THE HEALTH CARE M&A REPORT - Levin Associates · INTRODUCTION This is the 90th issue of The Health...
Transcript of THE HEALTH CARE M&A REPORT - Levin Associates · INTRODUCTION This is the 90th issue of The Health...
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THE HEALTH CARE M&A REPORTFOURTH QUARTER 2015A SUPPLEMENT TO THE HEALTH CARE M&A INFORMATION SOURCE
IIII II IV
THE HEALTH CARE
M&A REPORT
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Fourth Quarter 2015 ISSN 1076-3511
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TABLE OF CONTENTS
INTRODUCTION .............................................................................. 7
BEHAVORIAL HEALTH CARE ......................................................... 45
BIOTECHNOLOGY ......................................................................... 53
eHEALTH ...................................................................................... 65
HOME HEALTH & HOSPICE ......................................................... 83
HOSPITALS ................................................................................... 91
LABORATORIES, MRI & DIALYSIS .............................................. 105
LONG-TERM CARE ...................................................................... 115
MANAGED CARE ......................................................................... 171
MEDICAL DEVICES ..................................................................... 179
PHARMACEUTICALS ................................................................... 195
PHYSICIAN MEDICAL GROUPS ................................................... 219
REHABILITATION ........................................................................ 233
OTHER SERVICES....................................................................... 239
INDEX ......................................................................................... 261
INTRODUCTION
This is the 90th issue of The Health Care M&A Report, which tracks the merger and acquisition market
in the health care industry. General trends in the market are discussed in this Introduction, followed
by a look at each of the 13 sectors we cover. In the Index, each entry details a transaction, from target
and acquirer to price, terms, acquisition multiples and other financial information, when available. The
commentary section offers additional analysis.
This issue reports on the 370 transactions that were announced in the fourth quarter of 2015, listed
alphabetically by target with 13 separate health care sectors.
Behavioral Health Care Managed Care
Biotechnology Medical Devices
eHealth Pharmaceuticals
Home Health & Hospice Physician Medical Groups
Hospitals Rehabilitation
Laboratories, MRI & Dialysis Other Services
Long-Term Care
We categorize these sectors as either Services or Technology. Services includes Behavioral Health
Care, Home Health & Hospice, Hospitals, Laboratories/MRI & Dialysis, Long-Term Care, Managed
Care, Physician Medical Groups, Rehabilitation and Other Services. The Technology sector includes
Biotechnology, eHealth, Medical Devices and Pharmaceuticals.
A note on our methodology: For reasons of timeliness, we record each transaction by the date of the
announcement rather than the closing date. Announcements generally coincide with a significant
event, such as the signing of a letter of intent, the receipt of regulatory clearance, or even the closing
date itself. The assumption is that, once a letter of intent is signed, for example, the parties to the deal
consider it to be economically viable relative to the market conditions at the time of the signing.
If the transaction is called off for any reason after the announcement, we remove the date of the
announcement so it does not show up in active database searches, but the details can be accessed if
the search specifies the name of the acquirer or target.
The one exception is the Hospital sector. An announcement that a letter of intent has been signed
means the parties have expressed an interest in a union of some sort, whether through acquisition,
affiliation, collaboration, merger or partnership. Talks and due diligence may go on for years, or be
called off entirely. We record hospital transactions when a deeper level of understanding is reached,
such as a definitive agreement. Just as with other sectors, if the transaction is called off for any reason
after that stage, we remove the date of the announcement but the details may still be accessed on a
company-name search.
The Health Care M&A Report, 4th Quarter, 2015 7
NOTABLE TRENDS IN Q4:15
1. Deal making activity slowed in the fourth quarter to 370 transactions, down 9.5% compared
with the previous quarter’s 409 deals but up 4% versus the same quarter in 2014. Despite the
dip in activity from the third quarter, this quarter sets a new record for all previous fourth
quarters—breaking the previous record set only a year ago, in Q4:14. The Services sectors were
even more robust than usual, making up 67% of the deal volume. The Technology sectors
accounted for 33%. Deal making in the rest of the economy continued to slow in the wake of
slowing economic growth in China, but with 1,490 transactions, health care M&A surpassed
last year’s record total of 1,312 transactions.
2. At $202.0 billion, the fourth quarter’s deal value also set a new record, for any quarter, ever.
However, this total is just a 1% increase over the third quarter’s $199.5 billion total, and an
increase of 46% over the same quarter a year ago. The massive spending is largely the result
of a single deal, the $160 billion acquisition of Allergan plc by Pfizer Inc., announced in
November 2015. Subtracting that deal from the quarter’s total leaves just $42 billion, which
paints a far different picture of spending in 2015. If the fourth quarter had realized just $42
billion, it would rank as the lowest quarter in the previous 12 months, and the smallest total
since the fourth quarter of 2012, which ended with $24.5 billion.
3. The first quarter of 2016 started off with even more turmoil in the global markets. China’s
economic performance was merely “on target” for 2015, and oil prices fell below $30 a barrel
for the first time since 2008. However, the U.S. dollar stayed strong, which doesn’t help
pharmaceutical or medical device companies overseas. Here in the States, health care M&A
rallied in the second week of January, as marketers timed their announcements to coincide
with the annual J.P. Morgan Healthcare Summit in San Francisco. Since then, the acquisition
announcements have petered out and it looks as if M&A fever may have broken. This could be
the start of something small.
The Health Care M&A Report, 4th Quarter, 2015 8
Quarterly Mergers & Acquisitions by Deal Volume
Source: The Health Care M&A Information Source, January 2016
With 370 deals announced in the fourth quarter, acquisition activity was down 9.5%, compared with
the 409 transactions announced in the previous quarter. Deal volume was actually higher than the
same quarter in 2014, up 4% against the 356 deals reported then.
The fourth quarter of 2015 represents a new record for deal activity in all previous fourth quarters.
The previous record was set only a year ago, in Q4:14, which was the first time fourth-quarter deal
activity topped the 300 mark since 2007.
The health care services category was unusually strong in the last quarter of 2015, making up 67% of
the deals, compared with 33% for the health care technology category. In three of the four quarters of
2015, the services sectors made up at least 60% of the deal volume, with 60% in the second quarter
and 64% in the third quarter. In previous years, the services side typically makes up about 55% of
each quarter’s deal total.
217 220 207260 248
139 155137
149122
0
50
100
150
200
250
300
350
400
450
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
Tran
sact
ion
s
Health Care Mergers & AcquisitionsTotal Transactions by Quarter
Services Technology
The Health Care M&A Report, 4th Quarter, 2015 9
Deal Volume by Health Care Sector
Q4:15
Deals
Q3:15
Deals
Change Q4:14
Deals
Change
Services
Behavioral Health Care 12 12 0% 7 71%
Home Health & Hospice 12 12 0% 20 -40%
Hospitals 22 32 -31% 31 -29%
Labs, MRI & Dialysis 16 16 0% 7 129%
Long-Term Care 105 100 5% 88 19%
Managed Care 12 13 -8% 4 200%
Physician Medical Groups 22 19 16% 17 29%
Rehabilitation 7 8 -13% 6 17%
Other 40 48 -17% 37 8%
Services subtotal 248 260 -5% 217 14%
Technology
Biotechnology 20 42 -52% 45 -56%
eHealth 30 33 -9% 32 -6%
Medical Devices 28 32 -13% 27 4%
Pharmaceuticals 44 42 5% 35 26%
Technology subtotal 122 149 -18% 139 -12%
Grand Total 370 409 -10% 356 4%
Source: The Health Care M&A Information Source, January 2016
Overall, the number of deals in Q4:15 decreased by 9.5% from the previous quarter’s deal volume, but
topped the same quarter the year before by 4%. Long-Term Care remained the most active sector with
a record 105 deals, up 5% from the previous record-setting quarter, and surpassing the same quarter
a year earlier by 19%. Several sectors posted increased activity compared with the fourth quarter the
year before, including Labs, MRI & Dialysis (+129%), Managed Care (+200%), Physician Medical
Groups (+29%) and Rehabilitation (+17%).
Pharmaceuticals was the most active of the technology sectors, with 44 deals in the fourth quarter,
an increase of 5% compared with the third quarter, and up 26% versus the same period the year
before. All of the other technology sectors lost strength compared with the totals announced in the
previous quarter, while the Medical Device sector eked out a 4% gain compared with the year-before
quarter.
The Health Care M&A Report, 4th Quarter, 2015 10
Acquirers with Three or More Deals
Acquirer Sector Listing Deals
Welltower Inc. REIT NYSE: HCN 7
American Realty Capital Healthcare
Trust-II
REIT Private 5
Birchwood Health Care Properties Private investment firm Private 4
IPC Healthcare, Inc. Physician Medical Groups NASDAQ: IPCM 4
Molina Healthcare, Inc. Managed Care NYSE: MOH 4
MOTION PT Rehabilitation Private 4
PharMerica Corporation Other NYSE: PMC 4
Source: The Health Care M&A Information Source, January 2016
A total of 296 companies were involved in fourth quarter health care transactions as buyers, compared
with 327 companies in the third quarter. Of that total, 113 publicly traded companies announced a
total of 183 deals during the quarter, valued at $191.2 billion.
There were 161 privately held companies that took part in 187 deals worth a total of approximately
$8.2 billion.
Finally, 22 not-for-profit entities announced 24 transactions, totaling $2.6 billion.
The Health Care M&A Report, 4th Quarter, 2015 11
Acquirers by Listing and Market Share
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
Deals Dollars Deals Dollars Deals Dollars Deals Dollars Deals Dollars
Publicly
traded
44% 90% 51% 94% 48% 93% 47% 96% 43% 95%
Privately held 50% 10% 43% 5% 45% 7% 44% 3% 51% 4%
Nonprofit 6% 0% 7% 0% 7% 0% 9% 0% 6% 1%
Source: The Health Care M&A Information Source, January 2016
Privately held companies had the upper hand in the fourth quarter of 2015, with 51% (187 deals) of
the 370 transactions announced. That figure is virtually identical to the fourth quarter of 2014, when
these companies accounted for 50% (177) of the 356 transactions announced then. By contrast,
private companies accounted for just 4% ($8.2 billion) of spending in the quarter.
Publicly traded companies, which dominated deal volume by varying degrees in the first three quarters
of 2015, accounted for 43% (159) of the transactions in the fourth quarter. Not surprisingly, publicly
traded companies accounted for 95% ($191.2 billion) of the dollars announced in the fourth quarter.
Not-for-profit organizations, mostly health systems and hospitals, accounted for 6% (24) of the
transactions. The $2.6 billion these organizations spent on mergers and acquisitions made up just 1%
of the quarter’s total.
The Health Care M&A Report, 4th Quarter, 2015 12
Financial Buyers
Source: The Health Care M&A Information Source, January 2016
Financial buyers, which includes real estate investment trusts and private equity firms, are not the
dominant players in the health care M&A market. Their participation depends on many factors, with
the ability to win an auction being foremost. Private equity firms, in particular, have had a hard time
getting into and then winning auctions for health care entities in the past few years, as strategic buyers
have outspent or even pre-empted auctions.
In the fourth quarter, financial buyers accounted for 18% of the deal volume, slightly lower than the
previous quarter. Their share of committed dollars, at 3% in the fourth quarter, matched the previous
quarter’s 3% share of spending. The low level of participation is a consequence of the enormous
amount of money spent in both the third and the fourth quarter, a total of $199.5 billion and $202.0
billion, respectively.
Of the 65 deals announced by financial buyers in Q4:15, 25 were made by real estate investment
trusts and the remaining 40 were made by private equity firms. PE firms’ investments focused on Long-
Term Care (19), Other Services (9), eHealth (3), Pharmaceuticals (3), Hospitals (2), Laboratories, MRI
& Dialysis (2), Behavioral Health Care and Rehabilitation (1 each).
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
Deals announced 57 51 53 77 65
Share of deal volume 16% 14% 15% 19% 18%
Dollars committed $11.3 billion $5.8 billion $6.7 billion $6.2 billion $5.6 billion
Share of dollars spent 8% 5% 12% 3% 3%
The Health Care M&A Report, 4th Quarter, 2015 13
Dollar Value: Services vs. Technology Segments
Source: The Health Care M&A Information Source, January 2016
Deal value in the fourth quarter hit a new record for any previous quarter, at $202.0 billion. That total
is a mere 1% increase over the third quarter, which topped $199.5 billion. Compared with the same
period in 2014, this quarter’s total was up 46%.
As noted earlier, the massive amount of spending comes from a single transaction, the $160 billion
acquisition of Allergan plc by Pfizer Inc., announced in November 2015. Subtracting that deal from the
quarter’s total leaves just $42 billion, which paints a far different picture of spending in 2015. If the
fourth quarter had realized just $42 billion, it would rank as the lowest quarter in the previous 12
months, and the smallest total since the fourth quarter of 2012, which ended with $24.5 billion. Things
are not always as rosy as they appear.
Needless to say, the Technology segment typically exceeds the Services sector in terms of dollars
committed to mergers and acquisitions, and that was clearly the case in Q4:15. The Technology
segment made up 93% of the total spending, dwarfing the Services side’s 7%.
In Q4:15, the median price was $32 million, far lower than the previous quarter’s median price of $99
million, but more in line with the fourth quarter of 2014, where the median price was $30 million.
115.5
81.7
28.9
89.5
188.7
23.0
24.8
26.7
110.0
13.3
0.0
50.0
100.0
150.0
200.0
250.0
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
Do
llar
Vo
lum
e (
in $
bill
ion
s)
Health Care Mergers & AcquisitionsTotal Dollar Volume by Quarter
Technology Services
The Health Care M&A Report, 4th Quarter, 2015 14
Dollar Volume and Share in Q4:15
Source: The Health Care M&A Information Source, January 2016
A total of $202.0 billion was spent to fund the 370 transactions reported in Q4:15, which tops the
previous record of $199.5 billion spent on health care deals in any previous quarter. The amazing fact
is that the previous record was set only in the previous (third) quarter of 2015!
The Pharmaceutical sector completely dominated the dollar side of deal making, accounting for 85.9%
($173.4 billion) of spending. The majority of that total was due to Pfizer Inc.’s announcement that it
will acquire Allergan plc for $160 billion, making this the biggest health care deal, ever.
Far behind, in second place, was the Biotechnology sector, accounting for 3.6%, approximately $7.2
billion, of the total spending. Due to rounding, the Hospital, Medical Device and Other Services sectors
each contributed approximately 1.8%, although totals varied. Spending in the Medical Device sector
totaled $4.9 billion, followed by Other Services ($3.6 billion) and Hospitals ($3.5 billion). eHealth
comprised 1.4%, with $3.1 billion.
At or below the 1% mark, six sectors combined contributed 2% of the quarter’s dollar volume, based
on disclosed prices: Long-Term Care (1.1% and $2.2 billion); Labs, MRI & Dialysis (0.9% and $1.8
billion); Managed Care (0.9% and $1.9 billion); Home Health & Hospice (0.1% and $109 million);
Physician Medical Groups (0.1% and $135 million). Registering at 0.0% contribution to the spending
total were the Behavioral Health Care ($35 million) and Rehabilitation ($53 million) sectors.
Pharmaceuticals
86%
Biotechnology
4%
Medical Devices
2%
Other
2% Hospitals
2%
eHealth
1% Remaining
Sectors
3%
The Health Care M&A Report, 4th Quarter, 2015 15
Top 10 Transactions in Q4:15
Acquirer Name Acquirer
Listing Target
Target
Listing Price Target Sector
Pfizer, Inc. NYSE: PFE Allergan plc NYSE: AGN $160 billion Pharmaceuticals
Shire plc NASDAQ:
SHPG
Dyax Corp. NASDAQ:
DYAX
$5.9 billion Biotechnology
AstraZeneca plc NYSE: AZN Acerta Pharma B.V. Private $4.0 billion Pharmaceuticals
Excelsior Union
Limited
Private Mindray Medical
International
Limited
NYSE: MR $3.3 billion Medical Devices
AstraZeneca plc NYSE: AZN ZS Pharma NASDAQ:
ZSPH
$2.7 billion Pharmaceuticals
Pamplona Capital
Management
Private MedAssets, Inc. NASDAQ:
MDAS
$2.7 billion eHealth
AmerisourceBergen
Corporation
NYSE: ABC PharMEDium
Healthcare
Holdings
Private $2.6 billion Other
Mediclinic
International Ltd.
OTCQB:
MCFFY
Al Noor Hospitals
Group plc
LSE: AHN.L $2.3 billion Hospitals
Teva
Pharmaceutical
Industries Ltd.
NYSE: TEVA Representaciones e
Investigaciones
Médicas (Rimsa)
Private $2.3 billion Pharmaceuticals
Kaiser Permanente Nonprofit Group Health
Cooperative
Nonprofit $1.8 billion Managed Care
Source: The Health Care M&A Information Source, January 2016
With such a phenomenal quarter, it’s not surprising that 10 deals surpassed the $1 billion mark.
Although the cumulative total of those 10 deals is almost $187.6 billion, nine of the deals added
together account for just 15% of that total, or $27.6 billion.
These 10 deals accounted for 93% of the total dollar volume in the fourth quarter. The largest
transaction, Pfizer’s acquisition of Allergan plc, made up 79% of the quarter’s combined total of
$202.0 billion.
The Health Care M&A Report, 4th Quarter, 2015 16
Resources for Our Readers
To keep you abreast of the rapid developments in the merger and acquisition market, Health Care
Deal News is published 50 times a year. This digital newsletter lists the health care merger and
acquisition deals announced during the previous week, as well as articles on the more interesting
Technology and Services deals and charts with data on a specific sector, or monthly and quarterly M&A
results.
Further detail and analysis of these transactions are provided in the monthly newsletter, Health Care
M&A News, which reports on the deals announced during the previous month and puts them in the
context of emerging trends, where public and private equity investors are moving, and the impacts of
those trends.
At the end of each quarter we issue this source book, The Health Care M&A Report, to follow up on
the transactions with more comprehensive information. We utilize sources such as SEC filings,
discussions with bankers, brokers and consultants involved in certain transactions, and interviews
with company management to bring our readers reliable, value-added information on the important
and rapidly evolving market.
Our online database, Deal Search Online, which includes 22 years’ worth of M&A data, is updated
weekly and can be at your disposal 24 hours a day, seven days a week. So even after the publication
of this report, we may update the deals contained in it. That information is available to our database
subscribers through our online database, DealSearchOnline.com. If interested in signing up, please
call. We hope that you find our services a valuable tool for your business.
The Health Care M&A Report, 4th Quarter, 2015 17
Behavioral Health Care
Deal activity stayed steady in the fourth quarter, at 12 transactions. The quarter’s total represented
32% of the 38 transactions announced in the past 12 months and virtually no increase over the
previous quarter. Behavioral health care facilities and programs are largely community-based, and
transactions are often conducted between private parties and thus, not reported publicly.
Still, this category is seeing some consolidation from new players, such as American Addiction Centers,
and more private equity firms are buying and building platforms across state lines. Addiction treatment
programs became popular targets in 2015, although many programs treat co-occurring conditions,
such as addiction and mental health disorders. We expect to see continued strong interest in this
sector in 2016.
Source: The Health Care M&A Information Source, January 2016
Three of the 12 deals disclosed prices in the fourth quarter. The total of $35.0 million was far below
the previous quarter’s $830 million, when three of the 12 deals also reported prices. The fourth
quarter represents 3% of the $1.1 billion spent in the past 12 months.
Dollars Spent on Behavioral Health Care Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$1,188,000,000 $83,161,916 $190,700,000 $830,000,000 $35,050,000
With such limited spending information, it’s not surprising that the largest deal was just $13 million.
AAC Holdings, through its operating subsidiary American Addiction Centers, acquired Solutions
Recovery, which provides detoxification, residential and intensive outpatient treatment as well as
sober living services in the greater Las Vegas area. Solutions Recovery's assets include 100 sober-
living beds (owned), 70 licensed in-network detox, residential and halfway house beds (leased), 24
78
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8
10
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14
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
Tran
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Behavioral Health Care Mergers & Acquisitions Total Transactions by Quarter
The Health Care M&A Report, 4th Quarter, 2015 18
sober-living beds (leased) and three licensed, in-network outpatient centers. AAC is also acquiring the
real estate assets.
American Addiction Centers also paid $12.7 million for Wetsman Forensic Medicine, LLC. The New
Orleans-based company, dba Townsend, is a leading substance abuse treatment provider in Louisiana
and operates six in-network outpatient centers that deliver intensive outpatient treatment, as well as
a 20-bed in-network facility in Scott, Louisiana. Concurrent with this deal announcement, AAC
disclosed that its FitRx and The Academy operations would cease operations as of December 31,
2015, due to their continued unprofitability and management’s realignment to focus solely on adult
addiction treatment.
The third deal to disclose a price was a real-estate transaction. LTC Properties, Inc., a REIT that invests
primarily in long-term care and other healthcare facilities, paid $9 million for Harmon Hospital. The
Las Vegas, Nevada behavioral healthcare hospital has 116 medical hospital beds and two skilled
nursing beds, and is leased to Fundamental Long Term Care.
Five Largest Behavioral Health Care Deals in the Past 12 Months
Acquirer Target Quarter Price
Universal Health Services Inc. Foundations Recovery
Network, LLC
Q3:15 $350,000,000
Levine Leichtman Capital
Partners
Monte Nido Q3:15 $280,000,000
Molina Healthcare, Inc. 2 subsidiaries of Providence
Service Corp.
Q3:15 $200,000,000
Acadia Healthcare Company 3 behavioral health companies Q2:15 $145,000,000
Acadia Healthcare Company Quality Addiction Management Q1:15 $53,000,000
The Health Care M&A Report, 4th Quarter, 2015 19
Biotechnology
Biotechnology deal activity slumped in the fourth quarter, falling 52% versus the previous quarter, to
20 deals. The total is just 13% of the 158 deals announced in the previous 12 months. Biotechnology
targets range from large, publicly traded companies to small startups, or established lines of products
to licenses or rights to technologies and drugs in various phases of development. Research
collaborations are included, when an acquirer pays an upfront fee for the rights to a promising
compound, and picks up the R&D, regulatory and commercialization costs. Hence, eight of the 20
transactions in the fourth quarter involved the purchase of an entire company, while five involved the
rights or license to a marketed product or a lead drug candidate. The remaining seven were
collaboration agreements.
Source: The Health Care M&A Information Source, January 2016
A total of $7.2 billion financed the fourth quarter’s activity, representing 15% of the $48.5 billion
committed in the preceding 12 months. Although deal volume dropped considerably, the fourth
quarter’s spending was 76% higher than the previous quarter.
Dollars Spent on Biotechnology Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$1,748,817,252 $35,162,084,075 $2,049,744,746 $4,119,359,944 $7,237,092,000
The largest deal of the quarter was the $5.9 billion acquisition of Dyax Corp., a biotech focused on
treatments for a rare genetic disease called HAE (hereditary angioedema). This deal was the fourth
one announced in 2015 by Shire plc, and the largest of the four. The price equals $37.30 in cash per
Dyax share, plus additional value through a non-tradable contingent value right (CVR) that will pay
$4.00 in cash per Dyax share upon approval of DX-2930 in HAE, representing $646 million in
consideration. Even though Dyax’s lead product candidate, DX-2930, was about to enter Phase 3
clinical trials, the product had received Fast Track, Breakthrough Therapy and Orphan Drug
designations from the FDA, and achieved Orphan Drug status in the European Union.
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The Health Care M&A Report, 4th Quarter, 2015 20
Japanese drug maker Astellas Pharma made the second largest acquisition, paying $379 million for
Marlborough, Massachusetts-based Ocata Therapeutics, Inc., a clinical-stage company that develops
and commercializes regenerative ophthalmology therapeutics in the United States. It is conducting
trials for treating various forms of macular degeneration and other ocular disorders. Astellas will pay
$8.50 per share in cash, representing a 79% premium to Ocata's closing share price of $4.75 on
November 6, 2015. The acquisition will establish Astellas’ presence in ophthalmology, and give it a
leading position in cell therapy.
Cardiovascular disease treatments were the focus of the third largest transaction in this sector last
quarter, as Bristol-Myers Squibb Company paid $300 million to acquire Cardiopxyl Pharmaceuticals.
The acquisition will give Bristol-Myers Squibb full rights to Cardiopxyl's lead asset, CXL-1427, a novel
nitroxyl (HNO) donor in Phase 2 clinical development as an intravenous treatment for acute
decompensated heart failure. The $300 million is an upfront payment, and Bristol-Myers agreed to a
potential consideration of up to $1.775 billion upon the achievement of certain development,
regulatory and sales milestones.
Five Largest Biotechnology Deals in the Past 12 Months
Acquirer Target Quarter Price
AbbVie Inc. Pharmacyclics Inc. Q1:15 $21,000,000,000
Shire plc Dyax Corp. Q4:15 $5,900,000,000
Shire plc NPS Pharmaceuticals, Inc. Q1:15 $5,200,000,000
Teva Pharmaceuticals Industries
Ltd. Auspex Pharmaceuticals, Inc. Q1:15 $3,200,000,000
Mallinckrodt plc Therakos, Inc. Q3:15 $1,325,000,000
The Health Care M&A Report, 4th Quarter, 2015 21
eHealth
Merger and acquisition activity slipped in the fourth quarter, down 9% to 30 transactions. The fourth
quarter activity made up 24% of the 123 deals announced in the previous 12 months. Investor interest
in this sector remains strong, particularly for revenue cycle management programs and data analytics
technologies that help health care providers across the care continuum become more efficient and
cut costs. Companies deploying electronic health records may see a softening of interest in 2016, as
the Centers for Medicare and Medicaid Services changed its stance in January on implementing Stage
3 of its Meaningful Use requirements. The move effectively takes a huge burden off many smaller
hospitals and physician practices.
Source: The Health Care M&A Information Source, January 2016
Of the 30 deals announced in Q4:15, five disclosed a price, for a total of $3.1 billion, a 17% increase
over the previous quarter. The dollar volume represents approximately 53% of the $5.9 billion spent
in this category in the last four quarters.
Dollars Spent on eHealth Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$628,838,854 $153,299,390 $5,500,000 $2,665,000,000 $3,125,676,000
Private equity firm Pamplona Capital Management announced the largest deal in this sector, at $2.7
billion, targeting MedAssets, Inc. MedAssets provides technology-enabled products and services for
hospitals, health systems, non-acute healthcare providers, payers and other service providers. It
serves four out of every five hospitals in the United States. Pamplona plans to divest MedAssets' Spend
and Clinical Resource Management segment to VHA-UHC Alliance, while retaining MedAssets' Revenue
Cycle Management segment and combine it with Precyse, a portfolio company that provides health
information management services. The price for the publicly traded MedAssets carries some fairly lofty
valuations of 36.0x revenue and 12.3x EBITDA. This deal closed on January 27, 2016, and is being
closely watched by the PE community.
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The Health Care M&A Report, 4th Quarter, 2015 22
The second largest deal was for far less money. Computer Programs and Systems, Inc. spent $250
million to acquire Healthland Holding, Inc., which provides integrated technology solutions to rural
community and critical access hospitals. Its affiliates, Healthland Inc., American HealthTech, Inc. and
Rycan Technologies, Inc., are also part of the transaction. The acquisition will strengthen CPSI’s
position in providing healthcare information solutions in the markets it serves and will provide new
growth markets for the combined company. It closed on January 8, 2016.
HealthFusion Holdings, Inc. was acquired by Quality Systems, Inc. for $165 million. HealthFusion
develops web-based, cloud computing software for physicians, hospitals and medical billing services.
Its MediTouch® platform is currently used by more than 3,000 physician practices, ambulatory centers
and billing services. The transaction, which closed on January 8, 2016, is expected to capitalize on
both companies’ presence in the ambulatory surgery market segment.
Five Largest eHealth Deals in the Past 12 Months
Acquirer Target Quarter Price
Pamplona Capital Management MedAssets, Inc. Q4:15 $2,700,000,000
IBM Merge Healthcare Inc. Q3:15 $1,000,000,000
Emdeon Inc. Altegra Health Q3:15 $910,000,000
Premier, Inc. CECity, Inc. Q3:15 $400,000,000
Cardinal Health, Inc. NaviHealth Q3:15 $290,000,000
The Health Care M&A Report, 4th Quarter, 2015 23
Home Health & Hospice
Deal making in the Home Health & Hospice sector was flat in Q4:15, with 12 deals. The quarter’s
transactions represent 26% of the 47 deals announced in the past 12 months. We know there is a
great deal of interest in acquisitions in this sector, but the numbers do not always reflect that interest.
Part of the reason is that many transactions are done privately. Also, home health agencies and
hospice services often are part of larger transactions involving hospitals, health systems or long-term
care providers, so the home health and/or hospice portion of a transaction may be recorded as part
of a larger deal in the Hospital or Long-Term Care sector.
Source: The Health Care M&A Information Source, January 2016
Eleven of the target companies in Q4:15 were privately held, and one was not-for-profit. Six of the
acquirers were publicly traded; two were not-for-profit and four were privately held.
Three of the deals disclosed prices, for a total of $108.7 million for the quarter. That total accounts
for 21% of the $521 million spent in the past 12 months, and a decrease of 60% compared with
spending in the third quarter.
Dollars Spent on Home Health & Hospice Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$2,550,100,000 $138,500,000 $0 $273,854,200 $108,700,000
Infinity HomeCare of Sarasota, Florida was the quarter’s largest target in this sector. Amedysis, Inc.
agreed to pay $63 million for the home health company, which cares for more than 14,000 patients
per year through 15 centers in Florida. The transaction expands Amedysis’ presence in the state.
The second largest deal involved Black Stone Operations, LLC, which operates Home Care by Black
Stone, providing in-home personal care and skilled home health services in the western half of Ohio.
Almost Family, Inc., based in Louisville, Kentucky, paid $40 million to bolster its position as a leading
provider of services to Ohio's innovative managed care programs for seniors who are dually eligible for
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The Health Care M&A Report, 4th Quarter, 2015 24
Medicare and Medicaid services. On a combined basis, Ohio revenues are expected to be over $120
million annually.
LHC Group, Inc. received approval from a U.S. Bankruptcy Court judge in Kentucky to acquire Nurses
Registry and Homes Health Care Corp. for $5.7 million. The company filed for Chapter 11 protection
on June 29, 2015, after facing accusations of fraud from Medicare officials, who claimed the company
had paid kickbacks to physicians. Judge Gregory R. Schaaf approved the settlement agreement, in
which 30% of the net sale proceeds went to the bankruptcy estate and 70% to the U.S. government. A
separate bid of $3.5 million from Atlanta-based Five Points Healthcare LLC was not accepted.
Five Largest Home Health and Hospice Transactions in the Last 12 Months
Acquirer Target Quarter Price
HealthSouth Corporation CareSouth Health System, Inc. Q3:15 $170,000,000
Extendicare Inc. Revera Home Health Q1:15 $83,000,000
Amedysis, Inc. Infinity HomeCare Q4:15 $63,000,000
LHC Group, Inc. Halcyon Hospice LLC Q3:15 $58,500,000
Almost Family WillCare HealthCare Q1:15 $49,500,000
The Health Care M&A Report, 4th Quarter, 2015 25
Hospitals
Mergers and acquisitions in the Hospital sector slid 31%, to 22 deals, in the fourth quarter. This
quarter’s deal volume represents 22% of the 102 hospital transactions announced in the previous 12
months. In 2015, the trend in hospital transactions was a move away from true mergers or
acquisitions. Hospitals and health systems signed more collaboration agreements or joint ventures as
a way to test the waters before committing fully to a change in governance. In other cases, softer
language, such as “affiliation” or “collaboration” are used to describe the transaction, when it may in
fact be a merger. Throughout the year, the majority of deals that reached the ‘definitive agreement’
stage involved a smaller, financially troubled hospital joining a health system or network.
Source: The Health Care M&A Information Source, January 2016
Nine of the transactions disclosed a price, for a combined total of nearly $3.5 billion, a 44% increase
over the previous quarter’s total. That figure represents 40% of the $8.7 billion spent on hospital deals
in the past 12 months.
Dollars Spent on Hospital Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$611,500,000 $737,850,000 $2,091,900,000 $2,427,365,000 $3,492,200,000
The largest deal in this sector was a foreign one, involving the publicly traded Al Noor Hospitals Group
plc, based in Abu Dhabi, United Arab Emirates, and the South African hospital operator, Mediclinic
International Ltd. Mediclinic operates private hospitals in South Africa, Namibia, Switzerland and the
UAE, and was the winning bidder for Al Noor Hospitals Group with a $2.3 billion offer. Al Noor was also
being pursued by its local rival, NMC Health plc. The combination of Al Noor and Mediclinic will create
the biggest private healthcare provider in the UAE, and will be renamed Mediclinic International plc
and listed on the London Stock Exchange.
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The Health Care M&A Report, 4th Quarter, 2015 26
The state of Georgia declined to expand its Medicaid system under the Affordable Care Act, and now
several rural hospitals around the state are in financial trouble and looking for partners, or simply
closing. The climate is shaky, and led Tenet Healthcare Corp. to sell five of its hospitals around the
Atlanta metro area to WellStar Health System, a five-hospital chain in Marietta, Georgia, for $661
million. The Tenet hospitals included in the sale are the 466-bed Atlanta Medical Center (Atlanta), its
210-bed South Campus (East Point), the 158-bed North Fulton Hospital (Roswell), the 160-bed
Spalding Regional Hospital (Griffin) and the 10-bed Sylvan Grove Hospital (Jackson). All will become
not-for-profit entities following the close of the transaction, and WellStar will be the largest health
system in the state of Georgia.
The third largest transaction also had a foreign-based target, Hospital Samaritano in Sao Paulo, Brazil.
The buyer was the largest health insurer in the United States, UnitedHealth Group, Inc., which paid
approximately $350 million for the hospital, three years after its $4.3 billion purchase of the Brazilian
health insurer/hospital operator, Amil Participacoes. Hospital Samaritano, which has approximately
200 to 300 beds, becomes UnitedHealth’s 32nd hospital in Brazil.
Five Largest Hospital Deals in the Past 12 Months
Acquirer Target Quarter Price
Mediclinic International
Ltd. Al Noor Hospitals Group plc Q4:15 $2,300,000,000
Ventas, Inc. Ardent Health Services Q2:15 $1,750,000,000
Medical Properties Trust,
Inc. Capella Healthcare, Inc. Q3:15 $900,000,000
WellStar Health System 5 Tenet hospitals Q4:15 $661,000,000
LCMC Health West Jefferson Medical Center Q3:15 $540,000,000
The Health Care M&A Report, 4th Quarter, 2015 27
Laboratories, MRI and Dialysis
The Labs, MRI & Dialysis sector recorded another 16 deals in the fourth quarter, sustaining a trend
that began in the second quarter. The Q4:15 deals represent 31% of the 52 deals announced in the
past 12 months. Diagnostic labs, radiology and imaging services were the most popular targets.
Source: The Health Care M&A Information Source, January 2016
Seven of the transactions disclosed prices, for a combined total of nearly $1.8 billion. This quarter’s
deal value makes up 42% of the $4.3 billion spent in the last 12 months, and represents a 107%
increase over the third quarter’s $856.6 million total.
Dollars Spent on Laboratories, MRI & Dialysis Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$5,763,350,000 $70,000,000 $1,557,650,000 $856,600,000 $1,769,586,687
Private equity firm KKR & Co. LP, led by George Roberts, paid £650 million ($989 million) for LGC
Group, a portfolio company of Bridgepoint. Under Bridgepoint, LGC grew rapidly in the previous five
years and is now an international life sciences measurement and testing company that provides
services such as DNA sequencing, paternity and drug/alcohol testing with employees in 22 countries.
KKR plans to continue to build global leadership positions, with a particular focus on markets in the
United States and Asia.
GE Healthcare sold Clarient, Inc. and its wholly owned subsidiary, Clarient Diagnostic Services, Inc.,
which provides comprehensive cancer diagnostic testing to hospitals, physicians and the
pharmaceutical industry. The buyer, NeoGenomics, Inc., paid $275.2 million, which represents $80
million in cash, $110 million in preferred stock at $7.50 per share and 15 million shares of
NeoGenomics common stock ($85.2 million, based on the prior-day closing price of $5.68 per share).
In effect, GE Healthcare will own 32% of NEO.
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The Health Care M&A Report, 4th Quarter, 2015 28
The third largest transaction also involved a British lab company as the target. Roper Technologies Inc.
picked up CliniSys Group Ltd. for approximately $261.1 million. This acquisition was announced
concurrently with Roper's acquisition of Atlas Medical. The two acquisitions will be combined with
Roper subsidiaries, Sunquest Information Systems and Data Innovations, and will expand Roper's
portfolio of companies focused on diagnostic solutions, adding capabilities that support clinical testing
processes and connectivity to systems, instruments and providers across the world.
Five Largest Laboratories, MRI and Dialysis Deals in the Past 12 Months
Acquirer Target Quarter Price
OPKO Health, Inc. Bio-Reference Laboratories Q2:15 $1,470,000,000
KKR & Co. L.P. LGC Group Q4:15 $989,085,487
DaVita HealthCare Partners
Renal Ventures
Management, LLC Q3:15 $415,000,000
NeoGenomics, Inc. Clarient, Inc. Q4:15 $275,200,000
Roper Technologies Inc. CliniSys Group Ltd. Q4:15 $261,100,000
The Health Care M&A Report, 4th Quarter, 2015 29
Long-Term Care
Merger and acquisition activity stayed lively in the fourth quarter, increasing 5% to 105 transactions.
They represent 29% of the 356 deals announced within the past 12 months. For fourth quarter activity, the 105 transactions represent a record and resulted in another full-year record of seniors housing and care transactions, or 17% higher than in 2014.
Source: The Health Care M&A Information Source, January 2016
Based on revealed prices, $2.2 billion was committed to finance the fourth quarter deals, a drop of
52% compared with the third quarter. The fourth quarter accounted for 16% of the $13.9 billion spent
in the last 12 months. Of the 105 deals announced, 76 disclosed prices.
Dollars Spent on Long-Term Care Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$8,790,910,000 $1,938,947,500 $5,215,446,000 $4,611,756,466 $2,206,442,044
Unlike recent quarters, there were no billion-dollar deals announced. The largest transaction was
Mainstreet’s $302.5 million acquisition of 11 skilled nursing facilities (with a combined total of 2,477
beds) in the Chicago market from Symphony Post Acute Network. Symphony will be leasing them back
from Mainstreet. Occupancy is about 90.5% with a census quality mix of about 25%. The sale
represents almost half of Symphony's portfolio of 26 facilities, with more than 5,200 licensed beds.
Kayne Anderson Real Estate Advisors made the second largest deal of the quarter, buying 11 senior
living communities in various states for an estimated $295 million. The sale included mostly assisted
living and Alzheimer's care communities located in Indiana (4), Virginia (2), Pennsylvania (2) and one
each in Alabama, Delaware and Maryland. The average age was about 7 to 8 years, with two newly
opened.
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The Health Care M&A Report, 4th Quarter, 2015 30
Five retirement communities in Ontario, Canada, were acquired by Chartwell Retirement Residences
for approximately $192.9 million. The independent living communities contain a total of 616 units.
They were opened between 2008 and 2013 and had an average occupancy of 89.1%. Four of the
properties have an assisted living component, with 93 total units. Chartwell acquired these five
properties from five separate groups of sellers.
Five Largest Long-Term Care Deals in the Past 12 Months
Acquirer Target Quarter Price
Griffin-American Healthcare REIT III Trilogy Health Services Q3:15 $1,125,000,000
NorthStar Realty Finance Corp.
32 independent living
communities Q2:15 $875,000,000
HCP, Inc. 35 senior living properties Q1:15 $849,000,000
BayBridge Seniors Housing Amica Mature Lifestyles Q3:15 $804,402,600
NorthStar Healthcare Income, Inc. 15 CCRCs Q2:15 $640,000,000
The Health Care M&A Report, 4th Quarter, 2015 31
Managed Care
The Managed Care sector saw unprecedented spending on deals in 2015, and heightened levels of
deal making in almost every quarter. The year ended with 12 deals announced in the fourth quarter,
which accounted for 27% of the 45 deals announced in the previous 12 months. Although the quarter’s
deal total was 8% below the third quarter, it was still up 200% compared with the sluggish fourth
quarter of 2014.
Source: The Health Care M&A Information Source, January 2016
Only two of the 12 deals disclosed prices, for a total of approximately $1.9 billion. Compared with the
astronomical amount posted in the third quarter ($98 billion for just three deals), spending fell 98%.
The total represents 2% of the $100 billion spent in the past 12 months.
