growth and the leadership of healthcare and specialty pharmacy executive Michael Nameth, who will join Town Total as CEO. Terms of the transaction were not disclosed.

  • Sector: Pharma     JHP Pharmaceuticals has been acquired by an affiliate of Warburg Pincus from JHP Holdings, LLC, an entity majority-owned by Morgan Stanley Principal Investments, for $195 million. Founded in 2007, JHP is a specialty pharmaceutical company that acquires, develops, manufactures and sells sterile injectable products.

  • Sector: Pharmacy, Retail     CVS Caremark acquired 19 Medicine Chest drug stores in Texas. CVS will operate nine of the locations and relocate the other ten into existing CVS locations. Medicine Chest will continue to operate with seven retail pharmacies and three long term care pharmacies. Financial terms of the transaction were not disclosed.

  • Sector: Medical Device     The Medicines Company announced that it will acquire Incline Therapeutics, Inc. for $185 million at close with additional payments if certain regulatory and commercial milestones are met. Incline Therapeutics develops a patient-controlled analgesia (PCA) system, known as IONSYS, for use in a hospital setting for short-term management of postoperative pain.

  • Sector: Pharmacy, Specialty     Walgreen Co. acquired a significant ownership stake in Cystic Fibrosis Foundation Pharmacy, the parent company of Cystic Fibrosis Services. With the acquisition, Walgreens and the CF Foundation have joint ownership in both CF Services, a specialty pharmacy for CF patients, and Pharma Dynamics Inc., a provider of new product launch support and call center services for drug manufacturers. Terms of the transaction were not disclosed.

  • Sector: Medical Supply     Express Scripts sold Liberty Medical Supply to members of Liberty's management team. Liberty Medical Supply provides home delivery of a wide range of healthcare products across sectors such as diabetes, sleep apnea, urology, and pharmacy. Express Scripts acquired Liberty as part of its $29.1 billion acquisition of Medco Health Solutions in April and indicated it would divest the business. Financial terms of the transaction were not disclosed.

  • Sector: Pharma     Watson Pharmaceuticals announced that it has completed its acquisition of Belgium-based Uteron Pharma SA for a purchase price of $150 million upfront, and a potential $155 million in additional milestone payments that may become payable in future years as drugs in Uteron's pipeline move closer to market. Watson said this acquisition "expands Watson's Global Brands pipeline of Women's Health products including two potential near term global commercial opportunities in contraception and infertility, and one novel oral contraceptive, projected to launch globally in 2018. Several additional products in earlier stages of development are also included in the acquisition."

  • Sector:  Homecare/Hospice  The Ensign Group, Inc. announced that it has acquired Puget Sound Home Health, a home health agency certified by the Joint Commission on Accreditation of Healthcare Organizations based in Tacoma, Washington. The acquisition was effective as of January 1, 2013.  "This acquisition broadens Ensign's existing operational base in the important south Puget Sound market," said Christopher Christensen, Ensign's President and Chief Executive Officer. "The combination of this agency along with Ensign's existing operations in the Seattle area further enhances our ability to continue to provide high quality healthcare services to the markets we serve and strengthens our existing operating synergies," he added

  • Sector:  Medical Device     Stryker Corp. has announced paying $764 million in cash to purchase Hong-Kong based Trauson Holdings Co. Ltd. The acquisition is expected to help Stryker to better access and grow in China, one of the fastest growing markets for orthopedic products. Founded in China in 1986, orthopedics firm Trauson had sales of about $60 million in 2011 and makes spine devices and products for trauma surgeries.

  • Sector:  Medical Device     GN Otometrics (Schaumburg, IL) acquired Audio Electronics Inc (Austin, TX), an audiometric and vestibular equipment distributor. Audio Electronics will operate as a wholly-owned subsidiary of Otometrics, and maintain its operations in Austin, Texas with the sales, service, and office staff remaining in place.

  • Sector:  Medical Device    Johnson & Johnson (J&J) (New Brunswick, NJ) is considering selling its $2 billion-a-year Ortho Clinical Diagnostics business or turning it into a stand-alone company. The Ortho Clinical business makes a wide range of products, including tests to determine blood-type and various laboratory equipment.

2012   ===========================================

  • Sector:  Home Infusion Pharmacy     BioScrip, Inc. (NASDAQ: BIOS) announced that it has entered into a definitive agreement to acquire HomeChoice Partners, Inc. ("HomeChoice"), a leading provider of alternate-site infusion pharmacy services, for $70.0 million in cash. HomeChoice is a majority-owned subsidiary of DaVita HealthCare Partners Inc. (NYSE: DVA). The purchase price is subject to adjustment pursuant to the terms of the agreement including potential additional consideration based on the results of operations. BioScrip also expects to realize the value of a future tax benefit estimated at $3.9 million as a result of the transaction. Headquartered in Norfolk, VA, HomeChoice generates approximately $70 million in annual revenue, services approximately 15,000 patients annually, and has fourteen infusion pharmacy locations in Pennsylvania, Washington, DC, Maryland, Virginia, North Carolina, South Carolina, Georgia, Missouri, and Alabama. "We are pleased to have the HomeChoice team join our organization. HomeChoice is a highly-regarded infusion services company with a reputation for clinical excellence, strong referral and payor relationships and superior customer service. This transaction is also consistent with our stated goal of building our infusion business through strategic and opportunistic acquisitions, which meet our financial criteria and enable us to expand our national footprint," stated Rick Smith, President and Chief Executive Officer of BioScrip. The transaction is subject to customary closing conditions, including regulatory approval. The company expects the transaction will close in the first quarter of 2013.

  • Sector:  Healthcare IT     Brightree LLC, a provider of billing and business management software, has acquired home health and hospice software provider CareAnyware Inc, of Raleigh, NC.  The combination of the two companies creates the largest provider of cloud-based software for the post- acute care industry, with 500 employees serving nearly 3,000 companies in the HME, home health, hospice, orthotics and prosthetics, home infusion, and rehab home care segments.  “Home care is becoming a critical component of our nation’s ability to provide quality care in a more affordable manner,” said David Cormack, president and CEO of Brightree.  “Brightree and CareAnyware have come together to deliver world-class technology solutions that help providers operate more effectively and improve patient outcomes in today’s challenging healthcare market.”  Brightree and CareAnyware are both SaaS-based solutions that allow home care providers to adapt more readily to regulatory changes and new market demands, such as safely sharing patient information across the continuum of care. Brightree plans to leverage each software’s capabilities to improve the other.

  • Sector:   Hospice     Sentinel Capital Partners, a private equity firm that invests in promising lower middle market companies, announced it has recapitalized Hospice Advantage, a leading hospice organization that provides end-of-life care, palliative treatment, personal care, and family support services, primarily to patients in their homes. Terms of the deal were not disclosed. Headquartered in Michigan, Hospice Advantage was founded in 2004 by Rod Hildebrant, a veteran hospice industry executive with more than 35 years of experience, to better serve the needs of terminally ill patients. Hospice Advantage currently operates 56 locations in 10 states throughout the Midwest, Southeast and South.

  • Sector:  Pharma     Questcor Pharmaceuticals, Inc. (NASDAQ: QCOR) announced that it has signed a definitive agreement to acquire all issued and outstanding shares of BioVectra Inc., for an upfront payment of C$50 million. BioVectra is a supplier of contract manufacturing services to the global pharmaceutical and biotechnology industry and manufactures active pharmaceutical ingredients (API's), chemical intermediates, and bioprocessing reagents. BioVectra's facilities are staffed by approximately 180 employees including chemists, engineers and technicians. BioVectra had sales of approximately $28 million in its last fiscal year ended August 31, 2012, a 15% increase over its prior fiscal year. Questcor will purchase all issued and outstanding shares of BioVectra for an upfront payment of C$50 million, utilizing cash on hand. BioVectra stakeholders could also receive additional cash consideration, based on BioVectra's financial results over the next three years. The contingent payments could result in the payment of up to an additional C$50 million. The transaction is expected to be immediately accretive to non-GAAP earnings. Subject to customary conditions, Questcor anticipates closing the transaction in January 2013.

  • Sector:  Medical Supply     Ansell (Iselin, NJ), through its subsidiary Ansell Healthcare Products LLC (Red Bank, NJ), acquired substantially all of Preferred Surgical Products' (PSP) (Birmingham, AL) assets. The deal closed on December 31, 2012. PSP’s products are designed to improve infection control, protect patients’ skin, and optimize room turnover time, while reducing total cost per procedure.

    Sector:   Medical Supply     Invacare Corporation (NYSE: IVC) and AssuraMed announced that they have signed a definitive agreement under which Invacare will sell Invacare Supply Group (ISG), its domestic medical supplies business, to AssuraMed for $150 million, subject to certain closing adjustments. This divestiture is consistent with Invacare's focus on its globalization strategy to harmonize core global product lines and reduce complexity within its business. For AssuraMed, a leader in wholesale and home-delivered medical supplies across the United States, this strategic purchase allows the company to strengthen its position as a leader in the medical supplies industry.  AssuraMed Chief Executive Officer Michael B. Petras, Jr., said, ``We are thrilled to have ISG as a complement to our Independence Medical business. ISG's strong position in the marketplace and focus on customer service are an excellent fit with our product portfolio and focus on customer solutions. This strategic acquisition builds on our strengths in providing disposable medical supplies to the chronic disease market. Our new combined customer base will benefit from enhanced distribution capabilities and services that we will be able to provide.'' The transaction, which is expected to close in early 2013, is subject to regulatory approval and other customary closing conditions.  Subject to certain closing adjustments and any restructuring charges, Invacare preliminarily estimates that it will realize net proceeds from the sale of the ISG business of approximately $140 million, net of tax and expenses. In the near term, Invacare intends to use the proceeds to strengthen its balance sheet and reduce debt outstanding under its revolving credit facility. As previously disclosed by Invacare, net sales for the ISG business were approximately $299.5 million for 2011 and $246.4 million for the first nine months of 2012. Earnings before income taxes were approximately $8.0 million for 2011 and $5.1 million for the first nine months of 2012.

  • Sector:  Rehab     ATG Rehab, a leading provider of seating and mobility equipment, is expanding its services in Oklahoma. The company has purchased the complex rehab technology business segment of Medical Specialty Supply of Oklahoma, an Oklahoma City-based provider of specialized and custom designed power and manual wheelchairs and seating equipment, among other items. Medical Specialty Supply has been serving customers in Oklahoma City and the surrounding markets for nearly 10-years, forging a strong reputation for service and expertise with clients and clinicians.

