2015 Historical Transactions All Sectors

• 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.

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• 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 ofHospira 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.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      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.
• 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 theUnitedHealth’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 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:   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:   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.

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• 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 consultantStuder 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.