Dollars Spent on Managed Care Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$600,000,000 $65,000,000 $161,000,000 $98,000,000,000 $1,863,000,000
Even with a total of just $1.8 billion, Kaiser Permanente’s acquisition of the not-for-profit Group Health
Cooperative made the list of five largest transactions in the past 12 months. Kaiser Permanente, which
is also a not-for-profit health plan, serves more than 10 million members in eight states and the District
of Columbia. Group Health Cooperative is a nationally recognized health system offering both care
delivery and insurance coverage. It covers nearly 590,000 patients throughout Washington State. The
combination will advance the growth of the integrated model for health care and coverage together
and expand Kaiser Permanente's reach, adding nearly 590,000 members.
The other deal that disclosed financial terms was the $63 million acquisition of Universal American
Corp’s Traditional Insurance business by Nassau Reinsurance Group, a portfolio company of Golden
Gate Capital. The Traditional Insurance division consists of a closed block of insurance products,
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The Health Care M&A Report, 4th Quarter, 2015 32
including Medicare supplement, other senior health insurance, specialty health insurance and life
insurance, including long-term care policies.
Five Largest Managed Care Deals in the Past 12 Months
Acquirer Target Quarter Price
Anthem, Inc. Cigna Corp. Q3:15 $54,200,000,000
Aetna Humana Inc. Q3:15 $37,000,000,000
Centene Corp. Health Net, Inc. Q3:15 $6,800,000,000
Kaiser Permanente Group Health Cooperative Q4:15 $1,800,000,000
Towers Watson & Co. Acclaris Q2:15 $140,000,000
The Health Care M&A Report, 4th Quarter, 2015 33
Medical Devices
The 28 transactions reported in Q4:15 represented 25% of the 113 deals announced in the past 12
months in this sector. All but nine of the acquirers were publicly traded companies, and all but five of
the targets were privately held companies. Four target companies were publicly traded, and one was
a not-for-profit.
Source: The Health Care M&A Information Source, January 2016
The fourth quarter’s $4.9 billion in spending accounted for 13% of the $51.7 billion recorded in the
previous 12 months. Eighteen of the 28 deals disclosed a price.
Dollars Spent on Medical Device Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$19,969,000,000 $5,279,300,000 $4,692,479,000 $21,968,066,931 $4,936,773,551
The quarter’s largest transaction was between two Chinese companies, as Solid Union Limited, a
subsidiary of Excelsior Union Limited, merged with the publicly traded Mindray Medical International
Limited and took that company private, for approximately $3.3 billion. Under the terms of the
agreement, Excelsior Union Limited agreed to pay $28.00 per ordinary share of Mindray, representing
a premium of 1.9% over the company's closing price of $27.47 per ADS on June 3, 2015, the day
before Mindray received the "going private" proposal.
The second largest deal was far smaller, but also involved a Chinese acquirer. Sinorcare Group, of
Changsha, China, paid approximately $273 million in cash for Nipro Diagnostics, a subsidiary of Nipro
Corporation. Nipro Diagnostics produces blood glucose monitoring devices, as does Sinocare. The
transaction closed on January 7, 2016, and Nipro Diagnostics was renamed Trividia Health.
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The Health Care M&A Report, 4th Quarter, 2015 34
SurgiQuest, Inc., a privately held medical device company, was acquired by CONMED Corporation for
$265 million in cash. SurgiQuest develops, manufactures, and markets the AirSeal® System, the first
integrated access management technology for use in laparoscopic and robotic procedures.
Five Largest Medical Device Deals in the Past 12 Months
Acquirer Target Quarter Price
DENTSPLY International Inc. Sirona Dental Systems Inc. Q3:15 $13,300,000,000
St. Jude Medical Inc. Thoratec Corp. Q3:15 $3,400,000,000
Excelsior Union Limited
Mindray Medical
International Limited Q4:15 $3,300,000,000
Hill-Rom Holdings, Inc. Welch Allyn, Inc. Q2:15 $2,050,000,000
Cardinal Health Inc. Cordis Q1:15 $1,944,000,000
The Health Care M&A Report, 4th Quarter, 2015 35
Pharmaceuticals
Drug manufacturers came under heavy scrutiny in the fourth quarter, both for their pricing practices
and their penchant for acquiring overseas rivals to gain lower corporate tax rates. The latter issue was
a major impetus for the largest health care deal ever announced, the $160 billion takeover of Dublin-
based Allergan plc by New York City-based Pfizer Inc. Despite some threats of increased regulatory
oversight by some presidential candidates, pharmaceutical companies carried on business as usual.
Indeed, M&A activity increased slightly (5%) in the fourth quarter, to 44 announced deals. The total
represents 26% of the 169 deals recorded in the previous 12 months.
Source: The Health Care M&A Information Source, January 2016
This sector hasn’t lacked for billion-dollar deals for several quarters now, and the money just kept
increasing. The $173.4 billion spent in Q4:15 represents 58% of the $297.4 billion spent in the
previous 12 months, and an increase of 186% compared with the third quarter of 2015.
Dollars Spent on Pharmaceutical Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$93,141,100,000 $41,095,240,382 $22,182,723,588 $60,700,250,515 $173,449,043,208
As mentioned so often in this report, the Pfizer/Allergan deal is the largest ever in the healthcare
industry. It is structured as a reverse merger, in which a wholly owned subsidiary of Allergan will be
merged with and into Pfizer, and the Allergan parent company will be renamed Pfizer plc after the
closing. Allergan shareholders will receive 11.3 shares of the combined company for each of their AGN
shares. Pfizer stockholders will receive one share of the combined company for each of their Pfizer
shares. Following the transaction, Pfizer shareholders will own 56% of the combined company and
Allergan shareholders will own 44%. And the re-domiciled Pfizer will reap the benefits of a tax inversion.
The transaction is expected to close in the second half of 2016.
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The Health Care M&A Report, 4th Quarter, 2015 36
AstraZeneca plc made two large acquisitions during the quarter. In November, the company
announced a $2.7 billion deal for ZS Pharma, a Texas-based company that had been approached in
September by another suitor, Swiss drug maker Actelion. AstraZeneca won the bidding with a $90 per-
share offer in an all-cash transaction. ZS Pharma uses its proprietary ion-trap technology to develop
novel treatments for hyperkalaemia, associated with chronic kidney disease and chronic heart failure.
Its lead compound is ZS-9, a potential best-in-class for treating hyperkalaemia.
The second transaction was announced in December, targeting Dutch biopharma Acerta Pharma B.V.,
a clinical-stage biopharmaceutical company that has a potential best-in-class irreversible oral Bruton's
tyrosine kinase (Btk) inhibitor, acalabrutinib (ACP-196), currently in Phase 3 development for B-cell
blood cancers, and in Phase 1/2 for other trials. AstraZeneca paid $4 billion for a 55% stake in Acerta
and obtained the right to buy the remaining 45% of shares at a price of approximately $3.0 billion, net
of certain costs and payments incurred by AstraZeneca.
Five Largest Pharmaceutical Deals in the Past 12 Months
Acquirer Target Quarter Price
Pfizer, Inc. Allergan plc Q4:15 $160,000,000,000
Teva Pharmaceutical Industries
Limited Allergan Generics Q3:15 $40,500,000,000
Pfizer Inc. Hospira, Inc. Q1:15 $17,000,000,000
Valeant Pharmaceuticals
International
Salix Pharmaceuticals,
Ltd. Q1:15 $15,800,000,000
Alexion
Synageva BioPharma
Corp. Q2:15 $8,400,000,000
The Health Care M&A Report, 4th Quarter, 2015 37
Physician Medical Groups
The 22 acquisitions announced in the fourth quarter represent 25% of the 88 deals announced in the
previous 12 months. Interest in acquiring physician medical groups picked up in the first half of 2015,
but waned in the third quarter, then picked up by 16% in the fourth quarter.
Source: The Health Care M&A Information Source, January 2016
Only one deal disclosed a price in the fourth quarter, and it was not a very large acquisition. The
$135 million spent on that single deal represents 6% of the $2.34 billion spent in the previous 12
months.
Dollars Spent on Physician Medical Group Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$58,600,000 $105,000,000 $500,000,000 $1,600,000,000 $135,000,000
The only deal to come with a price ($135 million) was announced by Envision Healthcare Holdings,
which provides outsourced medical services to hospitals, health care systems and consumers. Its
target was Questcare Medical Services and its subsidiary, QRx Medical Management LLC. Questcare
Medical has more than 800 clinical providers at 50 facilities in Texas, Oklahoma and Colorado. QRx is
a management services organization.
The bigger news during the fourth quarter was AmSurg Corporation’s surprise $7.6 billion bid for Team
Health Holdings. Team Health was in the process of completing its own $1.6 billion takeover of IPC
Healthcare, and rejected all offers from AmSurg. Analysts were generally positive about the deal, as
the merger would create the largest national provider of outsourced physician services to health
systems. Also, there is very little overlap of services between AmSurg’s Sheridan Healthcare division
and Team Health, so that an FTC challenge or channel conflicts were not considered to be potential
issues. The hostilities ended fairly quickly, as AmSurg announced its bid on October 20 and withdrew
a second, higher bid on November 2.
17
24 2319
22
0
5
10
15
20
25
30
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
Tran
sact
ion
s
Physician Medical Group Mergers & Acquisitions Total Transactions by Quarter
The Health Care M&A Report, 4th Quarter, 2015 38
Four Largest Physician Medical Group Deals in the Past 12 Months
Acquirer Target Quarter Price
TeamHealth Holdings,
Inc. IPC Healthcare Inc. Q3:15 $1,600,000,000
MEDNAX, Inc. Virtual Radiologic Corporation Q2:15 $500,000,000
Envision Healthcare
Holdings, Inc. Questcare Medical Services Q4:15 $135,000,000
Envision Healthcare
Holdings, Inc. Scottsdale Emergency Associates Q1:15 $105,000,000
The Health Care M&A Report, 4th Quarter, 2015 39
Rehabilitation
Seven deals were announced in the fourth quarter of 2015, down 13% from the previous quarter, but
well within normal for this sector. Like some skilled nursing facilities, ambulatory surgical centers and
urgent care clinics, rehabilitation hospitals and clinics are either stand-alone entities whose sale is not
widely publicized beyond the local market, or they are already part of a health or hospital system and
are acquired as part of a deal’s target. This quarter’s deals represent 23% of the 30 deals announced
in the previous 12 months.
Source: The Health Care M&A Information Source, January 2016
One of the seven deals disclosed a price, and at $53 million, it represented just 7% of the $799.3
million spent in this sector in the previous 12 months.
Dollars Spent on Rehabilitation Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$1,075,000,000 $7,200,000 $734,800,000 $4,300,000 $53,000,000
The single deal to disclose a price was announced by ExamWorks Group, Inc., in Atlanta, Georgia.
The target, Argent Rehabilitation Services and Argent Investigation Services, are based in the United
Kingdom, where ExamWorks’ subsidiaries, Premex Group and 3rd Rehabilitation Services, are also
located. This acquisition makes ExamWorks one of the UK’s largest rehabilitation service providers.
The combination provides incremental scale to operations and brings expertise in the complex high-
value claim arena to the Premex portfolio.
6
9
6
87
0
1
2
3
4
5
6
7
8
9
10
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
Tran
sact
ion
s
Rehabilitation Mergers & Acquisitions Total Transactions by Quarter
The Health Care M&A Report, 4th Quarter, 2015 40
Five Largest Rehabilitation Deals in the Past 12 Months
Acquirer Target Quarter Price
HealthSouth Corporation Reliant Hospital Partners, LLC Q2:15 $730,000,000
ExamWorks Group, Inc. Argent Rehabilitation Services Q4:15 $53,000,000
U.S. Physical Therapy, Inc. 9-clinic physical therapy practice Q1:15 $7,200,000
U.S. Physical Therapy, Inc. 3 physical therapy clinics Q2:15 $4,800,000
U.S. Physical Therapy, Inc. 4-clinic physical therapy practice Q3:15 $4,300,000
The Health Care M&A Report, 4th Quarter, 2015 41
Other Services
There were 40 transactions announced in the fourth quarter, representing 23% of the 177 deals in
the past 12 months. The “Other Services” category covers products and services related to human
health care, but in an ancillary way, such as contract research organizations, ambulatory surgery
centers, institutional and specialty pharmacy companies, dental practices and management, staffing
and pharmacy benefit plans. We do not include agriculture-based companies, animal nutrition or
veterinary products and infant nutrition products as targets.
Source: The Health Care M&A Information Source, January 2016
Seven of the 40 deals revealed prices, for a total of nearly $3.6 billion. That figure represents only
8% of the $42.8 billion spent in the previous 12 months.
Dollars Spent on Other Services Mergers & Acquisitions, by Quarter
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
$2,405,931,237 $21,636,981,500 $16,211,644,465 $1,396,474,800 $3,592,762,271
PharMEDium Healthcare Holdings, a portfolio company of Clayton, Dubilier & Rice, was the target in
the largest acquisition of the quarter. AmerisourceBergen Corporation paid nearly $2.6 billion cash for
the company, which provides outsourced sterile preparations to acute care hospitals in the United
States. It operates four compounding facilities and serves more than 3,000 hospitals.
Francisco Partners cashed out of its investment in Aesynt, which enables health systems to reduce
costs and improve patient safety through the integration, automation and management of medication
preparation and delivery system-wide. It specializes in dispensing systems, central pharmacy robotics,
IV robotics and analytics. The buyer, Omnicell, Inc., paid $275 million, and expects Aesynt’s medication
management tools will complement its own portfolio.
37
4841
4840
0
10
20
30
40
50
60
Q4:14 Q1:15 Q2:15 Q3:15 Q4:15
Tran
sact
ion
s
"Other Services" Mergers & Acquisitions Total Transactions by Quarter
The Health Care M&A Report, 4th Quarter, 2015 42
Prestige Brand Holdings, Inc., which markets over-the-counter healthcare and cleaning products,
expanded its product portfolio with the $225 million acquisition of DenTek Oral Care, Inc., a worldwide
leader in oral care products including floss picks, interdental brush cleaners, dental guards, disposable
dental picks, braces care and dental repair products.
Five Largest Other Services Deals in the Past 12 Months
Acquirer Target Quarter Price
OptumRx Catamaran Corporation Q1:15 $12,800,000,000
CVS Health Corporation Omnicare Inc. Q2:15 $12,700,000,000
Private equity investors Life Time Fitness, Inc. Q1:15 $4,000,000,000
AmerisourceBergen
Corporation
PharMEDium Healthcare
Holdings Q4:15 $2,575,000,000
Rite Aid Corporation EnvisionRx Q1:15 $2,000,000,000
The Health Care M&A Report, 4th Quarter, 2015 43
BEHAVIORAL HEALTH CARE
TARGET: MedMark Services, Inc. ACQUIRER: Behavior Health Holdings
LISTING: Private LISTING: Private
LOCATION: Lewisville, Texas CEO: Donald J. Steiner PHONE: 781-429-1504
UNITS: 950 Winter Street, Ste. 4200 FAX: REVENUE: Waltham, Massachusetts 02451
NET INCOME: WEB SITE:
MedMark Services, a portfolio company of Capital
Resource Partners, provides addiction treatment and
primary care services.
Behavior Health Holdings, a portfolio company of Webster Capital,
also owns Bay Area Addiction Research and Treatment Inc.
Behavior Health operates outpatient clinics across the country that
provide methadone treatment and counseling services.
ANNOUNCEMENT DATE: October 15, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Behavior Health Holdings has combined MedMark and Bay Area Addiction Research to form a methadone
provider. The combination creates the third-largest methadone provider in the United States. Fifth Street Asset
Management Inc.'s affiliate, Fifth Street Management LLC, served as lead arranger and administrative agent for a
$130 million one-stop financing facility in support of Behavior Health Holdings.
TARGET: Northstar Psychological
Services, Inc.
ACQUIRER: Community Intervention Services, Inc.
LISTING: Private LISTING: Private
LOCATION: Alpharetta, Georgia CEO: Kevin Sheehan PHONE: 617-262-8455
UNITS: 500 Boylston St., 20th Floor FAX: REVENUE: Boston, Massachusetts 02116
NET INCOME: WEB SITE: www.higgrowth.com
NPS provides community-based behavioral health
services to individuals and families across 38
counties in Georgia. The company employs a
clinical staff of more than 90, and provided
treatment to more than 2,600 patients in 2014.
Community Intervention Services is a portfolio of H.I.G. Growth
Partners. It was formed to acquire, develop and operate a national
network of specialized, community-based behavioral health
programs. Contact information is for H.I.G. Growth.
ANNOUNCEMENT DATE: October 15, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Northstar Psychological Services marks CIS's seventh acquisition and further expands the company’s geographic
footprint in the southeastern United States. The acquisition closed on October 15, 2015.
The Health Care M&A Report, 4th Quarter, 2015 47
TARGET: Claddagh Commision, Inc. ACQUIRER: Suburban Adult Services Inc.
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Derby, New York CEO: Anthony Annunziato PHONE: 716-805-1555
UNITS: 960 West Maple Street FAX: REVENUE: Elma, New York 14059
NET INCOME: WEB SITE: www.sasi.org
Claddagh Commission provides support and
services to people with developmental disabilities,
primarily in the towns of Brant and Evans.
Suburban Adult Services (SASi) serves individuals throughout
western New York State with developmental disabilities. It serves
people in Erie, Wyoming and Cattaraugus counties.
ANNOUNCEMENT DATE: October 19, 2015 PRICE: Merger PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The agencies began collaborating about two years ago and soon recognized the similarities in their mission, history
and philosophy. Both boards of directors voted to merge, with SASi remaining as the corporate entity. The
Claddagh Commission name and logo will remain unchanged as a division of SASi. The merger creates a $46
million agency with nearly 1,000 employees.
TARGET: Harmon Hospital ACQUIRER: LTC Properties, Inc.
LISTING: Private LISTING: NYSE: LTC
LOCATION: Las Vegas, Nevada CEO: Wendy L. Simpson PHONE: 805-981-8655
UNITS: 118 (beds) 2829 Townsgate Rd., Suite 350 FAX: 805-981-8663 REVENUE: $ 26,653,700 (ttm,
12/31/2014) Westlake Village, California 91361
NET INCOME: $ 1,124,519 (EBITDA) WEB SITE: www.ltcproperties.com
The behavioral healthcare hospital has 116 medical
hospital beds and two skilled nursing beds. It is
leased to Fundamental Long Term Care.
LTC Properties is a self-administered real estate investment trust
that invests primarily in long-term care and other health care-related
facilities through lease transactions, mortgage loans and other
investments.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $ 9,300,000 PRICE PER UNIT: $ 78,814 TERMS: PRICE/REVENUE: .35
PRICE/INCOME: 8.27
This property was added to an existing Master lease with an affiliate of Fundamental at an initial lease rate of 8.5%
with 2.5% annual escalators. LTC also committed to up to $3.0 million for approved capital improvement projects.
This transaction closed early in the fourth quarter.
The Health Care M&A Report, 4th Quarter, 2015 48
TARGET: 4 behavioral health
companies
ACQUIRER: Acadia Healthcare Company
LISTING: Private LISTING: NASDAQ: ACHC
LOCATION: Various, CEO: Joey A. Jacobs PHONE: 615-861-6000
UNITS: 121 (beds) 6100 Tower Circle, Ste. 1000 FAX: REVENUE: Franklin, Tennessee 37067
NET INCOME: WEB SITE: www.acadiahealthcare.com
The four acquisitions include two addiction
treatment centers: Discovery House and Duffy's
Napa Valley Rehab (61 beds); and two behavioral
healthcare facilities: Meadow View (28 beds) and
Cleveland House (32 beds).
Acadia Healthcare develops and operates inpatient psychiatric
facilities, residential treatment centers, group homes and substance
abuse facilities. On a trailing 12-month basis, it generated revenue
of $1.6 billion, EBITDA of $341.7 million and net income of
$100.2 million.
ANNOUNCEMENT DATE: November 3, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: The announcement was made in Acadia
Healthcare's third quarter results. PRICE/REVENUE:
PRICE/INCOME:
Discovery House operates 19 comprehensive care treatment centers in Rhode Island, Maine and Utah. Duffy's
Napa Valley Rehab is a 61-bed addiction treatment facility in Calistoga, California. Meadow View is a 28-bed
behavioral healthcare facility in Lincolnshire, United Kingdom. Cleveland House (32 beds) is in Southport, United
Kingdom. Acadia expects these four transactions, all closed in the fourth quarter, to produce in aggregate full-year
2015 revenues of more than $50 million, and to be accretive to its Q4:15 financial results.
TARGET: RHA Health Services, LLC ACQUIRER: Formation Capital, LLC
LISTING: Private LISTING: Private
LOCATION: Asheville, North Carolina CEO: Brian Beckwith PHONE: 770-754-9660
UNITS: 3820 Mansell Road, Ste. 280 FAX: 770-754-3085 REVENUE: Alpharetta, Georgia 30022
NET INCOME: WEB SITE: www.formationcapital.com
RHA Health Services, LLC provides a broad range
of person-centered, integrated, and high-quality
supports and services focused on children and adults
living with mental health and substance abuse
challenges. RHA has over 5,000 employees.
Formation Capital is a private equity firm specializing in the seniors
housing and skilled nursing sectors. Since 1999, Formation Capital
and its affiliates have sponsored over $9.0 billion of investments in
healthcare services, seniors housing and care and post-acute
services.
ANNOUNCEMENT DATE: November 6, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Formation Capital, along with its strategic partner Safanad, will provide RHA with board-level guidance, strategic
advice and greater access to equity and debt capital that will support the continued growth of RHA’s operations
through the Mid-Atlantic and Southeast regions. Capital One provided a senior credit facility to support Formation
Capital for this acquisition. The credit facility consists of a five-year, $68.1 million secured term loan and a five-
year $30 million revolver, in addition to other treasury and cash management solutions.
The Health Care M&A Report, 4th Quarter, 2015 49
TARGET: MMO Behavioral Health
Systems
ACQUIRER: Acadia Healthcare Company
LISTING: Private LISTING: NASDAQ: ACHC
LOCATION: Baton Rouge, Louisiana CEO: Joey A. Jacobs PHONE: 615-861-6000
UNITS: 80 (beds) 6100 Tower Circle, Ste. 1000 FAX: REVENUE: $ 16,000,000 (ttm, 9/30/15) Franklin, Tennessee 37067
NET INCOME: WEB SITE: www.acadiahealthcare.com
MMO Behavioral Health operates two acute
inpatient behavioral health facilities with a total of
80 beds. They are located in Baton Rouge and in
Covington, which is in the northern part of the New
Orleans MSA.
Acadia develops and operates inpatient psychiatric facilities,
residential treatment centers, group homes and substance abuse
facilities. On a trailing 12-month basis, it generated revenue of $1.6
billion, EBITDA of $341.8 million and net income of $100.2
million.
ANNOUNCEMENT DATE: December 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The transaction is expected to be immediately accretive to Acadia’s financial results, excluding transaction related
expenses. These are Acadia's first inpatient behavioral health facilities in the Baton Rouge and greater New Orleans
markets.
TARGET: Turning Point Family
CARE, PLLC
ACQUIRER: NcgCare
LISTING: Private LISTING: Private
LOCATION: Durham, North Carolina CEO: Frank Viera PHONE: 804-433-3530
UNITS: 5540 Falmouth St., Ste. 200 FAX: 804-433-3531 REVENUE: Richmond, Virginia 23230
NET INCOME: WEB SITE: ncgcare.com
Turning Point Family Care provides services to
individuals and families through two office
locations in Durham and Raleigh.
NcgCare is the recently created parent company of the National
Counseling Group. It began as Northern Virginia Counseling Group
in 1993, and its providers offer mental health services, foster care
and outpatient services through its family of brands.
ANNOUNCEMENT DATE: December 10, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This is the first transaction announced by NcgCare, which is looking to grow in Atlanta and in West Virginia. In
early December, the company closed on a six-month management contract for Community Alternatives in
Pennsylvania. This transaction closed on November 16, 2015.
The Health Care M&A Report, 4th Quarter, 2015 50
TARGET: Solutions Recovery, Inc. ACQUIRER: AAC Holdings, Inc.
LISTING: Private LISTING: NYSE: AAC
LOCATION: Las Vegas, Nevada CEO: Michael T.
Cartwright
PHONE: 615-732-1231
UNITS: 174 (beds) 115 East Park Drive, 2nd Floor FAX: REVENUE: $ 4,500,000 (through
9/30/15) Brentwood, Tennessee 37027
NET INCOME: WEB SITE: americanaddictioncenters.com
Solutions Recovery provides detoxification,
residential and intensive outpatient treatment as
well as sober living services in the greater Las
Vegas area.
AAC Holdings, through its operating subsidiary American
Addiction Centers, provides inpatient substance abuse treatment
services. On a trailing 12-month basis, it generated revenue of
$175.3 million, EBITDA of $32.4 million and net income of $13.2
million.
ANNOUNCEMENT DATE: December 11, 2015 PRICE: $ 13,000,000 PRICE PER UNIT: $ 74,713 TERMS: $6.75 million in cash and $6.25 million
of restricted shares of AAC Holdings'
common stock.
PRICE/REVENUE: 2.89
PRICE/INCOME:
Solutions Recovery's assets include 100 sober-living beds (owned), 70 licensed in-network detox, residential and
halfway house beds (leased), 24 sober-living beds (leased) and three licensed, in-network outpatient centers. AAC
is also acquiring the real estate assets. Solutions Recovery generated revenue of approximately $4.5 million for the
nine months ending September 30, 2015. AAC expects EBITDA to reach approximately $2 million in the first 12
months of ownership.
TARGET: Wetsman Forensic
Medicine, LLC
ACQUIRER: AAC Holdings, Inc.
LISTING: Private LISTING: NYSE: AAC
LOCATION: New Orleans, Louisiana CEO: Michael T.
Cartwright
PHONE: 615-732-1231
UNITS: 20 (beds) 115 East Park Drive, 2nd Floor FAX: REVENUE: Brentwood, Tennessee 37027
NET INCOME: WEB SITE: americanaddictioncenters.com
Wetsman Forensic Medicine, dba Townsend, is a
leading substance abuse treatment provider in
Louisiana and operates six in-network outpatient
centers, as well as a 20-bed in-network facility in
Scott, Louisiana.
AAC Holdings, through its operating subsidiary American
Addiction Centers, provides inpatient substance abuse treatment
services. On a trailing 12-month basis, it generated revenue of
$175.3 million, EBITDA of $32.4 million and net income of $13.2
million.
ANNOUNCEMENT DATE: December 11, 2015 PRICE: $ 12,750,000 PRICE PER UNIT: $ 637,500 TERMS: $12.75 million in cash and $8.50 million
in restricted shares of AAC’s common
stock. The total purchase price is subject
to an escrow of $2.0 million that is
contingent upon a minimum adjusted
EBITDA of $3.0 million for 2016.
PRICE/REVENUE:
PRICE/INCOME:
AAC also disclosed that its FitRx and The Academy operations will cease operations as of December 31, 2015,
due to their continued unprofitability and management’s realignment to focus solely on adult addiction treatment.
This transaction is expected to close in the first half of 2016.
The Health Care M&A Report, 4th Quarter, 2015 51
TARGET: Geriatric Essentials ACQUIRER: TeamHealth Holdings, Inc.
LISTING: Private LISTING: NYSE: TMH
LOCATION: Jackson, Tennessee CEO: Michael D. Snow PHONE: 865-693-1000
UNITS: 265 Brookview Centre Way,
Ste. 400
FAX:
REVENUE: Knoxville, Tennessee 37919
NET INCOME: WEB SITE: www.teamhealth.com
Geriatric Essentials' advanced nurse practitioners
partner with 19 nursing homes, assisted care living
facilities and assisted residential communities
throughout Tennessee and Mississippi.
TeamHealth provides outsourced healthcare professional staffing
and administrative services to hospitals and other healthcare
providers. On a trailing 12-month basis, it generated revenue of $3.4
billion, EBITDA of $337.7 million and net income of $108.5
million.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Geriatric Essentials provides psychiatric and multidisciplinary behavioral interventions. Through these
partnerships, the group provides services for approximately 9,000 patient encounters annually. This is one of
TeamHealth's first acquisitions since its merger with IPC Healthcare on November 23, and is one of its first in the
area of behavioral health care.
TARGET: Philhaven ACQUIRER: WellSpan Health
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Mount Gretna, Pennsylvania CEO: Kevin Mosser, MD PHONE: 717-851-6800
UNITS: 3421 Concord Road FAX: 717-755-7190 REVENUE: York, Pennsylvania 17402
NET INCOME: WEB SITE: www.wellspan.org
Philhaven is the 14th largest mental and behavioral
health provider in the country. It serves residents in
Adams, York, Lancaster and Lebanon counties.
WellSpan operates five hospitals, more than 120 patient care
locations, a home health agency and the WellSpan Medical Group.
In 2014, it added behavioral health providers to seven of its primary
care physician offices, and has expanded the initiative to 10.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: Merger PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The affiliation will combine Philhaven's 55 programs with WellSpan Health to develop an integrated system of
behavioral health care. This affiliation will result in a merger of the region's most complete continuum of
behavioral health services and south central Pennsylvania's most comprehensive nonprofit health system. The
merger will be effective on January 1, 2016.
The Health Care M&A Report, 4th Quarter, 2015 52
BIOTECHNOLOGY
TARGET: License to Glycotope’s
recombinant technology
ACQUIRER: Octapharma AG
LISTING: Private LISTING: Private
LOCATION: Berlin, Germany CEO: Wolfgang Marguerre,
Chairman
PHONE: +41 55 4512121
UNITS: Seidenstrasse 2 FAX: +41 55 4512110 REVENUE: Lachen, Switzerland 8853
NET INCOME: WEB SITE: www.octapharma.com
Glycotope GmbH Berlin is selling the exclusive
worldwide license to certain intellectual property
pertaining to its recombinant technology.
Octapharma is one of the largest human protein product
manufacturers in the world and has been committed to patient care
and medical innovation since 1983. It has 48 subsidiaries.
Octapharma’s revenue forecast for 2015 is €1.5 billion.
ANNOUNCEMENT DATE: October 8, 2015 PRICE: $ 90,920,000 Approximate PRICE PER UNIT: TERMS: €80 million upfront that includes a
minority stake in Glycotope GmbH. PRICE/REVENUE:
PRICE/INCOME:
In addition to this investment Glycotope will be commissioned by Octapharma to a series of research and
development projects that enable the technology transfer and accelerated development of certain therapeutic
proteins. This engagement is an important step for Octapharma’s development and will provide significant growth
opportunities.
TARGET: Adheron Therapeutics ACQUIRER: Roche
LISTING: Private LISTING: SIX: RO
LOCATION: Berkeley, California CEO: Dr. Severin Schwan PHONE: 41 61 688 11 11
UNITS: Konzern-Hauptsitz
Grenzachersan 124
FAX:
REVENUE: Basel, Switzerland 4070
NET INCOME: WEB SITE: www.roche.com
Adheron Therapeutics is a biotechnology company
focused on leveraging pioneering technology that
disrupts cell adhesion to treat a variety of diseases.
Roche operates in the pharmaceuticals and diagnostics businesses in
Europe, North America and Asia. On a trailing 12-month basis, it
generated revenue of $52.1 billion, EBITDA of $19.6 billion and
net income of $9.3 billion.
ANNOUNCEMENT DATE: October 9, 2015 PRICE: $105,000,000 PRICE PER UNIT: TERMS: Adheron's shareholders will receive an
upfront cash payment of $105 million,
plus additional contingent payments of
up to $475 million based on
achievement of certain predetermined
milestones.
PRICE/REVENUE:
PRICE/INCOME:
Adheron Therapeutics has developed a pioneering technology that disrupts immune cell adhesion through a cell
surface protein called Cadherin-11. This deal brings together Adheron's deep understanding of the underlying
science of Cadherin-11 with Roche's vast experience in researching and developing next-generation medicines.
The deal is expected to close in the fourth quarter.
The Health Care M&A Report, 4th Quarter, 2015 55
TARGET: Collaboration on gene
editing technology
ACQUIRER: Vertex Pharmaceuticals Incorporated
LISTING: Private LISTING: NASDAQ: VRTX
LOCATION: Cambridge, Massachusetts CEO: Dr. Jeffrey M. Leiden PHONE: 617-341-6100
UNITS: 50 Northern Avenue FAX: REVENUE: Boston, Massachusetts 02210
NET INCOME: WEB SITE: www.vrtx.com
CRISPR Therapeutics is collaborating with Vertex
on the use of its gene editing technology known as
CRISPR-Cas9. The goal is to discover and develop
potential treatments aimed at the underlying genetic
causes of human disease.
Vertex engages in discovering, developing, manufacturing and
commercializing small molecule drugs targeting serious diseases in
specialty markets. On a trailing 12-month basis, it generated
revenue of $628.1 million and a net loss of $733.9 million.
ANNOUNCEMENT DATE: October 26, 2015 PRICE: $105,000,000 PRICE PER UNIT: TERMS: Cash upfront, including $75 million in
cash and a $30 million equity
investment in CRISPR. Other payments
contingent on achieving future
development, regulatory and sales
milestones, and royalty payments on
future sales.
PRICE/REVENUE:
PRICE/INCOME:
The collaboration will evaluate the use of CRISPR-Cas9 across multiple diseases where targets have been validated
through human genetics. Vertex and CRISPR will focus their initial gene editing research on discovering
treatments to address the mutations and genes known to cause and contribute to cystic fibrosis and sickle cell
disease.
TARGET: Cardiopxyl
Pharmaceuticals, Inc.
ACQUIRER: Bristol-Myers Squibb Company
LISTING: Private LISTING: NYSE: BMY
LOCATION: Chapel Hill, North Carolina CEO: Giovanni Caforio,
MD
PHONE: 212-546-4000
UNITS: 345 Park Avenue FAX: REVENUE: New York, New York 10154
NET INCOME: WEB SITE: www.bms.com
Cardioxyl is a private biotechnology company
focused on the discovery and development of novel
therapeutic agents for the treatment of
cardiovascular disease.
Bristol-Myers Squibb develops, licenses, makes and distributes
biopharmaceutical products worldwide. On a trailing 12-month
basis, it generated revenue of $16.5 billion, EBITDA of $4.5 billion
and net income of $1.8 billion.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $300,000,000 PRICE PER UNIT: TERMS: $300 million upfront and potential
additional consideration of up to $1.775
billion upon the achievement of certain
development, regulatory and sales
milestones.
PRICE/REVENUE:
PRICE/INCOME:
The acquisition will give Bristol-Myers Squibb full rights to Cardioxyl's lead asset, CXL-1427, a novel nitroxyl
(HNO) donor in Phase 2 clinical development as an intravenous treatment for acute decompensated heart failure.
The acquisition closed on December 8, 2015.
The Health Care M&A Report, 4th Quarter, 2015 56
TARGET: Dyax Corp. ACQUIRER: Shire plc
LISTING: NASDAQ: DYAX LISTING: NASDAQ: SHPG
LOCATION: Burlington, Massachusetts CEO: Dr. Flemming
Ornskov
PHONE: 353 1 429 7700
UNITS: 5 Riverwalk, Citywest Business
Campus
FAX:
REVENUE: $ 97,550,000 (ttm) Dublin, Ireland 24
NET INCOME: $- 17,720,000 (EBITDA) WEB SITE: www.shire.com
Dyax develops plasma kallikrein (pKal) inhibitors
for the treatment of HAE (hereditary angioedema),
a rare genetic disease. Its lead pipeline product, DX-
2930, is a Phase-3 ready asset, offering potential
transformative prophylactic therapy for HAE.
Shire develops treatments in therapeutic areas such as rare diseases,
neuroscience, ophthalmics, hemtology, and gastrointestinal
disorders. On a trailing 12-month basis, it generated revenue of $6.3
billion, EBITDA of $2.7 billion and net income of $3.0 billion.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $5,900,000,000 PRICE PER UNIT: TERMS: $37.30 in cash per Dyax share, plus
additional value through a non-tradable
contingent value right that will pay
$4.00 in cash per Dyax share upon
approval of DX-2930 in HAE,
representing $646 million.
PRICE/REVENUE: 60.48
PRICE/INCOME: - 332.96
Dyax's DX-2930 product has received Fast Track, Breakthrough Therapy and Orphan Drug designations from the
FDA, and has achieved Orphan Drug status in the EU. It is expected to enter Phase 3 clinical trials by the end of
2015. Deutsche Bank, Evercore and Morgan Stanley are acting as financial advisers to Shire. Centerview Partners
is acting as exclusive financial adviser to Dyax. Ropes & Gray, Davis Polk & Wardwell, and Slaughter & May are
acting as legal advisers to Shire and Sullivan & Cromwell are acting as legal adviser to Dyax.
TARGET: Exclusive license to
oncology drug discovery
ACQUIRER: Merck KGaA
LISTING: WSE:SLV LISTING: XETRA: MRK.DE
LOCATION: Krakow, Poland CEO: Karl-Ludwig Kley PHONE: 49 6151 72 0
UNITS: Frankfurter Strasse 250 FAX: 49 6151 72 5577 REVENUE: Darmstadt, Germany 64293
NET INCOME: WEB SITE: www.merck.de
Selvita, a drug discovery company, has agreed to a
three-year collaboration to validate new therapeutic
concepts in the field of oncology.
Merck is a leading science and technology company in healthcare,
life science and performance materials. On trailing 12-month basis,
the company generated revenue of $12.5 billion, EBITDA of $3.3
billion and net income of $1.3 billion.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Merck will have an exclusive license to
the joint intellectual property and
Selvita will receive milestone payments
and royalties upon successful
development and commercialization of
products by Merck.
PRICE/REVENUE:
PRICE/INCOME:
This collaboration will steer a joined portfolio of discovery projects in a risk/reward sharing model and builds on
the framework that the two companies have developed during a two-year partnership in cancer metabolism,
which began in 2013.
The Health Care M&A Report, 4th Quarter, 2015 57
TARGET: 5 cancer immunotherapies ACQUIRER: Sanofi
LISTING: Private LISTING: NYSE: SNY
LOCATION: Mainz, Germany CEO: Olivier Brandicourt PHONE: 33 1 53 77 40 00
UNITS: 54, Rue La Boetie FAX: 33 1 53 77 42 96 REVENUE: Paris, France 75008
NET INCOME: WEB SITE: www.sanofi.com
Sanofi and BioNTech A.G. will develop up to five
cancer immunotherapies, each consisting of a
mixture of synthetic messenger RNAs (mRNAs).
This is a multiyear exclusive collaboration and
license agreement.
Sanofi researches, develops, and markets various therapeutic
solutions. On a trailing 12-month basis, it generated revenue of
$41.0 billion, EBITDA of $12.1 billion and net income of $5.8
billion.
ANNOUNCEMENT DATE: November 3, 2015 PRICE: $ 60,000,000 PRICE PER UNIT: TERMS: Sanofi will pay BioNTech $60 million
in upfront and near-term milestone
payments. BioNTech could receive over
$300 million in development, regulatory
and commercial milestones and other
payments per product.
PRICE/REVENUE:
PRICE/INCOME:
BioNTech will combine the use of its proprietary mRNA technology platform with its extensive capabilities in
developing immune-stimulating pharmaceuticals. BioNTech will also supply part of the mRNA material needed
for development activities from its in-house GMP manufacturing unit. BioNTech has the option to co-develop and
co-commercialize two of the five mRNA therapeutics products with Sanofi in the European Union and the United
States.
TARGET: License to tavilermide
(MIM-D3)
ACQUIRER: Allergan plc
LISTING: Private LISTING: NYSE: AGN
LOCATION: Gloucester, Massachusetts CEO: Brent L. Saunders PHONE: 862-261-7000
UNITS: Clousbaugh Business Park FAX: REVENUE: Dublin, Ireland D17 E400
NET INCOME: WEB SITE: www.allergan.com
Mimetogen Pharmaceuticals will develop and
commercialize tavilermide (MIM-D3), a topical
formulation of a novel small molecule TrkA agonist
for the treatment of dry eye disease.
Allergan develops, manufactures and distributes generic, branded,
biosimilar and over-the-counter pharmaceutical products. On a
trailing 12-month basis, it generated revenue of $17.7 billion,
EBITDA of $7.2 billion and a net loss of $2.6 billion.
ANNOUNCEMENT DATE: November 4, 2015 PRICE: $ 50,000,000 PRICE PER UNIT: TERMS: Upfront payment of $50 million to
Mimetogen and will fund Phase 3
development of tavilermide. Mimetogen
is entitled to receive potential milestone
payments and royalties, based on
commercialization.