  • Sector:   Pharmacy / Specialty     Salveo Specialty Pharmacy, Inc., a specialty pharmacy company backed by Three Arch Partners, NewSpring Capital and Petra Capital Partners, recently announced the completion of a second round of equity and debt funding, and its subsequent acquisition of Mission Road Pharmacy, a pharmacy based in Los Angeles, California focused on Oncology, HIV/AIDS, Hepatitis, Rheumatoid Arthritis and Mental Health therapies.   Co-founded by Jeff Freedman (CEO) and Chuck Brown (COO), Salveo Specialty Pharmacy is a specialty pharmacy company focused on the acquisition and operation of selected specialty pharmacies throughout the United States. With the Mission Road Pharmacy acquisition, Salveo now has clinically-focused specialty pharmacy operations based in New York and Los Angeles, the two largest markets in the nation. Salveo will continue to focus on expanding its current customer base in these and new markets as well as integrating further acquisition targets. The former owners of Mission Road Pharmacy intend to remain with Salveo post-transaction.

  • Sector:  Healthcare IT     Boston medical information company Parexel International Corp. said it acquired medical software company Liquent Inc. from Marlin Equity Partners for about $72 million in cash. The transaction was completed Dec. 21 and Parexel will fund the acquisition by drawing from its credit facility. The Horsham, Pa.-based target, with its 300 employees, provides software services

  • Sector:  HME Supply     C&C Homecare, a provider of durable medical equipment and respiratory services headquartered in New York, announced that it has acquired New Jersey-based Allcare Medical. The combined company now services patients in the New York-metro, New Jersey and Philadelphia area markets from five distribution centers and three retail locations. Effective December 1, 2012, the company will market itself as Allcare Medical. Richard Lerner, Allcare Medical’s former owner, commented, “We are excited to join forces with C&C Homecare, which has the resources to adapt to the evolving market for HME while maintaining a core focus on patient care.”

  • Sector:  HME Supply     Dynamic Healthcare Services, Inc. ("DHS") a portfolio company of GMH Ventures LLC ("GMH") announced that it acquired HomeTown Oxygen, Pittsburgh, LLC ("HomeTown") of Monroeville, PA on November 8, 2012. The terms of the acquisition were not disclosed. HomeTown is a full service distributor of medical products and equipment including respiratory and sleep apnea equipment in Pennsylvania. HomeTown, with locations in Monroeville and Latrobe, was founded in 2007 and has achieved significant growth in its short existence.

  • Sector:   IDN Health Services     HealthPartners Inc (Bloomington, MN) and Park Nicollet Health Services (Minneapolis, MN) merger closed. The IDN will serve 1.4 million medical and dental patients in Minnesota and western Wisconsin. HealthPartners and Park Nicollet care facilities will continue to operate under their current names, and the merger will be transparent for patients. However, the IDN itself will operate under the HealthPartners name and a single, "consumer-governed" board of directors composed of 23 elected members and patients

  • Sector:  HME Supply     Global Medical Equipment of America (GMEA) announced in November that it has acquired Premier Home Healthcare, Ponce Home Medical Equipment and Bayonet Point, all based in Florida. “We have now added strategic locations to enable full service for the northern Florida area,” stated Vincent DeNoto, area business director for GMEA, in a press release. “These new locations bring capability to expand our existing Palm Coast operation.” Premier is based in Orlando and Port Orange; Ponce in St. Augustine; and Bayonet in Port Richey and Ocala. “The ability to now service Jacksonville to Tampa will provide our patient and commercial clients with coordinated access to comprehensive health services,” stated Harold Halman, CEO of GMEA, in the release.

  • Sector:  Healthcare HR     Press Ganey Associates, Inc., a recognized leader in health care performance improvement, announced that it acquired Morehead Associates, Inc., one of the industry's foremost employee and physician engagement firms. The acquisition strengthens Press Ganey's comprehensive suite of patient experience solutions and services, while emphasizing the importance of physician and employee engagement in achieving sustainable change in providers nationwide.

  • Sector:  HME Supply     Edge Medical Supply of Tyler, TX has purchased the assets of Jones Medical Equipment, a Corsicana-based respiratory and home medical equipment provider. The combination unites two leaders in Home Medical Equipment and Respiratory Therapy in the North Central Texas market.  Commenting on the deal, Brian Bersano, President of Edge Medical Supply, "The acquisition of Jones Medical Equipment has further expanded our ability to provide exceptional services while strengthening our unique position within the North Central Texas market.  Edge Medical Supply is one of the largest providers of home medical equipment and related products and services in the Texas market with operations in ten locations.

  • Sector:  GPO     MHA LLC (Managed Health Care Associates) (Florham Park, NJ) acquired FMS Purchasing & Services Inc (Clearwater, FL) and Rebate Tracking Group (Clearwater, FL) through its subsidiary, Navigator Group Purchasing (Franklin, TN). This acquisition is the fourth such purchase MHA has completed in the long term care and hospitality markets in the last 24 months.

  • Sector:   HME Supply     NorCal Respiratory, a provider of sleep apnea and respiratory equipment, recently acquired Intermountain Respiratory from Mayers Memorial Hospital District in Fall River Mills, Calif. “Our experience and success with home sleep testing and sleep apnea management has helped NorCal establish a strong presence in California’s northstate medical community,” stated Jim Rehmann, president of NorCal, in a press release.

  • Sector:  HME Supply     Graymark Healthcare, Inc. (OTCBB:GRMH), the nation's second largest provider of diagnostic sleep services and an innovator in comprehensive care for obstructive sleep apnea (OSA), announces an equity investment. A newly formed entity, Oklahoma Health Partners (OHP), announced their intent to purchase 1,444,445 shares of common stock of Graymark Healthcare (GRMH) for $650,000 at $0.45 per share. The transaction is expected to close no later than November 14, 2013. Oklahoma Health Partners is managed by Mr. Mike Horrell. Mr. Horrell is a significant investor in numerous health care related companies and health care real estate projects. " Proceeds of the sale will be used for general purposes. "We look forward to a long term partnership and taking the Company in new strategic directions," said Stanton Nelson, CEO of Graymark Healthcare. In addition to this investment, Graymark announced a cost reduction plan that will reduce expenses by more than $2,000,000 in 2013. "By reducing our labor force, trimming our corporate expenses and reducing our bad debt, Graymark is committed to right sizing our company for profitability in 2013," said Nelson.

  • Sector:   Medical Supply/Diabetic Supply     Diabetic Care Rx has received an equity investment from RLH Equity.  Diabetic Care Rx  the second largest provider of customized nutritional therapy to those patients with end stage renal disease who are at higher risk of adverse clinical outcomes because of chronic malnutrition. DCRX’s skilled clinicians work with referring nephrologists and dialysis centers to formulate and deliver the optimal customized parenteral nutrition therapy for each patient.

  • Sector:  Healthcare / IT Electronic Medical Records     Phoenix-based Adreima, a Waud Capital Partners (“WCP”) portfolio company, announces its acquisition of National Healthcare Review, Inc. (“NHR”), a national clinical-financial auditing company based in Woodland Hills, California. NHR will be part of a rapidly growing organization that provides clinically-integrated revenue cycle services to hospitals and healthcare systems nationwide, including eligibility determination for medical coverage, medical pre-authorization, accounts receivable management services, post-payment recovery services, audit review and defense, and clinical and technical denials support. With the addition of NHR, Adreima will serve hospitals in 31 states with more than 650 employees, including 145 clinical, audit and coding specialists. 

  • Sector:   Healthcare     Athenahealth Inc (Waltham, MA) signed a definitive agreement to acquire Epocrates Inc (San Mateo, CA) at $11.75 per share, in cash, for an aggregate purchase price of approximately $293 million. Athenahealth will finance the acquisition with available cash and funds from its existing credit facility. Closing of the transaction is subject to Epocrates shareholders’ approval. Epocrates shareholders, representing approximately 17.5 percent of the outstanding common stock, have agreed to vote their shares in favor of the transaction.

  • Sector: Home Infusion Specialty Pharmacy  Amerita, Inc. (Amerita), a provider of home and specialty infusion services has been sold to PharMerica Corporation (PharMerica), an institutional pharmacy services provider. Terms of the transaction were not disclosed. Amerita was a portfolio company of Ferrer Freeman & Company, LLC (FFC), a private equity firm focused on the healthcare industry. “Together, with PharMerica, we look forward to continuing to provide quality services and support to home and specialty infusion patients,” said Jim Glynn, founder and CEO of Amerita. Amerita, based in Irvine, CA, was formed in 2006 with capital from FFC and the Amerita management team. Through de novo development, acquisitions, and organic growth, the Company is now one of the nation's largest independent providers of complex pharmaceutical products and clinical services to patients outside of the hospital, with 12 branches in Colorado, Oklahoma, Tennessee, Texas and Utah. As part of the transaction, Amerita CEO Jim Glynn will go forward as the President of Amerita, a wholly owned subsidiary of PharMerica.

The sale of Amerita comes at a busy time as mergers and acquisitions are continuing to escalate across the healthcare industry. These transactions are being fueled by many factors including substantial available capital resources and the impending capital gains tax increases. Both private equity and corporate America continue to invest in strong, growth oriented businesses. For more information on how this transaction and the overall M&A markets may impact your company, please contact us at Paragon Ventures for a private, no-obligation discussion of the strategic options for your Company.

  • Sector: Pharmacy     The pharmaceutical industry continues to see a trend of mergers and acquisitions with Kroger’s announcement that it will acquire the outstanding shares of Axium Pharmacy Holdings, Inc., a leading specialty pharmacy, to create a merger of the two companies. The merger provides Kroger, one of the world’s largest retailers, access to the specialty pharmacy space, which is the primary area of growth in pharmaceuticals containing over 700 specialty drugs in the pipeline for approval. “Kroger and Axium are a strategic fit as we look to enter the high-growth specialty pharmacy business,” Lincoln Lutz, VP of Corporate Pharmacy at Kroger’s said in a news release. “The combination of Axium’s expertise and Kroger’s 1,950 pharmacy locations, 91 Little Clinic locations, and pharmacists who provide health coaching, biometric screening and other wellness services will deliver positive health outcomes for our patients, cost savings for insurance payers, and unique services for physicians.” Axium is one of the nation’s largest independent providers of specialty pharmacy services. It provides drug therapies and patient support services to treat chronic, genetic and other complex conditions including hepatitis C, multiple sclerosis, rheumatoid arthritis, cancer, as well as other chronic care conditions. Axium will continue to operate as an independent company within the Kroger family.

