Buyer: All Buyers
Seller: All Sellers
Sector: All Sectors
Keywords: Combined Keywords for 2014
The following transactions further support 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 an 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 for 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 a 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 were 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 the 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 the 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 approximate $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 the 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 lockup 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 co-founder, 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 the 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. A diplomat is one of the largest independent specialty pharmacies 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.
- Sector: Specialty Pharmacy
Buyer Type: Public
Target: Diplomat Specialty Pharmacy is currently 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, roto molding 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.
- 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.
- 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 neurorehabilitation 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 healthcare 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 approximate $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 the 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, rehabilitation, 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 on providing 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 neurostimulators.
- 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.