PRICE/REVENUE:
PRICE/INCOME:
Tavilermide has shown the ability to improve patient-reported blurriness and poor vision with a positive comfort
and tolerability profile in recent clinical studies. This development program is encouraging for the ophthalmology
community seeking new therapies to better address this important area of patient treatment.
The Health Care M&A Report, 4th Quarter, 2015 58
TARGET: Antibody pilot plant
manufacturing facility
ACQUIRER: Agenus Inc.
LISTING: NASDAQ: XOMA LISTING: NASDAQ: AGEN
LOCATION: Berkeley, California CEO: Garo H. Armen PHONE: 781-674-4400
UNITS: 3 Forbes Road FAX: REVENUE: Lexington, Kentucky 02421
NET INCOME: WEB SITE: www.agenusbio.com
XOMA Corporation is selling its antibody pilot
plant manufacturing facility and capabilities.
Agenus is an immunology company developing novel checkpoint
modulators, vaccines and adjuvants to treat cancer. On a trailing 12-
month basis, it generated revenue of $18.8 million and a net loss of
$98.5 million.
ANNOUNCEMENT DATE: November 5, 2015 PRICE: $ 6,000,000 PRICE PER UNIT: TERMS: Agenus will pay at closing $5.0 million
in cash and up to $1.0 million in
common stock.
PRICE/REVENUE:
PRICE/INCOME:
The acquisition of XOMA’s facility will enable Agenus to manufacture checkpoint modulator (CPM) antibodies to
meet its growing GMP antibody production requirements for development and future clinical trials. Agenus will
offer employment to experienced XOMA professionals currently operating the facility. The transaction closed on
January 4, 2016.
TARGET: Cell line development
technology
ACQUIRER: Agenus Inc.
LISTING: Private LISTING: NASDAQ: AGEN
LOCATION: Geneva, Switzerland CEO: Garo H. Armen PHONE: 781-674-4400
UNITS: 3 Forbes Road FAX: REVENUE: Lexington, Kentucky 02421
NET INCOME: WEB SITE: www.agenusbio.com
Selexis SA, a global life science company, has
entered into a collaboration agreement with Agenus
to use its cell line development technology.
Agenus is an immunology company developing novel checkpoint
modulators, vaccines and adjuvants to treat cancer. On a trailing 12-
month basis, it generated revenue of $18.8 million, EBITDA loss of
$64.1 million and net loss of $98.5 million.
ANNOUNCEMENT DATE: November 5, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The Selexis collaboration will offer Agenus significant advantages in the creation of high expressing and stable
master cell lines needed for antibody manufacturing. Agenus will use the newly acquired capabilities to accelerate
the development of its portfolio of CPM candidates for its own programs and those of potential collaborators.
The Health Care M&A Report, 4th Quarter, 2015 59
TARGET: Hepregen Corporation ACQUIRER: BioTime, Inc.
LISTING: Private LISTING: NYSE: BTX
LOCATION: Medford, Massachusetts CEO: Michael D. West,
PhD
PHONE: 510-521-3390
UNITS: 1301 Harbor Bay Parkway FAX: 510-521-3389 REVENUE: Alameda, California 94502
NET INCOME: WEB SITE: www.biotimeinc.com
Hepregen Corp. is engaged in the development and
marketing of proprietary drug screening products. It
is merging with BioTime to form a new company
called Ascendance Biotechnology, Inc.
BioTime is a clinical-stage biotechnology company engaged in the
research and product development of regenerative medicine. On a
trailing 12-month basis, it generated revenue of $6.3 million and a
net loss of $38.8 million.
ANNOUNCEMENT DATE: November 6, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: In exchange for its contribution of
certain assets relating to its research
products and related patents and
technology, BioTime will acquire a
majority equity position in Ascendance.
PRICE/REVENUE:
PRICE/INCOME:
Ascendance combines Hepregen's application-director, cellular micro-patterning drug and chemical screening
technologies with BioTime's ESI BIO research products and proprietary stem cell technologies. This asset
combination will allow Ascendance to offer a broad portfolio of current and new stem-cell-derived assays and
other products and services to Hepregen's major pharmaceutical and chemical company customers.
TARGET: Rights to taladegib oncology
program
ACQUIRER: Ignyta, Inc.
LISTING: NYSE: LLY LISTING: NASDAQ: RXDX
LOCATION: Indianapolis, Indiana CEO: Dr. Jonathan E. Lim PHONE: 858-255-5959
UNITS: 11111 Flintkote Avenue FAX: REVENUE: San Diego, California 92121
NET INCOME: WEB SITE: www.ignyta.com
Eli Lilly and Company is selling the exclusive
license of worldwide rights to its taladegib oncology
development program. Taladegib is a potent, orally
bioavailable small molecule hedgehog/smoothened
antagonist in Phase 2 trials.
Ignyta, Inc. is a precision oncology biotechnology company
engaged in discovering, acquiring and commercializing new cancer
drugs. On a trailing 12-month basis, it generated a loss on net
income of $67.1 million.
ANNOUNCEMENT DATE: November 8, 2015 PRICE: $ 15,272,000 Approximate PRICE PER UNIT: TERMS: $2 million in cash and the issuance to
Lilly of approximately 1.2 million
shares of Ignyta's common stock
($13,272,000), priced at $11.06 per
share on November 6, 2015. Plus
development and sales milestones up to
$38 million.
PRICE/REVENUE:
PRICE/INCOME:
Concurrent with the transaction, Lilly will purchase 1.5 million more shares of Ignyta common stock at a price of
$20 per share in a private placement. Lilly has agreed not to sell or otherwise transfer any of the shares until May
10, 2016. Ignyta retained exclusive rights to develop and commercialize taladegib-containing products in
combination with certain Lilly compounds. Lilly is required to pay Ignyta a royalty on net sales of such products.
Latham & Watkins LLP advised Ignyta on this transaction.
The Health Care M&A Report, 4th Quarter, 2015 60
TARGET: Ocata Therapeutics, Inc. ACQUIRER: Astellas Pharma, Inc.
LISTING: NADAQ: OCAT LISTING: TSE: 4503
LOCATION: Marlborough, Massachusetts CEO: Yoshihiko Hatanaka PHONE: 81 3 3244 3000
UNITS: 2-5-1, Nihonbashi-Honcho FAX: REVENUE: $ 157,870 (ttm) Tokyo, Japan 103-8411
NET INCOME: $- 24,300,000 (EBITDA) WEB SITE: www.astellas.com
Ocata Therapeutics, a clinical stage biotechnology
company, develops and commercializes
regenerative ophthalmology therapeutics in the
United States. It is conducting trials for treating
various forms of macular degeneration and other
ocular disorders.
Astellas Pharma manufactures, markets and imports/exports
pharmaceutical products worldwide. On a trailing 12-month basis, it
generated revenue of $11.0 billion, EBITDA of $2.5 billion and net
income of $1.4 billion.
ANNOUNCEMENT DATE: November 9, 2015 PRICE: $379,000,000 PRICE PER UNIT: TERMS: Astellas will pay $8.50 per share in
cash, representing a 79% premium to
Ocata's closing share price of $4.75 on
November 6, 2015.
PRICE/REVENUE: 2,400.71
PRICE/INCOME: -15.60
Astellas will acquire Ocata through Laurel Acquisition Inc., a wholly owned subsidiary of Astellas US Holding,
Inc. Acquiring Ocata will enable Astellas to establish a presence in ophthalmology and a leading position in cell
therapy. Citigroup Inc. is acting as exclusive financial advisor to Astellas, and Covington & Burling LLP is acting
as legal counsel. Jefferies LLC is acting as exclusive financial advisor to Ocata, and Goodwin Procter LLP is
acting as legal counsel.
TARGET: Rights to XMetA program ACQUIRER:
Novo Nordisk A/S
LISTING: NASDAQ: XOMA LISTING: NYSE: NVO
LOCATION: Berkeley, California CEO: Lars Rebien
SÂrensen
PHONE: 45 44 44 88 88
UNITS: Novo All FAX: 45 44 49 05 55 REVENUE: $ 11,610,000 (ttm) Bagsvaerd, Denmark 2880
NET INCOME: $- 53,280,000 ttm) WEB SITE: www.novonordisk.com
XOMA Corporation is selling the exclusive global
rights to its XMetA program of allosteric
monoclonal antibodies that up-regulate the insulin
receptor for the treatment of diabetes.
Novo Nordisk is a global healthcare company with more than 90
years of innovation and leadership in diabetes care. On a trailing
12-month basis, NVO generated revenue of $14.8 billion,
EBITDA of $6.8 billion and net income of $4.7 billion.
ANNOUNCEMENT DATE: December 1, 2015 PRICE: $ 5,000,000 PRICE PER UNIT: TERMS: XOMA will receive $5.0 million in an
upfront payment, and up to $290.0
million in additional potential
development, regulatory and
commercial milestones. XOMA is also
eligible to receive tiered royalties on
product sales.
PRICE/REVENUE: .43
PRICE/INCOME: - .09
XOMA will retain commercialization rights for rare disease indications. Novo Nordisk has an option to add
these additional rights in rare diseases to its license.
The Health Care M&A Report, 4th Quarter, 2015 61
TARGET: Collaboration on antibody
therapeutics
ACQUIRER: GlaxoSmithKline plc
LISTING: Private LISTING: NYSE: GSK
LOCATION: Vancouver, British Columbia CEO: Andrew Philip Witty PHONE: 44 20 8047 5000
UNITS: 980 Great West Road FAX: REVENUE: Brentford, United Kingdom TW8 9GS
NET INCOME: WEB SITE: www.gsk.com
Zymeworks, Inc. has agreed to collaborate to
further develop Zymeworks’ Effector Function
Enhancement and Control Technology (EFECT™)
platform.
GlaxoSmithKline creates, discovers, develops, manufactures, and
markets pharmaceutical products worldwide. On a trailing 12-
month basis, GSK generated revenue of $35.9 billion, EBITDA of
$9.6 billion and net income of $14.8 billion.
ANNOUNCEMENT DATE: December 3, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: GSK has the right to develop a
minimum of four products across
multiple disease areas. Zymeworks will
receive pre-clinical, clinical, and
commercial milestones of up to $110
million for each product, as well as
tiered sales royalties.
PRICE/REVENUE:
PRICE/INCOME:
GSK and Zymeworks will develop and commercialize monoclonal and bi-specific antibody candidates that
incorporate Zymeworks’ optimized immune-modulating Fc domains. The collaboration will allow Zymeworks to
combine the novel immune-modulating Fc domains with GSK's Azymetric™ platform to generate bi-specific
antibodies with customized immune modulatory functions.
TARGET: Cytos Biotechnology AG ACQUIRER: Kuros Biosurgery Holding AG
LISTING: SIX: CYTN LISTING: Private
LOCATION: Schlieren, Switzerland CEO: Didier Cowling PHONE: 41 44 200 56 00
UNITS: Technoparkstrsse 1 FAX: REVENUE: Zurich, Switzerland 8005
NET INCOME: WEB SITE: www.kuros.ch
Cytos is focused on the development of targeted
immunotherapies with a VLP B-cell vaccines
platform and ongoing preclinical development
programs based on the platform.
Kuros Biosurgery develops novel biomaterials and bioactive-
biomaterial combination products that are focused in therapeutic
areas covering sealants and orthobiologics (bone healing). It
completed a financing of more than CHF20 million in November
2015.
ANNOUNCEMENT DATE: December 3, 2015 PRICE: Merger PRICE PER UNIT: TERMS: All-stock transaction. Each Kuros
outstanding share will convert to
approximately 27 newly issued Cytos
shares.
PRICE/REVENUE:
PRICE/INCOME:
Current shareholders of Cytos will own about one-fifth and Kuros' shareholders will hold about four-fifths of the
combined company, which will be called Kuros Biosciences AG. The combined company aims to be a leader in
the field of tissue repair and regeneration.
The Health Care M&A Report, 4th Quarter, 2015 62
TARGET: Collaboration with BioAtla ACQUIRER: Pfizer Inc.
LISTING: Private LISTING: NYSE: PFE
LOCATION: San Diago, California CEO: Ian Read PHONE: 212-733-2323
UNITS: 235 E. 42nd Street FAX: REVENUE: New York, New York 10017
NET INCOME: WEB SITE: www.pfizer.com
BioAtla LLC has agreed to a license and option
agreement to advance the development and
commercialization of a new class of antibody
therapeutics based on its Conditionally Active
Biologic (CAB) platform, with Pfizer's proprietary
ADC payloads.
Pfizer is a biopharmaceutical company with global operations. On a
trailing 12-month basis, it generated revenue of $47.9 billion,
EBITDA of $19.5 billion and net income of $8.4 billion.
ANNOUNCEMENT DATE: December 7, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: BioAtla is eligible to receive a potential
of more than $1.0 billion in upfront,
regulatory and sales milestone
payments, as well as tiered marginal
royalties reaching double digits and
potential future product sales.
PRICE/REVENUE:
PRICE/INCOME:
BioAtla and Pfizer will each have a license to the other's respective technology to pursue the development and
commercialization of several CAB-ADC antibodies. Pfizer also gains an exclusive option to develop and
commercialize BioAtla CAB antibodies that target CTLA4, a validated immuno-oncology target in humans. If
successful, BioAtla's technology would allow the selective targeting of CTLA4 expressed on immune cells
localized in the tumor microenvironment.
TARGET: Open Monoclonal
Technology, Inc.
ACQUIRER: Ligand Pharmaceuticals Incorporated
LISTING: Private LISTING: NASDAQ: LGND
LOCATION: Palo Alto, California CEO: John L. Higgins PHONE: 858-550-7500
UNITS: 11119 North Torrey Pines Rd.,
Ste. 200
FAX:
REVENUE: La Jolla, California 92037
NET INCOME: WEB SITE: www.ligand.com
Open Monoclonal Technology, Inc. (OMT), a
portfolio company of Essex Woodlands Health
Ventures, specializes in genetic engineering of
animals for the generation of human therapeutic
antibodies through its OmniAb™ platform.
Ligand Pharmaceuticals is a biopharmaceutical company focused on
developing or acquiring royalty generating assets. On a trailing 12-
month basis, it generated revenue of $73.7 million, EBITDA of
$29.9 million and net income of $255.9 million.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: $178,000,000 Approximate PRICE PER UNIT: TERMS: Ligand will pay OMT shareholders
$92.6 million in cash and $85.4 million
in Ligand common stock.
PRICE/REVENUE:
PRICE/INCOME:
OMT has existing licenses with Amgen, Celgene, Genmab, Janssen, Merck KGaA, Pfizer, Seattle Genetics, Five
Prime, Symphogen and various other biotechnology and pharmaceutical companies. The transaction is expected to
add 5% to 2016 revenue and 7% to 10% to annual revenue over the next decade. It is projected to be slightly
accretive to adjusted EPS in 2016 and accretive to adjusted EPS by approximately 4% to 8% per year over the next
several years.
The Health Care M&A Report, 4th Quarter, 2015 63
TARGET: Portfolio of preclinical HIV
assets
ACQUIRER: ViiV Healthcare
LISTING: NYSE: BMY LISTING: NYSE: GSK
LOCATION: New York, New York CEO: David Redfern PHONE: 44 20 8380 6200
UNITS: 980 Great West Road FAX: REVENUE: Brentford, Middlesex, United Kingdom TW8 9GS
NET INCOME: WEB SITE: www.viivhealthcare.com
Bristol-Myers Squibb is selling its portfolio of
preclinical and discovery-stage HIV assets,
including a novel biologic (BMS-986197) with a
triple mechanism of action, a maturation inhibitor,
an allosteric integrase inhibitor and a capsid
inhibitor.
ViiV Healthcare is the global HIV business of GlaxoSmithKline
plc.
ANNOUNCEMENT DATE: December 18, 2015 PRICE: $ 33,000,000 PRICE PER UNIT: TERMS: $33 million upfront, followed by
development and first commercial sales
milestones of up to $587 million, and
further consideration contingent on
future sales performance.
PRICE/REVENUE:
PRICE/INCOME:
This is one of two transactions announced between these parties on the same date. These potential therapies have
novel modes of action and would offer significant new treatment options to patients with HIV. A number of
Bristol-Myers Squibb employees will also be offered the opportunity to transfer to ViiV Healthcare. The two
transactions are anticipated to complete independently during the first half of 2016.
TARGET: PhosImmune Inc. ACQUIRER: Agenus Inc.
LISTING: Private LISTING: NASDAQ: AGEN
LOCATION: Charlottesville, Virgina CEO: Garo H. Armen PHONE: 781-674-4400
UNITS: 3 Forbes Road FAX: REVENUE: Lexington, Kentucky 02421
NET INCOME: WEB SITE: www.agenusbio.com
PhosImmune, an immunotherapy company, has
discovered an entirely new portfolio of cancer
neoantigens, specifically, phosphopeptide tumor
targets that are fragments of proteins expressed in
cancer cells.
Agenus is an immunology company developing novel checkpoint
modulators, vaccines and adjuvants to treat cancer. On a trailing 12-
month basis, it generated revenue of $18.8 million and a net loss of
$98.5 million.
ANNOUNCEMENT DATE: December 23, 2015 PRICE: $ 9,900,000 PRICE PER UNIT: TERMS: PhosImmune’s equity holders will
receive an upfront payment of $2.5
million in cash and $7.4 million in
shares of Agenus common stock at
closing, plus milestone payments of up
to $35 million in cash and/or stock.
PRICE/REVENUE:
PRICE/INCOME:
The acquisition will accelerate Agenus' development of new cancer vaccines and other single agent immuno-
oncology approaches, as well as combination therapies. Its AutoSynVax program targets cancer neoantigens with
an autologous synthetic vaccine approach.
The Health Care M&A Report, 4th Quarter, 2015 64
eHEALTH
TARGET: Practice management
business
ACQUIRER: Pulse System, Inc.
LISTING: Private LISTING: Private
LOCATION: CEO: Jeff Burton PHONE: 800-444-0882 UNITS: 3020 North Cypress Drive FAX: REVENUE: Wichita, Kansas 67226
NET INCOME: WEB SITE: www.pulseinc.com
Nightingale Informatix Corporation is selling its
U.S.-based practice management business, which
includes the assets of Nightingale's Medrium,
Ridgemark, Secure Connect and Northern Health
Products.
Pulse System, a subsidiary of Cegedim, provides certified,
integrated, electronic healthcare management systems to thousands
of providers across more than 40 specialties.
ANNOUNCEMENT DATE: October 6, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Following the closing, Pulse's focus on its U.S. clients will include an upgrade each medical organization into its
growing offering of state-of-the-art technology and service solutions. These solutions enable each medical
organization to leverage the power of Pulse's suite of fully integrated proprietary products offered in both client
server and cloud environments. This transaction closed on August 4, 2015.
TARGET: HealthCare Revenue
Strategies LLC
ACQUIRER: RevSpring
LISTING: Private LISTING: Private
LOCATION: Boston, Massachusetts CEO: Tim Schriner PHONE: 248-567-7300
UNITS: 29241 Beck Road FAX: REVENUE: Wixom, Michigan 48393
NET INCOME: WEB SITE: www.revspring.com
HealthCare Revenue Strategies provides revenue
cycle consulting, analytics and hosted workflow
solutions for healthcare providers. Its leading
product is RemitWeb™, which provides denial
management solutions.
RevSpring provides patient and consumer engagement, delivering
end-to-end technology enabled solutions that accelerate cash flow,
improve consumer satisfaction and strengthen client relationships.
ANNOUNCEMENT DATE: October 7, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
HRS will operate as a stand-alone subsidiary of RevSpring and will continue to be led by Chuck Duncan, Chief
Executive Officer and CTO. RemitWeb™ will be integrated with RevSpring's emerge™ platform and available to
RevSpring customers.
The Health Care M&A Report, 4th Quarter, 2015 67
TARGET: EXINI Diagnostics AB ACQUIRER: Progenics Pharmaceuticals, Inc.
LISTING: Stockholm: EXINI.ST LISTING: NASDAQ: PGNX
LOCATION: Lund, Sweden CEO: Mark R. Baker, JD PHONE: 914-789-2800
UNITS: 777 Old Saw Mill River Road FAX: 914-789-2817 REVENUE: Tarrytown, New York 10591
NET INCOME: WEB SITE: www.progenics.com
EXINI Diagnostics develops software solutions for
medical decision support, based on advanced image
analysis.
Progenics Pharmaceuticals develops clinical-stage medicines for
oncology in the United States and internationally. On a trailing 12-
month basis, it generated revenue of $43.3 million and net income
of $2.85 million.
ANNOUNCEMENT DATE: October 13, 2015 PRICE: $ 7,000,000 PRICE PER UNIT: TERMS: Cash on hand. The purchase price
implies a price per share of
approximately SEK 3.15 (USD $0.39).
PRICE/REVENUE:
PRICE/INCOME:
The acquisition complements Progenics' strategy to support its imaging and therapeutic agents with sophisticated
software and other technologies that help physicians and patients visualize, understand, target and treat cancer. It
will bring new personnel with key medical and scientific expertise in the area of medical imaging to Progenics, and
will help Progenics work with European partners, clinicians and researchers.
TARGET: Benaissance ACQUIRER: WEX Inc.
LISTING: Private LISTING: NYSE: WEX
LOCATION: Omaha, Nebraska CEO: Melissa Smith PHONE: 207-773-8171
UNITS: 97 Darling Avenue FAX: REVENUE: South Portland, Maine 04106
NET INCOME: WEB SITE: www.wexinc.com
Benaissance provides integrated Software-as-a-
Service (SaaS) technologies and services for
healthcare premium billing, payment and workflow
management.
WEX is a multi-channel provider of corporate payment solutions
representing more than 9 million vehicles and offering payment
security and control access across a wide spectrum of business
sectors.
ANNOUNCEMENT DATE: October 15, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Effective with the transaction's closing on November 18, 2015, Benaissance became part of WEX's Evolution1
business unit.
The Health Care M&A Report, 4th Quarter, 2015 68
TARGET: Medworxx ACQUIRER: Aptean Inc.
LISTING: Private LISTING: Private
LOCATION: Toronto, Ontario CEO: Kim Eaton PHONE: 855-411-2783
UNITS: 4325 Alexander Drive, Ste. 100 FAX: REVENUE: Alpharetta, Georgia 30022
NET INCOME: WEB SITE: www.aptean.com
Medworxx delivers health information technology
solutions to over 350 hospitals internationally,
including Canada, United States, United Kingdom,
France and Australia.
Aptean is a leading provider of industry-focused mission critical
enterprise software solutions. Aptean's solutions help nearly 5,000
organizations stay at the forefront of their industries.
ANNOUNCEMENT DATE: October 15, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This is Aptean's first acquisition in the healthcare sector. Aptean’s strong operational efficiencies will enable
Medworxx to accelerate its efforts to advance its growth internationally. The acquisition closed on October 15,
2015.
TARGET: Vree Health ACQUIRER: PatientSafe Solutions
LISTING: NYSE: MRK LISTING: Private
LOCATION: Annandale, New Jersey CEO: Joseph Condurso PHONE: 858-746-3100
UNITS: 5375 Mira Sorrento Place FAX: 858-746-3101 REVENUE: San Diego, California 92121
NET INCOME: WEB SITE: patientsafesolutions.com
Merck & Co. is selling its wholly owned subsidiary,
Vree Health, which provides service-enabled care
coordination technology designed to influence
positive behavioral change and enhance the patient
experience.
PatientSafe Solutions provides Connected Patient Care® networks
that extend engagement and connectivity to physicians, nurses and
patients to eliminate harm, reduce waste and improve productivity.
ANNOUNCEMENT DATE: October 21, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Vree Health’s patient engagement and care management platform is designed to help coordinate care across
providers; aggregate and analyze disparate data sources; and engage patients in managing their care. These services
will complement PatientSafe’s mobile workflow solutions. PatientSafe Solutions is backed by investments from
Merck Global Health Innovation Fund, TPG Biotech, Psilos Group, Camden Partners and EDBI of the Singapore
Economic Development Board.
The Health Care M&A Report, 4th Quarter, 2015 69
TARGET: Xtend Healthcare ACQUIRER: Navient Corporation
LISTING: Private LISTING: NYSE: NAVI
LOCATION: Hendersonville, Tennessee CEO: John F. Remondi PHONE: 302-283-8000
UNITS: 123 Justison Street FAX: REVENUE: $ 70,000,000 (2015,
approximate) Wilmington, Delaware 19801
NET INCOME: WEB SITE: www.navient.com
Xtend Healthcare is one of the fastest-growing
revenue cycle management companies in the
industry. The company has grown from $17 million
in revenue in 2010 to approximately $70 million in
2015.
Navient provides financial products and services in the United
States. On a trailing 12-month basis, it generated revenue $2.4
billion and net income of $973 million.
ANNOUNCEMENT DATE: October 21, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
With this acquisition, Navient is leveraging its asset recovery and business process outsourcing capabilities into the
healthcare payments sector. Xtend currently serves more than 130 hospitals, ranging from large teaching
university-affiliated hospitals and urban medical centers to rural critical access hospitals. Services include health
insurance claims billion and account resolution, patient billing, customer service and follow-up, as well as revenue
cycle consulting.
TARGET: Lavender & Wyatt Systems ACQUIRER: Netsmart Technologies
LISTING: Private LISTING: Private
LOCATION: Little Rock, Arkansas CEO: Mike Valentine PHONE: 800-472-5509
UNITS: 4950 College Boulevard FAX: REVENUE: Overland Park, Kansas 66211
NET INCOME: WEB SITE: www.ntst.com
Lavender & Wyatt Systems, Inc. provides electronic
health records (EHRs) and related services for
behavioral health provider organizations.
Netsmart Technologies provides post-acute electronic health records
(EHRs) and technology for health and human services providers.
ANNOUNCEMENT DATE: October 22, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
LSWI clients will now have access to Netsmart's CareRecord EHR options and a range of other solutions and
services that help to deliver quality care and maximize operational efficiencies. Its own Essentia general ledger
modules will be added to the Netsmart CareGuidance suite and made available to all Netsmart clients.
The Health Care M&A Report, 4th Quarter, 2015 70
TARGET: Atlas Medical ACQUIRER: Roper Technologies, Inc.
LISTING: Private LISTING: NYSE: ROP
LOCATION: Calabasas, California CEO: Brian D. Jellison PHONE: 914-556-2601
UNITS: 6901 Professional Pkwy. East,
Ste. 200
FAX:
REVENUE: Sarasota, Florida 34240
NET INCOME: WEB SITE: www.roperind.com
Atlas Development Corporation is selling its
subsidiary, Atlas Medical, which provides software
that supports clinical process and connectivity
solutions for hospitals, health systems, laboratory,
radiology and other clinical disciplines.
Roper Technologies designs and develops software and solutions
for healthcare, transportation, food, energy and other industries. On
a trailing 12-month basis, it generated revenue of $3.6 billion,
EBITDA of $1.2 billion and net income of $673.4 million.
ANNOUNCEMENT DATE: October 26, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Roper Technologies' subsidiary, Sunquest Information Systems Inc., will take over Atlas Medical and its
LabWorks platform that connects diagnostic testing facilities to their customers. The platform also connects
physicians and patients with lab test results via Atlas Physician Portal.
TARGET: Mach7 Technologies, Inc. ACQUIRER: 3D Medical Limited
LISTING: Private LISTING: ASX:3DM
LOCATION: South Burlington, Vermont CEO: Max Ghobrial PHONE: 61 3 9646 2222
UNITS: 435 Williamstown Road, Unit 4 FAX: 61 3 9645 4707 REVENUE: Victoria, Australia 3207
NET INCOME: WEB SITE: www.3dmedical.com.au
Mach7 Technologies is a global provider of
enterprise image management systems that allow
healthcare enterprises to easily identify, connect and
share diagnostic image and patient care intelligence
where and when needed.
3D Medical is a medical specific 3D printing and holographic
projection and data integrations provider. On a trailing 12-month
basis, it generated revenue of $167,100 and a net of $6.9 million.
ANNOUNCEMENT DATE: October 26, 2015 PRICE: $ 3,676,000 Approximate PRICE PER UNIT: TERMS: 3DM will issue 459.5m shares (at $0.08
per share) to the owners of Mach7 in
return for 100% of the Mach7 assets and
intellectual property. Performance-
related shares will also be available for
certain agreed financial milestones.
PRICE/REVENUE:
PRICE/INCOME:
The merger will provide access via public capital markets for Mach7 while preserving corporate self-determination
regarding its mission and product roadmap. The merged entity will be publicly listed on the Australian stock
exchange (ASX) and will trade as Mach7 Technologies Ltd. The transaction will drive earnings and transform the
combined entity into a global operation, allowing significant opportunities to scale 3DM’s value-adding data
activities to leading healthcare institutions globally.
The Health Care M&A Report, 4th Quarter, 2015 71
TARGET: Health Heritage ACQUIRER: NantHealth
LISTING: Private LISTING: Private
LOCATION: Evanston, Illinois CEO: Dr. Patrick Soon-
Shiong
PHONE: 855-949-6268
UNITS: 9920 Jefferson Blvd. FAX: REVENUE: Culver City, California 90232
NET INCOME: WEB SITE: www.nanthealth.com
Health Heritage is part of NorthShore University
HealthSystem. Health Heritage is an online
genomic medicine decision support application that
aggregates and analyzes data from medical records,
genetic tests and family history to assess disease
risk.
NantHealth, a subsidiary of NantWorks, LLC, is a healthcare IT
company working to provide actionable health data at the point of
care.
ANNOUNCEMENT DATE: October 27, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Funding was rapidly running out for Health Heritage before NantHealth stepped in. Soon-Shiong views Health
Heritage as a potential flagship product for NantHealth. The acquisition will continue the record of NantHealth
rolling up or partnering with other companies in implementing Soon-Shiong’s vision.
TARGET: PPS Plus Software ACQUIRER: Kinnser Software, Inc.
LISTING: Private LISTING: Private
LOCATION: Biloxi, Mississippi CEO: Christopher Hester PHONE: 512-879-3135
UNITS: 2600 Via Fortuna Dr., Ste. 150 FAX: REVENUE: Austin, Texas 78746
NET INCOME: WEB SITE: www.kinser.com
PPS Plus Software is a national leader in clinical
analysis and benchmarking solutions for home
health agencies.
Kinnser Software provides web-based solutions to more than 2,100
home health and hospice agencies. The company reported 2014
revenue of $34 million, compared with $14.5 million in 2012.
ANNOUNCEMENT DATE: October 29, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
PPS Plus solutions integrate with a number of home health software solutions, including Kinnser. PPS Plus’s
strategic alliances, software integrations and energetic team are not changing. PPS Plus will continue to work with
all agencies and software vendors without disruption or limitations, while being wholly owned by Kinnser.
The Health Care M&A Report, 4th Quarter, 2015 72
TARGET: HealthFusion Holdings,
Inc.
ACQUIRER: Quality Systems, Inc.
LISTING: Private LISTING: NASDAQ: QSII
LOCATION: San Diego, California CEO: Sheldon Razin PHONE: 94-255-2600
UNITS: 18111 Von Karman Ave., Ste.
700
FAX:
REVENUE: $ 30,000,000 (est.
annualized
revenue)
Irvine, California 92612
NET INCOME: WEB SITE: www.qsii.com
HealthFusion develops web-based, cloud computing
software for physicians, hospitals and medical
billing services. Its MediTouch® platform is
currently used by more than 3,000 physician
practices, ambulatory centers and billing services.
Quality Systems develops and markets healthcare information
systems that automate medical and dental practices, and networks of
practices. On a trailing 12-month basis, it generated revenue of
$499.4 million, EBITDA of $57.2 million and net income of $32.1
million.
ANNOUNCEMENT DATE: October 30, 2015 PRICE: $165,000,000 PRICE PER UNIT: TERMS: $165 million upfront, plus an additional
contingent consideration of up to $25
million, based on the generation of $43
million of HelathFusion product
revenues during calendar year 2016.
PRICE/REVENUE: 5.50
PRICE/INCOME:
The transaction is expected to capitalize on the both companies' successes in the ambulatory market segment. J.P.
Morgan Securities LLC is acting as financial advisor, and Latham & Watkins is serving as legal counsel to Quality
Systems. TripleTree is acting as exclusive financial advisor, and Wilson Sonsini Goodrich & Rosati is serving as
legal counsel to HealthFusion. The transaction closed on January 4, 2016.
TARGET: MedAssets, Inc. ACQUIRER: Pamplona Capital Management
LISTING: NASDAQ: MDAS LISTING: Private
LOCATION: Alpharetta, Georgia CEO: Jeremby Gelber,
MD, partner
PHONE: 212-207-6820
UNITS: 375 Park Avenue FAX: REVENUE: $ 74,995,000 (ttm) New York, New York 10152
NET INCOME: $218,880,000 (EBITDA) WEB SITE: www.pamplonafunds.com
MedAssets provides technology-enabled products
and services for hospitals, health systems, non-
acute healthcare providers, payers and other
service providers. It serves four out of every five
hospitals in the United States.
Pamplona Capital Management provides an alternative
investment platform across private equity, hedge funds and single
manager hedge fund investments. It manages over $10 billion in
assets across a number of funds.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $2,700,000,000 Approximate PRICE PER UNIT: TERMS: $31.35 per share, which represents a
total enterprise value of $2.7 billion for
the acquisition. Pamplona received
committed financing from Morgan
Stanley, Barclays, Macquarie and
Golub Capital for the transaction.
PRICE/REVENUE: 36.00
PRICE/INCOME: 12.34
Pamplona will divest MedAssets' Spend and Clinical Resource Management segment to VHA-UHC Alliance.
It will retain MedAssets' Revenue Cycle Management segment and combine it with Precyse, a portfolio
company that provides health information management services. The combined enterprise will offer end-to-end
RCM and HIM solutions. Morgan Stanley and Barclays are serving as Pamplona's financial advisors, and
Simpson Thacher & Bartlett LLP is serving as its legal advisor.
The Health Care M&A Report, 4th Quarter, 2015 73
TARGET: MedAssets' SCM business ACQUIRER: VHA-UHC Alliance NewCo. Inc.
LISTING: NASDAQ: MDAS LISTING: Private
LOCATION: Alpharetta, Georgia CEO: Curt Nonomaque PHONE: 972-750-4972
UNITS: 290 E. John Carpenter Freeway FAX: REVENUE: Irving, Texas 75062
NET INCOME: WEB SITE: www.vha.com
As part of MedAssets' acquisition by Pamplona
Capital Management, MedAssets' Spend and
Clinical Resource Management segment, including
Sg2, is being sold to VHA-UHC Alliance.
Effective April 1, 2015, VHA, the national health care network of
not-for-profit hospitals and UHC, the alliance of the nation's leading
academic centers, combined to form the largest member-owned
health care company in the United States.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition makes VHA-UHC Alliance a global leader in health care supply chain procurement, market
intelligence, strategic analytics and comprehensive consulting services. VHA-UHC plans to announce a new name
in January 2016. Piper Jaffray & Co. is acting as VHA-UHC Alliance's financial advisor and Greenbery Traurig
LLP is acting as its legal advisor. NHA-UHC has received committed financing from Barclays for the transaction.
TARGET: 1DocWay ACQUIRER: Genoa
LISTING: Private LISTING: Private
LOCATION: New York, New York CEO: John Figueroa PHONE: 800-519-1139
UNITS: 18300 Cascade Ave. South, Ste.
251
FAX: 253-218-0336
REVENUE: Tukwila, Washington 98188
NET INCOME: WEB SITE: www.genoa-qol.com
1DocWay is the nation's largest outpatient
telepsychiatry provider. Its services are provided on
smartphones, tablets and desktop computers, and
has helped to treat 25,000 patients across 11 states.
Genoa, a QoL Healthcare Company, is a leading behavioral health
specialty pharmacy. It was created in July 2014 by the merger of
Genoa Healthcare with QoL meds.
ANNOUNCEMENT DATE: November 4, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
1DocWay raised $1.7 million in July from iSeedVC, Rock Health, Asset Management, Great Oaks Venture
Capital, and Waterline Ventures. It developed a telepsychiatry network that connects hospitals with community
health centers, skilled nursing facilities, military bases, critical access hospitals, and other underserved care settings
to offer patients mental health services. Genoa plans to launch Genoa Telepsychiatry using 1DocWay’s offering.
The Health Care M&A Report, 4th Quarter, 2015 74
TARGET: iVantage Health Analytics ACQUIRER: The Chartis Group
LISTING: Private LISTING: Private
LOCATION: Portland, Maine CEO: Ken Graboys PHONE: 877-667-4700
UNITS: 220 West Kinzie Street, Third
Floor
FAX:
REVENUE: Chicago, Illinois 60654
NET INCOME: WEB SITE: www.chartis.com
iVantage is a leading provider of healthcare analytic
and decision support tools. iVantage serves
hundreds of hospitals and health systems across the
country.
Chartis is a national advisory services firm. Chartis provides
strategic and economic planning, accountable care, clinical
transformation, and informatics and technology consulting services
to the country’s leading healthcare providers.
ANNOUNCEMENT DATE: November 5, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
iVantage's capabilities and tools, coupled with The Chartis Group's knowledge of healthcare economics, markets,
clinical models and technology, will enable both Chartis and iVantage to continue to deliver unequaled results to
its respective clients.
TARGET: Integrity Digital Solutions,
LLC
ACQUIRER: Alphaeon Corporation
LISTING: Private LISTING: Private
LOCATION: Temple, Texas CEO: Robert E. Grant PHONE:
UNITS: 18191 Von Karman Ave., Ste.
500
FAX:
REVENUE: Irvine, California 92612
NET INCOME: WEB SITE: www.alphaeon.com
Integrity Digital Solutions is an innovator in
electronic medical record software for
ophthalmology and optometry. Its Integrity EMR
for Eyes™ is designed to expedite EMR
implementation and enhance patient care.
Alphaeon is a lifestyle healthcare company that promotes consumer
wellness, beauty and performance. It works in partnership with
board-certified physicians ensuring access to leading advancements
in lifestyle healthcare.
ANNOUNCEMENT DATE: November 12, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Also on Nov. 12, 2015, Alphaeon
completed a private placement of Series
B Preferred stock in a transaction led by
Sailing Capital, H&S Ventures LLC,
Longitude Capital and Chow Tai Fook
Enterprises.
PRICE/REVENUE:
PRICE/INCOME:
This transaction is expected to close on or before December 31, 2015.
The Health Care M&A Report, 4th Quarter, 2015 75
TARGET: Optima Healthcare
Solutions
ACQUIRER: Alpine Investors
LISTING: Private LISTING: Private
LOCATION: Palm City, Florida CEO: Josh Pickus PHONE: 415-392-9100
UNITS: 3 Embarcadero Center, Ste.
2330
FAX:
REVENUE: San Francisco, California 94111
NET INCOME: WEB SITE: alpine-investors.com
Optima Healthcare Solutions provides therapy
management software for post-acute providers. Its
team will maintain minority ownership and remain
active in the management of the company.
Alpine Investors is a private equity firm committed to building
purpose-driven companies through its PeopleFirst model. It has
raised more than $900 million of committed capital and invested in
more than 50 companies since its launch in 2001.
ANNOUNCEMENT DATE: November 17, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Optima is the leading therapy management SaaS software company serving the post-acute care market. Its
signature offering is RehabOptima, a solution used by more than 8,000 skilled nursing facilities, assisted living
facilities and contract therapy companies.
TARGET: ikaSystems ACQUIRER: Blue Cross Blue Shield of Michigan
LISTING: Private LISTING: Nonprofit
LOCATION: Southborough, Massachusetts CEO:
Daniel J. Loepp
PHONE: 855-237-3501
UNITS: 600 E. Lafayette Blvd. FAX: REVENUE: Detroit, Michigan 48226
NET INCOME: WEB SITE: www.bcbsm.com
ikaSystems delivers business automation and
process solutions that transform how health plans
conduct commercial, Medicare, Medicaid,
Exchange and ACO business. ikaSystems will
become an independent subsidiary of BCBSM.
Blue Cross Blue Shield of Michigan is an independent licensee of
the Blue Cross and Blue Shield Association.
ANNOUNCEMENT DATE: November 19, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The new relationship will position ikaSystems for further growth in solution expansion, new capabilities and new
services across all lines of business. ikaSystems’ existing management team will continue to lead the Boston-area
company. Oppenheimer & Co. Inc. acted as exclusive financial advisor to ikaSystems.
The Health Care M&A Report, 4th Quarter, 2015 76
TARGET: Healthland Holding Inc. ACQUIRER: Computer Programs and Systems, Inc.