  • Sector:  Medical Equipment HME/DME   Sleep Nation,Sleep Nation, Inc., a national provider of continuous positive airway pressure equipment (CPAP), announced the purchases of the CPAP business of five durable medical equipment (DME) providers. Sleep Nation, through its wholly owned subsidiary, CPAP Care Club, is executing on the opportunity to grow in the expanding sleep apnea market through acquisitions.  "The uncertainties in the industry due to Medicare's competitive bidding process, higher regulation requirements and the desire for DME's to move to higher reimbursing therapies have led many DME's to look for new ways to finance their companies," said Rich Roberts. "Since our company only focuses on sleep apnea solutions, we are well suited to handle changes that are rapidly taking place in the industry."  Sleep Nation, through our wholly owned subsidiary, CPAP Care Club, LLC, is one of the few national companies that is licensed in all required states and we have managed care contracts covering all 50 states and over 166 million patients in the United States.

  • Sector:  Medical Equipment  HME Oxygen   The Riverside Company has acquired Premier Medical Corporation (Premier), a provider of rental respiratory equipment, liquid oxygen, durable medical equipment and related services to skilled nursing facilities and hospices in Colorado, New Mexico and Wyoming. The acquisition is an add-on to platform company Specialized Medical Services, Inc. (SMS). This is the fourth add-on to SMS, including its merger with RCS Management in March 2012.  Based in Denver, Premier adds direct infrastructure in key Western markets to SMS, and solidifies SMS’s position as the largest provider of respiratory equipment, oxygen and related products and services to nursing homes and hospices in the U.S. Premier also has small homecare and oxygen businesses.  Specialized Medical Services Specialized Medical Services provides respiratory equipment, oxygen and related products and services to nursing homes and hospices throughout the U.S. The company’s client base covers more than 40 states and 2,000 facilities, including 12 of the 20 largest nursing home chains in the country. Specialized Medical Services offers the best systems and the broadest array of services in the industry, including respiratory equipment, comprehensive oxygen services, disposable supplies, along with clinical, billing and consulting services.

  • Sector:  Medical Equipment  HME  MedCare Equipment Company, a provider of medical equipment and respiratory therapy services, has purchased Great Lakes Home Healthcare Services’ home medical equipment division, according to a press release. The new partnership expands MedCare’s service area to include the northwest corner of western Pennsylvania, as well as portions of southern New York. In August, MedCare, which is part of the Excela Health System, partnered with St. Clair Hospital in Pittsburgh, the provider’s fourth such agreement since 2008.

  • Sector:  Medical Equipment HME  Dynamic Healthcare Services, Inc. ("DHS") a portfolio company of GMH Ventures LLC ("GMH") announced that it acquired Evanko Respiratory Inc. ("Evanko") of Hazleton, PA on September 7, 2012. The terms of the acquisition were not disclosed.  Evanko is a full service distributor of medical products and equipment including respiratory and sleep equipment and mobility products (with the exception of power wheelchairs). Evanko was founded in 2001 by President Thomas J. Evanko , CRT. The company experienced significant growth and success under Mr. Evanko's leadership until his passing on April 5, 2012. Mr. Evanko's wife, Carmela, became President soon afterward and continued to run the business until the sale to DHS.

  • Sector: Nursing     Emeritus Corporation (ESC) (“Emeritus” or the “Company”), the nation’s largest provider of assisted living and memory care services, announced that the Company has entered into an agreement to purchase Nurse on Call, Inc. (“Nurse on Call” or “NOC”), the largest Medicare-licensed home health care provider in Florida and one of the largest such providers in the United States. Emeritus will pay $102 million in cash for 91% of the equity of NOC’s parent company, and the remaining equity will be owned by certain members of NOC’s management team. The Company will fund the purchase primarily from net proceeds realized from the recently closed sale of joint venture communities. Through 28 offices serving 47 counties in Florida, NOC’s 1,700 caregivers provide skilled nursing, rehabilitation therapy, medical social services, and other home health assistance to individuals in their homes who may be recovering from surgery, have an acute exacerbation of a chronic illness, or need assistance with the activities of daily living. NOC and its affiliates currently generate annualized revenues of approximately $140 million and earnings before interest, income taxes, depreciation and amortization of approximately $17 million. Emeritus expects that the acquisition of NOC will be immediately accretive to earnings.

  • Sector: Nursing    Private equity firm the Halifax Group has purchased Interim HealthCare Inc., which provides home healthcare services, from Sentinel Capital Partners for an undisclosed amount. Halifax focuses on lower middle market investments. The firm has offices in Washington, D.C., Dallas and Raleigh, N.C. Its portfolio companies include Animal Supply Co. LLC, Nutrition Physiology Co. LLC and PJ United. The deal marks Sentinel’s fourth exit of 2012.

  • Sector: Hospice     Home Health Depot has acquired the majority interest of Genesis Healthcare Services, an Atlanta-based provider to hospice organizations, according to a press release. The acquisition is Home Health Depot’s fourth this year. Genesis, which has five locations in the Atlanta area, will become a complex rehabilitation equipment provider in addition to servicing hospice organizations. “We are thrilled to partner with Genesis and expand our offerings to Georgia,” stated David Hartley, CEO of Home Health Depot, in the release. “Our expansion into hospice services adds to our healthcare offerings and makes us an even better partner to healthcare systems that provide the complete continuum of care to their patients.”

  • Sector: Sleep Therapy     Graymark Healthcare, a provider of diagnostic sleep services, has agreed to a new equity investment from Oklahoma Health Partners (OHP), according to a press release. OHP intends to purchase 1.4 million shares of Graymark’s common stock for $650,000. The funds will be used to right-size the company, according to company officials. “We recently initiated a cost reduction plan that is expected to save the company approximately $2 million in 2013,” stated Stanton Nelson, CEO of Graymark, in the release. “In addition to the cost reductions, which include reductions in our labor force, corporate expenses and bad debt expenses, we are developing a plan to identify and close underperforming lab locations.” Graymark’s net revenues for the third quarter of 2012 were $4.3 million, decreasing 4.3% from $4.5 million in the same quarter of 2011. The decrease was primarily due to lower reimbursement rates for sleep studies and CPAP devices, according to the release.

The diagnostic and sleep therapy sectors are highly sought after businesses as mergers and acquisitions are continuing to escalate across the healthcare industry. These transactions are being fueled by many factors including substantial available capital resources and the impending capital gains tax increases. Both private equity and corporate America continue to invest in strong, growth oriented businesses. For more information on how this transaction and the overall M&A markets may impact your company, please contact us at Paragon Ventures for a private, no-obligation discussion of the strategic options for your Company.

  • Sector: PBM Pharmacy Benefit Management     Private equity firms Carlyle Group LP, Blackstone Group LP, and TPG Capital LP plan to bid for Allscripts Healthcare Solutions Inc. The companies reportedly submitted second-round offers last week, one day after Allscripts reported weak quarterly earnings. Any decision on a deal is still weeks away.

  • Sector:  HME Home Medical Equipment     Dynamic Healthcare Services, a provider of home medical equipment and respiratory therapy products and services, has acquired HomeTown Oxygen, according to a press release. HomeTown, a distributor of medical products, sleep apnea equipment and respiratory supplies, has locations in Monroeville and Latrobe, Pa., with a service area that includes several Pennsylvania counties. Terms of the acquisition were not disclosed.

  • Sector: Nursing     Borgess VNA Home Health and Hospice is being folded into a new statewide home health and hospice company. The new Reverence Home Health and Hospice plans to open Jan. 1, with Linda Young, former administrator of Borgess VNA, as its first president. Clinical services offered by Reverence, which will be headquartered at Genesys Health System in Grand Blanc, will include home health, hospice, infusion services, tele-health monitoring and palliative care. The consolidation of five statewide sites, which Young said should not lead to layoffs in Southwest Michigan, comes at a time when Medicare reimbursements to hospitals are declining and health-care providers are adjusting to changes as provisions of the 2010 Patient Protection and Affordable Care Act take effect.  "Definitely health care reform had a lot to do with our envisioning of the future. To remain competitive, we had to find additional efficiencies," said Young. "I think the regionalization that we are under way with will make our local home-care and hospice offerings much stronger and more available. ... Instead of running independent programs across the state, we'll have one stronger statewide organization that will prepare us better for the future."  It also comes at a time when aging baby boomers surveyed say they want to remain in their homes for as long as possible. Their sheer numbers, 76 million, and the need for people to care for them, should make home health care aides the fastest growing job over the next decade, according to the U.S. Labor Department, which forecasts a need for an additional 1.3 million workers.  "I really believe that home care will be a wave of the future," said Young. "People really do want to be in their home or a community setting, versus acute care or facility-based care."  The new Reverence will have 590 employees in Michigan caring for 2,000 patients a day and $62 million in revenue. It expects to have $80 million in annual revenue by 2017 and have more than 800 workers, Young said. Like other area health-care providers, Ascension is looking to create economies of scale, share best practices and streamline operations to reduce costs. Earlier this month, Bronson Healthcare announced a merger with HealthCare Midwest, both of Kalamazoo, as did Henry Ford and Beaumont on the east side of the state.  Since 2009, hospitals have seen their Medicare reimbursements fall by 15 percent – from $100 to $85.50,according to Crain's Detroit Business. Next year, rates are scheduled to be cut 2.25 percent more. If Congress doesn't come up with a bipartisan deal to avoid the so-called "fiscal cliff," $1.2 trillion in automatic spending cuts and tax hikes, rates will drop an additional 2 percent.  All of the local clinical jobs and management will remain housed at 348 N. Burdick St., in Kalamazoo, Young said. But instead of each of the sites having independent departments, some will just be held at one of the statewide locations.  Under the new company, Southwest Michigan clients will be able to receive infusion services, which had not been offered here before, Young said. So, for example, someone needing antibiotics could receive a series of IVs at home rather than going to a hospital.   "The real goal is to grow and expand," said Young. "Our focus really is on clinical growth and outreach to patients."

Nursing and hospice businesses continue to be some of the most requested businesses in 2012.  These transactions are being fueled by many factors including strategic buyers looking for scale, new business development opportunities and substantial available capital resources. Both private equity and corporate America continue to invest in strong, growth oriented businesses. For more information on how this transaction and the overall M&A markets may impact your company, please contact us at Paragon Ventures for a private, no-obligation discussion of the strategic options for your Company.

  • Sector:  Medical Marketing     High Road Capital Partners announced that its portfolio company Dowden Health Media has completed the acquisition of QD Healthcare Group, a Connecticut-based medical communications firm that provides scientific content development, promotional medical education and related marketing services to the pharmaceutical and biotechnology industries. In conjunction with this acquisition, Dowden has separated into two platform companies, Dowden Medical Communications Group (DMCG) and BlueSpire Strategic Marketing. High Road controls both entities. DMCG, which includes QD Healthcare Group, provides technically oriented marketing services to pharmaceutical companies to educate physicians on appropriate uses of pharmaceutical products. Financing for the transaction was provided by Fifth Third Bank. Transaction consideration was not disclosed.

  • Sector:  Medical Device/Asset Management     RAF Industries made a substantial equity investment in Freedom Medical, a national provider of movable medical equipment, specialty beds and medical asset management services. The Company’s critical care equipment and specialty beds are used in hospitals, sub-acute and alternate-site healthcare facilities across the USA. Freedom offers critical care and therapeutic support equipment including respiratory, infusion, patient monitoring, specialty beds and neonatal care equipment. The transaction team was led by Jonathan Sadock, Managing Partner of Paragon Ventures who initiated the transaction and was a strategic advisor to Freedom Medical.

  • Sector: Home Health     The Halifax Group announced that it has completed, in partnership with management, an investment in Interim HealthCare, Inc. a leading home healthcare franchisor. Terms of the transaction were not disclosed. Based in Sunrise, FL, is one of the nation's oldest and most comprehensive home health care franchise company. With more than 300 independently owned franchise locations in 43 states, Interim provides skilled home healthcare, home-based hospice care, personal care and independent living support, as well as supplemental healthcare staffing.

  • Sector:  Sleep Therapy     National Sleep Therapy, a sleep industry leader in patient compliance and care innovation, announced that it has acquired Rest Ensured Medical (REM) for an undisclosed sum. As a small, national provider of CPAP, bi-level therapy and related supplies to sleep apnea patients, REM complements National Sleep Therapy’s patient minded, technology driven principles. This acquisition enables National Sleep Therapy to improve the outcomes of a broader patient community and increase the level of service all CPAP users demand from their providers.

  • Beecken Petty O'Keefe & Co. has acquired Southern Anesthesia and Surgical Inc., a West Columbia, S.C.-based distributor of pharmaceuticals and surgical supplies to oral health professionals who perform sedation-related dental and surgical procedures. No financial terms were disclosed, except that Golub Capital provided $35 million in debt and equity co-investment to support the acquisition.

  • Sparton Corporation (NYSE: SPA), a premier supplier of sophisticated electromechanical devices, sub-assemblies and related services for highly regulated environments in the Medical, Military & Aerospace, and Industrial markets announces that its wholly owned subsidiary, Sparton Onyx, LLC completed its previously announced acquisition of Onyx EMS, LLC (“Onyx”) on November 15, 2012 in a $43.25 million all-cash transaction, subject to certain post-closing adjustments.

  • Nu Skin Enterprises, Inc. (NYSE: NUS) announced that it has signed an agreement to acquire NOX Technologies, Inc., a biotechnology and biodiagnostic company based in Malvern, Pennsylvania for $12.5 million. The agreement includes the acquisition of technology and patents, including previously licensed technology already utilized in connection with Nu Skin’s anti-aging research efforts.  “The acquisition of NOX Technologies demonstrates our ongoing commitment to scientific innovation and provides us with additional tools to target the sources of aging,” said Chief Scientific Officer Joe Chang, Ph.D. “Furthermore, we believe the acquisition will enhance our long-term pipeline of scientifically validated anti-aging solutions for health, beauty and wellness.”  NOX Technologies provides Nu Skin scientists with a deeper understanding of the aging process and supports the company’s ability to understand important sources of aging. arNOX, an age-related protein identified by NOX Technologies, is found on the cell surface and is capable of superoxide generation, a relevant aspect of the aging process.  According to Thomas B. Shelton, chief executive officer of NOX Technologies, “This merger is the culmination of many years of working with Nu Skin researchers on our arNOX technology. NOX Technologies’ translation of the basic science around arNOX paved the way for this unique technology to be incorporated into Nu Skin’s successful anti-aging research and development efforts.” The acquisition is subject to customary closing conditions, including approval of the transaction by the stockholders of NOX Technologies, Inc. Closing is expected to occur prior to the end of 2012.

  • Dynamic Healthcare Services Inc., a portfolio company of GMH Ventures, has acquired Evanko Respiratory Inc., a Hazleton, Penn.-based distributor of respiratory and sleep equipment and mobility products. No financial terms were disclosed.

  • Pernix Therapeutics Inc., a specialty pharmaceutical company, agreed to acquire Cypress Pharmaceuticals Inc., a privately-owned generic pharmaceutical company, and Hawthorn Pharmaceuticals Inc.

  • McKesson Corp (San Francisco, CA) acquired Emendo (Tamworth, NH), a healthcare research and analytics company based in New Zealand, for an undisclosed amount. McKesson's primary interest in the deal is Emendo's CapPlan software, which predicts patient demand for healthcare services and can potentially save hospitals millions of dollars. Though the system is currently only used in about 40 hospital systems worldwide, officials at Emendo said the distributor's huge presence would greatly increase its adoption, and a McKesson official stated that the large amount of waste in the US healthcare industry makes it an ideal market for the planning software.

  • Sunrise Medical Inc., a Fresno, Calif.-based portfolio company of Vestar Capital Partners, has agreed to sell its global mobility and seating operations to Equistone Partners Europe. No financial terms were disclosed for the deal, which is expected to close by year-end.

  • DaVita Inc (Denver, CO) closed on its previously announced acquisition of HealthCare Partners Medical Group LLC (Torrance, CA) for cash and stock worth $4.7 billion. The value of the deal rose from the original $4.4 billion value declared in May 2012 because DaVita's stock price has risen nearly 40 percent since then.

  • Alphatec Holdings Inc (Carlsbad, CA), the parent company of Alphatec Spine Inc (Carlsbad, CA), completed its acquisition of Phygen LLC (Irvine, CA) for $15.2 million. Alphatec announced its intent to purchase Phygen, which primarily manufactures spinal screws and other tools used in surgical procedures, in September 2012.

  • ConvaTec, a world-leading developer and marketer of innovative medical technologies for community and hospital care, announced it has entered into a definitive agreement to acquire all of the capital stock of 180 Medical Holdings, Inc. ("180 Medical") for $321 million. 180 Medical is a leading U.S. provider of disposable, intermittent catheters and urologic medical supplies.

  • Omnicare Inc (Cincinnati, OH) completed its acquisition of Five Star Quality Care Inc's (Newton, MA) pharmacy business for $38.7 million. The business includes eight licensed pharmacies in 13 states that provide institutional pharmacy services to 247 senior living communities with a total of about 12,300 units. Omnicare will pay $30.5 million for the pharmacy business, and the sale also includes working capital invested in the pharmacy business equal to about $8.2 million.

  • ConvaTec, a world-leading developer and marketer of innovative medical technologies for community and hospital care, announced it has entered into a definitive agreement to acquire all of the capital stock of 180 Medical Holdings, Inc. ("180 Medical") for $321 million. 180 Medical is a leading U.S. provider of disposable, intermittent catheters and urologic medical supplies. The transaction is being funded primarily through incremental term debt under ConvaTec's credit agreement. The transaction is subject to regulatory approval and customary closing conditions, and is expected to close late third quarter 2012.

  • Long-term care provider Kindred Healthcare, Inc. (NYSE:KND) announced on Monday that it had signed a definitive agreement to acquire home healthcare provider IntegraCare Holdings, Inc., a portfolio company of private equity firm Flexpoint Ford LLC, for a purchase price of $71 million in cash plus up to $4 million more based on 2013 earnings. The transaction will be financed with operating cash flows and proceeds from Kindred’s revolving line of credit; IntegraCare will have no outstanding long-term debt at closing. IntegraCare provides home health, hospice, and community services and operates in 47 locations across Texas. The company currently generates annualized revenues of approximately $71 million with an EBIDTA of approximately $9 million.

  • Gentiva Health Services, Inc. (NASDAQ: GTIV), the largest provider of home health and hospice services in the United States based on revenue, announced the acquisition of the home health and hospice businesses of Family Home Care Corporation based in Spokane, Washington. Founded in 1966, Family Home Care is recognized as one of the leading providers of home health and hospice services in the Washington and Idaho markets. The transaction will be funded from Gentiva's cash reserves and is not expected to have a material impact on the Company's results.  Gentiva Health Services also  announced the acquisition of North Mississippi Hospice, based in Oxford. Founded in 2006, North Mississippi Hospice has offices in Tupelo, Oxford and Southaven.

  • Mediware Information Systems Inc (Lenexa, KS), a provider of clinical software solutions, signed a definitive merger agreement to be acquired by private equity investment firm Thoma Bravo LLC (Chicago, IL). The deal is, under which Mediware shareholders will receive $22.00 in cash for each share of Mediware common stock, is valued at approximately $195 million. The merger is subject to customary closing conditions, including requisite regulatory approvals and the approval of Mediware shareholders. The Mediware board of directors unanimously approved the agreement and recommends that Mediware's shareholders approve the transaction. The deal is expected to close by December 31, 2012.

  • HEALTHCAREfirst, headquartered in Ozark, Missouri, announced that Pamlico Capital has acquired the company from The Riverside Company. Members of management have re-invested in partnership with Pamlico Capital to complete the acquisition. Terms of the acquisition were not disclosed. HEALTHCAREfirst is the leading technology and services company dedicated exclusively to serving Home Health Care and Hospice Care agencies. HEALTHCAREfirst had been owned by The Riverside Company and the company’s management since 2008.

  • Kinetic Concepts Inc. has signed an agreement to sell its Therapeutic Support Systems business for $275 million to Getinge AB, a global medical technology company based in Sweden. Under the terms of the agreement, Getinge will purchase assets of the TSS business, including the complete portfolio of specialty therapeutic beds, mattress replacement systems and other support surfaces and patient mobility devices for the therapeutic wound care, bariatric and critical care settings. Getinge has also agreed to offer employment to TSS employees. The transaction is structured as an asset sale with no financing condition and no debt. The deal is expected to close in the fourth quarter of 2012 contingent on United States and foreign antitrust approvals. “Strategically, the sale of the TSS business is important for KCI as it will enable us to focus even further on core growth, execution and realization of our vision – providing transformational healing solutions to caregivers and patients around the world,” says Joe Woody, president and CEO of KCI. San Antonio-based KCI manufactures and markets products for the wound care and therapeutic support system markets.