LISTING: Private LISTING: NASDAQ: CPSI
LOCATION: Minneapolis, Minnesota CEO: J. Boyd Douglas PHONE: 251-639-8100
UNITS: 6600 Wall Street FAX: 251-639-8214 REVENUE: Mobile, Alabama 36695
NET INCOME: WEB SITE: www.cpsi.com
Healthland Holding Inc. provides integrated
technology solutions to rural community and critical
access hospitals. Its affiliates, Healthland Inc.,
American HealthTech, Inc. and Rycan
Technologies, Inc., are also part of the transaction.
CPSI is a leading provider of healthcare solutions for community
hospitals. CPSI is the parent of Evident, LLC and TruBridge, LLC.
On a trailing 12-month basis, it generated revenue of $184.2
million, EBITDA of $35.3 million and net income of $21.3 million.
ANNOUNCEMENT DATE: November 25, 2015 PRICE: $250,000,000 PRICE PER UNIT: TERMS: $250 million - 65% in cash and 35% in
CPSI common stock. CPSI will use cash
available on its balance sheet, $150
million of funded debt from a new
senior secured credit facility and shares
of its common stock.
PRICE/REVENUE:
PRICE/INCOME:
The acquisition will strengthen CPSI’s position in providing healthcare information solutions in the markets it
serves and will provide new growth markets for the combined company. Allen & Company LLC served as
financial advisor to CPSI for this transaction, and Maynard, Cooper & Gale, P.C. and Paul, Weiss, Rifkind,
Wharton & Garrison LLP served as legal counsel. Shearman & Sterling LLP served as legal counsel to Healthland.
The transaction closed on January 8, 2016.
TARGET: Lively ACQUIRER: GreatCall, Inc.
LISTING: Private LISTING: Private
LOCATION: San Francisco, California CEO: David Inns PHONE: 855-888-6357
UNITS: 10935 Vista Sorrento Pkwy.,
Ste. 200
FAX:
REVENUE: San Diego, California 92130
NET INCOME: WEB SITE: www.greatcall.com
Founded in 2012, Lively has developed a remote
monitoring system for seniors. Its safety watch
works with a system of passive activity sensors to
alert family members and share seniors' daily
routines.
GreatCall has created a suite of products for active aging, including
GreatCall Splash, Jitterbug5, Touch3 and health, safety and medical
apps, including Urgent Care, GreatCall Link, MedCoach and 5Star.
ANNOUNCEMENT DATE: December 3, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition is a key step in GreatCall's commitment to growth and the development of its connected health
portfolio.
The Health Care M&A Report, 4th Quarter, 2015 77
TARGET: PDR Network, LLC ACQUIRER: Genstar Capital
LISTING: Private LISTING: Private
LOCATION: Montvale, New Jersey CEO: Robert Weltman,
Managing Director
PHONE: 415-834-2350
UNITS: 4 Embarcadero Center, Ste.
1900
FAX: 415-834-2383
REVENUE: San Francisco, California 94111
NET INCOME: WEB SITE: www.gencap.com
PDR Network, a portfolio company of Lee Equity
Partners, LLC, delivers health knowledge products
and services that support prescribing decisions and
patient adherence to improve health.
Genstar Capital is a private equity investment firm that makes
leveraged investments in middle-market companies.
ANNOUNCEMENT DATE: December 4, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
PDR connects the largest aggregated provider-patient network, including healthcare providers’ eRx, EMR and
EHR applications and systems, chain and independent pharmacies, and a direct-to-provider communications
capability that reaches more than 1.5 million healthcare providers. Piper Jaffray & Co and Weil, Gotshal &
Manges, LLP served as financial and legal advisors, respectively.
TARGET: AOD Software ACQUIRER: MatrixCare
LISTING: Private LISTING: Private
LOCATION: Fort Lauderdale, Florida CEO: John Damgaard PHONE: 952-995-9800
UNITS: 10900 Hampshire Ave. South,
Ste. 100
FAX: 952-995-9735
REVENUE: Bloomington, Minnesota 55438
NET INCOME: WEB SITE: www.matrixcare.com
AOD Software focuses on electronic health records
for the continuing care retirement community
(CCRC) market. It serves more than 800 CCRCs
and other long-term care facilities, in addition to
1,400 home health care locations.
MatrixCare, a portfolio company of OMERS Private Equity, is a
leading provider of electronic health record systems designed
specifically for skilled nursing facilities and other long-term care
sites.
ANNOUNCEMENT DATE: December 10, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
AOD Software complements MatrixCare's focus on the long-term care sector and expands its access to other areas
of the market. By integrating their collective technologies, the combined company will be able to offer a full-
spectrum solution to help LTPAC operators and others deliver better care and patient outcomes.
The Health Care M&A Report, 4th Quarter, 2015 78
TARGET: UMS s.r.l. ACQUIRER: Ascom
LISTING: Private LISTING: SWX: ASCN
LOCATION: Florence, Italy CEO: Fritz Mumenthaler PHONE: +41 41 544 78 00
UNITS: Zugerstrasse 32 FAX: +41 41 761 97 25 REVENUE: Baar, Switzerland CH-6340
NET INCOME: WEB SITE: www.ascom.com
UMS delivers modular, point-of-care, electronic
health records software solutions for life-critical
patient care. UMS offers more than 200 medical
device integrations and 1,000 different EHR forms
and integrations.
Ascom is an international solutions provider with comprehensive
know-how in healthcare workflows and telecommunications. It has
subsidiaries in 19 countries and employs around 1,700 people
worldwide.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
With this acquisition, Ascom will gain access to new software and additional competence for global integrated
workflow solutions in Healthcare ICT. Ascom will leverage the acquired software solutions globally. UMS will be
renamed “Ascom UMS s.r.l.” Gabriele Unterberger, founder of UMS will continue to run it and will be Managing
Director.
TARGET: RightCare Solutions, Inc. ACQUIRER: naviHealth
LISTING: Private LISTING: NYSE: CAH
LOCATION: Horsham, Pennsylvania CEO: Clay Richards PHONE: 615-577-1900
UNITS: 210 Westwood Place, #400 FAX: REVENUE: Brentwood, Tennessee 37027
NET INCOME: WEB SITE: www.navihealth.us
RightCare Solutions is a discharge decision support
platform that works to reduce readmissions for
hospitals and health systems.
naviHealth, a subsidiary of Cardinal Health, is a post-acute care
management company with operations in 28 states.
ANNOUNCEMENT DATE: December 19, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
RightCare licenses its proprietary software to hospitals and health systems to assess patients for post-acute needs,
determine risk of readmission and coordinate patient discharges to post-acute care providers. It also licenses its
software to post-acute care providers to help save time and money in managing referrals from nearby hospitals.
The Health Care M&A Report, 4th Quarter, 2015 79
TARGET: OCS HomeCare and
Hospice analytics division
ACQUIRER: ABILITY Network
LISTING: NASDAQ: NRCI LISTING: Private
LOCATION: Seattle, Washington CEO: Mark Pulido PHONE: 888-858-0506
UNITS: 100 North 6th St., Ste. 900A FAX: REVENUE: Minneapolis, Minnesota 55403
NET INCOME: WEB SITE: www.abilitynetwork.com
National Research Corp. is selling its OCS
HomeCare and Hospice analytics division.
ABILITY® Network is a leading healthcare technology company
serving thousands of payers and providers through its
comprehensive suite of care coordination and workflow solutions.
ANNOUNCEMENT DATE: December 21, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
ABILITY has acquired the analytics software services that offer clinical outcomes improvement, hospitalization
insights and quality assurance benchmarking and reporting. National Research will retain the Home Health CAHPS
business segment of the OCS division.
TARGET: ImageVision.Net ACQUIRER: Invoice Cloud, Inc.
LISTING: Private LISTING: Private
LOCATION: Mechanicsburg, Pennsylvania CEO: Robert P. Bennett PHONE: 781-848-3733
UNITS: 30 Braintree Hill Office Park,
Suite 303
FAX:
REVENUE: Braintree, Massachusetts 02184
NET INCOME: WEB SITE: www.invoicecloud.net
ImageVision.Net created HealthPay24™ to
specifically address the need for point-of-service
and online payments at integrated healthcare
providers.
Invoice Cloud provides secure e-payments and electronic bill
presentment with payment (EBPP) solutions. It has more than 500
clients in 36 states in the United States.
ANNOUNCEMENT DATE: December 22, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
HealthPay24 provides point-of-service and online payment processing for hospitals.
The Health Care M&A Report, 4th Quarter, 2015 80
TARGET: Qforma, Inc. ACQUIRER: QPharma, Inc.
LISTING: Private LISTING: Private
LOCATION: Morris Plains, New Jersey CEO: Patrick P. Den Boer PHONE: 973-656-0011
UNITS: 22 South Street FAX: REVENUE: Morristown, New Jersey 07960
NET INCOME: WEB SITE: www.qpharmacorp.com
Qforma, a portfolio company of BelHealth
Investment Partners, offers an array of life sciences
solutions that include healthcare analytics,
predictive modeling and product launch services.
QPharma provides a suite of solutions to the life sciences industry.
QPharma works closely with pharmaceutical, medical device, and
biotechnology manufacturers to validate their systems and facilities.
ANNOUNCEMENT DATE: December 22, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The Qforma brand will be phased out, and the company will operate as QPharma. With the purchase, QPharma will
increase its headcount by 10 percent, with new sales, strategy, and technology personnel based at offices
throughout the United States.
TARGET: Compressus, Inc. ACQUIRER: Versata Enterprises, Inc.
LISTING: Private LISTING: Private
LOCATION: Washington, D.C. CEO: Randall Jacops PHONE: 512-874-3100
UNITS: 401 Congress Avenue, Suite
2650
FAX:
REVENUE: Austin, Texas 78701
NET INCOME: WEB SITE: www.versatabrms.com
Compressus Inc.'s primary product is Compressus
MEDxConnect, a software solution that enables the
use of patient information throughout a healthcare
organization.
Versata is a leading provider of enterprise software solutions.
ANNOUNCEMENT DATE: December 24, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Versata will operate Compressus as a stand-alone entity. Versata veteran Leela Kaza will assume the role of CEO
of Compressus.
The Health Care M&A Report, 4th Quarter, 2015 81
HOME HEALTH & HOSPICE
TARGET: Hospice Advantage ACQUIRER: Compassus
LISTING: Private LISTING: Private
LOCATION: Bay City, Michigan CEO: Jim Deal PHONE: 888-594-3289
UNITS: 12 Cadillac Drive, Ste. 360 FAX: 615-373-4457 REVENUE: Brentwood, Tennessee 37027
NET INCOME: WEB SITE: www.compassushealthcare.com
Hospice Advantage, a portfolio company of
Sentinel Capital Partners, offers end-of-life care
with locations in Alabama, Georgia, Illinois,
Indiana, Kansas, Michigan, Minnesota, Mississippi,
Missouri, Oklahoma, Pennsylvania, South Carolina,
Tennessee and Wisconsin.
Compassus, formerly Hospice Compassus, is a nationwide network
of community-based hospice and palliative care services, now
including Life Choice Hospice and Hospice Advantage.
ANNOUNCEMENT DATE: October 8, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The service area of the combined company, which will operate as Compassus, will extend to 150 locations in 28
states, serving more than 30,000 patients and their families each year. This acquisition builds on Compassus'
acquisition of Life Choice Hospice earlier in 2015.
TARGET: Autumn Bridge, LLC ACQUIRER: New Century Hospice, LLC
LISTING: Private LISTING: Private
LOCATION: Oklahoma City, Oklahoma CEO: David Gasmire PHONE: 972-239-0907
UNITS: 4101 McEwen Road, Ste. 500 FAX: 972-239-0908 REVENUE: Dallas, Texas 75244
NET INCOME: WEB SITE: www.newcenturyhospice.com
Autumn Bridge is a local hospice provider. New Century Hospice, a portfolio company of Petra Capital
Partners, is one of the nation's largest regional hospices. The
company now operates 18 locations in six states, including
Colorado, Georgia, Louisiana, Oklahoma, Texas and Virginia.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition is part of New Century's strategy to expand beyond its Tulsa location and into other parts of the
state of Oklahoma. Autumn Bridge will change its name to New Century Hospice of Oklahoma City. This
transaction closed on October 31, 2015.
The Health Care M&A Report, 4th Quarter, 2015 85
TARGET: Heritage Healthcare
Services, Inc.
ACQUIRER: Good Samaritan Society HCBS-Heritage,
LLC
LISTING: Private LISTING: Nonprofit
LOCATION: Albuquerque, New Mexico CEO: David J.
Horazdovsky
PHONE: 866-382-1406
UNITS: 4800 W. 57th St. FAX: REVENUE: Sioux Falls, South Dakota 57108
NET INCOME: WEB SITE: www.good-sam.com
Heritage is a major provider of home care services
and Medicare home health services. It has five
locations in New Mexico and one in Arizona, and
all will retain their original names.
Good Samaritan Society HCBS-Heritage, LLC is an affiliate of The
Evangelical Lutheran Good Samaritan Society. The Society is the
nation's largest not-for-profit provider of senior care and services. It
owns and operates more than 240 locations nationwide.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition will help the Society grow its home- and community-based services. The Braff Group originated
the transaction, and served as the exclusive mergers and acquisitions advisor to Heritage Healthcare Services. The
transaction closed on October 31, 2015.
TARGET: Nurses Registry and Home
Health Corp.
ACQUIRER: LHC Group, Inc.
LISTING: Private LISTING: NASDAQ: LHCG
LOCATION: Lexington, Kentucky CEO: Keith G. Myers PHONE: 337-233-1307
UNITS: 420 West Pinhook Road, Ste. A FAX: REVENUE: Lafayette, Louisiana 70503
NET INCOME: WEB SITE: www.lhcgroup.com
Nurses Registry and Home Health Corp. filed for
Chapter 11 bankruptcy protection on June 29. 2015.
A U.S. Bankruptcy Court judge approved the sale to
LHC Group.
LHC Group provides post-acute continuum of care primarily for
Medicare beneficiaries in 29 U.S. locations. On a trailing 12-month
basis, it generated $756.2 million in revenue; $71.8 million in
EBITDA and net income of $27.5 million.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $ 5,700,000 PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Nurses Registry and Home Health Corp. previously faced accusations of fraud from Medicare officials who
claimed the company had paid kickbacks to physicians. Judge Gregory R. Schaaf approved the settlement
agreement in which 30% of the net sale proceeds went to the bankruptcy estate and 70% to the U.S. government. A
separate bid of $3.5 million from Atlanta-based Five Points Healthcare LLC was not accepted.
The Health Care M&A Report, 4th Quarter, 2015 86
TARGET: Infinity HomeCare ACQUIRER: Amedysis, Inc.
LISTING: Private LISTING: NASDAQ: AMED
LOCATION: Sarasota, Florida CEO: Paul B. Kusserow PHONE: 225-292-2013
UNITS: 5959 S. Sherwood Forest Blvd. FAX: REVENUE: $ 50,000,000 (annual
revenue) Baton Rouge, Louisiana 70816
NET INCOME: $ 6,400,000 (ttm, adjusted
EBITDA) WEB SITE: www.amedysis.com
Infinity HomeCare, founded in 2006, cares for more
than 14,000 patients per year in 15 care centers in
Florida.
Amedysis provides home health and hospice care services. On a
trailing 12-month basis, it generated revenue of $1.2 billion,
EBITDA of $89.3 million and a net loss of $6.8 million.
ANNOUNCEMENT DATE: November 3, 2015 PRICE: $ 63,000,000 PRICE PER UNIT: TERMS: PRICE/REVENUE: 1.26
PRICE/INCOME: 9.84
This acquisition expands Amedysis' footprint in Florida. CEO Paul Kusserow promises it is the first of many high-
quality asset acquisition to come in key markets. The transaction is expected to close on December 31, 2015.
TARGET: Black Stone Operations,
LLC
ACQUIRER: Almost Family, Inc.
LISTING: Private LISTING: NASDAQ: AFAM
LOCATION: Cincinnati, Ohio CEO: William B. Yarmuth PHONE: 502-891-1000
UNITS: 9510 Ormsby Station Road FAX: 502-891-8067 REVENUE: $ 46,700,000 -2014 Louisville, Kentucky 40223
NET INCOME: WEB SITE: www.almostfamily.com
Home Care by Black Stone provides in-home
personal care and skilled home health services in the
western half of Ohio.
Almost Family provides home health services in the United States.
On a trailing 12-month basis, it generated revenue of $506 million,
EBITDA of $36.6 million and net income of $18.0 million.
ANNOUNCEMENT DATE: November 4, 2015 PRICE: $ 40,000,000 PRICE PER UNIT: TERMS: The total purchase price of $40 million
will be funded through borrowings on
Almost Family's bank credit facility
($27.5 million), seller notes ($5 million)
and the issuance of 188,000 of Almost
Family common shares.
PRICE/REVENUE: .86
PRICE/INCOME:
This transaction enhances Almost Family's position as a leading provider of services to Ohio's innovative managed
care programs for seniors who are dually eligible for Medicare and Medicaid services. On a combined basis, Ohio
revenues are expected to be over $120 million annually.
The Health Care M&A Report, 4th Quarter, 2015 87
TARGET: BestCare HomeCare ACQUIRER: Addus HomeCare Corporation
LISTING: Private LISTING: NASDAQ: ADUS
LOCATION: Woodbridge, Virginia CEO: Mark S.Heaney PHONE: 630-296-3400
UNITS: 2300 Warrenville Road FAX: REVENUE: Downers Grove, Illinois 60515
NET INCOME: WEB SITE: www.addus.com
Five Points Healthcare of Virginia, LLC (dba as
BestCare HomeCare), serves consumers in 11
counties in northern Virginia. It had annualized
revenue of approximately $5.7 million for the first
nine months of 2015.
Addus HomeCare provides home and community-based services to
older adults and younger disabled persons. On a trailing 12-month
basis, it generated revenue of $344.7 million, EBITDA of $23.9
million and net income of $11.9 million.
ANNOUNCEMENT DATE: November 12, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Addus anticipates the transaction to be accretive to earnings in 2015, excluding transaction costs. Winston &
Strawn LLP served as legal advisor to Addus and Provident Healthcare Partners LLC served as financial advisor.
This transaction closed on November 9, 2015.
TARGET: AlexaCare Holdings, Inc. ACQUIRER: OptumRx Inc.
LISTING: Private LISTING: NYSE: UNH
LOCATION: Lenexa, Kansas CEO: Larry Renfro PHONE: 714-825-3600
UNITS: 2300 Main Street FAX: REVENUE: Irvine, California 92614
NET INCOME: WEB SITE: www.optumrx.com
AlexaCare Holdings, a portfolio company of
Harvest Partners since April 2013, is a technology-
enabled provider of home infusion services for
chronic and acute conditions.
OptumRx, a subsidiary of UnitedHealth Group's Optum, is a
pharmacy benefits manager working with commercial, Medicare,
Medicaid and other government health plans, and with employers
and unions through a national network of 67,000 community
pharmacies.
ANNOUNCEMENT DATE: November 17, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The addition of AlexaCare continues OptumRxs strategy of improving care and reducing costs by integrating
information and services for its clients. AxelaCare enhances OptumRx's ability to deliver the best care to
consumers with complex conditions. The acquisition will expand the scope of treatment that can be offered in the
home rather than in higher-cost institutional settings. The transaction was completed on November 17, 2015.
The Health Care M&A Report, 4th Quarter, 2015 88
TARGET: Family Hospical, LLC ACQUIRER: New Century Hospice, LLC
LISTING: Private LISTING: Private
LOCATION: Boulder, Colorado CEO: David Gasmire PHONE: 972-239-0907
UNITS: 4101 McEwen Road, Ste. 500 FAX: 972-239-0908 REVENUE: Dallas, Texas 75244
NET INCOME: WEB SITE: www.newcenturyhospice.com
Family Hospice is a local hospice provider in
Boulder.
New Century Hospice, a portfolio company of Petra Capital
Partners, is one of the nation's largest regional hospices.
ANNOUNCEMENT DATE: December 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
With this acquisition, New Century Hospice now operates 19 hospices in six states, including Colorado, Georgia,
Louisiana, Oklahoma, Texas and Virginia. Family Hospice will do business as New Century Hospice of Boulder
after an undisclosed time of transition. The transaction closed on November 30, 2015.
TARGET: American HomePatient ACQUIRER: Lincare Holdings Inc.
LISTING: Private LISTING: Private
LOCATION: Brentwood, Tennessee CEO: Kristen Hoefer PHONE: 800-284-2006
UNITS: 19387 U.S. 19 North FAX: REVENUE: Clearwater, Florida 33764
NET INCOME: WEB SITE: www.lincare.com
American HomePatient, a portfolio company of
Highland Capital Management L.P., is one of the
top five diversified home healthcare providers in the
United States, with more than 200 locations. It
supplies home medical products and services.
Lincare Holdings is part of The Linde Group in Germany. Lincare
Holdings is one of the largest providers of oxygen and other
respiratory therapy services to patients in the home. It has
approximately 1,000 locations in 48 U.S. states and Canada.
ANNOUNCEMENT DATE: December 7, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Jefferies LLC served as financial advisor to American HomePatient in this transaction. The transaction is expected
to close in the first quarter of 2016.
The Health Care M&A Report, 4th Quarter, 2015 89
TARGET: Alliance Home Health ACQUIRER: Sutter Care at Home
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Salinas, California CEO: Marcia Ressig PHONE: 800-698-1273
UNITS: 1900 Powell St., Ste. 300 FAX: REVENUE: Emeryville, California 94608
NET INCOME: WEB SITE: suttercareathome.org
Alliance Home Health serves the areas of Monterey,
Carmel, Pebble Beach, Pacific Grove, Seaside,
Marina, Salinas, Gonazales and Soledad counties
with a full array of homecare services.
Sutter Care at Home is part of the not-for-profit Sutter Health
network and delivers personalized care to more than 150,000
patients in 24 northern California counties each year. It offers both
home health and hospice care services.
ANNOUNCEMENT DATE: December 9, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition will expand Sutter Care at Home's home health programs and services in Monterey County.
Alliance will continue to offer skilled nursing, occupational therapy, physical therapy, speech therapy, home health
aide services and medical social services.
TARGET: Alternacare Infusion
Pharmacy
ACQUIRER: PharMerica Corporation
LISTING: Private LISTING: NYSE: PMC
LOCATION: Olathe, Kansas CEO: Gregory S. Weishar PHONE: 502-627-7000
UNITS: 1901 Campus Place FAX: REVENUE: Louisville, Kentucky 40299
NET INCOME: WEB SITE: www.pharmerica.com
Alternacare Infusion Pharmacy provides specialty
home infusion services in the Greater Kansas City
metropolitan area.
PharMerica operates as an institutional pharmacy services company
in the United States. On a trailing 12-month basis, it generated
revenue of $2.0 billion, EBITDA of $133.5 million and net income
of $18.1 million.
ANNOUNCEMENT DATE: December 15, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This transaction was announced together with PharMerica's acquisition of Integrated Pharmacy Network in
Midland, Michigan. With these two acquisitions, PharMerica has achieved its goal of completing acquisitions that
generate at least $100 million of annualized sales in the aggregate in 2015. The company now operates 95
institutional pharmacies, 16 specialty home infusion pharmacies and five specialty oncology pharmacies in 45
states.
The Health Care M&A Report, 4th Quarter, 2015 90
HOSPITALS
TARGET: Titusville Area Hospital ACQUIRER: Meadville Medical Center
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Titusville, Pennsylvania CEO: Philip Pandolph PHONE: 814-333-5000
UNITS: 72 (beds) 751 Liberty Street FAX: REVENUE: $ 26,223,324 (ttm,
6/30/2014) Meadville, Pennsylvania 16335
NET INCOME: $- 2,471,529 (EBITDA) WEB SITE: meadvillemedicalcenter.com
Titusville Area Hospital is a 72-bed acute care
facility serving the residents of eastern Crawford
County, as well as portions of Venango and Forest
Counties. It will continue to operate under its own
name.
Meadville Medical Center and its subsidiaries have served residents
of Crawford County for more than 146 years.
ANNOUNCEMENT DATE: October 1, 2015 PRICE: $ 8,000,000 Merger PRICE PER UNIT: $ 111,111 TERMS: In August, the two hospital sought $8
million in funding through the Crawford
County Hospital Authority. Meadville
Medical used the money to purchase
Titusville and its related corporations.
PRICE/REVENUE: .31
PRICE/INCOME: - 3.24
Talks between the two independent hospitals began in 2014, and the merger was finalized in mid September. The
transaction became effective on October 1, 2015.
TARGET: Bethesda Health, Inc. ACQUIRER: Baptist Health South Florida
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Boynton Beach, Florida CEO: Brian E. Keeley PHONE: 786-596-1960
UNITS: 481 (beds) 50 Barracuda Lane FAX: REVENUE: $309,871,664 (ttm,
9/30/2014) Coral Gables, Florida 33037
NET INCOME: $ 26,064,019 (EBITDA) WEB SITE: www.baptisthealth.net
Bethesda Health is comprised of two hospitals,
Bethesda Hospital East (401 beds) and Bethesda
Hospital West (80 beds). The financial data listed
below is for Bethesda Hospital East only.
Baptist Health is one of the largest not-for-profit hospital systems in
Florida, with seven hospitals in Dade and Monroe counties, and 18
outpatient facilities in Dade, Monroe and Broward counties.
ANNOUNCEMENT DATE: October 2, 2015 PRICE: Merger PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Baptist Health South Florida and Bethesda Health have signed an agreement to merge, pursuant to a 24-month
transition period culminating on September 30, 2017. During the transition period, both organizations will
collaborate to enhance effectiveness in their operations and share best practices to address the ongoing evolution in
the health care industry.
The Health Care M&A Report, 4th Quarter, 2015 93
TARGET: St. Francis Hospital Inc. ACQUIRER: LifePoint Health
LISTING: Nonprofit LISTING: NASDAQ: LPNT
LOCATION: Columbus, Georgia CEO: William F. Carpenter
III
PHONE: 615-920-7000
UNITS: 312 (beds) 330 Seven Springs Way FAX: REVENUE: $211,655,313 (ttm,12/31/13) Brentwood, Tennessee 37027
NET INCOME: $ 27,434,620 (EBITDA) WEB SITE: www.lifepoint.com
St. Francis Hospital is a 312-bed facility offering a
full range of inpatient, outpatient and emergency
room services. It is the only area hospital offering
open heart surgery.
LifePoint Health provides quality inpatient, outpatient and post-
acute services in 21 states. On a trailing 12-month basis, it
generated revenue of $4.9 billion, EBITDA of $627.5 million and
net income of $135.2 million.
ANNOUNCEMENT DATE: October 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Upon joining the LifePoint system, St. Francis will become a tax-paying entity. LifePoint has satisfied St. Francis'
financial obligations, including paying off its loan from the U.S. Dept. of Housing and Urban Development. As
part of LifePoint, St. Francis will continue its existing charity care policies. This transaction closed on January 4,
2016.
TARGET: St. Luke's Cornwall
Hospital
ACQUIRER: Montefiore Health System
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Newburgh, New York CEO: Steven M. Safyer,
MD
PHONE: 718-920-4321
UNITS: 193 (beds) 111 East 210th Street FAX: REVENUE: $166,987,608 (ttm,
12/31/2014) Bronx, New York 10467
NET INCOME: $- 16,897,935 (EBITDA) WEB SITE: www.montefiore.org
St. Luke's Cornwall Hospital is a 193-bed acute care
facility with two campuses in Newburgh.
Montefiore Health System owns 10 hospitals and is the University
Hospital and academic medical center for Albert Einstein College of
Medicine.
ANNOUNCEMENT DATE: October 5, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
St. Luke’s will enter into a passive parent relationship, with Montefiore as the parent organization. The SLCH
Board of Trustees will remain intact, comprised of its existing community leaders, who will be joined by three
members-at-large from Montefiore Health System. SLCH embarked on the search for a strategic partner in early
2014, and had been posting operating losses and working capital deficiencies since 2012.
The Health Care M&A Report, 4th Quarter, 2015 94
TARGET: Al Noor Hospitals Group plc ACQUIRER: Mediclinic International Ltd.
LISTING: LSE: AHN.L LISTING: OTCQB: MCFFY
LOCATION: Abu Dhabi, United Arab Emirates CEO: Danie P. Meintjes
B.PI
PHONE: 27 21 809 6500
UNITS: Strand Road FAX: REVENUE: $468,250,000 (ttm) Stellenbosch, South Africa 7600
NET INCOME: $ 98,590,000 (EBITDA,
ttm) WEB SITE: www.mediclinic.co.za
Al Noor Hospitals Group provides primary,
secondary and tertiary care services through its
portfolio of hospitals and medical centers in the
United Arab Emirates.
Mediclinic International operates private hospitals in South Africa,
Namibia, Switzerland and the UAE. On a trailing 12-month basis, it
generated revenue of $2.6 billion, EBITDA of $542 million and net
income of $321.45 million.
ANNOUNCEMENT DATE: October 14, 2015 PRICE: $2,300,000,000 Merger PRICE PER UNIT: TERMS: This transaction is a reverse takeover.
Al Noor shareholders can opt to get a
special dividend of £3.28 per share or
tender their stock for £11.60 apiece,
which represents a 39% premium over
the October 1 closing price.
PRICE/REVENUE: 4.91
PRICE/INCOME: 23.33
Mediclinic shareholders will own a majority stake (84% to 93%) in the combined company, which will have 73
hospitals and approximately 10,200 beds and 35 clinics. Al Noor spurned interest from rival NMC Health plc, also
in Abu Dhabi. The combination of Al Noor and Mediclinic will create the biggest private healthcare provider in the
UAE, and will be renamed Mediclinic International plc and listed on the London Stock Exchange.
TARGET: Bartow Regional Medical
Center
ACQUIRER: BayCare Health System
LISTING: NYSE: CYH LISTING: Nonprofit
LOCATION: Bartow, Florida CEO: Glenn Waters, EVP PHONE: 877-692-2922
UNITS: 72 (beds) 2985 Drew Street FAX: REVENUE: $ 48,592,231 (ttm,
3/31/2014) Clearwater, Florida 33759
NET INCOME: $ 2,302,272 (EBITDA) WEB SITE: baycare.org
Community Health Systems, Inc. is selling the 72-
bed Bartow Regional Medical Center and its related
outpatient services. This is the second Florida
hospital Community Health has sold in the past two
months. It still operates 24 others in the state.
BayCare Health operates 13 hospitals and hundreds of outpatient
locations throughout the Tampa Bay and central Florida regions.
Bartow Regional will be its second hospital in Polk County.
ANNOUNCEMENT DATE: October 16, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Bartow Regional Medical Center will be connected with Winter Haven Hospital and South Florida Baptist
Hospital in Plant City, which anchor a continuum of broader community health services in eastern Hillsborough
and Polk County. This transaction closed on December 31, 2015.
The Health Care M&A Report, 4th Quarter, 2015 95
TARGET: River Valley Health
Partners
ACQUIRER: Prime Healthcare Services
LISTING: Nonprofit LISTING: Private
LOCATION: East Liverpool, Ohio CEO: Prem Reddy PHONE: 909-235-4400
UNITS: 152 (beds) 3300 East Guasti Road FAX: REVENUE: $ 50,978,082 (ttm,
12/31/2014) Ontario, California 91761
NET INCOME: $- 5,690,729 (EBITDA) WEB SITE: www.primehealthcare.com
River Valley Health Partners (RVHP) is comprised
of The City Hospital Association, dba East
Liverpool City Hospital, a 152-bed acute care
hospital, River Valley Physicians LLC and Ohio
Valley Home Health Services, Inc.
Through its nonprofit subsidiary Prime Healthcare Foundation,
Prime Healthcare Services is acquiring RVHP. Prime Healthcare
Services owns 38 acute-care hospitals in 11 states.
ANNOUNCEMENT DATE: October 20, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
RVHP serves a population of more than 115,000 throughout the tri-state region of Ohio, West Virginia and
Pennsylvania. The acquisition is expected to close in the first quarter of 2016.
TARGET: Southern Regional Medical
Center
ACQUIRER: Prime Healthcare Services
LISTING: Nonprofit LISTING: Private
LOCATION: Riverdale, Georgia CEO: Prem Reddy, MD PHONE: 909-235-4400
UNITS: 244 (beds) 3300 East Guasti Road FAX: REVENUE: $186,281,500 (ttm, 6/30/14) Ontario, California 91761
NET INCOME: $- 10,153,017 (EBITDA) WEB SITE: www.primehealthcare.com
The U.S. Bankruptcy Court for the Northern District
of Georgia approved the sale of Southern Regional
Medical Center (244 beds) to Prime Healthcare on
October 27.
Prime Healthcare Services and the Prime Healthcare Foundation
own and operate 38 acute care hospitals in 11 states.
ANNOUNCEMENT DATE: October 28, 2015 PRICE: $ 51,000,000 PRICE PER UNIT: $ 209,016 TERMS: Prime has committed to at least $50
million in capital improvements in the
hospital over the next five years,
including equipment replacement,
operational and emergency department
improvements, and $1 million to recruit
physicians.
PRICE/REVENUE: .27
PRICE/INCOME: - 5.02
In late July, Prime Healthcare Foundation, an affiliate of Prime Healthcare Services, submitted a letter of intent to
purchase most of Southern Regional's assets. Prime Healthcare Foundation will operate the hospital under a
management services agreement until the sale is completed in early December.
The Health Care M&A Report, 4th Quarter, 2015 96
TARGET: Saket City Hospital Private
Limited
ACQUIRER: Max Healthcare
LISTING: Private LISTING: Private
LOCATION: New Delhi, India CEO: Rajit Mehta, MD PHONE: 91 11 2651 5050
UNITS: 230 (beds) 1,2 Press Enclave Road, Saket FAX: 91 11 2651 0050 REVENUE: New Delhi, India 110 017
NET INCOME: WEB SITE: www.maxhealthcare.in
Smart Health City Pte Ltd., the Singapore-based BK
Modi Group company, which manages and operates
the Saket City Hospital, is selling a majority stake
to Max Healthcare. The hospital opened in 2013
with 230 operational beds and is expanding to 300
beds.
Max Healthcare now operates 12 hospitals (1,900-plus beds) in
delhi-NCR, Punjab and Uttarakhand, employing 2,100 physicians
and 9,300 support staff. Its one of the leading hospital chains in
India.
ANNOUNCEMENT DATE: October 29, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: 51% stake in Saket City Hospital. PRICE/REVENUE:
PRICE/INCOME:
Max Healthcare plans to further expand this facility by 900 additional beds, bringing Saket City Hospital's total to
1,200 beds. Max Healthcare already operates Max Super Specialty Hospital-Saket, which is contiguous with Saket
City Hospital. Together, the facilities will have more than 2,000 beds in Saket, which is part of New Delhi.
TARGET: 2 hospitals in North
Carolina
ACQUIRER: Duke LifePoint Healthcare
LISTING: NYSE: THC LISTING: Private
LOCATION: Hickory and Sanford, North
Carolina
CEO: William J. Fulkerson,
Jr. MD
PHONE: 615-920-7651
UNITS: 492 (total beds) 330 Seven Springs Way FAX: REVENUE: $285,612,615 (ttm,
5/31/2014) Brentwood, Tennessee 37027
NET INCOME: $ 50,122,849 (EBITDA) WEB SITE: dukelifepointhealthcare.com
Tenet Healthcare Corporation is selling Central
Carolina Hospital (137 beds) in Sanford, and Frye
Regional Medical Center (355 beds) in Hickory, as
well as 19 physician practices.
Duke LifePoint is a joint venture of Duke University Health System
and LifePoint Health (NASDAQ: LPNT), which brings together
LifePoint's experience in community-based hospital management
and Duke's leadership in clinical service.
ANNOUNCEMENT DATE: November 3, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Duke LifePoint will maintain all services currently provided at Central Carolina Hospital and Frye Regional
Medical Center. Duke LifePoint operates 12 hospitals, seven of which are in North Carolina, as well as a company
that offers hospital-based and mobile catheterization lab services. When the transaction is completed, Duke
LifePoint will operate 14 hospitals nationwide. This transaction closed on January 4, 2016.
The Health Care M&A Report, 4th Quarter, 2015 97
TARGET: University General Hospital ACQUIRER: Foundation HealthCare, Inc.
LISTING: OTCQB: UGHS LISTING: OTCQB: FDNH
LOCATION: Houston, Texas CEO: Stanton Nelson PHONE: 405-608-1700
UNITS: 69 (beds) 14000 N. Portland Ave., Ste.
200
FAX:
REVENUE: $ 70,000,000 (net revenue,
2014) Oklahoma City, Oklahoma 73134
NET INCOME: WEB SITE: www.fndh.com
University General Hospital (69 beds) was part of
University General Health System, which
announced the closing of the facility on December
23, 2014. UGHS filed for reorganization under
Chapter 11 on February 27, 2015.
Foundation owns and operates hospitals in Texas and Oklahoma,
and has interests in ambulatory surgery centers in several states. On
a trailing 12-month basis, it generated revenue of $124.7 million,
EBITDA of $14.4 million and net income of $919,700.
ANNOUNCEMENT DATE: November 10, 2015 PRICE: $ 33,000,000 PRICE PER UNIT: $ 478,261 TERMS: PRICE/REVENUE: .47
PRICE/INCOME:
In documents filed with the Bankruptcy Court, UGH reported net revenues in excess of $70 million for 2014.
Foundation expects this acquisition to be immediately accretive. Foundation built and manages seven ambulatory
surgery centers and one surgical hospital in the Houston area. The transaction closed on December 31, 2015.
TARGET: Memorial Family of
Services
ACQUIRER: Virginia Mason Health System
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Yakima, Washington CEO: Gary S. Kaplan, MD PHONE: 888-862-2737
UNITS: 208 (beds) 1100 Ninth Avenue FAX: REVENUE: $356,061,113 (ttm,
10/31/2014) Seattle, Washington 98101
NET INCOME: $ 7,369,999 (EBITDA) WEB SITE: www.virginiamason.org
Memorial Family of Services includes Yakima
Valley Memorial Hospital, a 208-bed acute care
community hospital, as well as primary care
practices and specialty care services such as cardiac
care, cancer and hospice care, among others.
Virginia Mason Health System includes the 336-bed Virginia
Mason Medical Center; eight regional medical centers in the Puget
Sound area; a skilled nursing facility and an outpatient chronic care
management program.
ANNOUNCEMENT DATE: November 11, 2015 PRICE: Merger PRICE PER UNIT: TERMS: Non-cash transaction. PRICE/REVENUE:
PRICE/INCOME:
The affiliation is a non-cash transaction in which Memorial will become part of Virginia Mason Health. It will
expand Virginia Mason's presence in central Washington, where it already has partnerships with Kittitas Valley
Healthcare in Ellensburg and Confluence Health in Wenatchee for providing or supporting specific services. The
affiliation is expected to take effect in early 2016, following FTC regulatory clearance.
The Health Care M&A Report, 4th Quarter, 2015 98
TARGET: RegionalCare Hospital
Partners
ACQUIRER: Apollo Global Management, LLC
LISTING: Private LISTING: NYSE: APO
LOCATION: Brentwood, Tennessee CEO: Joshua Harris, co-
founder
PHONE: 212-15-3200
UNITS: 1,027 (total beds) 9 West 57th Street, 43rd Floor FAX: REVENUE: $757,642,265 (ttm, various in
2014) New York, New York 10019
NET INCOME: $ 87,788,033 (total
EBITDA) WEB SITE: www.agm.com
RegionalCare Hospital Partners, a portfolio
company of Warburg Pincus, owns and operates
eight non-urban hospitals in Alabama, Arizona,
Connecticut, Iowa, Montana, Ohio and Texas.
Apollo is a leading global alternative investment manager with
offices around the world. It had assets under management of
approximately $162 billion as of September 30, 2015 in private
equity, credit and real estate funds.
ANNOUNCEMENT DATE: November 12, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: The financials below include Sierra
Vista Regional Health, Sierra Vista,
Arizona, which was replaced by Canyon
Vista Medical Center in April 2015.
PRICE/REVENUE:
PRICE/INCOME:
UBS Investment Bank served as the exclusive financial advisor to RegionalCare. Willkie Farr & Gallagher LLP
and Waller Lansden Dortch & Davis LLP services as RegionalCare's legal advisors. Barclays and Citi served as
financial advisors to Apollo. Akin Gump Strauss Hauer & Feld LLP and Paul, Weiss, Rifkind, Wharton & Garrison
LLP served as Apollo's legal advisors. This deal closed on December 11, 2015.