  • Long-term care provider Kindred Healthcare, Inc. (NYSE:KND) announced on Monday that it had signed a definitive agreement to acquire home healthcare provider IntegraCare Holdings, Inc., a portfolio company of private equity firm Flexpoint Ford LLC, for a purchase price of $71 million in cash plus up to $4 million more based on 2013 earnings. The transaction will be financed with operating cash flows and proceeds from Kindred’s revolving line of credit; IntegraCare will have no outstanding long-term debt at closing. IntegraCare provides home health, hospice, and community services and operates in 47 locations across Texas. The company currently generates annualized revenues of approximately $71 million with an EBIDTA of approximately $9 million.

=  =  =

What do these transactions mean for the market value of your business? 

Call Paragon Ventures for a confidential evaluation of your strategic options

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  • Roper Industries Inc (Sarasota, FL) completed its previously announced acquisition of Sunquest Information Systems Inc (Tucson, AZ) for approximately $1.415 billion, including $25 million in cash tax benefits. Roper funded the acquisition from available cash and borrowings under its credit facility. Sunquest, a provider of diagnostic and laboratory software solutions to healthcare providers, will keep its name and market products and services under current brand names.

  • Massachusetts senior health and housing company Salmon Health has purchased the hospice and home health operations from Milford Regional Medical Center Milford Regional Medical Center has sold its hospice and home health operations to Salmon Health and Retirement, a major regional player in senior housing and health care, the two organizations announced. Salmon, which is based in Westborough and operates active adult and assisted living community and rehab and skilled nursing centers which employ approximately 1,800 people, will merge its Salmon Hospice Care with the newly acquired VNA and Hospice of Greater Milford, located on Birch Street.

  • MSC Care Management, a company that serves workers’ compensation claimants, and One Call Medical Inc., which provides services to resolve claims, have merged.  The companies will operate under One Call Medical’s parent entity. Jacksonville, Fla.-based MSC Care Management CEO Joe Delaney will become president of Parsippany, N.J.-based One Call Medical.  Cambridge, Mass.-based private equity firm Monitor Clipper Partners invested in MSC Care Management in 2005.

  • Dignity Health (formerly Catholic Healthcare West) (San Francisco, CA) completed its acquisition of U.S. HealthWorks Inc (Valencia, CA), which operates 172 occupational health and urgent care centers in 16 states. Terms of the deal were not disclosed. U.S. HealthWorks is now a wholly owned for-profit unit of Dignity.

  • CONMED Corp (Utica, NY) signed definitive agreement to acquire Viking Systems Inc (Westborough, MA) for $0.27 per share in cash. The total expected consideration, including amounts to be paid in respect of in-the-money stock options and warrants, will be approximately $22.5 million. Viking Systems is a worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery.

  • Health Care REIT Inc (Toledo, OH) signed an agreement to acquire all of the outstanding common stock of Sunrise Senior Living (McLean, VA) for $14.50 per share in an all-cash transaction. The deal was approved by the Surnise board of directors but is subject to regulatory approvals, customary closing conditions and approval by Sunrise's shareholders. It is expected to close in the first half of 2013. As of June 30, 2012, Sunrise operated 307 communities located in the U.S., Canada and the United Kingdom, with a unit capacity of approximately 29,800 units.

  • AIDS Healthcare Foundation, the largest nonprofit HIV/AIDS organization has acquired MOMS Pharmacy, which focuses on providing medications and support services to people living with HIV/AIDS in the U.S., for an undisclosed amount.  Amsterdam-based AIDS Healthcare, founded in 1987, provides medical care and services to more than 176,000 people in 27 countries. The nonprofit is also the largest nonprofit provider of HIV/AIDS medical care in the U.S.  The target operates 12 pharmacies in California, Washington, Massachusetts, Connecticut and New York.

  • Church & Dwight Co. Inc. (NYSE: CHD) will purchase Vancouver, Wash.-based Avid Health Inc., a gummy-vitamin maker, for $650 million in cash. For the year ending June 30, 2012, Avid’s sales were about $230 million.  Princeton, N.J.-based Church & Dwight makes personal-care, household and specialty products under the Arm & Hammer brand name.

  • medi, headquartered in Bayreuth, Germany, and a leading global player in the health-care market, has acquired San Diego-based CircAid, expanding its compression therapy division to offer compression therapy garments.

  • Allina Health has reached a deal to acquire ConnectCare, a Hutchinson-based provider of home health care and hospice services. ConnectCare, which has 37 employees, serves the Glencoe and Hutchinson communities. The nonprofit is jointly owned by Hutchinson Area Health Care and Glencoe Regional Health Services. Terms of the acquisition, which is expected to close by Jan. 1, weren’t disclosed. ConnectCare will be merged into Minneapolis-based Allina’s existing home care and hospice business, which offers services in 28 Minnesota counties.

  • Healthcare benefits company Aetna (NYSE: AET) will buy Coventry Health Care Inc. (NYSE: CVH) for $7.3 billion - a price tag that includes the target’s debt. Coventry stockholders will receive $27.30 in cash and 0.3885 Aetna common shares for each Coventry share, which comes out to about $42.08 based on the closing price of Aetna’s common shares on Friday, Aug. 17.

  • Vascular Solutions Inc. has announced spending $3 million in cash to buy the Venture wire control catheter from St. Jude Medical Inc.  The deal includes an upfront payment of $2.25 million and an additional payment of $750,000 upon restarting the manufacturing process. Maple Grove-based Vascular said it will immediately begin selling the Venture product with inventory it bought from Little Canada-based St. Jude. Vascular also bought the manufacturing equipment from St. Jude and will be setting that up at its own facilities, with production expected to resume in the second quarter of 2013.

  • Almarc Drugs and CVS/pharmacy announced that CVS will purchase Almarc’s pharmacy business at its locations in Larchmont and New Rochelle, New York.  The sale includes Almarc’s Larchmont Drugs and its Main St. Apothecary & Surgical Supply in New Rochelle.

  • Norwest Equity Partners completed the acquisition of Pentec Health from DW Healthcare Partners, Frazier Healthcare Ventures, and the management. Pentec Health operates as a specialty infusion services and healthcare technology company in the United States. Financial terms for the deal were not disclosed

  • EQT Partners agreed to acquire BSN Medical from Montagu Private Equity and management for approximately $2.27 billion. BSN Medical designs, manufactures, and markets medical devices in the areas of fracture management, compression therapy, wound care, and physiotherapy in Germany and internationally. The deal is projected to trade at an implied EV / LTM EBITDA multiple of 10.9x and LTM Revenue multiple of 2.7x.

  • TPG Growth and Skyline Global Partners completed the acquisition of iMDsoft. iMDsoft provides clinical information systems for perioperative, critical, and acute care, as well as for hospitals, healthcare systems, and medical centers worldwide. Financial terms for the deal were not disclosed.

  • Genesis HealthCare (Genesis) announced it has signed a definitive agreement to acquire Sun Healthcare Group (Sun.) Sun has approximately 28,000 employees in 46 states, and has annual revenues over $1.9 billion. The deal was valued at approximately $275 million.

  • Hospice Family Care, Inc. has been acquired by an undisclosed private equity buyer. Founded in 1992, HFC specializes in providing end of life care to patients and families and is headquartered in Mesa, Arizona. The Company has a total of 6 locations across Arizona and a team of 450 professionals and volunteers who serve patients and their families in the communities of Casa Grande, Gilbert, Mesa, Peoria, Prescott, and Tucson, Arizona.

  • The KPC Group, LLC announced the acquisition of Ramona VNA & Hospice and a name change of the agency to Inland Empire Home Health & Hospice (IEHH). Established in 1987, IEHH supports over 19,000 home health visits and 48,000 hospice visits each year. IEHH will continue to provide home health, palliative, chronic Illness and hospice services throughout the Southwest Riverside County of California.

  • The Ensign Group, Inc. announced that an Ensign subsidiary has acquired Zion’s Way Home Health and Hospice, a well-regarded home health and hospice agency based in St. George, Utah. The lateral diversification further broadens Ensign’s geographic reach into the hospice vertical.

  • Veritas Capital completed the acquisition of Thomson Reuters (Healthcare) from Thomson Reuters. The newly independent company will be known as Truven Health Analytics. Truven provides information, analytic tools, benchmarks, and services to the healthcare industry in the United States. The deal is valued at $1.25 billion

  • Hearts for Hospice, LLC, (Hearts) a provider of hospice and home health services to patients in Utah, Idaho, and Arizona, has been acquired by Abode Healthcare, a portfolio company of Frazier Healthcare. Hearts is a Medicare certified, and Medicaid approved organization providing end of life care to terminally ill patients and their families, as well as comprehensive restorative care to patients recovering from illnesses and injuries. The Company consists of several divisions including a hospice division (Hearts for Hospice) and a home health division (Hearts for Home Health). In addition to traditional home health and hospice services, Hearts provides non-emergency medical transportation services to its hospice patients and their families. Hearts has an excellent reputation in the healthcare community and throughout its service areas.

  • Swope Community Enterprises has acquired Kansas City Home Care, Inc. Swope Community Enterprises operated several Kansas City, Missouri health services clinics. Kansas City Home Care provides memory care, end-of-life-care, personal care, nursing home and assisted living companion services among other services. Through this acquisition, Swope Community Enterprises will be able to provide health services for people in all states of life from birth to death. Terms of the deal were not disclosed.

  • Waud Capital Partners completed the acquisition of Regional Toxicology Services, dba Sterling Reference Laboratories. Regional Toxicology Services provides testing services for drugs-of-abuse detection. Financial terms for the deal were not disclosed.

  • Brookdale Senior Living, Inc. has acquired two undisclosed home health agencies for a total of $3.7 million. No additional information is available at this time for either transaction.

  • Home Health International, Inc., a Florida-based provider of home health nursing, rehabilitation, and personal care services, has acquired Mount Auburn, Inc. Mount Auburn, founded in 1974 and located in Miami-Dade County, Florida, provides traditional home healthcare services. The specific financial terms of the deal were not disclosed.

  • Physicians Healthcare, a Massachusetts-based provider of home healthcare services, has been acquired by Steward Health Care System, LLC. Steward Health System is a community-based care organization and community hospital network operating in eastern Massachusetts.