TARGET: 5 Tenet hospitals ACQUIRER: WellStar Health System
LISTING: NYSE: THC LISTING: Nonprofit
LOCATION: Atlanta MSA, Georgia CEO: Candice Saunders PHONE: 770-956-7827
UNITS: 1,004 (beds) 805 Sandy Plains Road FAX: REVENUE: $714,525,138 (ttm,
12/31/2014) Marietta, Georgia 30066
NET INCOME: $ 62,687,346 (EBITDA) WEB SITE: www.wellstar.org
Tenet Healthcare is selling five Atlanta-area
hospitals and 26 physician clinics. The hospitals are
Atlanta Medical Center and its South Campus,
North Fulton Hospital, Spalding Regional Hospital
and Sylvan Grove Hospital.
WellStar Health System consists of five hospitals, seven urgent care
centers, 16 satellite imaging centers, one skilled nursing facility, one
adult congregate living facility and two inpatient hospices.
ANNOUNCEMENT DATE: December 1, 2015 PRICE: $661,000,000 PRICE PER UNIT: $ 658,367 TERMS: $575 million upfront, plus the
assumption of $86 million in debt
related to the lease of North Fulton
Hospital.
PRICE/REVENUE: .93
PRICE/INCOME: 10.54
The Tenet hospitals included in the sale are the 466-bed Atlanta Medical Center (Atlanta), its 210-bed South
Campus (East Point), the 158-bed North Fulton Hospital (Roswell), the 160-bed Spalding Regional Hospital
(Griffin) and the 10-bed Sylvan Grove Hospital (Jackson). All will become not-for-profit entities following the
close of the transaction, and WellStar will be the largest health system in the state of Georgia.
The Health Care M&A Report, 4th Quarter, 2015 99
TARGET: Memorial Hospital of Salem
County
ACQUIRER: Prime Healthcare Services
LISTING: NYSE: CYH LISTING: Private
LOCATION: Salem, New Jersey CEO: Prem Reddy, MD PHONE: 909-235-4400
UNITS: 126 (beds) 3300 East Guasti Road FAX: REVENUE: $ 57,964,957 (ttm,
12/31/2014) Ontario, California 91761
NET INCOME: $- 17,564,136 (EBITDA) WEB SITE: www.primehealthcare.com
Community Health Systems is selling the 126-bed
acute-care Memorial Hospital of Salem County and
related businesses, including physician clinic
operations and ancillary services.
Prime Healthcare Foundation, the private charity arm of Prime
Healthcare Services, has signed a definitive agreement to acquire
the hospital. It has $650 million in assets, all donated by Dr. Prem
Reddy and his family.
ANNOUNCEMENT DATE: December 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Memorial Hospital of Salem County offers emergency and medical/surgical services, including cardiopulmonary
care and wound care. Community Health does not expect the divestiture to have a meaningful impact on financial
operations. The transaction is expected to close in the second quarter of 2016.
TARGET: Hospital Samaritano ACQUIRER: UnitedHealth Group Inc.
LISTING: Private LISTING: NYSE: UNH
LOCATION: Sao Paulo, Brazil CEO: Richard T. Burke, Sr. PHONE: 952-936-1300
UNITS: 9900 Bren Road East FAX: REVENUE: Minnetonka, Minnesota 55343
NET INCOME: WEB SITE: www.unitedhealthgroup.com
Hospital Samaritano has approximately 200 to 300
beds.
UnitedHealth is the country's largest health insurer, operating as a
diversified health and well-being company in the United States. On
a trailing 12-month basis, it generated revenue of $146.9 billion,
EBITDA of $12.5 billion and net income of $6.1 billion.
ANNOUNCEMENT DATE: December 9, 2015 PRICE: $350,000,000 Approximate PRICE PER UNIT: TERMS: The Minneapolis Star Tribune cited
Brazilian press reports on the
approximate price of this transaction.
PRICE/REVENUE:
PRICE/INCOME:
Following its $4.3 billion purchase of the Brazilian health insurer/hospital operator, Amil Participacoes, in
December 2012, UnitedHealth Group owns 31 hospitals in Brazil. This deal adds a 32nd hospital. UnitedHealth is
committed to developing international operations as a complement to its U.S. health insurance and health services
businesses.
The Health Care M&A Report, 4th Quarter, 2015 100
TARGET: Hutcheson Medical Center ACQUIRER: ValorBridge Partners
LISTING: Nonprofit LISTING: Private
LOCATION: Fort Oglethorpe, Georgia CEO: Christopher Durham PHONE: 678-235-6700
UNITS: 114 (beds) 5665 New Northside Drive, Ste.
550
FAX: 678-235-6701
REVENUE: $ 58,839,193 (ttm,
9/30/2014) Atlanta, Georgia 30328
NET INCOME: $- 786,605 (EBITDA) WEB SITE: www.valorbridge.com
Hutcheson Medical Center filed for Chapter 11
bankruptcy protection in November 2014. The 114-
bed acute care facility closed on December 4. It also
included Parkside Nursing Home, which was sold
separately.
ValorBridge Partners provides capital management through a
holding company structure. One such company, ApolloMD, had
been operating the emergency department at Hutcheson Medical
Center. CEO Chris Durham also serves as president of ApolloMD.
ANNOUNCEMENT DATE: December 14, 2015 PRICE: $ 4,200,000 PRICE PER UNIT: TERMS: Parkside Nursing Home and an adjacent
children's day care center was sold to
Maybrook Healthcare LLC for $7.2
million.
PRICE/REVENUE: .07
PRICE/INCOME: - 5.34
ValorBridge Partners submitted the winning bid for Hutcheson late on December 11, 2015, topping a $4 million
bid from People's Choice Hospital, a boutique company that specializes in managing struggling healthcare systems.
The hospital owed more than $32 million to its creditors, primarily Erlanger Health System and Regions Bank, a
three-county hospital authority and the governments of Catoosa and Walker counties.
TARGET: Pocono Health System ACQUIRER: Lehigh Valley Health Network
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: East Stroudsburg, Pennsylvania CEO: Brian A. Nester PHONE: 610-402-8000
UNITS: 213 (beds) 1200 S. Cedar Crest Blvd. FAX: REVENUE: $252,734,471 (ttm,
6/30/2014) Allentown, Pennsylvania 18105
NET INCOME: $ 37,293,635 (EBITDA) WEB SITE: www.lvhn.org
Pocono Medical Center is celebrating its 100th year
in 2015. It operates the 213-bed Pocono Medical
Center, and has collaborated with LVHN on
services such as interventional radiology and
radiation oncology in recent years.
Lehigh Valley Health Network (LVHN) includes five hospital
campuses, 13 health centers in five counties, over 130 primary and
specialty care physician practices, as well as imaging, home health
services and lab services.
ANNOUNCEMENT DATE: December 16, 2015 PRICE: Merger PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The entities signed a letter of intent to merge in May 2015, and now have an agreement for a full-asset merger.
LVHN anticipates developing with PHS a new hospital, called Pocono Medical Center West in Pocono Township,
as was announced in the late fall of 2014. The proposed merger is expected to take effect in the first half of 2016.
The Health Care M&A Report, 4th Quarter, 2015 101
TARGET: Silverton Health ACQUIRER: Legacy Health
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Silverton, Oregon CEO: George J. Brown,
MD
PHONE: 503-415-5600
UNITS: 48 (beds) 1919 N.W. Lovejoy St. FAX: REVENUE: $ 99,655,696 (ttm,
9/30/2014) Portland, Oregon 97209
NET INCOME: $ 2,889,498 (EBITDA) WEB SITE: www.legacyhealth.org
Silverton Health is a single-hospital system. It had
been holding discussions with other systems,
particularly Providence Health & Services in
Renton, Washington, with which it shared programs
such as telemedicine.
Legacy Health operates six hospitals, as well as primary and urgent
care clinics, outpatient services and Hopewell House Hospice.
ANNOUNCEMENT DATE: December 16, 2015 PRICE: $ 60,000,000 PRICE PER UNIT: $ 1,250,000 TERMS: Legacy has committed to invest more
the $60 million over eight years to
support and grow programs and services
at Silverton.
PRICE/REVENUE: .60
PRICE/INCOME: 20.76
The two parties began talks in March 2015 and signed a letter of intent to affiliate on June 10, 2015. With this
definitive agreement signed, the transaction is expected to be finalized in early spring 2016. Upon closing,
Silverton Hospital will be renamed Legacy Silverton Medical Center.
TARGET: Dauterive Hospital ACQUIRER: Iberia Medical Center
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: New Iberia, Louisiana CEO: Parker Templeton PHONE: 337-374-0441
UNITS: 79 (beds) 2315 East Main Street FAX: REVENUE: $ 37,652,750 (ttm,
12/31/2014) New Iberia, Louisiana 70560
NET INCOME: $- 3,334,672 (EBITDA) WEB SITE: www.iberiamedicalcenter.com
Dauterive Hospital is a 79-bed hospital that has
struggled for several years. It will be closed on or
about December 31, 2015, and will reopen in the
spring of 2016.
Iberia Medical Center is licensed for 99 aacuter-care beds, and
accommodates medical, surgical, obstetric, pediatric and critical
care patients. Its operating budget is currently about $55 million.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The two organizations signed a letter of intent in October 2015. When the hospital reopens, it will be called Iberia
Medical Center - North Campus and will offer short-stay and outpatient surgery, behavioral health services,
inpatient rehabilitation, imaging, sleep lab services and other outpatient services.
The Health Care M&A Report, 4th Quarter, 2015 102
TARGET: WCA Hospital ACQUIRER: UPMC
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Jamestown, New York CEO: Jeffrey A. Romoff PHONE: 412-647-8762
UNITS: 317 (beds) 200 Lothrop St. FAX: REVENUE: $102,155,220 (ttm,
12/31/2014) Pittsburgh, Pennsylvania 15213-2582
NET INCOME: $ 8,072,923 (EBITDA) WEB SITE: www.upmc.com
WCA Hospital, formerly known as Women's
Christian Association, is a 317-bed acute care
facility, and the largest in southwestern New York.
It is the first New York State hospital to sign an
affiliation agreement with UPMC.
UPMC (University of Pittsburgh Medical Center) has more than 20
hospitals, more than 500 doctors' offices and outpatient sites, a 2.8
million-member health insurance division and international and
commercial operations.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: $ 25,000,000 PRICE PER UNIT: $ 78,864 TERMS: UPMC has committed to invest at least
$25 million over the next 10 years to
support enhancements. It has also
agreed to relieve WCA's debt and cover
its pension obligations.
PRICE/REVENUE: .24
PRICE/INCOME: 3.10
The two entities signed a strategic affiliation agreement on August 12, 2012, and WCA and UPMC Hamot, a
regional referral hub in northwestern Pennsylvania, have had a long-standing collaboration. This integration is
expected to be finalized in late summer of 2016.
TARGET: 2 Indiana hospitals ACQUIRER: Community Health Systems, Inc.
LISTING: Private LISTING: NYSE: CYH
LOCATION: La Porte and Knox, Indiana CEO: Wayne T. Smith PHONE: 615-465-7000
UNITS: 277 (beds) 4000 Meridian Blvd. FAX: REVENUE: $188,878,000 -2014 Franklin, Tennessee 37067
NET INCOME: $ 30,368,500 (2014,
EBITDA) WEB SITE: www.chs.net
Indiana University Health is selling an 80% stake in
two of its hospitals, the 227-bed Indiana University
Health La Porte Hospital and the 50-bed IU Health
Starke Hospital in Knox. It will retain a 20% stake.
Community Health Systems provides general and specialized
hospital care services in the United States. On a trailing 12-month
basis, CYH generated revenue of $19.6 billion, EBITDA of $2.8
billion and net income of $397 million.
ANNOUNCEMENT DATE: December 29, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Community Health Systems will operate 11 hospitals in Indiana, following this acquisition. It will provide capital
and expand resources for physicain and employees to deliver better health care.
The Health Care M&A Report, 4th Quarter, 2015 103
LABORATORIES, MRI & DIALYSIS
TARGET: Viztek, LLC ACQUIRER: Konica Minolta Medical Imaging USA
LISTING: Private LISTING: OTCQB: KNCAY
LOCATION: Garner, North Carolina CEO: David Widmann PHONE: 973-633-1500
UNITS: 411 Newark Pompton Turnpike FAX: REVENUE: Wayne, New Jersey 07470
NET INCOME: WEB SITE: www.konicaminolta.com
Viztek is a leading provider of complete digital
software and hardware imaging solutions. It
recently introduced its Exa platform for PACS, RIS
and EHR systems.
Konica Minolta Medical Imaging, a subsidiary of Konica Minolta,
focuses on primary imaging, digital radiography, ultrasound,
healthcare IT and services.
ANNOUNCEMENT DATE: October 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Viztek’s strong presence and customer loyalty complements Konica Minolta’s customer base and healthcare
solutions lineup across hospitals, outpatient clinics, imaging centers and teleradiology. As part of the acquisition,
20/20 Imaging LLC, the partner company of Viztek LLC, will also become an autonomous subsidiary of Konica
Minolta. The acquisition was completed on October 1, 2015.
TARGET: DNA Diagnostics Center ACQUIRER: GHO Capital Partners LLP
LISTING: Private LISTING: Private
LOCATION: Fairfield, Ohio CEO: Mike Mortimer,
Executive Partner
PHONE: +44 20 3700 7440
UNITS: 44 Davies Street FAX: REVENUE: London, United Kingdom W1K 5JA
NET INCOME: WEB SITE: ghocapital.com
DDC is one of the largest DNA testing companies
in the world, offering comprehensive DNA testing
services for paternity and other family relationships,
forensics, cell line authentication, and ancestry.
DDC is a portfolio company of MTS Health
Investors, LLC.
Global Healthcare Opportunities, or GHO Capital, was founded in
2014 as a specialist healthcare investment adviser based in London.
ANNOUNCEMENT DATE: October 13, 2015 PRICE: $118,201,200 Approximate PRICE PER UNIT: TERMS: Total transaction value of €104 million. PRICE/REVENUE:
PRICE/INCOME:
This is GHO Capital's first acquisition since its founding in 2014, when it raised an initial €400 million fund.
Deloitte LLP provided corporate finance debt advisory services to GHO Capital and Goldman Sachs Specialty
Lending Group provided debt financing for the transaction. Ropes & Gray LLP provided legal advice to GHO
Capital. Robert W. Baird & Co served as the financial advisor to DDC and MTS. Hogan Lovells provided legal
counsel to DDC and MTS. The transaction closed on October 13, 2015.
The Health Care M&A Report, 4th Quarter, 2015 107
TARGET: Olea Medical SA ACQUIRER: Toshiba Medical Systems Corporation
LISTING: Private LISTING: Private
LOCATION: La Ciotat, France CEO: Toshio Takiguchi PHONE: 0287-26-6211
UNITS: 1385, Shimoishigami, Otawara-
shi
FAX: 0287-26-6050
REVENUE: Tochigi, Japan 324-8550
NET INCOME: WEB SITE: toshibamedicalsystems.com
Olea Medical designs and markets medical imaging
applications that significantly improve diagnostic
processes and treatment evaluation.
Toshiba Medical Systems, a subsidiary of Toshiba Corporation, is a
leading providers of medical diagnostic imaging systems and
comprehensive medical solutions, such as CT, X-ray and vascular,
ultrasound, nuclear medicine and MRI systems.
ANNOUNCEMENT DATE: October 13, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition enables Toshiba to accelerate the growth of its MRI business and offer new clinical added value to
healthcare providers by leveraging Olea's cutting-edge software technology for advanced post-processing and
image analysis, as well as its broad relationships with the world's key research institutions and customers.
TARGET: DMS Health Technologies,
Inc.
ACQUIRER: Digirad Corporation
LISTING: Private LISTING: NASDAQ: DRAD
LOCATION: Fargo, North Dakota CEO: Matthew G. Molchan PHONE: 858-726-1600
UNITS: 1048 Industrial Court, Ste. E FAX: 858-726-1700 REVENUE: $ 65,000,000 (est., 2014) Suwanee, Georgia 30024
NET INCOME: WEB SITE: www.digirad.com
Platinum Equity, a Los Angeles-based private
equity firm, is selling Project Rendezvous Holding
Corp., the ultimate parent of DMS Health
Technologies, Inc. DMS provides mobile diagnostic
imaging and related services to small and regional
hospitals.
Digirad provides diagnostic solutions through its two segments,
Diagnostic Services and Diagnostic Imaging. On a trailing 12-
month basis, it generated revenue of $57.4 million, EBITDA of $5.9
million and net income of $3.6 million.
ANNOUNCEMENT DATE: October 14, 2015 PRICE: $ 36,000,000 PRICE PER UNIT: TERMS: Cash. PRICE/REVENUE: .55
PRICE/INCOME:
Once the acquisition is complete, Digirad expects the consolidated Digirad entity to generate pro forma annual
revenue and adjusted EBITDA of over $125 million and $17 million, respectively. The transaction is expected to
close in the fourth quarter of 2015.
The Health Care M&A Report, 4th Quarter, 2015 108
TARGET: Clarient, Inc. ACQUIRER: NeoGenomics, Inc.
LISTING: NYSE: GE LISTING: NASDAQ: NEO
LOCATION: Aliso Viejo, California CEO: Douglas M. VanOort PHONE: 239-768-0600
UNITS: 12701 Commonwealth Dr, Ste. 9 FAX: 239-690-4237 REVENUE: $127,000,000 (2014,
approx.) Fort Myers, Florida 33913
NET INCOME: $ 13,000,000 (EBITDA) WEB SITE: www.neogenomics.org
GE Healthcare is selling Clarient, Inc. and its
wholly owned subsidiary Clarient Diagnostic
Services, Inc., provides comprehensive cancer
diagnostic testing to hospitals, physicians and the
pharmaceutical industry.
NeoGenomics, together with its subsidiary, NeoGenomics
Laboratories, Inc., operates a network of cancer-focused testing labs
providing genetic and molecular services. On a trailing 12-month
basis, it generated revenue of $95.6 million, and EBITDA of $7.6
million.
ANNOUNCEMENT DATE: October 21, 2015 PRICE: $275,200,000 PRICE PER UNIT: TERMS: $80 million in cash, $110 million in
preferred stock at $7.50 per share, and
15 million shares of NEO common
stock ($85.2 million, based on the prior-
day closing price of $5.68 per share).
GE Healthcare will own 32% of NEO.
PRICE/REVENUE: 2.17
PRICE/INCOME: 21.17
The acquisition will allow NeoGenomics to broaden its offering of cancer diagnostic tests to hospitals and
physicians across the country, and to accelerate its growth in the global market for pharmaceutical clinical trials
and reach. In addition, NeoGenomics and GE Healthcare have agreed to collaborate on a new bioinformatics
initiative that combines their shared interest in precision oncology. This transaction is expected to close in the
fourth quarter of 2015.
TARGET: CliniSys Group Ltd. ACQUIRER: Roper Technologies Inc.
LISTING: Private LISTING: NYSE: ROP
LOCATION: Chertsy, Surrey, United Kingdom CEO: Brian D. Jellison PHONE: 941-556-2601
UNITS: 6901 Professional Pkwy. East,
Ste. 200
FAX:
REVENUE: Sarasota, Florida 34240
NET INCOME: WEB SITE: www.roperind.com
CliniSys is one of the largest European suppliers of
laboratory information systems, providing clinical
laboratory and order communication systems to
more than 2,000 laboratories in 34 counties.
Roper Technologies designs and develops software and solutions
for healthcare, transportation, food, energy and other industries. On
a trailing 12-month basis, it generated revenue of $3.6 billion,
EBITDA of $1.2 billion and net income of $673.4 million.
ANNOUNCEMENT DATE: October 26, 2015 PRICE: $261,100,000 PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition was announced concurrently with Roper's acquisition of Atlas Medical. The two acquisitions
will be combined with Roper subsidiaries, Sunquest Information Systems and Data Innovations, and will expand
Roper's portfolio of companies focused on diagnostic solutions, adding capabilities that support clinical testing
processes and connectivity to systems, instruments and providers across the world.
The Health Care M&A Report, 4th Quarter, 2015 109
TARGET: Pacific Cancer Institute ACQUIRER: Alliance Oncology
LISTING: Private LISTING: NASDAQ: AIQ
LOCATION: Maui, Hawaii CEO: Greg Spurlock,
President
PHONE: 615-263-7888
UNITS: 1801 West End Avenue, Suite
700
FAX:
REVENUE: $ 6,300,000 Projected 2015 Nashville, Tennessee 37203
NET INCOME: WEB SITE: www.allianceoncology.com
PCI is focused on radiation oncology treatments. As
the only radiation therapy provider on the island of
Maui, PCI delivers care utilizing a state-of-the-art
TrueBeam STx System, offering both conventional
radiation therapy and stereotactic radiosurgery.
Alliance Oncology is a division of Alliance HealthCare Services, a
leading national provider of outsourced healthcare services.
Alliance Oncology is the nationwide leader in radiosurgery
programs and patient satisfaction.
ANNOUNCEMENT DATE: October 28, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Alliance Oncology will acquire a 95%
controlling interest in Pacific Cancer
Institute.
PRICE/REVENUE:
PRICE/INCOME:
Alliance Oncology believes PCI will be a strategic partner to further expand its footprint, while adding value to
Alliance Oncology’s vast network of physicians and physicists. The PCI facility includes a full radiation therapy
team: radiation oncologists, medical physicists, nurses, and radiation therapists who work with patients to develop
customized cancer treatment plans and will continue treating patients throughout the acquisition. The transaction is
expected to close in the fourth quarter of 2015.
TARGET: Consultants in Laboratory
Medicine
ACQUIRER: Aurora Diagnostics
LISTING: Private LISTING: Private
LOCATION: Toledo, Ohio CEO: Daniel D. Crowley PHONE: 866-420-5512
UNITS: 11025 RCA Center Drive, Suite
300
FAX: 561-626-4530
REVENUE: Palm Beach Gardens, Florida 33410
NET INCOME: WEB SITE: www.auroradx.com
Consultants in Laboratory Medicine of Greater
Toledo, Inc. is a hospital-based practice providing
anatomic laboratory medicine professional
pathology services to 11 hospitals in Michigan and
Ohio.
Aurora Diagnostics is the leading independent specialized
laboratory company focused on anatomic pathology at 25 locations
in the United States.
ANNOUNCEMENT DATE: October 29, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition gives Aurora a strong presence in the northwest Ohio market, where there is great potential to
provide exceptional inpatient and outpatient pathology services. Aurora’s entry into northwest Ohio is also
beneficial because of its proximity to Detroit, Mich., where Aurora Diagnostics operates Pinkus Laboratories, a
renowned full-service dermatopathology laboratory.
The Health Care M&A Report, 4th Quarter, 2015 110
TARGET: Clinical Laboratory
Partners
ACQUIRER: Quest Diagnostics Inc.
LISTING: Nonprofit LISTING: NYSE: DGX
LOCATION: Hartford, Connecticut CEO: Stephen H.
Rusckowski
PHONE: 973-520-2700
UNITS: 3 Giralda Farms FAX: REVENUE: Madison, New Jersey 07940
NET INCOME: WEB SITE: www.questdiagnostics.com
Clinical Laboratory Partners is a wholly owned
subsidiary of Hartford HealthCare, which has five
hospitals in Connecticut. Its hospital-based labs and
inpatient and outpatient services are not included in
the transaction.
Quest Diagnostics provides diagnostic testing information services
in the United States and internationally. On a trailing 12-month
basis, it generated revenue of $7.5 billion, EBITDA of $1.5 billion
and net income of $703.0 million.
ANNOUNCEMENT DATE: November 10, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
HHC and CLP have collaborated with Quest since CLP's formation in 1998, with Quest providing reference testing
for CLP and HHC's five hospitals. CLP will transition lab testing now provided by its lab in Newington to Quest's
rapid-response clinical labs in Stratford, Torrington, and Wallingford, Connecticut, and full-service, state-of-the-art
clinical laboratory in Marlborough, Mass. The acquisition also includes several CLP patient service centers and
other select assets. This transaction is expected to close early in 2016.
TARGET: Oncotest GmbH ACQUIRER: Charles River Laboratories
International, Inc.
LISTING: Private LISTING: NYSE: CRL
LOCATION: Freiburg, Germany CEO: James C. Foster PHONE: 781-222-6000
UNITS: 251 Ballardvale Street FAX: 978-988-5665 REVENUE: Wilmington, Massachusetts 01887
NET INCOME: WEB SITE: www.criver.com
Oncotest GmbH is a contract research organization
(CRO) providing discovery services for oncology.
Oncotest offers an integrated portfolio of target
discovery and validation services for preclinical
oncology researchers.
Charles River Laboratories International, Inc. is a global, early-
stage contract research company. On a trailing 12-month basis, it
generated revenue of $1.34 billion, EBITDA of $305.9 million and
net income of $145.5 million.
ANNOUNCEMENT DATE: November 18, 2015 PRICE: $ 36,000,000 Approximate PRICE PER UNIT: TERMS: The purchase price was approximately
€34 million in cash. The transaction
includes a potential additional payment
of €2 million based on future
performance.
PRICE/REVENUE:
PRICE/INCOME:
In 2016, Oncotest is expected to represent approximately 1% of Charles River’s consolidated revenue and be
neutral to slightly accretive to non-GAAP earnings per share. Oncotest has become part of Charles River’s In Vivo
Discovery business, which is reported in the Discovery and Safety Assessment segment.
The Health Care M&A Report, 4th Quarter, 2015 111
TARGET: LGC Group ACQUIRER: KKR & Co. L.P.
LISTING: Private LISTING: NYSE: KKR
LOCATION: Teddington, Middlesex, United
Kingdom
CEO: George R. Roberts PHONE: 212-750-8300
UNITS: 9 West 57th Street, Ste. 4200 FAX: REVENUE: $337,818,508 -2015 New York, New York 10019
NET INCOME: WEB SITE: www.kkr.com
LCG, a portfolio company of Bridgepoint, is an
international life sciences measurement and testing
company that provides services such as DNA
sequencing, paternity and drug/alcohol testing. It
has employees in 22 countries.
KKR is a private equity and real estate firm specializing in direct
and fund investments. On a trailing 12-month basis, it generated
revenue of $6.52 billion and net income of $455.6 million.
ANNOUNCEMENT DATE: December 8, 2015 PRICE: $989,085,487 Approximate PRICE PER UNIT: TERMS: £650 million, reported by Healthcare
Business International. PRICE/REVENUE: 2.93
PRICE/INCOME:
Under Bridgepoint, LCG has grown rapidly over the past five years through the acquisition of 12 related
companies and revenue growth from £130 million in 2010 to £222 million ($337,818,508) in 2015. With KKR's
support, management plans to continue to build global leadership positions within their chosen markets, with a
particular focus on the United States and Asia.
TARGET: Pathology, Inc. ACQUIRER: Laboratory Corp. of America
LISTING: Private LISTING: NYSE: LH
LOCATION: Torrance, California CEO: David P. King PHONE: 336-229-1127
UNITS: 358 South Main Street FAX: REVENUE: Burlington, North Carolina 27215
NET INCOME: WEB SITE: www.labcorp.com
Pathology, Inc. is a full-service independent
women's health laboratory, providing expertise in
reproductive FDA donor testing as well as
anatomic, molecular and digital pathology services.
Laboratory Cop. Of America Holdings (LabCorp) operates as an
independent clinical laboratory company worldwide. On a trailing
12-month basis, it generated revenue of $7.8 billion, EBITDA of
$1.6 billion and net income of $442.2 million.
ANNOUNCEMENT DATE: December 10, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
LabCorp is acquiring substantially all of the operating assets of Pathology, Inc., including patient service centers,
used to conduct its medical testing and services business. The transaction is expected to close in the first quarter of
2016, after which Pathology, Inc. will cease operations.
The Health Care M&A Report, 4th Quarter, 2015 112
TARGET: Whitehouse Laboratories ACQUIRER: Albany Molecular Research Inc.
LISTING: Private LISTING: NASDAQ: AMRI
LOCATION: Lebanon, New Jersey CEO: William S. Marth PHONE: 518-512-2000
UNITS: 26 Corporate Circle FAX: 518-512-2020 REVENUE: $ 11,000,000 (est. 2015) Albany, New York 12203
NET INCOME: $ 6,000,000 (adj. EBITDA,
2015) WEB SITE: www.amriglobal.com
Whitehouse Laboratories provides testing services
that include chemical and material analysis, method
development and validation and quality control
verification services to the pharmaceutical, medical
device and personal care industries.
Albany Molecular Research (AMRI), a contract research and
manufacturing company, provides integrated drug discovery,
development and manufacturing services. On a trailing 12-month
basis, it generated revenue of $362.5 million and EBITDA of $44.3
million.
ANNOUNCEMENT DATE: December 15, 2015 PRICE: $ 54,000,000 PRICE PER UNIT: TERMS: Cash, and an additional $2 million in
shares of AMRI common stock
contingent upon Whitehouse Labs
achieving certain 2015 targets.
PRICE/REVENUE: 4.91
PRICE/INCOME: 9.00
Whitehouse Labs offers a comprehensive array of testing solutions for life sciences companies. It will continue to
operate independently within AMRI's DDS segment. The transaction is expected to be accretive in 2016 to AMRI's
non-GAAP diluted earnings per share. It was signed and closed simultaneously.
TARGET: Community Portable X-Ray,
Inc.
ACQUIRER: Schryver Medical LLC
LISTING: Private LISTING: Private
LOCATION: Plano, Texas. CEO: Doug Goetz PHONE: 800-638-3240
UNITS: 12075 East 45th St., Ste. 600 FAX: REVENUE: Denver, Colorado 80239
NET INCOME: WEB SITE: www.schryvermedical.com
Community Portable X-Ray provides mobile x-ray
and other imaging services to long-term health care
facilities, home care, psychiatric hospitals, industrial
sites, dialysis centers and athletic teams.
Schryver Medical Sales and Marketing, LLC is a portfolio company
of Revelstoke Capital Partners. Schryver is a JCAHO accredited
provider of mobile imaging diagnostics, clinical lab services,
oxygen therapy and durable medical equipment rental.
ANNOUNCEMENT DATE: December 23, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Besides its base in Plano, Community Portable X-Ray also has locations in Fort Worth, Houston and San Antonio.
This acquisition, and another announced concurrently for MetroStat Clinical Laboratory, Inc., marks Schryver's
entry in to the Texas market. Perkins Coie LLP and Winston & Strawn LLP served as legal counsel to Schryver.
The transaction closed on December 28.
The Health Care M&A Report, 4th Quarter, 2015 113
TARGET: MetroStat Clinical
Laboratory, Inc.
ACQUIRER: Schryver Medical LLC
LISTING: Private LISTING: Private
LOCATION: Garland, Texas CEO: Doug Goetz PHONE: 800-638-3240
UNITS: 12075 East 45th Ave., Ste. 600 FAX: REVENUE: Denver, Colorado 80239
NET INCOME: WEB SITE: www.schryvermedical.com
MetroStat Clinical Laboratory, Inc. and MetroStat
Diagnostic Services, Inc. (collectively MetroStat)
are being acquired. The company provides clinical
laboratory services, mobile x-ray and other mobile
imaging services in Texas.
Schryver Medical Sales and Marketing, LLC is a portfolio company
of Revelstoke Capital Partners. Schryver is a JCAHO accredited
provider of mobile imaging diagnostics, clinical lab services,
oxygen therapy and durable medical equipment rental.
ANNOUNCEMENT DATE: December 23, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
MetroStat provides digital ultrasound and EKG teleradiology equipment that allow its technologists to obtain the
best images for interpretation by its radiologists. Its clinical laboratory and in-house microbiology system now use
hospital-grade lab equipment. This transaction, announced concurrently with Community Protable X-Ray, marks
Schryver's entry in to the Texas market. Perkins Coie LLP and Winston & Strawn LLP served as legal counsel to
Schryver. The transaction closed on December 28.
TARGET: US Lithotripsy, LP ACQUIRER: United Medical Systems, Inc.
LISTING: Private LISTING: Private
LOCATION: Irving, Texas CEO: Jorgen Madsen PHONE: 800-516-9425
UNITS: 1700 West Park Drive FAX: 508-870-0682 REVENUE: Westborough, Massachusetts 01581
NET INCOME: WEB SITE: www.ums-usa.com
USMD Health Systems has sold US Lithotripsy LP,
and its affiliates. US Lithotripsy is a provider of
lithotripsy services. It operates in Arizona,
Arkansas, Colorado, Missouri, Oklahoma and
Texas. US Lithotripsy performs over 12,000 ESWL
procedures annually.
United Medical Systems, a portfolio company of New State Capital
Partners, provides turnkey mobile lithotripsy, laser and stereotactic
breast biopsy services to patients at 850 healthcare facilities in the
U.S., Canada and Latin America.
ANNOUNCEMENT DATE: December 29, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
US Lithotripsy will add more than 100 hospitals, ambulatory surgical centers and other sites of service in the
southwestern United States to UMS’ mobile lithotripsy customer base.
The Health Care M&A Report, 4th Quarter, 2015 114
LONG-TERM CARE
TARGET: Empire Crossing Retirement
Community
ACQUIRER: Extendicare Inc.
LISTING: Private LISTING: TSX: EXE
LOCATION: Port Hope, Ontario CEO: Timothy L. Lukenda PHONE: (905) 470-4000
UNITS: 64 3000 Steeles Ave. East, Ste.
700
FAX:
REVENUE: Markham, Ontario L3R 9W2
NET INCOME: $ 1,060,764 (stabilized est.
EBITDA) WEB SITE: www.extendicare.com
This newly built independent living/assisted living
community opened in May 2015. The property also
features excess land that provides to option to
double the community's size. Nautical Lands
Group, a private developer, is the owner.
Extendicare is one of North America’s largest long-term care
providers with 251 senior care centers. In Canada, Extendicare
operates 95 senior care facilities and is also a major provider of
home health care in Ontario through its ParaMed Home Health Care
division.
ANNOUNCEMENT DATE: October 1, 2015 PRICE: $ 15,418,082 PRICE PER UNIT: $ 240,908 TERMS: CAD$20.2 million. PRICE/REVENUE:
PRICE/INCOME: 14.53
The vendor provided Extendicare with 24-months occupancy support of up to CAD$1.3 million, which will be held
back from the CAD$20.2 million purchase price on closing and released back to Extendicare during the lease-up
period based on an agreed-upon formula. The transaction features a stabilized NOI yield estimated at 6.88%.
Extendicare will initially pay the purchase price in cash, with the intention to finance up to 65% within a year.
TARGET: Arcadian Cove ACQUIRER: American Realty Capital Healthcare
Trust-II
LISTING: Private LISTING: Private
LOCATION: Richmond, Kentucky CEO: Tom D'Arcy PHONE: 212-415-6500
UNITS: 49 405 Park Avenue, 15th Fl. FAX: REVENUE: $ 1,400,000 (approximate) New York, New York 10022
NET INCOME: $ 426,000 (EBITDA) WEB SITE: www.americanrealtycap.com
Built in 2009, the 34,446-square foot assisted living
community was 95% occupied. This is the only
seniors housing asset of the owner, a small
investment group based on the West Coast. The
community was operated by a local individual.
ARC Healthcare Trust-II is the second healthcare REIT that has
been sponsored by the sponsor, and is part of the American Realty
Capital family of companies and non-traded REITs.
ANNOUNCEMENT DATE: October 2, 2015 PRICE: $ 4,775,000 PRICE PER UNIT: $ 97,449 TERMS: PRICE/REVENUE: 3.41
PRICE/INCOME: 11.21
Meridian Senior Living will operate the community with a 7.65% lease yield. Senturian Senior Housing Brokerage
represented the seller in the transaction, which closed in September 2015.
The Health Care M&A Report, 4th Quarter, 2015 117
TARGET: Skilled nursing facility ACQUIRER: In-state buyer
LISTING: Private LISTING: Private
LOCATION: Sevierville, Tennessee CEO: PHONE:
UNITS: 149 (beds) FAX: REVENUE: Tennessee
NET INCOME: WEB SITE:
The skilled nursing facility, owned by a local
owner/operator, was 60% occupied and in need of
substantial differed maintenance. It was built in
1979.
The in-state buyer will partner with Grace Management to run the
facility.
ANNOUNCEMENT DATE: October 2, 2015 PRICE: $ 5,700,000 PRICE PER UNIT: $ 38,255 TERMS: PRICE/REVENUE:
PRICE/INCOME:
Senturian Senior Housing Brokerage represented the seller in the transaction, which closed at the end of May 2015.
TARGET: Aegis Living portfolio ACQUIRER: Welltower Inc.
LISTING: Private LISTING: NYSE: HCN
LOCATION: Seattle, Washington CEO: Thomas J. DeRosa PHONE: 419-247-2800
UNITS: 161 4500 Dorr Street FAX: 419-247-2826 REVENUE: $ 11,486,000 (2014) Toledo, Ohio 43615
NET INCOME: $ 3,393,000 (2014
EBITDA) WEB SITE: www.welltower.com
All located in the Seattle area, the three assisted
living/memory care communities are owned and
operated by Aegis Living. Average occupancy is
84%. There are 75 AL units and 86 MC units, built
between 1976 and 1995, with extensive remodels
between 2003 and 2007.
Welltower, formerly Health Care REIT, is one of the largest
diversified healthcare REITs in the country and invests in both
seniors housing and healthcare real estate. It owns more than 1,300
properties in almost every state in the country, plus Canada and the
UK.
ANNOUNCEMENT DATE: October 6, 2015 PRICE: $ 58,500,000 PRICE PER UNIT: $ 363,354 TERMS: PRICE/REVENUE: 5.09
PRICE/INCOME: 17.24
The portfolio consists of 111,879 total square feet. Welltower will bring in Sunrise Senior Living to operate the
communities and improve cash flow by focusing on higher-acuity AL and adding more memory care. This
acquisition expands Welltower's relationship with Sunrise Senior Living, and the properties will be put in the
REIT's operating portfolio. Marcus & Millichap handled the transaction, which closed in September 2015.
The Health Care M&A Report, 4th Quarter, 2015 118
TARGET: Eden Villa ACQUIRER: The Solana Company
LISTING: Private LISTING: Private
LOCATION: Castro Valley, California CEO: PHONE: 858-259-5591
UNITS: 61 201 Lomas Santa Fe Dr., Ste.
450
FAX:
REVENUE: $ 2,524,000 (adjusted
2014) Solana Beach, California 92075
NET INCOME: $ 600,000 (adj. EBITDA
2014) WEB SITE: www.solstarinvetsments.com
Built in 1987 by a local family, the assisted living
community features 72 beds in 61 units, but it is
licensed for 92 residents. Occupancy was about
94%.
The Solana Company originates and manages direct investments in
senior living properties and hotels, through its subsidiaries, Solana
Senior Living and Solana Hospitality.
ANNOUNCEMENT DATE: October 6, 2015 PRICE: $ 8,000,000 PRICE PER UNIT: $ 131,148 TERMS: PRICE/REVENUE: 3.17
PRICE/INCOME: 13.33
The purchase was financed by a $5.2 million loan from Far East National Bank. The buyer plans to convert a
portion of the property to a secured memory care facility. Twelve AL units will be converted to memory care,
which will add approximately 20 memory care beds. Northstar Senior Living will manage the community. Marcus
& Millichap represented the seller in the transaction, which closed on September 16.
TARGET: Keiro Senior HealthCare
portfolio
ACQUIRER: Pacifica Companies LLC
LISTING: Nonprofit LISTING: Private
LOCATION: Los Angeles, California CEO: Deepak Israni PHONE: 619-296-9000
UNITS: 615 (beds/units) 1785 Hancock Street, Ste. 20 FAX: 619-296-9090 REVENUE: San Diego, California 92110
NET INCOME: WEB SITE: www.pacificacompanies.com
Included in the purchase are a 300-bed skilled
nursing facility in Lincoln Heights, a 98-bed SNF in
Gardena, a 127-unit assisted living community in
Boyle Heights and a 90-bed intermediate care
facility on the Boyle Heights campus. Overall
occupancy is 94.5%.
Pacifica Companies is a real estate company that owns hotels and
housing in the U.S., Mexico and India, and also operates 55 senior
care communities in 14 states.
ANNOUNCEMENT DATE: October 6, 2015 PRICE: $ 41,000,000 PRICE PER UNIT: $ 66,667 TERMS: PRICE/REVENUE:
PRICE/INCOME:
Keiro Senior Healthcare is a not-for-profit that was founded in 1961 and provides culturally sensitive programs to
the aging Japanese-American community. The staff, food, décor and management are Japanese-based, and the
properties have been well maintained. Keiro Senior Healthcare will use the proceeds of the sale to expand its
program educating Japanese Americans about aging. The conditions of the deal are contigent on approval by the
Attorney General, which rejected a previous acquisition attempt by The Ensign Group.
The Health Care M&A Report, 4th Quarter, 2015 119
TARGET: Courtside Cottages ACQUIRER: Pacifica Companies
LISTING: Private LISTING: Private
LOCATION: Vacaville, California CEO: Deepak Israni PHONE: 619-296-9000
UNITS: 75 1785 Hancock Street, Ste. 20 FAX: 619-296-9090 REVENUE: $ 8,135,839 (in-place) San Diego, California 92110
NET INCOME: $ 612,375 (in-place
EBITDA) WEB SITE: www.pacificacompanies.com
Courtside Cottages is a stand-alone memory care
community that is 93% occupied. A local
partnership owns the property, bringing on the
management arm of a non-profit to third-party
manage.
Pacifica Companies is a private real estate investment company that
buys and manages a wide variety of real estate, including seniors
housing, residential, hospitality, multifamily, office and retail.
ANNOUNCEMENT DATE: October 7, 2015 PRICE: $ 10,650,000 PRICE PER UNIT: $ 142,000 TERMS: PRICE/REVENUE: 1.31
PRICE/INCOME: 17.39
The property was a former AREI property. The partners had un-TIC'ed" themselves and held on to the property
through the Great Recession. Pacifica should be able to greatly improve on margins. Marcus & Millichap handled
the transaction
TARGET: Ramsey Woods ACQUIRER: American Realty Capital Healthcare
Trust-II
LISTING: Private LISTING: Private
LOCATION: Cudahy, Wisconsin CEO: Tom D'Arcy PHONE: 212-415-6500
UNITS: 29 405 Park Avenue, 15th Fl. FAX: REVENUE: $ 1,900,000 (approximate) New York, New York 10022
NET INCOME: $ 570,000 (approx.
EBITDA) WEB SITE: www.americanrealtycap.com
Built in 1995, Ramsey Woods is a 29-unit assisted
living community that is licensed for 33 beds.
Occupancy is 100%, of which 80% is private pay.
The site is approved for 60 units. It is owned by a
small investor group and operated by Meridian
Senior Living.
ARC Healthcare Trust-II is the third healthcare REIT that has been
sponsored by the sponsor, and is part of the American Realty
Capital family of companies and non-traded REITs.
ANNOUNCEMENT DATE: October 7, 2015 PRICE: $ 6,000,000 Approximate PRICE PER UNIT: $ 206,897 TERMS: PRICE/REVENUE: 3.16
PRICE/INCOME: 10.53
After acquiring the community in September 2014, the owner spent $350,000 in renovations and nearly doubled
the value of the property. Occupancy is at 100%, with a consistently full wait list. The building has 16,075 square
feet, and there is room for the buyer to expand to 60 units. Meridian will continue as operator at the community.
The transaction closed on October 1.
The Health Care M&A Report, 4th Quarter, 2015 120
TARGET: Manorcare Health Services ACQUIRER: Haven Health Group
LISTING: Private LISTING: Private
LOCATION: Tucson, Arizona CEO: PHONE: 801-296-5100
UNITS: 118 (beds) 1355 S. Higley Road, Suite 111 FAX: REVENUE: $ 8,500,000 (approximate) Gilbert, Arizona 85296
NET INCOME: WEB SITE: http://havenhg.com/
Operated by HCR ManorCare, this skilled nursing
facility features 118 beds. It was built in 1988 with
45,000 square feet, and occupancy was about 75%.
It was operating just above breakeven. It will be
renamed Haven of Tucson.
Haven Health Group operates 10 skilled nursing and rehab facilities
throughout the state of Arizona.
ANNOUNCEMENT DATE: October 8, 2015 PRICE: $ 8,500,000 Approximate PRICE PER UNIT: $ 72,034 TERMS: Just the operations. PRICE/REVENUE: 1.00
PRICE/INCOME:
Congressional Bank closed a $4 million revolving line of credit with a three-year term in connection with the
acquisition. Because Haven Health won’t be able to bill and collect under the old operator provider agreements,
the line was structured to allow for unbilled accounts receivables during the transition process. Houlihan Lokey has
been representing the sellers, HCP, Inc. and HCR ManorCare, in a series of sales, and this transaction closed on
November 1.
TARGET: 2 skilled nursing facilities ACQUIRER: Private investor
LISTING: Public LISTING: Private
LOCATION: Houston & Mesquite, Texas CEO: PHONE:
UNITS: 309 (beds) FAX: REVENUE: $ 12,500,000 (annualized)
NET INCOME: $ 500,000 (tr. 12 months
EBITDA) WEB SITE:
Built in 1970, the 160-bed Houston facility has 143
dually certified beds. Built in 1977, the 149-bed
Mesquite facility includes 138 dually certified beds.
Combined occupancy at the two skilled nursing
facilities was 75% with a 15% quality mix.
The private investor has a national presence as a skilled nursing
landord.
ANNOUNCEMENT DATE: October 12, 2015 PRICE: $ 10,000,000 PRICE PER UNIT: $ 32,362 TERMS: PRICE/REVENUE: .80
PRICE/INCOME: 20.00
The seller was a publicly traded healthcare REIT that had leased the two facilities to a third party operator.
Concord Healthcare Group will now operate the facilities for the buyer. There are a total of 85,591 square feet.
Blueprint Healthcare Real Estate Advisors handled the tranasction, which closed on October 1.
The Health Care M&A Report, 4th Quarter, 2015 121
TARGET: 2 skilled nursing facilities ACQUIRER: Private skilled nursing company
LISTING: Nonprofit LISTING: Private
LOCATION: Amsterdam/Castleton-on-Hudson, New York
CEO: PHONE:
UNITS: 200 (beds) FAX: REVENUE: New York
NET INCOME: WEB SITE:
The two skilled nursing facilities include the 120-
bed Capstone Center for Rehabilitation and Nursing
in Amsterdam, and the 80-bed Riverside Center for
Rehabilitation and Nursing in Castleton-on-Hudson.
The buyer is a private New York-based company that operates other
skilled nursing facilities in the state.
ANNOUNCEMENT DATE: October 13, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The seller was a Chicago, Illinois-based not-for-profit Catholic health care organization. Healthcare Transactions
Group represented the seller in the sale, which closed on October 1.
TARGET: John J. Foley Skilled
Nursing Facility
ACQUIRER: Brookhaven Memorial Hospital
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Yaphank, New York CEO: Richard T. Margulis PHONE: 631-654-7100
UNITS: 264 (beds) 101 Hospital Road FAX: REVENUE: Patchogue, New York 11772
NET INCOME: WEB SITE: www.brookhavenhospital.org/
Owned by Suffolk County, the skilled nursing
facility opened in 1995 and was named after the late
county legislator John J. Foley.
The not-for-profit 306-bed acute-care hospital is part of a
multidisciplinary, multicampus healthcare complex.
ANNOUNCEMENT DATE: October 15, 2015 PRICE: $ 15,000,000 PRICE PER UNIT: $ 56,818 TERMS: PRICE/REVENUE:
PRICE/INCOME:
The facility had been losing money for years, prompting the sale by the county. A private operator made a $20
million offer in July 2015, but withdrew it when county legislators pledged support of the sale to the nonprofit
hospital. Brookhaven plans to use the facility to provide outpatient services, such as dialysis, Medicaid assisted
living, pediatric services, adult day care and drug rehabilitation. The Foley name will remain on the building.
Closing is not expected until 2016.
The Health Care M&A Report, 4th Quarter, 2015 122
TARGET: Pavilion at Queens ACQUIRER: Long-term care operator
LISTING: Private LISTING: Private
LOCATION: Flushing, New York CEO: PHONE:
UNITS: 302 (beds) FAX: REVENUE: New York
NET INCOME: WEB SITE:
The 302-bed skilled nursing facility also features a
Dialysis Center and 20 certified Medicaid bed
ventilator units.
A New York-based long-term care operator.
ANNOUNCEMENT DATE: October 16, 2015 PRICE: $ 46,900,000 Approximate PRICE PER UNIT: $ 155,298 TERMS: PRICE/REVENUE:
PRICE/INCOME:
To help facilitate the acquisition, Contemporary Healthcare Capital provided a $7 million mezzanine loan to the
buyer, which will also help fund working capital and closing costs. The transaction closed on September 3.
TARGET: Morton County Senior
Communities
ACQUIRER: Regional operator
LISTING: Private LISTING: Private
LOCATION: Elkhart, Kansas CEO: PHONE:
UNITS: 103 (beds) FAX: REVENUE: Colorado
NET INCOME: WEB SITE:
This is a 103-bed skilled nursing/assisted living
facility.
The buyer is a Colorado-based seniors housing and long-term care
operator.
ANNOUNCEMENT DATE: October 19, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
To facilitate the acquisition, Contemporary Healthcare Capital provided a $1.5 million senior mortgage loan,
which will also fund capital expenditures, working capital and closing costs. The transaction closed on October 16.
The Health Care M&A Report, 4th Quarter, 2015 123
TARGET: Spring Creek Village ACQUIRER: Joint venture
LISTING: Private LISTING: Private
LOCATION: Spring, Texas CEO: PHONE:
UNITS: 108 FAX: REVENUE:
NET INCOME: WEB SITE:
Built in 2013, the assisted living/memory care
community features 60 AL units and 48 MC units
with 85,000 square feet. It is just 50% occupied.
SRP Medical is the owner and also built it.
A joint venture between Harrison Street Real Estate Capital and
Bridgewood Property Company.
ANNOUNCEMENT DATE: October 26, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Recently built by SRP Medical, which wanted to capitalize on the strong seller's market, the community changed
operators a year after it opened, causing some marketing and occupancy issues. The joint venture will bring in
Retirement Center Management, a wholly owned subsidiary of Bridgewood, to operate. Greystone Real Estate
Advisors handled the transaction, which closed in September.
TARGET: Wesley Enhanced Living of
Brodheadsville
ACQUIRER: Local operator
LISTING: Nonprofit LISTING: Private
LOCATION: Brodheadsville, Pennsylvania CEO: PHONE:
UNITS: 25 FAX: REVENUE: $ 990,482 Pennsylvania
NET INCOME: $- 268,458 (EBITDA) WEB SITE:
Sitting on 16 acres, this assisted living/memory care
community was built in 1975. There are also four
independent living units in a separate house on the
property. It was owned by a non-profit entity with
other larger communities in the state. Occupancy
was 82%.
The buyer is a local operator with other communities nearby.
ANNOUNCEMENT DATE: October 27, 2015 PRICE: $ 500,000 PRICE PER UNIT: $ 20,000 TERMS: PRICE/REVENUE: .50
PRICE/INCOME: - 1.86
The main building offers 10 memory care units on the first floor and 11 assisted living units on the second.
Monthly rates range from $1,854-$2,472 for AL and $2,885-$2,915 for MC. Most of the residents were private
pay, with some SSI and VA. This was the seller's smallest community, and it was losing money. The buyer will
invest capex into the community in order to attract more memory care residents, increase census and cut
unnecessary expenses. Senior Living Investment Brokerage handled the transaction, which closed on March 31.
The Health Care M&A Report, 4th Quarter, 2015 124
TARGET: 5 retirement communities ACQUIRER: Chartwell Retirement Residences
LISTING: Private LISTING: TSX: CSH.UN
LOCATION: Various, Ontario CEO: Brent Binions PHONE: 905-501-9219
UNITS: 616 100 Milverton Drive, Ste. 700 FAX: 905-501-0813 REVENUE: Mississauga, Ontario L5R 4H1
NET INCOME: WEB SITE: www.chartwellreit.com
The independent living communities contain a total
of 616 units. They were opened between 2008 and
2013 and had an average occupancy of 89.1%. Four
of the properties have an assisted living component,
with 93 total units.
Chartwell Retirement Residences is a REIT that owns and manages
over 180 senior living properties in Canada. It is one of the largest
owners/operators in North America.
ANNOUNCEMENT DATE: October 29, 2015 PRICE: $192,890,000 PRICE PER UNIT: $ 313,133 TERMS: There is a total of $39.7 million in
assumed mortgages. A portion of the
price will be Chartwell issuing to one of
the vendors $11.4 million of
Exchangeable Class B Units of
Chartwell Master Care LP.
PRICE/REVENUE:
PRICE/INCOME:
Chartwell acquired these properties from five separate groups of sellers. Two communities will initially be owned
by two limited partnerships in which sellers' affiliates will retain interests. Signature Retirement Living Corp., an
affiliate of the sellers, will continue to manage these properties until end of year 2018 under contract with
Chartwell. Then, it will acquire the sellers' remaining interests and assume management. Chartwell expects to fund
the acquisition with available cash and its credit facility. The transaction is expected to close in November 2015.
TARGET: Ark Twin Valley Personal
Care Home
ACQUIRER: Akron Management LLC
LISTING: Private LISTING:
LOCATION: Delmont, Pennsylvania CEO: PHONE:
UNITS: 37 FAX: REVENUE: $ 1,800,000 (pro forma)
NET INCOME: $ 300,000 (est. pro forma
EBITDA) WEB SITE:
Ark Twin Valley PCH was built in 1967 and
remodeled in 1998, and it is licensed for 70 beds.
Occupancy was 65% (45 residents), and there are a
total of 20,000 square feet in the building. Delmont
is located 25 miles east of Pittsburgh.
ANNOUNCEMENT DATE: October 29, 2015 PRICE: $ 2,400,000 PRICE PER UNIT: $ 64,865 TERMS: PRICE/REVENUE: 1.33
PRICE/INCOME: 8.00
In 2014, the facility was operating just above breakeven on $1.22 million of revenues. The pro forma figures above
are based on 80% occupancy. Marcus & Millichap represented the seller, a private regional owner, in the
transaction, which closed on October 29.
The Health Care M&A Report, 4th Quarter, 2015 125
TARGET: Geraldine L. Thompson
Care Center
ACQUIRER: Preferred Care Holdings LLC
LISTING: Nonprofit LISTING: Private
LOCATION: Wall Township, New Jersey CEO: PHONE: 609-882-6900
UNITS: 135 (beds) 1201 Parkway Avenue FAX: REVENUE: Ewing, New Jersey 08628
NET INCOME: WEB SITE:
Owned by the County of Monomouth, the skilled
nursing facility has 135 beds. It has been serving the
infirm and elderly since the mid-1920s.
Preferred Care is a skilled nursing provider, with has provided
skilled nursing services at its location in Ewing since 2004.
ANNOUNCEMENT DATE: October 29, 2015 PRICE: $ 15,000,000 PRICE PER UNIT: $ 111,111 TERMS: PRICE/REVENUE:
PRICE/INCOME:
Simultaneously, the county also sold its 174-bed skilled nursing facility in Freehold to Allaire Healthcare Group.
Marcus & Millichap handled the transaction, which closed on December 31.
TARGET: John L. Montgomery Care
Center
ACQUIRER: Allaire Healthcare Group
LISTING: Nonprofit LISTING: Private
LOCATION: Freehold, New Jersey CEO: PHONE:
UNITS: 174 (beds) FAX: REVENUE: Lakewood, New Jersey
NET INCOME: WEB SITE:
The 174-bed skilled nursing facility is owned by the
County of Monomouth.
ANNOUNCEMENT DATE: October 29, 2015 PRICE: $ 17,400,000 PRICE PER UNIT: $ 100,000 TERMS: PRICE/REVENUE:
PRICE/INCOME:
Simultaneously, the county also sold its 135-bed skilled nursing facility in Wall Township to Preferred Care
Holdings. Marcus & Millichap handled the transaction, which closed on December 31.
The Health Care M&A Report, 4th Quarter, 2015 126
TARGET: Traditions Senior Living &
Memory Care
ACQUIRER: Non-traded REIT
LISTING: Private LISTING:
LOCATION: Sherman, Texas CEO: PHONE:
UNITS: 49 FAX: REVENUE: $ 1,800,000 (2014
annualized)
NET INCOME: WEB SITE:
Traditions Senior Living & Memory Care is an
assisted living community with 28 assisted living
units (96% occupied) and 21 memory care units
(100% occupied). It was built in 1982 and
renovated in 2011, and it has 38,400 square feet.
ANNOUNCEMENT DATE: October 29, 2015 PRICE: $ 5,200,000 PRICE PER UNIT: $ 106,122 TERMS: PRICE/REVENUE: 2.89
PRICE/INCOME:
With occupancy running close to 100%, it may be likely that monthly rates are below market and the buyer will be
able to push rents higher. Marcus & Millichap represented the seller, a regional owner/operator/developer, in the
transaction, which closed on October 15.
TARGET: Viera Manor ACQUIRER: Oxford Capital Group
LISTING: Private LISTING: Private
LOCATION: Viera, Florida CEO: John W. Rutledge PHONE: 312-755-9500
UNITS: 86 350 W. Hubbard, Suite 440 FAX: 312-755-9510 REVENUE: Chicago, Illinois 60654
NET INCOME: WEB SITE: http://www.oxford-capital.com/
Viera Manor is an 86-unit/100-bed assisted living
community located on the campus of the Viera
Veterans Administration Outpatient Clinic. Viera is
a master-planned community of over 16,000
residents adjacent to the city of Melbourne.
A national real estate investment, development and management
firm focused on the hospitality and seniors housing sectors, Oxford
completed this acquisition with joint venture partner, AEW Capital
Management.
ANNOUNCEMENT DATE: October 29, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Oxford led the venture including AEW Capital Management to acquire the community. The partners also have
plans to develop a 51-unit memory care community adjacent to the existing community.
The Health Care M&A Report, 4th Quarter, 2015 127
TARGET: Warren Haven Nursing
Home
ACQUIRER: WH Holdings
LISTING: Nonprofit LISTING:
LOCATION: Oxford, New Jersey CEO: PHONE:
UNITS: 180 (beds) FAX: REVENUE: $ 14,200,000 (pro forma)
NET INCOME: $ 1,750,000 (pro forma
EBITDA) WEB SITE:
Warren Haven is a 180-bed skilled nursing facility
that was owned by the County of Warren. It was
built in 1952 with an addition in the 1980s. It is on
32.2 acres and has a total of 94,403 square feet.
Occupancy was 73% with a 15% quality mix. It was
losing money.
ANNOUNCEMENT DATE: October 29, 2015 PRICE: $ 15,600,000 PRICE PER UNIT: $ 86,667 TERMS: PRICE/REVENUE: 1.10
PRICE/INCOME: 8.91
The facility has 12 private rooms and 84 semi-private rooms. The Medicaid census was about 85%, with 13%
private pay and 1.5% Medicare. In 2014, the facility lost $4.4 million on revenues of $11.13 million because of
high labor costs and low occupancy. The buyer will most likely change the wages and benefits and focus on
increasing the Medicare census to achieve the pro forma results posted above. Marcus & Millichap represented the
seller in the transaction, which closed on September 3.
TARGET: 3 seniors housing properties ACQUIRER: Welltower Inc.
LISTING: Private LISTING: NYSE: HCN
LOCATION: West Virginia and, Pennsylvania CEO: Thomas J. DeRosa PHONE: 419-247-2800
UNITS: 387 4500 Dorr Street FAX: 419-247-2826 REVENUE: Toledo, Ohio 43615
NET INCOME: $ 6,750,000 (est. stabilized
EBITDA) WEB SITE: www.welltower.com
The three communities are located in Fayetteville,
Pennsylvania (219 units), Marietta, Pennsylvania
(70 units) and Ona, West Virginia (98 units). They
are operated by Passage Healthcare.
Welltower, formerly Health Care REIT, is one of the largest
diversified healthcare REITs in the country and invests in both
seniors housing and healthcare real estate. It owns more than 1,300
properties in almost every state in the country, plus Canada and the
UK.
ANNOUNCEMENT DATE: October 30, 2015 PRICE: $ 67,000,000 PRICE PER UNIT: $ 173,127 TERMS: PRICE/REVENUE:
PRICE/INCOME: 9.93
Passage Healthcare is a new operating partner of Welltower, and these communities will be in a new 15-year
master lease with a corporate guarantee. The initial lease yield is 7.75% with 3.0% annual escalators. The
properties are expected to have a 1.3x stabilized lease coverage ratio after management fee. This transaction closed
in the third quarter. Passage Healthcare's management team includes Bill Lasky, former CEO of Alterra
Healthcare, and Andy Turner, founder and former CEO of Sun Healthcare Group.
The Health Care M&A Report, 4th Quarter, 2015 128
TARGET: 3 seniors housing properties ACQUIRER: Welltower Inc.
LISTING: Private LISTING: NYSE: HCN
LOCATION: Utah and, Colorado CEO: Thomas J. DeRosa PHONE: 419-247-2800
UNITS: 461 4500 Dorr Street FAX: 419-247-2826 REVENUE: $ 23,800,000 (estimated) Toledo, Ohio 43615
NET INCOME: $ 10,230,000 (est. stabilized
EBITDA) WEB SITE: www.welltower.com
The three seniors housing communities are located
in Colorado Springs, Colorado (171 units), Fort
Collins, Colorado (147 units) and Orem, Utah (143
units). Orem is in the Provo, Utah MSA. They are
operated by Leasure Care.
Welltower, formerly Health Care REIT, is one of the largest
diversified healthcare REITs in the country and invests in both
seniors housing and healthcare real estate. It owns more than 1,300
properties in almost every state in the country, plus Canada and the
UK.
ANNOUNCEMENT DATE: October 30, 2015 PRICE: $155,000,000 PRICE PER UNIT: $ 336,226 TERMS: Sale/Leaseback PRICE/REVENUE: 6.51
PRICE/INCOME: 15.15
Leasure Care is a new operating partner of Welltower, so the three properties are in a new master lease with a
corporate guarantee. The initial lease yield is 6.0% with 3.0% annual escalators. The properties are expected to
have a 1.1x stabilized lease coverage ratio after management fee. This transaction closed in the third quarter.
TARGET: Post-acute campus ACQUIRER: Welltower Inc.
LISTING: NYSE: GEN LISTING: NYSE: HCN
LOCATION: North Cape May, New Jersey CEO: Thomas J. DeRosa PHONE: 419-247-2800
UNITS: 191 (beds and units) 4500 Dorr Street FAX: 419-247-2826 REVENUE: Toledo, Ohio 43615
NET INCOME: $ 1,700,000 (est. EBITDA) WEB SITE: www.welltower.com
The campus includes a 120-bed licensed skilled
nursing facility and an adjacent 71-unit assisted
living community. Genesis Healthcare is the
operator.
Welltower, formerly Health Care REIT, is one of the largest
diversified healthcare REITs in the country and invests in both
seniors housing and healthcare real estate. It owns more than 1,300
properties in almost every state in the country, plus Canada and the
UK.
ANNOUNCEMENT DATE: October 30, 2015 PRICE: $ 15,000,000 PRICE PER UNIT: $ 78,534 TERMS: Sale/leaseback PRICE/REVENUE:
PRICE/INCOME: 8.82
The properties were added to the Genesis master lease, which has a corporate guarantee and expires in 2032. The
initial yield is 9.0% with 3.0% annual escalators. This purchase and leaseback closed in the third quarter. Since the
initial $2.4 billion sale/leaseback completed in 2011, there have been $931 million follow-on pro rata investments
with Genesis.
The Health Care M&A Report, 4th Quarter, 2015 129
TARGET: Post-acute facility ACQUIRER: Welltower Inc.
LISTING: Private LISTING: NYSE: HCN
LOCATION: Bloomington, Indiana CEO: Thomas J. DeRosa PHONE: 419-247-2800
UNITS: 93 (beds) 4500 Dorr Street FAX: 419-247-2826 REVENUE: Toledo, Ohio 43615
NET INCOME: $ 1,750,000 (est. pro forma
EBITDA) WEB SITE: www.welltower.com
Mainstreet developed this 93-bed post-acute
facility, and construction was completed in the
second quarter of 2015. It is operated by Louisville,
Kentucky-based Trilogy Health Services.
Welltower, formerly Health Care REIT, is one of the largest
diversified healthcare REITs in the country and invests in both
seniors housing and healthcare real estate. It owns more than 1,300
properties in almost every state in the country, plus Canada and the
UK.
ANNOUNCEMENT DATE: October 30, 2015 PRICE: $ 18,000,000 PRICE PER UNIT: $ 193,548 TERMS: PRICE/REVENUE:
PRICE/INCOME: 10.29
The property was acquired from Mainstreet pursuant to the 17-property pipeline agreement announced in August
2014. The initial lease yield is 7.5% and will escalate annually by the greater of 2.5% or the CPI. The transaction
closed in the third quarter. Since closing its initial $5.7 million sale/leaseback in 2002, Welltower has completed
$271 million of follow-on pro rata investments with Trilogy.
TARGET: Post-acute facility ACQUIRER: Welltower Inc.
LISTING: Private LISTING: NYSE: HCN
LOCATION: Dyer, Indiana CEO: Thomas J. DeRosa PHONE: 419-247-2800
UNITS: 130 (beds) 4500 Dorr Street FAX: 419-247-2826 REVENUE: Toledo, Ohio 43615
NET INCOME: $ 2,700,000 (est. pro forma
EBITDA) WEB SITE: www.welltower.com
This 130-bed post-acute facility opened in the
second quarter of 2015 and was developed by
Mainstreet. It has primarily skilled nursing beds.
Chicago-based Symphony Post Acute Network is
the operator. Dyer is in the Chicago MSA.
Welltower, formerly Health Care REIT, is one of the largest
diversified healthcare REITs in the country and invests in both
seniors housing and healthcare real estate. It owns more than 1,300
properties in almost every state in the country, plus Canada and the
UK.
ANNOUNCEMENT DATE: October 30, 2015 PRICE: $ 27,000,000 PRICE PER UNIT: $ 207,692 TERMS: PRICE/REVENUE:
PRICE/INCOME: 10.00
The property was acquired from Mainstreet pursuant to the 17-property pipeline agreement announced in August
2014. Symphony will lease the property for 15 years with an initial lease yield of 7.5% and average annual
escalators of 2.65%. The transaction closed in the third quarter. This is the second follow-on acquisition with
Symphony since the initial $21 million sale/leaseback in 2015.
The Health Care M&A Report, 4th Quarter, 2015 130
TARGET: Seniors housing property ACQUIRER: Welltower Inc.
LISTING: Private LISTING: NYSE: HCN
LOCATION: Murphy, Texas CEO: Thomas J. DeRosa PHONE: 419-247-2800
UNITS: 78 4500 Dorr Street FAX: 419-247-2826 REVENUE: Toledo, Ohio 43615
NET INCOME: $ 1,400,000 (est. EBITDA) WEB SITE: www.welltower.com
This 78-unit all-private pay seniors housing
community opened in 2012. It is operated by Sagora
Senior Living.
Welltower, formerly Health Care REIT, is one of the largest
diversified healthcare REITs in the country and invests in both
seniors housing and healthcare real estate. It owns more than 1,300
properties in almost every state in the country, plus Canada and the
UK.
ANNOUNCEMENT DATE: October 30, 2015 PRICE: $ 21,000,000 PRICE PER UNIT: $ 269,231 TERMS: PRICE/REVENUE:
PRICE/INCOME: 15.00
This property was added to an existing master lease with Sagora Senior Living, which has a corporate guarentee
and expires in 2031. The initial lease yield is 6.0% and will escalate annually by the greater of 3.0% or the CPI.
This transaction closed in the third quarter. Since the first $9 million sale/leaseback with Sagora in 2010,
Welltower has completed $332 million of follow-on pro rata investments.
TARGET: 2 skilled nursing facilities ACQUIRER: Omega Healthcare Investors, Inc.
LISTING: Private LISTING: NYSE: OHI
LOCATION: Various, Florida CEO: C. Taylor Pickett PHONE: 410-427-1700
UNITS: 260 (beds) 200 International Circle, Ste.
3500
FAX: 410-427-8800
REVENUE: Hunt Valley, Maryland 21030
NET INCOME: WEB SITE: www.omegahealthcare.com
The two skilled nursing facilities have a combined
260 operating beds.
Omega Healthcare Investors is a REIT that owns or holds
mortgages on more than 800 skilled nursing facilities, assisted
living facilities and other specialty hospitals operated by more than
80 third-party operating companies.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $ 32,000,000 PRICE PER UNIT: $ 123,077 TERMS: Sale/leaseback PRICE/REVENUE:
PRICE/INCOME:
The two skilled nursing facilities were added to an existing operator's Master lease with an initial cash yield of 9%.
The transaction closed on September 29.
The Health Care M&A Report, 4th Quarter, 2015 131
TARGET: 2 skilled nursing facilities ACQUIRER: The Ensign Group, Inc.
LISTING: Private LISTING: NASDAQ: ENSG
LOCATION: Chandler and Scottsdale, Arizona CEO: Christopher
Christensen
PHONE: 949-487-9500
UNITS: 225 (beds) 27101 Puerta Real, Ste. 450 FAX: 949-487-9400 REVENUE: Mission Viejo, California 92691
NET INCOME: WEB SITE: www.ensigngroup.net
Chandler Post Acute and Rehabilitation is a 120-
bed skilled nursing facility located in Chandler,
Arizona. Shea Post Acute Rehabilitation Center is a
105-bed skilled nursing facility located in
Scottsdale. Combined occupancy was 79%.
The Ensign Group operates skilled nursing and assisted living
facilities in western states, as well as home health and hospice
agencies. In 2014, it spun off many of its real estate assets into a
publicly traded REIT.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: For operations only. PRICE/REVENUE:
PRICE/INCOME:
The acquisition of the operations and the commencement of a new long-term lease were effective November 1. The
transaction will be mildly accretive to earnings in 2016. On the same day, Ensign purchased a skilled nursing
facility in California and one in South Carolina.
TARGET: Carrington of St. Charles
Place
ACQUIRER: Owner/operator
LISTING: Private LISTING: Private
LOCATION: St. Charles, Missouri CEO: PHONE:
UNITS: 234 FAX: REVENUE: $ 8,525,000 Chicago, Illinois
NET INCOME: $ 963,000 (annualized
EBITDA) WEB SITE:
Carrington is a CCRC with 138 independent living
units, 32 memory care units, 27 assisted living units
and 66 skilled nursing beds. It was originally built
in 1977, with expansions in 2011 and 2013. There is
a total of 208,257 square feet. Overall occupancy
was 76%.
The Chicago-based owner/operator teamed up with an investor
based in Missouri to complete this acquisition.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $ 17,000,000 PRICE PER UNIT: $ 72,650 TERMS: PRICE/REVENUE: 1.99
PRICE/INCOME: 17.65
There are four buildings on the campus. Most of the reason for the low occupancy was because the independent
living units were at just 51% occupancy. Increasing the IL occupancy to 80% would increase revenues by $1.0
million with a significant part of that contributing to a higher annual EBITDA. Marcus & Millichap represented the
seller in the transaction, which closed on October 30.
The Health Care M&A Report, 4th Quarter, 2015 132
TARGET: Cornerstone at Longwood ACQUIRER: Madison Realty Companies
LISTING: Private LISTING: Private
LOCATION: Longwood, Florida CEO: Gary Langendoen PHONE: 626-796-8700
UNITS: 80 3452 East Foothill Blvd.,
Ste.200
FAX:
REVENUE: $ 2,936,000 Pasadena, California 91107
NET INCOME: $ 799,000 (EBITDA) WEB SITE: www.madisonrealtycompanies.com
Cornerstone is an assisted living community with
63 AL units and 17 units for Alzheimer's and
dementia care. It was originally built in 1965 with
substantial renovations over the years. Occupany
was 90%, and there are 32,968 square feet on the
1.62 acre site.
Madison Realty was founded 20 years ago and it invests in income-
producing properties throughout the U.S. It has another community
in Punta Gorda, Florida. The community was purchased by
Longwood Seniors Living Acquisitions, LP.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $ 9,400,000 PRICE PER UNIT: $ 117,500 TERMS: PRICE/REVENUE: 3.20
PRICE/INCOME: 11.76
The seller, Pacor, Inc., purchased the property in 2008 and completely remodeled it, starting with the Alzheimer's
unit and then the remaining 70 assisted living units. In addition to the standard license, the facility also provides
Assistive Care Services and has an Assisted Living Waiver with Medicaid services. The facility is licensed for 112
beds. Collier's International's Seniors Housing Group represented the seller in the transaction, which closed on
October 21.
TARGET: Medicalodges Herington ACQUIRER: Birchwood Health Care Properties
LISTING: Private LISTING: Private
LOCATION: Herington, Kansas CEO: Isaac Dole PHONE: 312-724-8950
UNITS: 59 (beds) PO Box 476903 FAX: REVENUE: $ 2,315,000 Chicago, Illinois 60647
NET INCOME: $ 270,000 (EBITDA) WEB SITE: www.birchwoodhcp.com
Medicalodges Herington is a 45-bed skilled nursing
facility with 14 residential care beds. It was
originally built in 1965 with expansions in 1974 and
1998. There are 36,940 square feet, and occupancy
was 78% in the SNF and 93% in the RCF.
Birchwood is a private real estate investor specializing in senior
care facilities. They do not operate the facilities, but use third-party
managers.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $ 2,100,000 PRICE PER UNIT: $ 35,593 TERMS: PRICE/REVENUE: .91
PRICE/INCOME: 7.78
This was one of three acquisitions by Birchwood this month in Kansas. They plan to hire New Paradigm Solutions,
based in Manhattan, Kansas, to operate the facilities. A few years ago, the facility was decertified from 58 skilled
beds to 45 beds. It is the only facility in Herington and the closest competitor is 25 miles away. The seller was a
large regional operator based in Kansas, but this was a portfolio outlier. Senior Living Investment Brokerage
handled the transaction, which closed on October 30.
The Health Care M&A Report, 4th Quarter, 2015 133
TARGET: Memory care community ACQUIRER: LTC Properties, Inc.
LISTING: Private LISTING: NYSE: LTC
LOCATION: Florida CEO: Wendy L. Simpson PHONE: 805-981-8655 UNITS: 60 2829 Townsgate Rd., Suite 350 FAX: 805-981-8663 REVENUE: Westlake Village, California 91361
NET INCOME: WEB SITE: www.ltcproperties.com
The 60-unit memory care community was newly
constructed.
LTC Properties is a self-administered real estate investment trust
that invests primarily in long-term care and other health care-related
facilities through lease transactions, mortgage loans and other
investments.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $ 14,300,000 PRICE PER UNIT: $ 238,333 TERMS: PRICE/REVENUE:
PRICE/INCOME:
Concurrent with the purchase, LTC entered into a triple net lease with an affiliate of Clarity Pointe at an initial
lease yield of 8.0% with annual escalators of 2.5%. The lease also provides the lessee a $300,000 contingent earn-
out payment upon the property achieving a sustainable stipulated rent coverage ratio. The transaction closed in the
third quarter.
TARGET: Millennium Post Acute
Rehabilitation
ACQUIRER: The Ensign Group, Inc.
LISTING: Private LISTING: NASDAQ: ENSG
LOCATION: West Columbia, South Carolina CEO: Christopher
Christensen
PHONE: 949-487-9500
UNITS: 125 (beds) 27101 Puerta Real, Ste. 450 FAX: 949-487-9400 REVENUE: Mission Viejo, California 92691
NET INCOME: WEB SITE: www.ensigngroup.net
Millennium Post Acute is a 125-bed skilled nursing
facility with an occupancy rate of approximately
78%. The acquisition was for the real estate and
operations.
The Ensign Group operates skilled nursing and assisted living
facilities in western states, as well as home health and hospice
agencies. In 2014, it spun off many of its real estate assets into a
publicly traded REIT.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This is Ensign's first acquisition on the East Coast. The acquisition, which closed effective November 1, is
expected to be mildly accretive to earnings in 2016. On the same day, Ensign also purchased a skilled nursing
facility in California and the operations of two other SNFs in Arizona.
The Health Care M&A Report, 4th Quarter, 2015 134
TARGET: Skilled nursing facility ACQUIRER: Diversicare Healthcare Services, Inc.
LISTING: Private LISTING: NASDAQ: DVCR
LOCATION: Fulton, Kentucky CEO: Kelly J. Gill PHONE: 615-771-7575
UNITS: 60 (beds) 1621 Galleria Boulevard FAX: 615-771-7409 REVENUE: $ 3,500,000 (approx. first
year) Brentwood, Tennessee 37027
NET INCOME: WEB SITE: www.dvcr.com
This skilled nursing facility has been renamed
Diversicare of Fulton.
Diversicare provides long-term care services to patients in 55
skilled nursing and seniors housing centers containing 6,560
licensed beds.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $ 3,900,000 PRICE PER UNIT: $ 65,000 TERMS: PRICE/REVENUE: 1.11
PRICE/INCOME:
The acquisition fits well with Diversicare's geographic footprint and will be added to its portfolio of owned
properties. The transaction closed effective November 1.
TARGET: Somerset Subacute and
Rehabilitation
ACQUIRER: The Ensign Group, Inc.
LISTING: Private LISTING: NASDAQ: ENSG
LOCATION: El Cajon, California CEO: Christopher
Christensen
PHONE: 949-487-9500
UNITS: 46 (beds) 27101 Puerta Real, Ste. 450 FAX: 949-487-9400 REVENUE: Mission Viejo, California 92691
NET INCOME: WEB SITE: www.ensigngroup.net
Somerset is a 46-bed skilled nursing facility that
Ensign had been operating under a long-term lease
since December 2014.
The Ensign Group operates skilled nursing and assisted living
facilities in western states, as well as home health and hospice
agencies. In 2014, it spun off many of its real estate assets into a
publicly traded REIT.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This transaction closed on November 1, 2015. Ensign closed on two other purchases the same day: two skilled
nursing facilities in Arizona and one in South Carolina.
The Health Care M&A Report, 4th Quarter, 2015 135
TARGET: Windsor Estates ACQUIRER: Birchwood Health Care Properties
LISTING: Private LISTING: Private
LOCATION: Salina, Kansas CEO: Isaac Dole PHONE: 312-724-8950
UNITS: 45 (beds) PO Box 476903 FAX: REVENUE: $ 2,853,000 Chicago, Illinois 60647
NET INCOME: $ 239,000 (EBITDA) WEB SITE: www.birchwoodhcp.com
This 45-bed skilled nursing facility was built in
1965 and 1980 and has 17,903 square feet.
Occupancy was 97.8%. It is adjacent to an
independent living community owned by the seller,
and this will be leased to the buyer with a purchase
option in three years.
Birchwood is a private real estate investor specializing in senior
care facilities. They do not operate the facilities, but use third-party
managers.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: $ 2,200,000 PRICE PER UNIT: $ 48,889 TERMS: PRICE/REVENUE: .77
PRICE/INCOME: 9.21
This was one of three acquisitions by Birchwood this month in Kansas. They plan to hire New Paradigm Solutions,
based in Manhattan, Kansas, to operate the facilities. Senior Living Investment Brokerage handled the transaction,
which closed on October 30.
TARGET: College Hill Nursing and
Rehab
ACQUIRER: Birchwood Health Care Properties
LISTING: Private LISTING: Private
LOCATION: Wichita, Kansas CEO: Isaac Dole PHONE: 312-724-8950
UNITS: 96 (beds) PO Box 476903 FAX: REVENUE: $ 3,164,000 Chicago, Illinois 60647
NET INCOME: WEB SITE: www.birchwoodhcp.com
College Hill Nursing and Rehab was built in 1968.
It has 32,882 square feet on a 2.36-acre site.
Occupancy was 67%, with a 92% Medicaid census,
6% Medicare and 2% private pay. It was losing
more than $600,000 per year.
Birchwood is a private real estate investor specializing in senior
care facilities. They do not operate the facilities, but use third-party
managers.
ANNOUNCEMENT DATE: November 3, 2015 PRICE: $ 1,250,000 PRICE PER UNIT: $ 13,021 TERMS: PRICE/REVENUE: .40
PRICE/INCOME:
This will be a difficult turnaround situation, but at least it is in a major MSA in Kansas. The buyer will hire a
regional operating company to take over management, and they plan to invest capital in the physical plant to
improve on occupancy and quality mix. Senior Living Investment Brokerage represented the seller, a private
owner/operator, in the transaction, which closed on October 30. This was Birchwood's third acquisition in Kansas
in October.
The Health Care M&A Report, 4th Quarter, 2015 136
TARGET: 11 skilled nursing facilities ACQUIRER: Mainstreet
LISTING: Private LISTING: Private
LOCATION: Chicago MSA, Illinois CEO: Zeke Turner PHONE: 855-885-7702
UNITS: 2,477 (beds) 14390 Clay Terrace Blvd, Ste.