  • Jordan Health Services, Inc. has acquired Tritrax Healthcare Services, Inc. a home healthcare services provider to Dallas/Fort Worth, Texas area geriatric patients, from Ancor Capital Partners. Jordan Health Services is a statewide provider of adult home

  • ePharmaSolutions has completed the acquisition of Polaris BioPharma Consulting. Polaris provides clinical trial management consultancy services to a range of clients in biotechnology and pharmaceutical industries worldwide. The financial terms of the deal were not disclosed.

  • Inclinix has completed the acquisition of PMG Research. PMG Research is an Integrated Site Network (ISN) of clinical research facilities operating throughout the southeast region of the United States. The transaction was funded by a consortium of investors led by private equity firm Frontier Capital. The financial terms of the deal were not disclosed.

  • CROMSOURCE has completed the acquisition of Pleiad. Pleiad is a contract research organization providing regulatory, marketing, and reimbursement clinical research solutions to the medical device sector.

  • Genstar Capital has entered into definitive agreement to acquire eResearchTechnology from Blum Capital Partners and other shareholders. eResearchTechnology provides biopharmaceutical companies, contract research organizations and medical device companies cardiac safety drug research, respiratory research, and helps collect and manage clinical data primarily in North America, the United Kingdom, and Germany. The enterprise value of the expected transaction is $395 million, equating to a implied enterprise value / LTM EBITDA multiple of 9.0x and an LTM Revenue multiple of 1.9x.

  • Shore Capital has acquired Excel Rehabilitation Services and Michigan Rehabilitation Specialists. The two transactions create a combined network of 21 physical therapy clinics throughout Michigan.

  • Court Square Capital acquired Physiotherapy Associates from Water Street Healthcare Partners and Wind Point Partners. Physiotherapy Associates owns a network of roughly 800 clinics nationwide.

  • Wellness Center USA, Inc. (OTCQB: WCUI), a Schaumburg, IL based healthcare and nutraceutical company, announced the consummation of its CNS-Wellness LLC (CNS) acquisition. CNS is a Tampa, FL based cognitive neuroscience company specializing in the treatment of brain-based behavioral health disorders without the use of drugs. These disorders range from affective (emotional) and stress-related problems such as; anxiety, depression and bipolar disorder to developmental disabilities and conditions, including autistic spectrum disorders, as well as disregulatory conditions such as; AH/HD and epilepsy.

  • Epazz, Inc., (OTCBB: EPAZ) a leading provider of cloud based business software solutions announced that it has acquired MS Health, a New Jersey based company. MS Health, mental health software, is a cloud based solution for Behavioral healthcare, mental health, and social services providers nationwide. MS Health CMHCi provides tools to manage, bill, and track behavioral healthcare and social services. With CMHCi, health care providers will realize the benefits of increased efficiency, accountability, and productivity. MS Health unaudited revenue for 2011 was over $450,000.

  • Milford Regional Medical Center has sold its hospice and home health operations to Salmon Health and Retirement, a major regional player in senior housing and health care, the two organizations announced. Salmon, which is based in Westborough and operates active adult and assisted living community and rehab and skilled nursing centers which employ approximately 1,800 people, will merge its Salmon Hospice Care with the newly acquired VNA and Hospice of Greater Milford, located on Birch Street. The Milford VNA and Hospice served approximately 1,200 patients last year, according to Matt Salmon, COO of Salmon Health. The purchase doubles the size of Salmon's hospice program, but perhaps more importantly, it represents the company's first foray into home health care, Salmon said.

  • TeamHealth Holdings, Knoxville, Tenn., has acquired Delphi Healthcare Partners, a specialty hospitalist company focused on general surgery, obstetrics/gynecology and orthopedics. Terms of the deal were not disclosed

  • Ensign Group Inc (Mission Viejo, CO) announced the acquisition of Discovery Care Center of Salmon (Salmon, ID), a skilled nursing facility and assisted living facility with 45 skilled nursing beds and 24 assisted living units, and Owyhee Health & Rehab (Homedale, ID), a skilled nursing facility with 49 beds. The acquisitions were effective August 1, 2012. Ensign expects the operations in the two facilities, which had a combined occupancy rate of approximately 64 percent at acquisition, to be accretive to earnings in 2012. Ensign also acquired the underlying real estate and other operating assets of Palomar Vista Healthcare Center (Escondido, CA), a skilled nursing facility formerly operated under an Ensign subsidiary, on August 1, 2012. The Escondido and Idaho purchases were made with cash and bring Ensign's portfolio to 107 facilities, 83 of which Ensign owns.

  • Bristol-Myers Squibb Company (New York, NY) successfully acquired Amylin Pharmaceuticals Inc (San Diego, CA) for $5.3 billion. Following the deal, AstraZeneca (Wilmington, DE), Bristol-Myers Squibb's partner in a commercial alliance for diabetes products, paid $3.2 billion for development rights for future Amylin products. AstraZeneca also has the option to assert authority over certain strategic and financial decisions regarding Amylin's product lines, which will require an additional $135 million payment, assuming it receives antitrust clearance. Profits and losses from sales of Amylin products will be shared equally between Bristol-Myers Squibb and AstraZeneca.

  • Baird Venture Partners' (BVP) portfolio company Pinstripe, Inc. (Pinstripe) has been acquired by private equity firm Accel-KKR. The financial terms of the agreement were not disclosed. Based in Brookfield, Wis., Pinstripe was an early entrant in the recruitment process outsourcing sector and has emerged as one of the leading providers in the industry, with global reach and high customer satisfaction as recognized by HRO Today's "Baker's Dozen" ranking. Pinstripe primarily serves organizations in financial services, healthcare, technology and advanced manufacturing. 

  • Harbert Private Equity Fund II, LLC (“HPEF II”) announced today that it has recapitalized, Onward Behavioral Health, Inc. (“OBH”), a portfolio company of HPEF II, in connection with OBH’s acquisition of Life Management Inc. and certain of its affiliates (collectively “Life Management”). OBH is the holding company of Birmingham, Alabama‐based Magnolia Creek, LLC (“Magnolia Creek”), which operates a ten bed residential treatment facility and an eight bed partial hospitalization program for adult women suffering from eating disorders. Life Management is an outpatient behavioral healthcare company with 31 sites in four states that provides counseling and rehabilitation services to patients with a variety of substance abuse and other mental health needs, including eating disorders.

  • CardioNet, Inc. (NASDAQ:BEAT), a wireless medical technology company with an initial focus on the diagnosis and monitoring of cardiac arrhythmias, announced that it has entered into a definitive merger agreement with cardioCORE Lab, Inc., a centralized cardiac testing laboratory with locations near Washington, D.C., San Francisco, CA and London, UK.

  • Linde AG a German supplier of industrial gas, said Sunday it plans to acquire Lincare Holdings Inc., a U.S. provider of respiratory therapy, oxygen and other services to patients at home, for about $4.6 billion. Industrial-gas suppliers have been expanding into the growing business of providing services and equipment such as ventilators or oxygen tanks to people with asthma and other diseases who are managing their conditions at home.  Lincare, based in Clearwater, Fla., has more than 800,000 customers in 48 states and Canada, according to its website. In a statement, Munich-based Linde said it had submitted a cash offer of $41.50 per common share to acquire Lincare.  The offer represents a 22% premium to Lincare's closing price Friday of $34.02, up 5.3% in 4 p.m. Nasdaq Stock Market trading. Linde also said it would fund the transaction through cash and an acquisition loan of $4.5 billion, to be refinanced by debt and equity issuances. The German company said it expects the deal to close in 2012.

  • Sun Healthcare Group, Inc. announced that it has signed a definitive agreement for the acquisition of Sun Healthcare (Sun) by Genesis HealthCare (Genesis). The combined company will be able to strengthen its core business lines and enhance its collective ability to provide the highest quality patient care while meeting the current challenges facing the healthcare industry. Under the terms of the merger agreement, Genesis will acquire Sun for $8.50 per share of common stock in cash, resulting in a transaction value of approximately $275 million net of cash and debt acquired. Sun Healthcare's Board of Directors unanimously approved the transaction. The closing of the transaction is subject to customary conditions, including approval by Sun stockholders, expiration of the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976, as well as regulatory approvals. The closing is expected to occur in the fall.

  • Walgreen Co. said it is acquiring a regional drugstore chain in a $438-million, mostly stock deal that would give the company a larger presence in the mid-Southern United States.  The deal for USA Drug involves 144 drugstores under the names USA Drug, Super D Drug, May's Drug, Med-X and Drug Warehouse. The stores are located in seven states including Arkansas, Kansas, Missouri and Oklahoma. Sales for the chain totaled $825 million in 2011.

=  =  =

What do these transactions mean for the market value of your business? 

Call Paragon Ventures for a confidential evaluation of your strategic options in 2012!

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  • Aperture Health, Inc. announced that it has executed a Letter of Intent to acquire Doctors on Call, one of the largest in-home medical practices in New York City. Doctors on Call, consisting of over 35 physicians and physician extenders, is devoted to the care of the frail and/or homebound elderly throughout New York City. Founded in 1968, and available seven (7) days a week, Doctors on Call offers home-based medical care including chronic disease management, laboratory, diagnostic x-ray, ultrasound, podiatry, and annual wellness visits to those incapable of accessing traditional primary care. Further, Doctors on Call has obtained preferential contracts with major Health Maintenance Organizations to provide high quality cost-effective medical care to patients transitioning from the institutional (hospital or skilled nursing facility) to the home setting providing over 2,000 patient visits a month.

  • Cardinal Health Inc (Dublin, OH) to acquire Dik Drug Co (Burr Ridge, IL), a privately held regional drug wholesaler. This acquisition will add more than 500 retail independent customers with high generic purchasing volume, helping Cardinal to diversify its customer mix. Dik Drugs' operations will be consolidated into a Cardinal Health drug distribution center in Aurora, Illinois. Financial terms of the agreement were not disclosed. The deal is expected to close in summer 2012.

  • Capital investment firms Silver Lake Sumeru and Essex Woodlands signed a definitive agreement to acquire MEDSEEK (Solvang, CA), a supplier of strategic patient and engagement and management solutions and predictive analytics technology. MEDSEEK's software platform helps healthcare organizations attract and retain patients and enhances patient-doctor communication and information accessibility. The transaction is set to close in the next few weeks, pending satisfaction of all closing conditions.

  • AeroScout (Redwood City, CA), a provider of Unified Asset Visibility solutions for the healthcare industry, will be acquired by an international infrastructure and services company for about $240 million. The buyer has not been identified. AeroScout was founded in 1999 and currently has about 200 employees. It is believed that its R&D headquarters will remain in Israel after the sale.