205
FAX: 317-582-6201
REVENUE: $200,000,000 Carmel, Indiana 46032
NET INCOME: $ 34,000,000 (est. 2016
EBITDA) WEB SITE: www.mainstreetinvestment.com
Symphony Post Acute Network sold 11 skilled
nursing facilities in the Chicago market and will be
leasing them back from Mainstreet. Occupancy is
about 90.5% with a census quality mix of about
25%.
Mainstreet is a national company specializing in real estate
development, value investments and health care. It is the nation’s
largest developer of transitional care properties, and has received
several awards for architecture and design.
ANNOUNCEMENT DATE: November 4, 2015 PRICE: $302,500,000 PRICE PER UNIT: $ 122,124 TERMS: Sale/leaseback PRICE/REVENUE: 1.51
PRICE/INCOME: 8.90
The sale represents almost half of Symphony's portfolio of 26 facilities with more than 5,200 licensed beds. The
initial lease yield is 8.0% with a 1.4x lease coverage ratio in 2016. The sale was prompted by the owners' interest in
simplifying its investor base for the next generation of family members. Heavenrich & Company represented the
seller in the transaction, which closed on October 30. One facility will close in February 2016.
TARGET: 2 senior living communities ACQUIRER: CNL Healthcare Properties, Inc.
LISTING: Private LISTING: Private
LOCATION: Illinois &, New Mexico CEO: Stephen H. Maudlin PHONE: 407-650-1000
UNITS: 250 450 South Orange Avenue FAX: REVENUE: Orlando, Florida 32801
NET INCOME: WEB SITE: cnlhealthcareproperties.com
Developed by Spectrum Retirement Communities in
2013-14, there is an 86-unit assisted living/memory
care community in Lake Zurich, Illinois, and a 164-
unit independent living/AL/MC community in
Albuquerque. Combined occupancy is 96%.
CNL Healthcare Properties is a private REIT that focuses on
acquiring properties in the seniors housing and healthcare sectors.
Its portfolio now includes 127 assets in 29 states with a value of
approximately $2.5 billion.
ANNOUNCEMENT DATE: November 4, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Spectrum will retain management at these communities.
The Health Care M&A Report, 4th Quarter, 2015 137
TARGET: 4 assisted living
communities
ACQUIRER: Summit Healthcare REIT, Inc.
LISTING: Private LISTING: Private
LOCATION: Green Bay and Appleton, Wisconsin
CEO: Kent Eikanas PHONE: 800-978-8136
UNITS: 125 4676 Commercial Street, #167 FAX: REVENUE: Lake Forest, California 97302
NET INCOME: $ 1,600,000 (EBITDAR,
annualized) WEB SITE: www.summithealthcarereit.com
Known as the Cottage Living Portfolio, the four
communities featured both assisted living and
memory care services. Occupancy was 92% at the
time of the sale. They are owned by Cambridge
Investment and Finance Company.
Formerly known as Cornerstone Core Properties REIT, Summit is a
publicly registered, non-traded REIT focused on investing in seniors
housing real estate. It has a portfolio of 25 long-term triple-net
leased healthcare facilities.
ANNOUNCEMENT DATE: November 5, 2015 PRICE: $ 18,400,000 PRICE PER UNIT: $ 147,200 TERMS: PRICE/REVENUE:
PRICE/INCOME: 11.50
Cambridge Investment and Finance Company bought these properties in 2007 for $5.8 million, or $45,800 per unit.
Summit triple-net leased the communities for a 12-year term to an affiliate of Compass Senior Living, which is
headquartered in Oregon and operates another property for Summit. Blueprint Healthcare Real Estate Advisors
handled the transaction, which closed on November 2.
TARGET: Kindred Hallmark ACQUIRER: Regional owner/operator
LISTING: NYSE: VTR LISTING: Private
LOCATION: New Bedford, Massachusetts CEO: PHONE:
UNITS: 107 (beds) FAX: REVENUE: $ 6,784,000 (ttm, 11/30/15)
NET INCOME: $- 217,000 (EBITDA) WEB SITE:
Owned by a publicly traded REIT, the 28,812-
square foot skilled nursing facility was built in 1974
and significantly renovated in 1997. It is 81.9%
occupied with a 27.4% quality mix. It is operated by
Kindred Healthcare.
The buyer is looking to expand their regional footprint in the
Northeast.
ANNOUNCEMENT DATE: November 5, 2015 PRICE: $ 3,210,000 PRICE PER UNIT: $ 30,000 TERMS: PRICE/REVENUE: .47
PRICE/INCOME: - 14.79
Both the occupancy and quality mix dipped in the last couple of years, with the facility losing money as of 2014.
There is one private room, along with 12 semi-privates, 22 three-bed units and 4 four-bed rooms, for a total of 39
units. The seller, a publicly traded REIT, decided to strategically divest several non-core assets. Blueprint
Healthcare Real Estate Advisors handled the transaction, which closed on November 2.
The Health Care M&A Report, 4th Quarter, 2015 138
TARGET: Companions Specialized
Care Center
ACQUIRER: Owner/operator
LISTING: Public LISTING: Private
LOCATION: Tulsa, Oklahoma CEO: PHONE:
UNITS: 102 (beds) FAX: REVENUE: Oklahoma
NET INCOME: $- 500,000 (annual,
EBITDA) WEB SITE:
Built in 1971, with renovations in 1990 and 2011,
the skilled nursing facility was purchased by a
publicly traded company in 2012. Occupancy is just
60%, with over 83% Medicaid, 14% Medicare, 1%
private pay and 2% managed care. There are 33,301
square feet.
The buyer is a small Oklahoma-based operator.
ANNOUNCEMENT DATE: November 6, 2015 PRICE: $ 3,500,000 PRICE PER UNIT: $ 34,314 TERMS: PRICE/REVENUE:
PRICE/INCOME: - 7.00
This facility had been mismanaged ever since being purchased in 2012 by the publicly traded owner. The deal was
under letter of intent in the fall of 2014 for $4.75 million, but the facility had survey trouble, resulting in an
admittance ban and denial of payment. Occupancy was at 60% before that. This is one of the last buildings
operated by the seller. Senior Living Investment Brokerage handled the transaction, which closed on October 30.
TARGET: Assisted living community ACQUIRER: Meridian Senior Living
LISTING: Private LISTING: Private
LOCATION: Racine, Wisconsin CEO: Charles Trafzger PHONE: 828-322-5535
UNITS: 50 PO Box 2568 FAX: REVENUE: $ 3,150,000 Hickory, North Carolina 28603
NET INCOME: $ 800,000 (EBITDA) WEB SITE: www.meridiansenior.com
Originally built in 1924 as a convent, the building
was gutted in 2008 and renovated to include 64,000
square feet and 50 assisted living units with 54
licensed beds. It is 94% occupied and has a 88%
private pay census. A local operator is the owner.
Meridian Senior Living operates more than 90 seniors housing and
care facilities in 12 states. The highest concentrations are in North
Carolina and Illinois.
ANNOUNCEMENT DATE: November 7, 2015 PRICE: $ 6,500,000 PRICE PER UNIT: $ 130,000 TERMS: PRICE/REVENUE: 2.06
PRICE/INCOME: 8.13
A local operator purchased the 4.07-acre property in 2007, and then spent about $2 million to completely gut and
renovate the community. The property is also pre-approved to expand with an additional 24 AL units, but no work
has started. Marcus & Millichap handled the transaction, which closed in early November.
The Health Care M&A Report, 4th Quarter, 2015 139
TARGET: Emeritus at Pantano ACQUIRER: Cascade Living Group
LISTING: Private LISTING: Private
LOCATION: Tucson, Arizona CEO: Bill Shorten PHONE: 425-408-9141
UNITS: 121 19119 North Creek Parkway
#102
FAX:
REVENUE: $ 4,058,000 (annualized) Bothell, Washington 98011
NET INCOME: $ 1,264,000 (EBITDA) WEB SITE: www.cascadeliving.com
Emeritus at Pantano is a 121-unit assisted living
(101 units) and memory care (20 units) community
built in 1977 with 79,859 square feet. Occupancy
was 70% at closing, and the license is for 140 beds.
Brookdale Senior Living had been the manager for
the seller.
Cascade Living Group operates independent living, assisted living
and memory care communities in Oregon (9), Washington (8),
Nevada (3), California (2) and Arizona (1). Casacade partnered with
a REIT to complete this transaction.
ANNOUNCEMENT DATE: November 9, 2015 PRICE: $ 18,800,000 PRICE PER UNIT: $ 155,372 TERMS: PRICE/REVENUE: 4.63
PRICE/INCOME: 14.87
Cushman & Wakefield represented the seller, Columbia Pacific, which had purchased the property at auction from
Sunwest Management for $9.48 million in 2010. The community was currently profitable, but it will take up to two
years to reach stabilized occupancy of 94%. At that point, revenues and EBITDA should increase to about $5.0
million and $1.7 million, respectively. Two to three years after that, we estimate that revenues and EBITDA should
grow to $6.0 million and $2.2 million, as a result of rate increases and care enhancements. The deal closed on
November 3.
TARGET: The Stratford at Maple Leaf ACQUIRER: Capitol Seniors Housing
LISTING: Private LISTING: Private
LOCATION: Seattle, Washington CEO: Scott Stewart PHONE: 202-469-8400
UNITS: 119 975 F Street NW, 9th Fl FAX: 202-469-8407 REVENUE: $ 4,600,000 (est. first year) Washington, D.C. 20004
NET INCOME: $ 1,400,000 (est. EBITDA) WEB SITE: www.capitolseniorshousing.com
The Stratford is an assisted living and memory care
community that was built in 2006 with 90,063
square feet. The four-story building has mostly
assisted living with some independent living, plus
20 memory care units. Occupancy has been between
85% and 90%.
Capitol Seniors Housing and its joint venture partner, Harvard
Endowment Company, own seniors housing communities and hire
third-party managers to operate them. In this transaction, they will
be hiring Milestone Retirement Communities.
ANNOUNCEMENT DATE: November 9, 2015 PRICE: $ 26,000,000 PRICE PER UNIT: $ 218,487 TERMS: PRICE/REVENUE: 5.65
PRICE/INCOME: 18.57
The seller developed the property and ran it himself, so with professional management it is expected to perform
better. Unit rates were considered to be below market, and after the buyer invests up to $2.5 million on remodeling
and upgrades, rates should move higher, as well as occupancy. At 95% with higher rates, plus converting the IL
units to AL and memory care, annual revenues and EBITDA should improve to at least $5.5 million and $1.8
million, respectively. Cushman & Wakefield represented the seller in the transaction, which closed on November
5.
The Health Care M&A Report, 4th Quarter, 2015 140
TARGET: Casa Reha ACQUIRER: Korian
LISTING: Private LISTING: Paris: KORI
LOCATION: Oberursel, Germany CEO: Yann Coleou PHONE: +33 1 55 37 52 00
UNITS: 10,000 (beds) 25 Rue Balzac FAX: REVENUE: $288,440,000 Paris, France 75008
NET INCOME: WEB SITE: http://www.korian.com/en
Casa Reha is the third-largest operator of skilled
nursing facilities in Germany, with 70 facilities and
more than 10,000 beds. The average facility age is
less than 15 years and 70% of beds are in private
rooms. Casa Reha does not hold real estate assets.
Founded in 2003, Korian manages over 600 facilities in four
business lines: skilled nursing facilities, post-acute and
rehabilitation clinics, assisted living communities and home-care
services. It has a presence in France, Germany, Italy and Belgium.
ANNOUNCEMENT DATE: November 10, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
With this acquisition, Korian strengthens its presence in Germany and will operate 216 facilities with more than
27,500 beds. The combined operations will increase Korian's revenue from Germany to around $833.6 million, or
about 27% of its total revenue in 2015. The acquisition, to be financed through cash and undrawn credit lines, is
expected to be EPS accretive from 2016. It closed on January 7, 2016 following approval from the German
Competition Authorities.
TARGET: Deanwood Rehab and
Wellness Center
ACQUIRER: Non-traded REIT
LISTING: Private LISTING: Public
LOCATION: Washington, D.C. CEO: PHONE:
UNITS: 296 (beds) FAX: REVENUE: $ 33,532,229 (ttm, March
31, 2014)
NET INCOME: $ 7,531,339 (EBITDA) WEB SITE:
Owned by a private New York company, the skilled
nursing facility was built in 1983. It is 94%
occupied and has a 17% quality mix. The 133,706-
square foot building sits on 1.44 acres in northeast
Washington D.C.
ANNOUNCEMENT DATE: November 10, 2015 PRICE: $ 50,000,000 PRICE PER UNIT: $ 168,919 TERMS: Included in the price is a performance-
based earn-out, which is attainable upon
reaching certain performance thresholds.
Sale/leaseback structure.
PRICE/REVENUE: 1.49
PRICE/INCOME: 6.64
Blueprint Healthcare Real Estate Advisors represented the seller in the transaction, which closed on October 29.
The Health Care M&A Report, 4th Quarter, 2015 141
TARGET: 2 retirement communities ACQUIRER: Extendicare Inc.
LISTING: Private LISTING: TSX: EXE
LOCATION: Saskatchewan, Canada CEO: Timothy L. Lukenda PHONE: (905) 470-4000
UNITS: 184 3000 Steeles Ave. E, Ste. 700 FAX: REVENUE: Markham, Ontario L3R 9W2
NET INCOME: $ 2,670,000 (est. EBITDA) WEB SITE: www.extendicare.com
There is a 116-unit independent living/assisted
living community with 90% occupancy that opened
in 2012, and a 68-unit memory care community that
is 72% occupied which opened in August 2013.
Brightwater Senior Living Communities owns both.
Extendicare is one of North America’s largest long-term care
providers with 251 senior care centers. In Canada, Extendicare
operates 95 senior care facilities and is also a major provider of
home health care in Ontario through its ParaMed Home Health Care
division.
ANNOUNCEMENT DATE: November 11, 2015 PRICE: $ 37,692,357 PRICE PER UNIT: $ 204,850 TERMS: CAD$50.2 million. A further incentive
payment of up to CAD$750,000 will be
paid based upon a specific formula
contingent on occupancy exceeding
85% on the closing date.
PRICE/REVENUE:
PRICE/INCOME: 14.12
Stabilized NOI yield is estimated at 7.08%. In addition, Extendicare entered into a non-binding letter of intent with
Brightwater to acquire two additional properties that are currently under construction in Saskatchewan, subject to
conditions upon their completion. The purchase price will initially be paid in cash with an intention to finance up to
65% once stabilized. Brookfield Financial advised the seller on the transaction, which is expected to close on 12/1.
TARGET: Harvest Retirement
Community
ACQUIRER: Extendicare Inc.
LISTING: Private LISTING: TSX: EXE
LOCATION: Tillonsburg, Ontario CEO: Timothy L. Lukenda PHONE: (905) 470-4000
UNITS: 100 3000 Steeles Ave. E, Ste. 700 FAX: REVENUE: Markham, Ontario L3R 9W2
NET INCOME: $ 1,440,000 (est. EBITDA) WEB SITE: www.extendicare.com
Built in 2012, this community includes 64 units of
independent living and assisted living, and 36
additional units to be completed in December
2015. Current occupancy is 94%. It is owned by
Baybridge Seniors Housing and Nautical Lands
Group.
Extendicare is one of North America’s largest long-term care
providers with 251 senior care centers. In Canada, Extendicare
operates 95 senior care facilities and is also a major provider of
home health care in Ontario through its ParaMed Home Health
Care division.
ANNOUNCEMENT DATE: November 11, 2015 PRICE: $ 21,323,963 PRICE PER UNIT: $ 213,240 TERMS: CAD$28.4 million. PRICE/REVENUE:
PRICE/INCOME: 14.81
The seller will provide Extendicare with income support over 24 months of up to CAD$1.0 million. This
amount will be held back from the purchase price on closing and released back to Extendicare during the lease-
up period based on an agreed-upon formula. The purchase price will initially be paid in cash with an intention to
finance up to 65% once stabilized. The stabilized NOI yield is estimated at 6.74%. The transaction is expected
to close on December 1.
The Health Care M&A Report, 4th Quarter, 2015 142
TARGET: Pacifica Senior Living ACQUIRER: Capital Senior Living Corporation
LISTING: Private LISTING: NYSE: CSU
LOCATION: Virginia Beach, Virginia CEO: Lawrence A. Cohen PHONE: 972-770-5600
UNITS: 110 14160 Dallas Parkway, Ste. 300 FAX: 732-961-9994 REVENUE: Dallas, Texas 75254
NET INCOME: WEB SITE: www.capitalsenior.com
The assisted living portion of the building (with 85
units) was built in 2001 and features 69 studios and
16 one-bedroom units. The memory care portion
was built in 2012 with 25 studio units. There are
74,933 square feet.
Capital Senior Living operates about 119 senior living communities
in concentrated regions with a capacity of approximately 15,200
residents.
ANNOUNCEMENT DATE: November 11, 2015 PRICE: $ 38,000,000 PRICE PER UNIT: $ 345,455 TERMS: PRICE/REVENUE:
PRICE/INCOME:
To finance the transaction, Greystone's Debt and Structured Finance Team secured a $28.5 million loan through a
life insurance company. The loan featured a 10-year term and a 4.25% fixed interest rate that was locked upon
executing the loan application. The seller was a private seniors housing owner. Greystone handled the transaction,
which closed on October 29.
TARGET: Skilled nursing facility ACQUIRER: Birchwood Health Care Properties
LISTING: Private LISTING: Private
LOCATION: Huntington, West Virginia CEO: Isaac Dole PHONE: 312-724-8950
UNITS: 58 (beds/units) PO Box 476903 FAX: REVENUE: Chicago, Illinois 60647
NET INCOME: WEB SITE: www.birchwoodhcp.com
This skilled nursing facility has 41 SN beds and 17
assisted living units. Built in 1928 but renovated in
2009, the facility was 90% occupied and has no
Medicare. This is the owner's only seniors housing
asset, which they leased to an operator. There are
45,534 square feet.
Birchwood is a private real estate investor specializing in senior
care facilities. They do not operate the facilities, but use third-party
managers.
ANNOUNCEMENT DATE: November 11, 2015 PRICE: $ 3,200,000 PRICE PER UNIT: $ 55,172 TERMS: PRICE/REVENUE:
PRICE/INCOME:
The owner of the property decided to sell the facility when their operator tenant stopped paying rent and filed for
bankruptcy. While the census was stable at 90%, the facility was losing money at closing. Birchwood brought in
Providence Health Group to operate and plans to implement Medicare at the facility. Senturian Senior Housing
Brokerage represented the seller in the transaction, which closed on October 30.
The Health Care M&A Report, 4th Quarter, 2015 143
TARGET: 2 skilled nursing facilities ACQUIRER: Continuum Healthcare LLC
LISTING: NYSE: HCP LISTING: Private
LOCATION: New Jersey &, Florida CEO: Eugene Ehrenfeld PHONE:
UNITS: 218 (beds) FAX: REVENUE: $ 16,545,000 (projected) Brooklyn, New York
NET INCOME: $ 2,100,000 (proj.
EBITDA) WEB SITE: continuumhealthcare.net
Built in 1965, the 98-bed Cherry Hill, NJ has
40,935 square feet, is 79% occupied and has a 25%
quality mix. Built in 1987, the 120-bed Brooksville,
FL facility has 37,249 square feet, an 84%
occupancy, and a 27% quality mix. Both had been
operated by HCR ManorCare.
Continuum Healthcare operates skilled nursing facilities and
pediatric day care centers in New Jersey.
ANNOUNCEMENT DATE: November 17, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Both of these are turnaround projects, particularly the New Jersey facility, and Continuum will spend a certain
amount of capex to renovate. To finance the transaction, Oxford Finance provided a $13.95 million senior secured
term loan. HCP, Inc. owned the real estate and was the landlord. Houlihan Lokey represented the sellers in the
transaction, which closed on November 1.
TARGET: Memory care community ACQUIRER: Real estate investment firm
LISTING: Private LISTING: Private
LOCATION: Orange County, California CEO: PHONE:
UNITS: 35 FAX: REVENUE:
NET INCOME: WEB SITE:
Built in 1983 and 2000, this memory care
community features 55 beds in 35 units. Occupancy
was 85% at the time of the sale, based on beds.
There are approximately 11,500 square feet on 0.65
acres. The single-asset owner/operator is exiting the
industry.
The buyer will bring on NorthStar Senior Living to third-party
operate.
ANNOUNCEMENT DATE: November 17, 2015 PRICE: $ 6,250,000 PRICE PER UNIT: $ 178,571 TERMS: PRICE/REVENUE:
PRICE/INCOME:
Originally built as a single-family home (which is now being used as administrative offices) in 1955, the current
community was built in phases in 1983 and 2000. It was performing well, but the seller wanted to exit the industry.
The JCH Group handled the transaction, which closed on November 13.
The Health Care M&A Report, 4th Quarter, 2015 144
TARGET: Old Mill Rehabilitation ACQUIRER: Carter Validus Mission Critical REIT II,
Inc.
LISTING: Private LISTING: Public
LOCATION: Omaha, Nebraska CEO: John E. Carter PHONE: 888-292-3178
UNITS: 44 (beds) P.O. Box 219731 FAX: REVENUE: Kansas City, Missouri 64121-9731
NET INCOME: WEB SITE: www.cvmissioncriticalreit2.com
Built in 2014 with 40,402 square feet, this skilled
nursing facility features 44 private beds for patients
receiving a variety of short-term rehab, therapy and
transitional care.
Carter Validus Mission Critical REIT II (CVMC REIT II) is a
public, non-traded company that acquires mission critical real estate
assets in the United States and abroad.
ANNOUNCEMENT DATE: November 17, 2015 PRICE: $ 13,000,000 Approximate PRICE PER UNIT: $ 295,455 TERMS: PRICE/REVENUE:
PRICE/INCOME:
Colliers International’s Seniors Housing Group represented the seller in this transaction, which closed on October
14.
TARGET: Riverglen House of Littleton ACQUIRER: Summit Healthcare REIT, Inc.
LISTING: Private LISTING: Private
LOCATION: Littleton, New Hampshire CEO: Kent Eikanas PHONE: 800-978-8136
UNITS: 50 4676 Commercial Street, #167 FAX: REVENUE: Lake Forest, California 97302
NET INCOME: WEB SITE: www.summithealthcarereit.com
Developed by the current operator in 2002, this
assisted living community features 59 beds in 50
units. The building has 34,684 square feet and is
located in the center of town.
Formerly known as Cornerstone Core Properties REIT, Summit is a
publicly registered, non-traded REIT focused on investing in seniors
housing real estate. It has a portfolio of 26 long-term triple-net
leased healthcare facilities.
ANNOUNCEMENT DATE: November 18, 2015 PRICE: $ 8,500,000 PRICE PER UNIT: $ 170,000 TERMS: Sale/leaseback. Summit assumed a $4.7
million HUD loan. PRICE/REVENUE:
PRICE/INCOME:
The property was leased to an affiliate of Riverglen House of Littleton LLC pursuant to a 15-year triple net lease.
Blueprint Healthcare Real Estate Advisors handled the transaction.
The Health Care M&A Report, 4th Quarter, 2015 145
TARGET: The Cedars ACQUIRER: Oxton Senior Living, LLC
LISTING: Private LISTING: Private
LOCATION: Montgomery, Alabama CEO: Todd Barker PHONE: 706-438-1291
UNITS: 61 2151 Eatonton Road FAX: REVENUE: Madison, Georgia 30650
NET INCOME: WEB SITE: http://www.oxtonsl.com/
This assisted living community is the largest in the
tri-county area.
Oxton Senior Living operates senior care communities throughout
Alabama and Georgia.
ANNOUNCEMENT DATE: November 19, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The community will be renamed Oxton Place of Montgomery.
TARGET: The Shores of Lake Phalen ACQUIRER: Non-traded REIT
LISTING: Private LISTING: Private
LOCATION: Maplewood, Minnesota CEO: PHONE:
UNITS: 105 FAX: REVENUE: $ 5,152,886 -2015
NET INCOME: $ 1,900,110 (2015,
EBITDA) WEB SITE:
Built in 2011 on 4.43 acres, this senior living
community features 22 independent living units, 51
assisted living units and 32 memory care units. It is
92% occupied and has 104,961 total square feet. It
is operated by Ebenezer Management Services.
ANNOUNCEMENT DATE: November 19, 2015 PRICE: $ 30,000,000 PRICE PER UNIT: $ 285,714 TERMS: PRICE/REVENUE: 5.82
PRICE/INCOME: 15.79
The community has improved dramatically since the beginning of 2014, raising occupancy from around 69% to
92% by earlier this year, and EBITDA from just under $200,000 in 2014 to $1.9 million in the estimated 2015
budget. There are also 12 AL/MC units that offer below-market rents, so the buyer could potentially re-lease these
units at market rents, further improving performance. The buyer will bring in a national operator to manage the
community. Evans Senior Investments handled the transaction, which closed on November 19.
The Health Care M&A Report, 4th Quarter, 2015 146
TARGET: Verena at Virginia Center ACQUIRER: Green Courte Partners, LLC
LISTING: Private LISTING: Private
LOCATION: Glen Allen, Virginia CEO: Randall K. Rowe PHONE: 312-966-3800
UNITS: 118 303 West Madison St., Ste.
1500
FAX: 312-863-2262
REVENUE: $ 3,616,200 (est. 2015) Chicago, Illinois 60606
NET INCOME: $ 1,706,500 (EBITDA, tr. 3
mo.) WEB SITE: www.greencourtepartners.com/
Built in 2009 on 9.16 acres, this independent living
community is owned by First Centrum. It is 94%
occupied.
Formed in July 2002 by Randy Rowe, Green Courte Partners, LLC
and its real estate private equity funds focus on investments in niche
real estate asset classes.
ANNOUNCEMENT DATE: November 19, 2015 PRICE: $ 25,875,000 PRICE PER UNIT: $ 219,280 TERMS: PRICE/REVENUE: 7.16
PRICE/INCOME: 15.16
This transaction is the first investment in an independent living/seniors housing property for the buyer, which has
experience in owning and operating age-restricted housing. They will bring in an affiliate of Senior Lifestyle
Corporation to manage. CBRE, in addition to handling the transction for the seller, arranged acquisition financing
for the buyer, in the form of an $18.4 million fixed-rate Freddie Mac loan, with a 10-year term and 60 months of
interest only. The transaction closed on November 17.
TARGET: Delta Rehab ACQUIRER: Aspen Skilled Healthcare, Inc.
LISTING: Private LISTING: Private
LOCATION: Lodi, California CEO: Jay Brady PHONE: 949-347-7100
UNITS: 74 (beds) 28202 Cabot Road, Suite 412 FAX: 949-347-7800 REVENUE: $ 6,300,000 Laguna Niguel, California 92677
NET INCOME: $ 750,000 (EBITDA) WEB SITE: www.aspenskilledhealth.com
Delta Rehab is a 74-bed skilled nursing facility that
has 31 rooms. It was built in 1975 and has about
20,300 square feet. Occupancy has averaged about
90%.
Aspen Skilled Healthcare is a skilled nursing facility provider with
eight skilled nursing facilities in California.
ANNOUNCEMENT DATE: November 20, 2015 PRICE: $ 1,200,000 PRICE PER UNIT: $ 16,216 TERMS: Sale of a leased interest. PRICE/REVENUE: .19
PRICE/INCOME: 1.60
The purchase price was for the leased interest in Delta Rehab. The initial lease rate is approximately $580 per bed
per month for an annual amount of $515,000. There are three five-year renewals and annual escalators are based on
the CPI with a floor of 2.0% and a ceiling of 4.0%. The initial lease coverage is nearly 1.5x. Marcus & Millichap
represented the seller in the transaction, which closed on October 31.
The Health Care M&A Report, 4th Quarter, 2015 147
TARGET: 11 senior living
communities
ACQUIRER: Kayne Anderson Real Estate Advisors
LISTING: Private LISTING: Private
LOCATION: Various, Various CEO: Al Rabil PHONE: 561-300-6200
UNITS: 1,143 1 Town Center Road, Ste. 300 FAX: REVENUE: Boca Raton, Florida 33486
NET INCOME: WEB SITE: www.kaynecapital.com
This sale included 11 mostly assisted living and
Alzheimer's care communities located in Indiana
(4), Virginia (2), Pennsylvania (2) and one each in
Alabama, Delaware and Maryland. The average age
was about 7-8 years, with two newly opened.
Kayne Anderson Real Estate Advisors is the real estate private
equity arm of Kayne Anderson Capital Advisors, L.P., a $24 billion
investment management firm with 30 years of experience.
ANNOUNCEMENT DATE: November 30, 2015 PRICE: $295,000,000 Estimated PRICE PER UNIT: $ 258,093 TERMS: PRICE/REVENUE:
PRICE/INCOME:
The sale also included a medical office building and a tract of land that are not included in the estimated price
above. The properties were managed by Rittenhouse Senior Living, Vantage Point Retirement Living and
Harmony Senior Services. It is expected that the buyer will retain the managers. Wells Fargo provided acquisition
financing for the transaction, and Houlihan Lokey represented the seller, Windsor Health Care Equities, LLC in the
sale, which closed in mid-November.
TARGET: Olney Healthcare Center ACQUIRER: Regional owner/operator
LISTING: Private LISTING: Private
LOCATION: Olney, Texas CEO: PHONE:
UNITS: 51 (beds) FAX: REVENUE: $ 1,305,659 Houston, Texas
NET INCOME: $- 14,878 (EBITDA) WEB SITE:
Built in 1970 on 2.1 acres in rural Texas, this
17,545-square foot skilled nursing facility is owned
by a private operator who is looking to divest
themselves from this property. The facility was
closed recently, but had an occupancy of 45.5%
before that.
ANNOUNCEMENT DATE: November 30, 2015 PRICE: $ 850,000 PRICE PER UNIT: $ 16,667 TERMS: PRICE/REVENUE: .65
PRICE/INCOME: - 57.13
A couple of months prior to this transaction, the facility was closed, as the small market could not support two
facilities. So, many of the residents moved to the other facility in town, owned by the buyer, and the 39 Medicaid
beds from this facility were transferred to the buyer at closing. There are no plans to reopen this facility. Senior
Living Investment Brokerage handled the transaction, which closed on November 25.
The Health Care M&A Report, 4th Quarter, 2015 148
TARGET: Park at Riverchase ACQUIRER: Omega Communities, LLC
LISTING: NYSE: ADK LISTING: Private
LOCATION: Hoover, Alabama CEO: Pat Trammell, Jr. PHONE: 205-871-2883
UNITS: 104 2 Metroplex Drive, Suite 202 FAX: 205-870-8209 REVENUE: $ 2,600,000 (pro forma) Birmingham, Alabama 35209
NET INCOME: $ 700,000 (pro forma
EBITDA) WEB SITE: www.omegacommunities.com
Park at Riverchase is a 104-unit assisted living
community licensed for 125 beds. It was built in
2000 with about 85,000 square feet on 5.99 acres.
Average rents were about $2,400, but occupancy
was below 50%, resulting in negative cash flow.
Omega Communities is a developer and operator of senior living
communities. It partners with churches and large national operators,
and plans to develop up to 60 new senior living communities in the
next several years, as well as acquire 10 to 15 properties.
ANNOUNCEMENT DATE: November 30, 2015 PRICE: $ 6,900,000 PRICE PER UNIT: $ 66,346 TERMS: PRICE/REVENUE: 2.65
PRICE/INCOME: 9.86
Sunwest Management purchased this community in 2006, and when it filed for bankruptcy protection, the lender
foreclosed and then sold it in 2010 to an individual investor, who issued bonds to finance the acquisition. AdCare
Health Systems guaranteed the bonds, and $6.1 million were still outstanding. In 2014, the state required the owner
to hire a new management company, which discharged more than 30 residents. The pro forma revenue and
EBITDA above were based on 85% occupancy. Marcus & Millichap represented the seller in the deal, which
closed on November 27.
TARGET: The Brookside ACQUIRER: SilverStone Health Care Real Estate,
LLC
LISTING: Private LISTING: Private
LOCATION: Freehold, New Jersey CEO: Stephanie
Anderson/Frank
Small
PHONE: 703-468-1341
UNITS: 160 4601 N. Fairfax Dr., Ste. 1200 FAX: REVENUE: Alexandria, Virginia 22203
NET INCOME: WEB SITE: www.silverstonehcre.com
Owned by AEW Capital Management, this kosher
assisted living/memory care community serves the
Jewish communities in Northern New Jersey. It is
operated by Kaplan Development Group.
This represents the largest acquisition for SilverStone, a private real
estate investment firm. SilverStone is focused on buying senior
living properties and hiring third-party managers. In this transaction,
Kaplan Development Group will stay on as manager.
ANNOUNCEMENT DATE: November 30, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Cushman & Wakefield handled the transaction on behalf of AEW Capital Management.
The Health Care M&A Report, 4th Quarter, 2015 149
TARGET: 2 Texas skilled nursing
facilities
ACQUIRER: LTC Properties, Inc.
LISTING: Private LISTING: NYSE: LTC
LOCATION: Various, Texas CEO: Wendy L. Simpson PHONE: 805-981-8655
UNITS: 254 (beds) 2829 Townsgate Rd., Suite 350 FAX: 805-981-8663 REVENUE: Westlake Village, California 91361
NET INCOME: $ 2,750,000 (est.
EBITDAR) WEB SITE: www.ltcproperties.com
Holland Lake Nursing Center in Weathersfield was
built in 1996 with 53,544 square feet on 4.51 acres
and has 80% occupancy. Stonegate Nursing Center
was built in 1997 in Fort Worth with 61,562 square
feet on 4.58 acres and has 80% occupancy.
LTC Properties is a self-administered real estate investment trust
that invests primarily in long-term care and other health care-related
facilities through lease transactions, mortgage loans and other
investments.
ANNOUNCEMENT DATE: December 1, 2015 PRICE: $ 23,000,000 PRICE PER UNIT: $ 90,551 TERMS: PRICE/REVENUE:
PRICE/INCOME: 8.36
The seller wanted to exit the industry. LTC will add these properties to an existing master lease with Senior Care
Centers at an incremental initial cash yield of 8.25%, with annual escalators of 2.5% through July 2021 and of 3%
thereafter. The lease coverage ratio is between 1.4x and 1.5x. There is the opportunity to add Medicaid and
increase Medicare occupancy. The transaction closed on December 1.
TARGET: Cambridge Place ACQUIRER: Oxton Senior Living, LLC
LISTING: Private LISTING: Private
LOCATION: Opelika, Alabama CEO: Todd Barker PHONE: 706-438-1291
UNITS: 32 2151 Eatonton Road FAX: REVENUE: Madison, Georgia 30650
NET INCOME: WEB SITE: http://www.oxtonsl.com/
This is a 100% memory care community. Oxton Senior Living operates senior care communities throughout
Alabama and Georgia.
ANNOUNCEMENT DATE: December 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The community will be renamed Oxton Court at Opelika.
The Health Care M&A Report, 4th Quarter, 2015 150
TARGET: Skilled nursing facility ACQUIRER: Trilogy Health Services
LISTING: Private LISTING: Private
LOCATION: Harrodsburg, Kentucky CEO: Randall Bufford PHONE: 502-412-5847
UNITS: 34 (beds) 303 N. Hurstbourne Pkwy, Ste.
200
FAX: 502-412-0407
REVENUE: Louisville, Kentucky 40222
NET INCOME: WEB SITE: www.trilogyhs.com
The skilled nursing facility is located on the second
floor of the 25-bed James B. Haggin Memorial
Hospital and was added in 1991.
Trilogy Health Services operates 97 senior living communities that
usually offer a combination of assisted living and post-acute care.
They are located in Illinois, Indiana, Kentucky, Michigan and Ohio.
ANNOUNCEMENT DATE: December 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The facility will be renamed The Willows at Harrodsburg, and will join Trilogy's two other Lexington, Kentucky
facilities. The transaction was effective December 1.
TARGET: The Tillers ACQUIRER: Symphony Post Acute Care Network
LISTING: Private LISTING: Private
LOCATION: Oswego, Illinois CEO: David Hartman PHONE: 847-933-2600
UNITS: 106 (beds) 7257 North Lincoln Avenue FAX: REVENUE: $ 18,939,000 Lincolnwood, Illinois 60712
NET INCOME: $ 1,101,000 (EBITDA) WEB SITE: www.symphonypan.com
Originally built in 1972, with a 16-bed addition in
1985 and an interior renovation in 2009, the skilled
nursing facility has 40,933 square feet on 4.89
acres. Occupancy was 93% on 100 funcitional beds.
The family business owner will retire from the
business.
Symphony Post Acute Care Network is a private company that has
been operating long-term care facilities for more than 35 years and
currently operates nearly 30 facilities in Illinois, Wisconsin and
Arizona, with future sites in Indiana.
ANNOUNCEMENT DATE: December 1, 2015 PRICE: $ 13,372,642 PRICE PER UNIT: $ 126,157 TERMS: PRICE/REVENUE: .71
PRICE/INCOME: 12.15
Included at the facility were a rehab company, in-house therapists (the therapy program was added in 2008) and a
staffing company. The quality mix was very high, with a 69% Medicare/insurance, 29% private pay and 2%
Medicaid census. There are also two adjacent homes that were included in the sale. Symphony's long-term plan is
to expand with all private suites, in order to maintain the quality mix while expanding the Medicaid program.
Senior Living Investment Brokerage handled the transaction, which closed on December 1.
The Health Care M&A Report, 4th Quarter, 2015 151
TARGET: Elmcroft skilled nursing
portfolio
ACQUIRER: Signature HealthCARE
LISTING: Private LISTING: Private
LOCATION: Pennsylvania &, Kentucky CEO: Joe Steier PHONE: 502-568-7800
UNITS: 1,700 (beds) 12201 Bluegrass Parkway FAX: REVENUE: Louisville, Kentucky 40299
NET INCOME: WEB SITE: www.ltcrevolution.com
Included in Elmcroft Senior Living's skilled nursing
portfolio are 17 facilities in Kentucky and one in
Pennsylvania, totaling approximately 1,700 beds.
Six of the Louisville-area facilities have a
significant rehab portion. Occupancy is consistantly
at or above 90%.
Signature HealthCARE operates nursing centers, rehab centers,
critical access hospitals, non-skilled and skilled home health
services. Signature has more than 15,000 employees with 133
locations in 11 states.
ANNOUNCEMENT DATE: December 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This transaction boosts Signature's already strong presence in the state of Kentucky, as it operates 41 post-acute
care centers there. The real estate of Elmcroft's portfolio is owned by Care Capital Properties (CCP). Now,
Signature will operate 49 facilities nationwide under a master lease with CCP. The transaction was effective
December 1.
TARGET: Liberty Manor ACQUIRER: Copper Leaf Management
LISTING: Private LISTING: Private
LOCATION: Adams, Wisconsin CEO: Judi Hess PHONE: 715-254-4357
UNITS: 40 1077 Wilshire Blvd. FAX: REVENUE: $ 1,304,000 (pro forma) Stevens Point, Wisconsin 54481
NET INCOME: $ 303,500 (pro forma
EBITDA) WEB SITE: www.copperleafcare.com/
Built in 1996, with an addition in 2006, this assisted
living community features all private rooms and is
100% occupied with a 50% private pay census. It is
the only AL-community in the county. There are
29,814 square feet on 3.7 acres.
Copperleaf Management Group owns and operates housing units in
Wisconsin, offering an assortment of services and amenities and
also providing management services for developers and owners.
ANNOUNCEMENT DATE: December 2, 2015 PRICE: $ 2,300,000 PRICE PER UNIT: $ 57,500 TERMS: PRICE/REVENUE: 1.76
PRICE/INCOME: 7.58
The seller is a family trust, which was headed by the woman who developed the community herself. Monthly rents
at the community ranged from $2,300 to $2,500, but the buyer plans to increase the Mediciad AL rates up to
between $2,800 and $3,000 a month, which the seller was unable to do. Marcus & Millichap handled the
transaction, which closed on December 1.
The Health Care M&A Report, 4th Quarter, 2015 152
TARGET: 6 seniors housing
communities
ACQUIRER: ROC Seniors Housing Fund Manager,
LLC
LISTING: Private LISTING: Private
LOCATION: Various, Various CEO: Robb Chapin PHONE: 407-999-2400
UNITS: 596 1000 Legion Place, Ste. 1750 FAX: REVENUE: Orlando, Florida 32801
NET INCOME: WEB SITE: www.bridge-igp.com
Owned by a joint venture between The Carlyle
Group and Capitol Seniors Housing, this portfolio
consists of 114 independent living units, 329
assisted living units, 136 memory care units and 17
skilled nursing beds. Combined occupancy is
89.1%.