  • Accountable Healthcare Holdings Corp., a Boca Raton, Fla-based healthcare staffing provider, completed the acquisition of Med-Staff Oklahoma, a Tulsa, Oklahoma-based firm that focuses on travel nurse staffing. Terms of the deal were not released.  Accountable Healthcare Holdings Corp., a Boca Raton, Florida-based healthcare staffing provider, completed the acquisition of Med-Staff Oklahoma, a Tulsa, Oklahoma-based staffing firm that focuses on travel nurse staffing. Med-Staff also provides physical and occupational therapists and diagnostic imaging technicians.  Med-Staff founders Stan Tallon and Julie Pickens will continue to manage the growth of the business after the acquisition. Med-Staff will also continue to operate under its own brand as part of Accountable Healthcare.

  • Rochester, N.Y.-based HCR Home Care, a certified home health care agency, recently gained formal approval from the New York State Department of Health to purchase Madison County’s home care program. The acquisition will transfer ownership of Madison County’s operating certificates for its Certified Home Health Agency and Long Term Home Health Care Program to HCR, which has successfully bid on five county agencies and is currently involved in acquiring two more county agencies.  With the purchase, HCR replaces the county agency in providing acute and long-term home health nursing, therapy, and home health aide services for Medicare and Medicaid patients, along with providing services to patients with commercial insurance coverage and private-pay patients.

  • The first of three contracts needed to sell Niagara County’s home-care programs will be signed soon, Public Health Director Daniel J. Stapleton said last week.  Stapleton told the Board of Health that a deal is expected in a week or two on an arrangement to have the Catholic Health System provide nursing services to patients the county’s dwindling nursing staff can no longer handle. Until the $2.65 million sale of the county’s two home-care programs to Catholic Health is approved by the state Health Department, Niagara County will continue to have full legal responsibility for the services, Stapleton said.

  • SeraCare, based in Milford, Massachusetts, serves the global life sciences industry by providing an innovative portfolio of diagnostic controls, plasma-derived reagents and molecular biomarkers used in the discovery, production, and clinical application of a variety of in vitro diagnostics.  BB&T Capital Partners Mezzanine Fund II, L.P. invested subordinated debt to support the acquisition of SeraCare Life Sciences, Inc. by Linden Capital Partners.

  • Univita Health announced on Monday it has acquired All-Med Services of Florida, one of the largest providers of home based care.  The addition of All-Med expands Univita’s reach to supper tore than five million people through its programs. “Our unique home-based care management model that is based on the integration of home care and complex care management continues to demonstrate transformational value for health plans and other payors,” said Hugh Lytle, president and chief executive officer of Univita. “The addition of All- Med will allow us to expand that model, and grow into new geographical markets, even more quickly and effectively.”

  • Walgreen Co (Deerfield, IL) completed the acquisition of certain assets of BioScrip Inc (Elmsford, NY) community specialty pharmacies and centralized specialty and mail service pharmacy businesses for approximately $225 million. Up to an additional $16 million payment could be payable based on events related directly or indirectly to Walgreen's retention after the closing of certain business included in the transferred businesses. The acquisition is part of Walgreen's "Well at Walgreens" strategy as a community pharmacy and brings additional specialty pharmacy products and services closer to patients. The acquisition also will help grow Walgreen's centralized specialty and mail service pharmacy operations. BioScrip's community specialty pharmacy business primarily serves HIV, oncology and transplant patients with 30 locations in 16 states across the U.S. and DC. The Walgreen acquisition also includes certain assets of BioScrip's centralized specialty pharmacy business and traditional mail service pharmacy business that dispenses prescriptions for drugstore.com and other entities.

  • Amerigroup Corporation announced today that its New York health plan received the necessary regulatory approvals allowing the company to close the previously announced acquisition of Health Plus. Health Plus is one of the largest Medicaid managed care companies in New York. They currently serve over 320,000 members.

  • Nexus Healthcare Holdings (Columbus, OH), an asset management company that recently formed, purchased the stock of Medical Park Hospital (Hope, AR) from Carraway Medical Systems (Fayetteville, AR). The deal is set to close in 90 days. However, IASIS Healthcare Corp (Franklin, TN), the parent company of Wadley Regional Medical Center (Texarkana, TX), has a pending foreclosure and collection lawsuit against the hospital and noted that, if a transfer had occurred, the hospital assets remain subject to the lien held by IASIS. IASIS acquired the mortgage deed of trust to Medical Park in a deal with Signature Hospital Corp (Houston, TX), which owned Medical Park before Shiloh Health Services Inc (Louisville, KY), now Carraway Medical Systems. The owners of the former Shiloh Health were indicted in 2011 on charges of failing to pay payroll taxes to the IRS and healthcare related embezzlement charges. Medical Park owes IASIS $4.5 million and the IRS more than $3 million. Nexus stated that Omnilife Health Care Systems (Columbus, OH) will take over management of the hospital.

  • Mediq, international supplier of medical devices and pharmaceuticals which owns Byram Healthcare, announced today the acquisition of Diabetes Specialty Center (DSC). Salt Lake City-based DSC delivers insulin pumps, continuous glucose monitors and related supplies to frequent-users, insulin-dependent diabetics. This acquisition will further solidify the White Plains, NY-based Byram in the number 4 position of this large but fragmented market. The transaction was $16.0 million

  • MultiCare Health System (Tacoma, WA) struck a deal to acquire 213-bed Auburn Regional Medical Center (Auburn, WA) from Universal Health Services (King of Prussia, PA) for $98 million. The sale is subject to regulatory approval and is expected to close by September 2012.

  • Clearview Capital Fund II, LP today announced that its portfolio company, Pyramid Healthcare, Inc., has acquired October Road, Inc. Headquartered in Asheville, NC, October Road provides a full continuum of outpatient mental health and substance abuse services to adults and adolescents using creative, evidence-based practices. Founded in 2005, October Road has achieved significant growth due largely to its experienced management team and the exceptional quality of care provided to its patients. The Company is accredited by the Commission on Accreditation of Rehabilitation Facilities ("CARF") and is designated a Critical Access Behavioral Health Agency ("CABHA") in North Carolina.  Based in Altoona, PA, Pyramid Healthcare is a leading provider of substance abuse and mental health treatment services to adults and adolescents throughout Pennsylvania. Pyramid operates 26 residential and outpatient treatment facilities throughout the Commonwealth.

  • ConvaTec (Skillman, NJ) acquired AbViser Medical LLC (Salt Lake City, UT) (formerly a part of Wolfe Tory Medical), which specializes in products for the critical care marketplace, including the AbViser™ Intra-abdominal Pressure (IAP) Monitoring System. This system enables clinicians to measure and monitor IAP in patients at risk for intra-abdominal hypertension (IAH) or abdominal compartment syndrome (ACS). Terms of the deal were not disclosed.

  • Thermo Fisher Scientific Inc (Waltham, MA) acquired Doe & Ingalls Management (Durham, NC), a provider of specialty production chemicals, for $175 million in cash. The company, which generated $110 million in revenue in 2011, will become a part of Thermo Fisher Scientific's Customer Channels business within its Laboratory Products and Services Segment. There were no layoffs as a result of the deal, and Thermo Fisher Scientific stated that it does not anticipate any layoffs in the immediate future.

  • Covidien (Mansfield, MA) completed its previously announced acquisition of Newport Medical Instruments Inc (Costa Mesa, CA) for $108 million. Newport Medical is a physician-led company that designs and manufactures ventilators. Its products are sold in the United States and more than 115 countries worldwide. Covidien will report the Newport Medical business as part of its Airway & Ventilation product line in the Medical Devices segment.

  • AmerisourceBergen Corporation (Chesterbrook, PA) completed its previously announced acquisition of World Courier Group Inc (New Hyde Park, NY), a privately held provider of transportation, storage and distribution services and logistics provider for the biopharmaceutical industry, for $520 million in cash subject to a customary working capital adjustment. The acquisition is expected to be neutral to the company's FY 2012 earnings, and $0.06 to $0.10 accretive in FY 2013

  • Covidien Inc (Mansfield, MA) acquired PolyTouch Medical Ltd, a developer of hernia mesh placement technologies. PolyTouch Medical developed a device for the precise and rapid deployment and placement of mesh during laparoscopic soft tissue repair procedures. PatchAssist™, the leading product, was further developed to become AccuMesh™, an endomechanical device facilitating insertion, deployment and placement of mesh during laparoscopic ventral hernia repair. Covidien launched the AccuMesh device earlier this year. Additional details about the deal were not disclosed.

  • Hologic Inc (Bedford, MA) signed a definitive agreement to acquire all of the outstanding shares of Gen-Probe Incorporated (San Diego, CA) for $82.75 per share in cash, or a total enterprise value of approximately $3.7 billion. The all-cash transaction is expected to be funded through available cash and additional financing of term loans and high yield securities. The deal is expected to be completed in the second half of 2012. Gen-Probe will become a wholly-owned subsidiary of Hologic. Hologic will retain its headquarters in Bedford, Massachusetts, and the combined company will maintain a significant presence in San Diego, California. Rob Cascella will continue as president and CEO of Hologic, and Carl Hull, Chairman and CEO of Gen-Probe, will oversee the company's combined diagnostics business.

  • Anglo-Swedish drug company AstraZeneca PLC is buying Ardea Biosciences, Inc., in a deal which values the U.S. biotech company at $1.26 billion.  AstraZeneca said Monday that it had agreed the takeover with San Diego-based Ardea, which is developing a treatment for elevated blood levels of uric acid in patients with gout.  AstraZeneca is paying $32 per share, representing a 54 percent premium on the closing share price last Friday. The boards of both companies have approved the deal, and AstraZeneca says it has secured commitments from 30 percent of Ardea shareholders.

  • Orthofix International N.V., (NASDAQ:OFIX) (the Company) announced that it entered into a definitive agreement under which Water Street Healthcare Partners, a strategic private equity firm focused exclusively on the health care industry, will acquire Orthofix's Sports Medicine Business Unit, which operates as Breg, Inc. The purchase price is $157.5 million and is payable in cash at closing, which is expected to occur during the second fiscal quarter of 2012. Net proceeds to Orthofix from the sale are anticipated to be approximately $140 million, which will be used for the prepayment of debt as required by Orthofix's existing credit agreement.  The Company acquired its Sports Medicine business in 2003 with the purchase of Breg, which is headquartered in Carlsbad, CA. The Sports Medicine business provides a portfolio of bracing and cold therapy products to treat a variety of sports medicine related conditions. "With the divestiture of the Sports Medicine business, we are now able to devote Orthofix's full resources and attention to strengthening our value proposition around our repair hardware and regenerative biologics and stimulation solutions," said Robert Vaters, President and Chief Executive Officer. "We believe this deleveraging event and resulting borrowing capacity will allow us to expand and enhance both our Spine and Orthopedic business units in a way that accelerates our ability to create shareholder value."  Upon closing, the Company will file the required pro forma financial results reflecting the disposition following the consummation of the sale transaction with the Securities and Exchange Commission, including any impact of pre-closing liabilities the Company will retain. J.P. Morgan Securities LLC provided a fairness opinion to the board of directors related to the transaction. 

  • AstraZeneca announced that they have entered into a definitive agreement with Ardea Biosciences Inc. (Ardea) in which AstraZeneca will acquire Ardea for $1.26 billion, $32 per share. Ardea is a California-based biotechnology company focused on the development of small-molecule therapeutics.

  • Stanbio Laboratory (Boerne, TX) transferred sales, marketing and service functions in the United States for its point-of-care HemoPoint® H2 hemoglobin system to Alere Inc (Waltham, MA), effective April 2, 2012. The company's success with the product prompted the move. Stanbio Laboratory will continue to oversee sales and marketing responsibilities for the HemoPoint H2 in Mexico, Latin America and South America. There will be no change to the core features and functions of the HemoPoint H2; however, the color of the meter will change to coincide with the Alere brand. The meter and cuvettes will still be manufactured by EKF diagnostic GmbH (Barleben, Germany), a sister company of Stanbio Laboratory.

  • National Distribution & Contracting Inc (NDC) (Nashville, TN) acquired MOtion1 (Carmel, IN), a unified alliance of independent physical rehabilitation equipment and supply dealers in North America. The deal gives NDC approximately 50 new customer relationships that are focused on a segment of the market that is growing rapidly. Additional details were not disclosed.

  • Home Health International said it has entered into a letter of intent to acquire Associated Home Health, a Medicare-certified Home Health Agency based in Florida.  The company is primarily involved in providing skilled nursing and other therapeutic services as well as home health aid services.  It is licensed in accordance with the state of Florida and meets all conditions found by the Secretary of Health and Human Services to be necessary for health and safety.  “We are very excited by this pending acquisition. Not only does the agency have excellent credentials, but it has the same mission as HHII, to provide the best care and services to seniors and those with permanent or short-term disabilities,” said Lazaro Garcia, CEO of Home Health International, Inc.  According to HHI, home health expenditures in Florida have seen double digit growth year over year since 2008. Terms of the deal were not disclosed.

  • Ancor Capital Partners has sold Tritrax Healthcare Services, a home health-care services provider to Dallas/Fort Worth area geriatric patients, to Jordan Health Services, a statewide provider of adult home health services.  "The focus of our growth plan in the home care sector at Ancor is in pediatric care, and we were pleased to find a strategic buyer such as Jordan who valued the Tritrax employees and its reputation in the industry," said Timothy J. McKibben, managing director at Ancor. "We are excited about the opportunities that are in front of us in the pediatric sector and look forward to building our presence in this market."  Ancor Capital Partners, based in Fort Worth, Texas, is an operations-oriented private equity firm focused on lower middle-market manufacturing and distribution companies with EBITDA of $5-$15 million. Extensive operational experience gives the Ancor team a unique understanding of the critical business issues faced by lower middle-market companies. Ancor's proven track record includes 29 acquisitions to date in health care, consumer and other industries. Based in Mount Vernon, Texas, and founded in 1975, Jordan Health Services has over 11,000 employees in a variety of locations serving literally thousands of individuals every day. Jordan is one of the largest home healthcare providers in Texas.

  • Alegent Health System (Omaha, NE) signed a deal to acquire Creighton University Medical Center (CUMC) (Omaha, NE), formerly known as Saint Joseph's Hospital, from Tenet Healthcare Corp (Dallas, TX) and Creighton University. Alegent will also assume operations of Creighton Medical Associates (Omaha, NE) and integrate the physician group into Alegent Health Clinic (Omaha, NE). Tenet owns a 74 percent stake in CUMC, while Creighton University owns the remaining 26 percent. Pending board approval from the three parent entities and due diligence, the deal is expected to close July 1, 2012. Terms were not disclosed. Alegent Health System is owned by Catholic Health Initiatives (Denver, CO).

  • CareFusion Corporation (San Diego, CA) and Natus Medical Incorporated (San Carlos, CA), a provider of health care screening, diagnostic and treatment products, entered into an agreement to sell the CareFusion Nicolet (Madison, WI) business to Natus for a cash purchase price of approximately $58 million. The Nicolet business employs more than 400 people worldwide and generated sales of approximately $95 million in 2011. CareFusion stated that the sale is in line with its strategy to simplify and focus its operations and prioritize investments to profitably grow over the long term. The acquisition is expected to close in July 2012, subject to customary closing conditions. The cash purchase price is subject to working capital adjustments. Natus plans to finance the acquisition with existing cash and borrowings under its revolving credit facility.

  • Thomson Reuters plans to sell its healthcare business to Veritas Capital for $1.25 billion in cash.

  • Sanford Health (Sioux Falls, SD) signed a letter of intent to add 16-bed Hillsboro Medical Center (Hillsboro, ND) to its network. Sanford has managed the not-for-profit critical access hospital since October 2000. It includes a clinic with two physicians who provide service to the hospital. Hillsboro completed a $12.5 million expansion project in December 2009 that included adding an attached 36-bed and 16-unit long-term-care and assisted-living facilities. The medical center has 148 employees. The deal is set to close December 12, 2012.

  • Triton Pacific Capital Partners has created and funded an institutional pharmacy platform company, PharmaSync, to acquire the assets of an institutional pharmacy in Portland, Oregon. Tregaron Capital provided mezzanine debt financing to support the transaction. PharmaSync focuses on the needs of adult foster care, assisted living centers and other residential care facilities. Its predecessor had served the Pacific Northwest for over 30 years.

  • Pfizer Inc (New York, NY) may sell its infant-nutrition business to Nestle SA (Vevey, Switzerland) for approximately $9 billion. The companies are expected to announce a decision as soon as next week. Additional details were not disclosed.

  • PENTAX Medical Company (Montvale, NJ) acquired Digital Endoscopy GmbH (Friedberg, Bavaria), a developer of endoscopic imaging products with expertise in software-based computer architecture and optical illumination technologies. The deal will expand PENTAX Medical's global R&D capabilities. Terms were not disclosed.

  • SSM Health Care (St. Louis, MO) signed a deal to acquire Unity Health Center (Shawnee, OK) from Community Health Partners (Lorain, OH), effective June 30, 2012. Unity Health Center has two campuses: Unity Health Center North Campus (Shawnee, OK) and Unity Health Center South Campus (Shawnee, OK). SSM will rename the two campuses Saint Anthony Shawnee Hospital when the acquisition is complete. Financial terms were not disclosed.

  • Hospice Advantage, Inc. today announced its acquisition of HC Healthcare (formerly Hospice Complete). This marks the fifth in a series of acquisitions that have positioned the Michigan-based hospice as one of the nation’s largest providers. Financial terms of the deal were not disclosed.  With over 50 locations nationwide, Hospice Advantage will now operate 11 locations in Alabama including offices in Auburn, Troy, Florence, Madison, Fort Payne, Pelham, Birmingham, Demopolis, Monroeville, Dothan, and Montgomery.  Hospice Advantage President Rod Hildebrant stated, “We truly look forward to continuing to add to our ever-growing presence in Alabama and contributing to the vitality of the economy throughout the region.”
     

  • The Ensign Group Acquires Utah Home Health and Hospice Company.  The acquisition of Zion's Way Home Health and Hospice will expand The Ensign Group's services in Southern Utah.

  • 3M Company (St. Paul, MN) acquired CodeRyte Inc (Bethesda, MD), a provider of clinical natural language processing (NLP) technology and computer-assisted coding solutions for healthcare outpatient providers. Its products include CodeAssist, CodeComplete and DataScout. The deal will allow 3M to apply CodeRyte's NLP technology to its new 3M 360 Encompass System. Terms of the acquisition were not disclosed.

  • ATG Rehab, has acquired Louisiana-based Custom Holdings, LLC and its subsidiaries, Custom Healthcare and Gulf Coast Rehab Equipment, which provide complex rehabilitation equipment, including: customized power and manual mobility solutions, seating and positioning systems and repair services for individuals with disabilities.  ATG Rehab’s acquisition adds 13 offices in six states collectively serving more than 6,500 clients annually at 50 major hospitals and rehabilitation facilities in the Gulf Coast region.

  • Capital Senior Living Corporation has acquired five seniors living communities for $49.4 million

  • Sabra Health Care REIT, Inc. has acquired two skilled nursing facilities in Pennsylvania for $29.9 million

  • Takeda to Acquire URL Pharma For $800M Takeda Pharmaceutical Company Limited and URL Pharma Inc. announced that Takeda's wholly-owned subsidiary, Takeda America Holdings, Inc. and URL Pharma have entered into a definitive agreement to acquire URL Pharma

  • Cook Group (Bloomington, IN) acquired the assets of General BioTechnology LLC and launched a new company, Cook General BioTechnology LLC (CGBT) (Indianapolis, IN). CGBT adds new cell and tissue processing and cryopreservation technologies to Cook Group's existing cellular therapies and manufacturing portfolio that include Cook MyoSite, Cook Pharmica and Cook Biotech. Terms of the deal were not disclosed.

  • Serent Capital, a growth equity firm focused on investing in rapidly expanding businesses, announced today an investment in United Allergy Services ("UAS"), the leading provider of allergy testing and immunotherapy services to primary care physicians. Since its founding in 2009, UAS has been changing the treatment of seasonal allergies by expanding access to treatment via primary care physicians.

  • Ethicon Inc (Cornelia, GA), a Johnson & Johnson (J&J) (New Brunswick, NJ) company, acquired certain Quill intellectual property from Angiotech Pharmaceuticals Inc (Vancouver, British Columbia) for $62 million. Under the agreement, Angiotech will retain worldwide rights to manufacture, market and sell Quill wound closure products. In addition, Ethicon and Angiotech entered into a Manufacturing and Supply Agreement, pursuant to which Angiotech will exclusively manufacture knotless wound closure products that utilize the Quill technology for Ethicon for an undisclosed term