ROC Seniors Housing Fund is part of Salt Lake City, Utah-based
Bridge Investment Group Advisors, LLC, which has approximately
$1.5 billion of assets under management.
ANNOUNCEMENT DATE: December 3, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Three communities are located in Southern California, and there is one each in Michigan, Philadelphia,
Pennsylvania and Washington, D.C. HFF represented the seller in the transaction, which closed on November 16.
TARGET: 3 skilled nursing facilities ACQUIRER: Safire Care
LISTING: Private LISTING: Private
LOCATION: Buffalo area, New York CEO: PHONE:
UNITS: 440 (beds) FAX: REVENUE: New York, New York
NET INCOME: WEB SITE: http://safirecare.com/
There is a 220-bed skilled nursing facility in
Williamsville built in 1975 and 1981, a 120-bed
facility in Buffalo built in 1983 and a 100-bed
facility in Tonawanda built in 1950. There are 130
private rooms, 149 doubles and three quads. All are
owned by the Zacher family.
Safire Care is an investment group based in New York City.
ANNOUNCEMENT DATE: December 4, 2015 PRICE: $ 15,060,000 PRICE PER UNIT: $ 34,227 TERMS: PRICE/REVENUE:
PRICE/INCOME:
These facilities are being sold by the estate of the late William Zacher, who passed in 2010. The buyer had been
operating the facilities since 2012, and had gained a 9% interest in them that same year he signed a receivership
agreement with the family. The facilities were all operating with losses, and Safire plans to renovate all three.
Harris Beach LLP represented the seller, while Tenzer and Lunin LLP represented the buyer in the transaction,
which closed in December 2015.
The Health Care M&A Report, 4th Quarter, 2015 153
TARGET: Chateau at Carmichael
Park
ACQUIRER: Auctus Capital Partners
LISTING: Private LISTING: Private
LOCATION: Carmichael, California CEO: Chris Rosenstock PHONE: 760-271-9635
UNITS: 99 120 West Grand Ave Suite 205 FAX: REVENUE: Escondido, California 92025
NET INCOME: WEB SITE: www.auctuscapitalpartners.com/
Owned and operated by Hank Fisher Properties,
which is exiting the industry after the death of the
family patriarch, this 40-year old communitiy
features 55 independent living units and 44 memory
care units. There are 55,343 square feet on 2.05
acres. Occupancy is 95%.
Auctus is a value-add real estate investment firm with a focus on
senior housing, commercial, and residential properties. It has so far
acquired two properties in the Seattle area and two in California.
ANNOUNCEMENT DATE: December 7, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The buyer plans on gradually converting the IL units to AL, as IL residents either voluntarily move out or
transition to AL. The buyer also will spend up to $750,000 to renovate both the exterior and interior of the
building, in addition to repurposing some common areas previously used for adult day care. There is a lot of room
for improvement on the operations side, and Integral Senior Living will manage the property. Cushman &
Wakefield both arranged the acquisition financing (a first mortgage provided by Owens Financial) and handled the
transaction, which closed on November 18.
TARGET: MaClay Healthcare Center ACQUIRER: Independence Healthcare Management
LISTING: Private LISTING: Private
LOCATION: Sylmar, California CEO: PHONE:
UNITS: 175 (beds) FAX: REVENUE: $ 10,036,730 Los Angeles, California
NET INCOME: $ 1,863,022 (EBITDARM) WEB SITE:
Owned by LifeHouse Healthcare Services, this
skilled nursing facility has 53,465 square feet on six
acres. It is 96.5% occupied. The facility specializes
in pulmonary transitional care and its stroke
program. Prior to the sale, it received about $2.4
million in capex.
Independence Healthcare Management is a private Los Angeles-
based owner/operator which has acquired two additional facilities in
the past year.
ANNOUNCEMENT DATE: December 7, 2015 PRICE: $ 14,400,000 PRICE PER UNIT: $ 82,286 TERMS: PRICE/REVENUE: 1.43
PRICE/INCOME: 7.73
Also included in the sale were three acres of land planned for future assisted living and memory care development.
LifeHouse is selling this property because it was their only facility in Los Angeles County. The JCH Group
handled the transaction, which closed on October 30.
The Health Care M&A Report, 4th Quarter, 2015 154
TARGET: Shady Nook Care Center ACQUIRER: Undisclosed
LISTING: Private LISTING: Private
LOCATION: Lawrenceburg, Indiana CEO: PHONE:
UNITS: 94 (beds) FAX: REVENUE: $ 6,694,104 (ttm, 3/31/15)
NET INCOME: $ 1,171,910 (EBITDA) WEB SITE:
Originally built in 1984 with 35 semi-private and 12
private units, the skilled nursing/memory care
facility has 37,332 square feet on five acres. It was
renovated in 2010 to boost Medicare revenues. It is
91% occupied, with a 30% quality mix.
An undisclosed local buyer.
ANNOUNCEMENT DATE: December 7, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
In 2010, the facility underwent a $395,000 renovation mainly to the private-room wing in order to attract Medicare
rehab patients. Thanks to its relationship with the local hospital (which had 1,779 Medicare patients with a mean
length of stay of 4.65 days), cash flow improved significantly. From 2013 to the trailing 12-months ending March
31, 2015, the operating margin increased from 12.2% on $5.67 million of revenues to 17.5% on $6.69 million of
revenues, driven largely by the increased Medicare census. Evans Senior Investments handled the transaction.
TARGET: 2 skilled nursing facilities ACQUIRER: Cassena Care, LLC
LISTING: Private LISTING: Private
LOCATION: Stamford and New Britain, Connecticut
CEO: Alex Solovey PHONE: 516-422-7817
UNITS: 246 (beds) 225 Crossways Park Drive FAX: 516-802-3983 REVENUE: Woodbury, New York 11797
NET INCOME: WEB SITE: www.cassenacare.com
The skilled nursing facilities include Regency
Heights of Stamford with 156 beds and 67,914
square feet and Andrew House Healthcare in New
Britain with 90 beds and 28,660 square feet. They
were built in the 1960's, but one had a 1994
addition. Occupancy was above 90%.
Cassena Care was founded in 2010 and now operates about nine
skilled nursing facilities in New York and two in Connecticut.
ANNOUNCEMENT DATE: December 8, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The average quality mix for the two nursing facilities was about 27%. Eureka Capital Markets, LLC advised the
seller, Ciena HealthCare Management Inc., in the transaction, which closed on November 16.
The Health Care M&A Report, 4th Quarter, 2015 155
TARGET: Arden Courts of Arlington ACQUIRER: Paragon Healthcare Group, LLC
LISTING: Private LISTING: Private
LOCATION: Arlington, Texas CEO: Phillip Freedman PHONE: 718-408-8955
UNITS: 60 7150 Parsons Boulevard FAX: REVENUE: Fresh Meadows, New York 11365-4131
NET INCOME: WEB SITE: http://paragonhealthcare.com/
This assisted living community was built in 1998
with about 29,000 square feet. It was
underperforming with low occupancy, operating
near breakeven. The license was for 60 beds.
Paragon Healthcare Group is a privately owned operator of skilled
nursing facilities.
ANNOUNCEMENT DATE: December 8, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This sale was a divestiture from HCR Manor Care as part of a larger sale of 50 properties that were operated by the
company but leased from landlord HCP, Inc. All of the units were private rooms, and the sales price was most
likely in the neighborhood of $50,000 per unit. Houlihan Lokey represented the seller in the transaction, which
closed on December 7.
TARGET: Spring Creek Rehabilitation
and Health Care Center
ACQUIRER: TL Management
LISTING: KSE: SECH LISTING: Private
LOCATION: Harrisburg, Pennsylvania CEO: PHONE: 718-338-2999
UNITS: 404 (beds) 3839 Flatlands Ave # 218 FAX: REVENUE: Brooklyn, New York 11234
NET INCOME: WEB SITE:
Owned by a joint venture between GSH Kuwait and
Continue Care Holdings of Connecticut since 2007,
this skilled nursing facility consists of a 192-bed
building built in 1975 and a 212-bed building built
in 2003. It was formerly owned by Dauphin County.
TL Management owns and operates over 100 skilled nursing
facilities in ten states.
ANNOUNCEMENT DATE: December 9, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The facility was purchased in 2007 by a joint venture between GSH Kuwait (the real estate advisory subsidiary of
The Securities House, a financial institution listed on the Kuwait Stock Exchange) and Continue Care Holdings of
Connecticut for $14.35 million. The buyer made this purchase with the help of a $48 million credit facility
provided by First Niagara Bank.
The Health Care M&A Report, 4th Quarter, 2015 156
TARGET: Traditions of Durham
Retirement Residence
ACQUIRER: Sienna Senior Living
LISTING: Private LISTING: (TSX: SIA)
LOCATION: Oshawa, Ontario CEO: Lois Cormack PHONE: 905-477-4006
UNITS: 140 302 Town Centre Blvd, Suite
300
FAX: 905-415-7623
REVENUE: Markham, Ontario L3R 0E8
NET INCOME: WEB SITE: http://www.siennaliving.ca/
Currently managed by the buyer, Sienna Senior
Living, this community opened in 2010 with 90
units, with another 50 added in 2012. There are 103
independent living units and 37 assisted living units.
Occupancy is at 90.7%.
As one of the largest providers of long-term care in Ontario, Sienna
Senior Living cares for more than 5,500 residents in 35 long-term
care communities.
ANNOUNCEMENT DATE: December 9, 2015 PRICE: $ 37,000,000 PRICE PER UNIT: $ 264,286 TERMS: Includes the mortgage assumption of
approximately $22.7 million, maturing
in March 2020 and bearing an interest
rate of 3.5%.
PRICE/REVENUE:
PRICE/INCOME:
Sienna, which previously managed the community and will continue to do so, expects to pay the remainder of the
purchase price (after the debt assumption) with available cash and drawdowns from its credit facilities. The seller,
Durham Retirement Residence Limited Partnership, will provide Sienna with an annual net operating income
guarantee. The transaction closed on December 31.
TARGET: Parkside Nursing Home ACQUIRER: Maybrook Healthcare
LISTING: Nonprofit LISTING: Private
LOCATION: Fort Oglethorpe, Georgia CEO: PHONE:
UNITS: 109 (beds) FAX: REVENUE: New York
NET INCOME: WEB SITE:
Owned by the bankrupt Hutcheson Medical Center,
this skilled nursing facility was sold to pay off some
of the hospital owner's debt.
ANNOUNCEMENT DATE: December 14, 2015 PRICE: $ 7,200,000 PRICE PER UNIT: $ 66,055 TERMS: PRICE/REVENUE:
PRICE/INCOME:
The transaction was approved by U.S. Bankruptcy Couty Judge on December 14. In addition, Maybrook paid
$100,000 for the nearby child care center, which it plans to use for food preparation for the skilled nursing facility.
The Health Care M&A Report, 4th Quarter, 2015 157
TARGET: 2 assisted living
communities
ACQUIRER: Not disclosed
LISTING: Private LISTING: Private
LOCATION: Pennsylvania CEO: PHONE: UNITS: 250 FAX: REVENUE:
NET INCOME: WEB SITE:
Located in Eastern Pennsylvania, these assisted
living communities were partially built in 1960,
with continual updates and additions through 2004.
There are approximately 250 units. The seller will
exit the market with this sale.
This is the first acquisition for the buyer since starting the new
company. The principal has significant experience in seniors
housing operations as a former partner of another chain.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The buyer should be able to improve on the operations through increased marketing and some expense savings.
The price is rumored to be approximately $70,000 per unit. Senior Living Investment Brokerage handled the
transaction, which closed on December 15.
TARGET: Poteet Manor ACQUIRER: Owner/operator
LISTING: Private LISTING: Private
LOCATION: Poteet, Texas CEO: PHONE:
UNITS: 62 (beds) FAX: REVENUE: $ 1,376,600 Texas
NET INCOME: $ 13,700 (EBITDA) WEB SITE:
Built in 1964, this skilled nursing facility features
62 beds, with 49 of those dually certified. It is
13,043 square feet and sits on 3.31 acres.
Occupancy is just 48%.
The buyer is looking to expand into South Texas.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: $ 850,000 PRICE PER UNIT: $ 13,710 TERMS: PRICE/REVENUE: .62
PRICE/INCOME: 62.04
The private owner/operator selling is looking to divest itself of this property, which is located over 35 miles from
the San Antonio area. Senior Living Investment Brokerage handled the transaction, which closed on December 15.
The Health Care M&A Report, 4th Quarter, 2015 158
TARGET: Covenant Care ACQUIRER: Madison Partners
LISTING: Private LISTING: Private
LOCATION: Dinuba, California CEO: Bob Safai- Founder PHONE: 310-820-5959
UNITS: 94 (beds) 12121 Wilshire Blvd. 9th Fl.
Ste. 900
FAX:
REVENUE: Los Angeles, California 90025
NET INCOME: WEB SITE: www.madisonpartners.net/
Covenant Care is a skilled nursing facility offering
both long- and short-term post-acute care.
Madison Partners is a boutique commercial real estate investment
firm.
ANNOUNCEMENT DATE: December 18, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Leasehold interest. PRICE/REVENUE:
PRICE/INCOME:
The JCH Group represented the landlord and Madison Partners in their leasehold acquisition of the facility. The
transaction was structured as a 20-year, triple-net lease with two five-year extensions. Key money is to be paid in a
combination of cash and the assumption of the facility’s QA Fee liability. The landlord is also currently in the
process of obtaining a HUD loan on the property.
TARGET: Emerald Gardens of
Woodburn
ACQUIRER: Radiant Senior Living
LISTING: Private LISTING: Private
LOCATION: Woodburn, Oregon CEO: James Guffee PHONE: 503-595-2810
UNITS: 44 10220 SW Greenburg Rd Suite
201
FAX:
REVENUE: Portland, Oregon 97223
NET INCOME: WEB SITE: www.radiantseniorliving.com/
Built in 1987, the assisted living/memory care
community was significantly renovated in 2013,
when a 12-unit secure MC wing was added. There
are 59 licensed beds in 44 units.
Radiant Senior Living was formed in mid-2011 and provides senior
living services at its 15 facilities in Oregon, Washington, and
Montana.
ANNOUNCEMENT DATE: December 18, 2015 PRICE: $ 6,000,000 PRICE PER UNIT: $ 136,364 TERMS: PRICE/REVENUE:
PRICE/INCOME:
The JCH Group handled the transaction, which closed on December 18.
The Health Care M&A Report, 4th Quarter, 2015 159
TARGET: Manning Gardens Nursing
& Rehab
ACQUIRER: Owner/operator
LISTING: Private LISTING: Private
LOCATION: Fresno, California CEO: PHONE:
UNITS: 59 (beds) FAX: REVENUE: $ 3,600,000 (ttm) Los Angeles, California
NET INCOME: $ 480,000 (ttm,
EBITDA) WEB SITE:
Owned by a local father/son team, this skilled
nursing facility was built in 1958. It has 14,777
square feet on 2.22 acres. Occupancy was 96%,
with a 95% MediCal and 5% Medicare census.
This Los Angeles-based owner/operator runs about 20 facilities in
Southern California.
ANNOUNCEMENT DATE: December 18, 2015 PRICE: $ 3,335,000 PRICE PER UNIT: $ 56,525 TERMS: Sale/leaseback PRICE/REVENUE: .93
PRICE/INCOME: 6.95
The buyer determined the facility could use some renovations, and plans to spend up to $500,000. There are also
plans to convert a wing to sub-acute care. The transaction was structured as a sale/leaseback as the operator wanted
to stay in their management role while paying off some of their debt. The JCH Group handled the transaction,
which closed in November.
TARGET: Peachtree Centre ACQUIRER: NY investor group
LISTING: Nonprofit LISTING: Private
LOCATION: Gaffney, South Carolina CEO: PHONE:
UNITS: 139 (beds/units) FAX: REVENUE: $ 7,353,000 (annual 8 Mo.
ending Feb
2015)
New York
NET INCOME: $ 1,007,000 (EBITDA) WEB SITE:
Originally built as a hospital in 1953, but converted
to a skilled nursing facility in 1992, this facility has
85 dually certified beds, 26 Medicare/private beds
on the third floor (renovated in 2005 and 2009) and
14 assisted living units on the fourth floor (built in
1963).
ANNOUNCEMENT DATE: December 18, 2015 PRICE: $ 9,000,000 PRICE PER UNIT: $ 64,748 TERMS: PRICE/REVENUE: 1.22
PRICE/INCOME: 8.94
The 102,303 square-foot building, that is owned by the county, is located on 10.54 acres, and the exterior was
renovated in 2012. Included in the building are 25,027 square feet leased to the county for $292,000 annually.
Occupancy stood at 80%, with a 34% private pay, 16% Medicare and 50% Medicaid census. With new private
ownership, about $850,000 from the UPL program will come off. The financials above are adjusted annualized
eight months ending February 2015. Marcus & Millichap handled the transaction, which closed on December 18.
The Health Care M&A Report, 4th Quarter, 2015 160
TARGET: 2 assisted living
communities
ACQUIRER: AEW Capital Management
LISTING: Private LISTING: Private
LOCATION: Milford and Canton, Massachusetts
CEO: Jeffrey D. Furber PHONE: 617-261-9000
UNITS: 172 Two Seaport Lane FAX: 617-261-9555 REVENUE: Boston, Massachusetts 02210
NET INCOME: WEB SITE: www.aew.com
The Milford community was built in 2013 with 65
assisted living units and 20 memory care units with
100% occupancy. The Canton property opened in
mid-2015 with 65 AL units and 22 MC units. Senior
Living Residences developed both properties.
Founded in 1981, AEW Capital Management invests in and
manages more than $50 billion in real estate properties and
securities worldwide.
ANNOUNCEMENT DATE: December 21, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Combined there are 137,919 square feet. Senior Living Residences will continue to operate the Boston-area
communities and will have a joint-venture ownership interest in them. To finance the deal, CBRE secured a $49.6
million non-recourse five-year loan, with a fixed interest rate, from a life insurance company.
TARGET: 4 skilled nursing facilities ACQUIRER: Mid-Atlantic Health Care, LLC
LISTING: Private LISTING: Private
LOCATION: Various, Maryland CEO: Dr. Scott Rifkin PHONE: 410-308-2300
UNITS: 571 (beds) 1922 Greenspring Dr., Ste.3 FAX: 410-308-4999 REVENUE: Timonium, Maryland 21093-7603
NET INCOME: WEB SITE: www.mahcltc.com
The four skilled nursing facilities, which combined
have 571 beds, are located in Frederick,
Cumberland, Hagerstown and Westernport. They
are owned by the Magnolia group, a regional
owner/operator.
Mid-Atlantic Health Care was founded in 2003 by Dr. Scott Rifkin.
The company now operates about 21 health care facilities with more
than 3,600 beds.
ANNOUNCEMENT DATE: December 21, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
With this acquisition, Mid-Atlantic boosts its fully integrated western Maryland skilled nursing and rehab network.
Magnolia will continue to provide rehab services at the facilities through its affiliate Magnolia Rehabilitation
Services LLC.
The Health Care M&A Report, 4th Quarter, 2015 161
TARGET: Sunnybrook Village Senior
Community
ACQUIRER: Northbridge Companies
LISTING: Private LISTING: Private
LOCATION: Brunswick, Maine CEO: PHONE: 781-272-2424
UNITS: 51 71 Third Avenue FAX: REVENUE: Burlington, Massachusetts 01803
NET INCOME: WEB SITE: http://www.northbridgecos.com/
Opened in June 2003, this independent
living/assisted living community is located near
Mid Coast Hospital and is two miles from the
buyer's 60-unit memory care community.
Northbridge Companies acquires, develops and operates senior
living communities in the New England. It currently owns 15
properties in Massachusetts, New Hampshire and Maine.
ANNOUNCEMENT DATE: December 21, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition is part of a $65 million investment in the state of Maine by the buyer, which also includes
developing three new senior living communities in the towns of Westbrook, Wells and Brunswick. Northbridge
expects to spend $400,000 on improvements to Sunnybrook.
TARGET: Sunnycrest ACQUIRER: DiNapoli Capital Partners
LISTING: Private LISTING: Private
LOCATION: Fullerton, California CEO: F. Matthew DiNapoli PHONE: 408-971-1680
UNITS: 130 3021 Citrus Circle, Ste. 130 FAX: 408-971-2920 REVENUE: $ 4,760,000 (tr.6 mo.,
annualized) Walnut Creek, California 94598
NET INCOME: $ 2,034,000 (adj.
EBITDAR) WEB SITE: www.dinapolicapital.com
Built in 1988, with a 2014 renovation to the lobby
and common areas, this assisted living community
has 91,249 square feet on about two acres.
Occupancy was 84% and the census is 100% private
pay.
DiNapoli Capital Partners is a privately held real estate investment
firm engaged in the acquisition, development and management of
hotels, multifamily, office and seniors housing. DNC started its
seniors housing platform in 2012.
ANNOUNCEMENT DATE: December 22, 2015 PRICE: $ 37,000,000 PRICE PER UNIT: $ 284,615 TERMS: PRICE/REVENUE: 7.77
PRICE/INCOME: 18.19
The financials above are trailing six months ending July 31, 2015, annualized, figures. The buyer expects to
increase occupancy to 95% and raise monthly rents from $2,400 for studios and $3,500 for one-bedroom units to
$2,700 and $3,800, respectively. Evans Senior Investments handled the transaction, which closed on December 16.
The Health Care M&A Report, 4th Quarter, 2015 162
TARGET: 2 senior living communities ACQUIRER: Joint venture
LISTING: Nonprofit LISTING: Public
LOCATION: Various, Texas CEO: PHONE:
UNITS: 292 FAX: REVENUE:
NET INCOME: WEB SITE:
Both owned by Lutheran Social Services of the
South, these properties include a 206-unit CCRC in
Spring and an 86-unit independent living
community in Victoria.
The joint venture is between Brookdale Senior Living and HCP.
ANNOUNCEMENT DATE: December 23, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
With this transaction, and another concurrent one where Prime Life Communities purchased a 49-unit assisted
living community in Lubbock, the seller was able to retire all of its outstanding debt and retain net proceeds to fund
its mission. Cain Brothers handled the transaction, which closed on December 22.
TARGET: Shasta View Nursing Center ACQUIRER: Dakavia
LISTING: Private LISTING: Private
LOCATION: Weed, California CEO: Kent Emory PHONE:
UNITS: 59 (beds) 850 Promontory Place FAX: REVENUE: Salem, Oregon 97302
NET INCOME: WEB SITE: www.dakavia.com/
Owned by Meridian Foresight Management, this
skilled nursing facility is both Medicare and Medi-
Cal certified. However, it is on the Special Facility
Focus list, as it has a history of serious quality
issues.
Dakavia owns and operates a number of senior care facilities,
primarily in Oregon.
ANNOUNCEMENT DATE: December 23, 2015 PRICE: $ 4,130,000 PRICE PER UNIT: $ 70,000 TERMS: PRICE/REVENUE:
PRICE/INCOME:
This is Meridian's last facility in northern California, having previously sold eight of its other facilities earlier this
year. Dakavia, which primarily operates in Oregon, is looking to expand its California portfolio. The JCH Group
handled the transaction.
The Health Care M&A Report, 4th Quarter, 2015 163
TARGET: Wedgewood South ACQUIRER: Prime Life Communities
LISTING: Nonprofit LISTING: Private
LOCATION: Lubbock, Texas CEO: Greg Blanchard PHONE: 225-927-4243
UNITS: 49 7516 Blubonnet Blvd, PMB127 FAX: REVENUE: Baton Rouge, Louisiana 70810
NET INCOME: WEB SITE: www.primelifecommunities.com
Owned by Lutheran Social Services of the South,
Wedgewood South is a 49-unit assisted living
community.
Prime Life Communities designs, builds and manages assisted
living, independent living and active adult communities with a
concentration in Texas and Louisiana.
ANNOUNCEMENT DATE: December 23, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
With this transaction, and another concurrent one where a joint venture between Brookdale Senior Living and HCP
purchased two Texas senior living communities, the seller was able to retire all of its outstanding debt and retain
net proceeds to fund its mission. Cain Brothers handled the transaction, which closed on December 22.
TARGET: Evergreen Health Center ACQUIRER: Athena Health Care Systems
LISTING: Nonprofit LISTING: Private
LOCATION: Stafford, Connecticut CEO: Lawrence G. Santilli PHONE: 860-751-3900
UNITS: 180 (beds) 135 South Road FAX: 860-751-3905 REVENUE: $ 16,300,000 -2013 Farmington, Connecticut 06032
NET INCOME: $ 600,000 (approx.
EBITDA) WEB SITE: www.athenahealthcare.com
The skilled nursing facility is located on the campus
of Johnson Memorial Medical Center, and is owned
and operated by the hospital. It was built in 1989
with a 30-bed addition in 2008, and there is now a
total of 83,624 square feet.
Athena Health Care is one of the largest post-acute providers in
New England, with 19 nursing facilities in Connecticut, 18 in
Massachusetts and five in Rhode Island. It also provides hospice
services and has a few assisted living centers.
ANNOUNCEMENT DATE: December 30, 2015 PRICE: $ 5,000,000 Not disclosed PRICE PER UNIT: $ 27,778 TERMS: PRICE/REVENUE: .31
PRICE/INCOME: 8.33
The facility has an outstanding bank loan of $14.2 million secured by several mortgages. The land was not
included in the sale. Medicaid was 65% of census, Medicare was 15%. The 30-bed unit had been closed. The
hospital was in bankruptcy protection. It closed in December.
The Health Care M&A Report, 4th Quarter, 2015 164
TARGET: 2 assisted living
communities
ACQUIRER: Private owner
LISTING: Private LISTING: Private
LOCATION: Findlay & Springfield, Ohio CEO: PHONE:
UNITS: 147 FAX: REVENUE: $ 3,681,000 Kentucky
NET INCOME: $ 33,000 (EBITDA) WEB SITE:
Built in 1984, the 71-unit Findlay assisted living
community has 52,591 square feet on 3.9 acres and
was 78% occupied. Built in 1989, the 76-unit
Springfield property has 53,382 square feet on 5.4
acres and was 82% occupied.
ANNOUNCEMENT DATE: December 31, 2015 PRICE: $ 6,250,000 PRICE PER UNIT: $ 42,517 TERMS: PRICE/REVENUE: 1.70
PRICE/INCOME: 189.39
The Findlay property was losing approximately $117,000 on $1.8 million of revenues, while the Springfield
property was earning about $150,000 in EBITDA on $1.9 million of revenues. Senior Living Investment Brokerage
handled the transaction, which closed on December 31.
TARGET: 2 senior care facilities ACQUIRER: Ide Management Group, LLC
LISTING: Public LISTING: Private
LOCATION: Sioux City, Iowa CEO: Mark Ide PHONE: 317-670-1577
UNITS: 222 (beds/units) 5430 West US Highway 40 FAX: 317-894-5626 REVENUE: $ 5,250,000 Greenfield, Indiana 46256
NET INCOME: $ 72,000 (EBITDA) WEB SITE: www.imgcares.com
Owned by a public REIT, there is a 160-bed skilled
nursing/assisted living facility built in 1965 and
2003 that has 68,457 square feet on 8.5 acres. The
62-unit independent living community was built in
1936 and 1986 and has 45,553 square feet on 5.4
acres.
Ide Management Group, LLC is a regionally-based operator of
skilled nursing and assisted living facilities. It operates more than
25 facilities in Indiana, Illinois and Wisconsin.
ANNOUNCEMENT DATE: December 31, 2015 PRICE: $ 3,100,000 PRICE PER UNIT: $ 13,964 TERMS: PRICE/REVENUE: .59
PRICE/INCOME: 43.06
Located one-half mile from each other in Sioux City, Iowa, the facilities were underperforming. The SNF/ALF
was just 35% occupied as a result of a portion of the building not being sprinklered. On the other hand, the IL
community was 74% occupied. The census was 66% private pay, 21% Medicaid, 10% Medicare and 3% hospice
or other payor type. The buyer plans to invest in the SNF physical plant and invest in a sprinkler system. Senior
Living Investment Brokerage handled the transaction, which closed on December 31.
The Health Care M&A Report, 4th Quarter, 2015 165
TARGET: Courtyard Fountains ACQUIRER: American Realty Capital Healthcare
Trust-II
LISTING: Private LISTING: Nonprofit
LOCATION: Gresham, Oregon CEO: Tom D'Arcy PHONE: 212-415-6500
UNITS: 252 405 Park Avenue, 15th Fl. FAX: REVENUE: $ 8,200,000 (estimated
2015) New York, New York 10022
NET INCOME: $ 3,300,000 (estimated
EBITDA) WEB SITE: www.americanrealtycap.com
The senior living community was built in stages
between 1996 and 2010 with $2.4 million of
renovations in 2012. It has 208 independent living
units and 44 assisted living units. Occupancy was
near 93%, and there are 255,782 square feet.
ARC Healthcare Trust-II is the second healthcare REIT that has
been formed by the sponsor, and is part of the American Realty
Capital family of companies and non-traded REITs.
ANNOUNCEMENT DATE: December 31, 2015 PRICE: $ 55,500,000 PRICE PER UNIT: $ 220,238 TERMS: PRICE/REVENUE: 6.77
PRICE/INCOME: 16.82
The seller was a joint venture between The Freshwater Group and Prudential Real Estate Investors, and they
purchased the community in December 2012 for $39.45 million. In the current sale, they were represented by
CBRE, and it closed on December 1. The buyer has hired Frontier Management to operate the community.
TARGET: Fox Ridge portfolio ACQUIRER: American Realty Capital Healthcare
Trust-II
LISTING: Private LISTING: Private
LOCATION: Little Rock, Arkansas CEO: Tom D'Arcy PHONE: 212-415-6500
UNITS: 295 405 Park Avenue, 15th Fl. FAX: REVENUE: $ 15,000,000 (in-place) New York, New York 10022
NET INCOME: $ 5,000,000 (EBITDA, in-
place) WEB SITE: www.americanrealtycap.com
Two properties are located in Little Rock and one in
Bryant. Built in 2000, 2006 and 2008, the assisted
living/memory care communities are 98.8%
occupied and almost all private pay. There are 263
AL units, 24 MC units and 8 independent living
duplexes.
ARC Healthcare Trust-II is the second healthcare REIT that has
been sponsored by the sponsor, and is part of the American Realty
Capital family of companies and non-traded REITs.
ANNOUNCEMENT DATE: December 31, 2015 PRICE: $ 69,000,000 PRICE PER UNIT: $ 233,898 TERMS: PRICE/REVENUE: 4.60
PRICE/INCOME: 13.80
The seller is a local investor group, which built two of the communities and previously acquired one. These are the
highest quality assets in the market, and the high operating margin reflects that. The buyer will retain Ox Ridge
Management, an affiliate of the seller, to operate. The transaction closed on December 29.
The Health Care M&A Report, 4th Quarter, 2015 166
TARGET: Harbour Pointe Retirement ACQUIRER: Capitol Seniors Housing
LISTING: Private LISTING: Private
LOCATION: Mukilteo, Washington CEO: Scott Stewart PHONE: 202-469-8400
UNITS: 107 975 F Street NW, 9th Fl FAX: 202-469-8407 REVENUE: $ 4,800,000 (approximate) Washington, D.C. 20004
NET INCOME: $ 2,020,000 (T-12
EBITDA) WEB SITE: www.capitolseniorshousing.com
Harbour Pointe is a senior living community with
about 50% of its units independent living and 50%
assisted living. It was built in phases in 2000 and
2004 and occupancy has been between 86% and
90% in 2015. Mukilteo is outside Seattle.
Capitol Seniors Housing and its joint venture partner, Harvard
Endowment Company, own seniors housing communities and hire
third-party managers to operate them. In this transaction, they will
be hiring Milestone Retirement Communities.
ANNOUNCEMENT DATE: December 31, 2015 PRICE: $ 29,125,000 PRICE PER UNIT: $ 272,196 TERMS: PRICE/REVENUE: 6.07
PRICE/INCOME: 14.42
This represents the second community purchased by Capitol Seniors Housing in the Seattle MSA. They plan to
gradually increase the number of assisted living units over time, and also plan to invest up to $1.0 million in capital
improvements. Senior Living Investment Brokerage handled the transaction, which closed on December 21.
TARGET: Lexington at Tazewell ACQUIRER: In-state operator
LISTING: Private LISTING: Private
LOCATION: Tazewell, Virginia CEO: PHONE:
UNITS: 42 FAX: REVENUE: Virginia
NET INCOME: WEB SITE:
Built in 1989, with an addition in 1994, the assisted
living/memory care community was closed for
significant renovations in 2014. But, it never
reopened and the lender foreclosed on the developer
after the project was completed. It has 33,480
square feet on 5.3 acres.
This Virginia-based assisted living and skilled nursing operator has
five other locations in the state.
ANNOUNCEMENT DATE: December 31, 2015 PRICE: $ 2,150,000 PRICE PER UNIT: $ 51,190 TERMS: PRICE/REVENUE:
PRICE/INCOME:
In this community, there are 28 units with private bathrooms and 14 with shared. Also, 12 units are dedicated to
memory care. The community's license was approved upon change of ownership, so the buyer plans to lease-up
throughout 2016. Senior Living Investment Brokerage handled the transaction, which closed on December 28.
The Health Care M&A Report, 4th Quarter, 2015 167
TARGET: Redstone Villa ACQUIRER: Family-owned business
LISTING: Private LISTING: Private
LOCATION: St. Albans, Vermont CEO: PHONE:
UNITS: 30 (beds) FAX: REVENUE: $ 2,233,000 Vermont
NET INCOME: $ 11,000 (EBITDA) WEB SITE:
Built in 1969, this home-like skilled nursing facility
features two private rooms, 11 semi-privates and 2
three-bed wards. It neighbors a local hospital and
sits on just a half acre. Occupancy was 81%, the
quality mix was around 50%, and there are 13,162
square feet.
The local family-owned business operates another seniors
housing/long-term care community in St. Albans.
ANNOUNCEMENT DATE: December 31, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
A regional skilled nursing owner sold this facility because it was the smallest in its portfolio and offered no room
to expand. The facility has three stories with no elevator, so most of the patient rooms are on the first floor and
residents use a chair lift to get to the second floor. Administrative offices are on the third floor. Although it had
undergone significant capex, the buyer discovered more needed renovations. Senior Living Investment Brokerage
handled the transaction, which closed on December 1.
TARGET: Renaissance on Peachtree ACQUIRER: American Realty Capital Healthcare
Trust-III
LISTING: Private LISTING: Private
LOCATION: Atlanta, Georgia CEO: Tom D'Arcy PHONE: 212-415-6500
UNITS: 229 405 Park Avenue, 15th Fl. FAX: REVENUE: $ 10,300,000 (estimated) New York, New York 10022
NET INCOME: $ 4,100,000 (estimated
EBITDA) WEB SITE: www.americanrealtycap.com
This community was built in 1987 and has 165
independent living and 64 assisted living units. The
seller recently put in $8.1 million of renovations.
Occupancy was nearing 94%, and there are a total
of 285,000 square feet plus a 65,000 square foot
parking garage.
ARC Healthcare Trust-III is the third healthcare REIT that has been
formed by the sponsor, and is part of the American Realty Capital
family of companies and non-traded REITs.
ANNOUNCEMENT DATE: December 31, 2015 PRICE: $ 78,600,000 PRICE PER UNIT: $ 343,231 TERMS: PRICE/REVENUE: 7.63
PRICE/INCOME: 19.17
As the renovated units have been turning over the community has been able to charge higher rents, but that is not
fully reflected in the $4.1 million EBITDA above. As a result, the cash flow for the buyer in 2016 is expected to
increase to $5.0 million. The seller was a partnership between The Carlyle Group and Formation Development,
which purchased the community in March 2012 for $27.5 million, when occupancy was 70%. CBRE represented
the seller in the current transaction, which closed on December 15, and The Arbor Group will remain as the
manager.
The Health Care M&A Report, 4th Quarter, 2015 168
TARGET: Windchime at the Village ACQUIRER: Private owner/operator
LISTING: Private LISTING: Private
LOCATION: Kingsland, Texas CEO: PHONE:
UNITS: 60 FAX: REVENUE: $ 1,872,000 Dallas/Fort Worth, Texas
NET INCOME: $ 245,000 (EBITDA) WEB SITE:
Windchime is a 60-unit assisted living community
with a license for 72 beds. It was built in 1997 with
35,030 square feet on 7.87 acres. Occupancy was
about 73%. Kingsland is located 65 miles northwest
of Austin.
The buyer is an independent owner/operator based in the
Dallas/Fort Worth area.
ANNOUNCEMENT DATE: December 31, 2015 PRICE: $ 3,785,000 PRICE PER UNIT: $ 63,083 TERMS: PRICE/REVENUE: 2.02
PRICE/INCOME: 15.45
Senior Living Investment Brokerage represented the seller in the transaction, a Texas-based owner/operator that
focuses on the skilled nursing market, which prompted the sale. The transaction closed on December 30.
The Health Care M&A Report, 4th Quarter, 2015 169
MANAGED CARE
TARGET: UAM's Traditional
Insurance business
ACQUIRER: Nassau Reinsurance Group
LISTING: NYSE: UAM LISTING: Private
LOCATION: White Plains, New York CEO: Phillip J. Gass PHONE:
UNITS: 450 Park Avenue FAX: REVENUE: New York, New York 10022
NET INCOME: WEB SITE: www.nsre.com
Universal American Corp. is selling its Traditional
Insurance business, consisting of a closed block of
insurance products, including Medicare supplement,
other senior health insurance, specialty health
insurance and life insurance, including long-term
care policies.
Nassau Reinsurance was launched in April 2015 and is backed by
Golden Gate Capital, a private investment firm with more than $15
billion of committed capital.
ANNOUNCEMENT DATE: October 8, 2015 PRICE: $ 63,000,000 PRICE PER UNIT: TERMS: All-cash transaction. Nassau will also
fund $20 million in equity capital to
support the transaction and strengthen
the business moving forward.
PRICE/REVENUE:
PRICE/INCOME:
The Traditional Insurance business includes Universal American subsidiaries Constitution Life Insurance Company
and The Pyramid Life Insurance Company, as well as a portion of business written by American Progressive Life
& Health Insurance Company of New York. Debevoise & Plimpton LLC is acting as legal advisor to Nassau. This
transaction is expected to close in early 2016.
TARGET: Medicaid business of Loyola
Physician Partners
ACQUIRER: Molina Healthcare, Inc.
LISTING: Private LISTING: NYSE: MOH
LOCATION: Chicago, Illinois CEO: Dr. Joseph Mario
Molina
PHONE: 562-435-3666
UNITS: 200 Oceangate, Ste. 100 FAX: REVENUE: Long Beach, California 90802
NET INCOME: WEB SITE: www.molinahealthcare.com
Loyola Physician Partners LLC, through a
subsidiary, provides a medical home for
approximately 20,000 members in the Medicaid
Family Health program in Cook County. Loyola
Physician Partners is solely owned by the Loyola
University Health System.
Molina Healthcare subsidiary Molina Healthcare of Illinois, Inc. is
acquiring the Medicaid business of Loyola Physician Partners. On a
trailing 12-month basis, MOH generated revenue of $11.6 billion,
EBITDA of $416 million and net income of $117 million.
ANNOUNCEMENT DATE: October 9, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Cash on hand. PRICE/REVENUE:
PRICE/INCOME:
As part of the transaction, Molina Healthcare of Illinois will receive the right to transition Loyola's Medicaid
members in Cook Country and assume certain assets related to the operation of the Medicaid business. The closing
of the transaction is expected to occur in the first quarter of 2016.
The Health Care M&A Report, 4th Quarter, 2015 173
TARGET: HealthPlus of Michigan ACQUIRER: Health Alliance Plan
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Flint, Michigan CEO: James Connelly PHONE: 313-872-8100
UNITS: 2850 West Grand Blvd. FAX: REVENUE: Detroit, Michigan 48202
NET INCOME: WEB SITE: www.hap.org
HealthPlus of Michigan was formed in 1979 and
manages healthcare coverage and wellness
programs for members inside and outside the state.
It provides health insurance plans to large and small
employers, families and individuals.
Health Alliance Plan is a subsidiary of the Henry Ford Health
System that provides coverage to individuals, companies and
organizations. Its product portfolios include employer group plans,
Medicare and Medicaid, and individual plans.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: Merger PRICE PER UNIT: TERMS: A letter of intent was signed on October
2, 2015, and a definitive agreement was
reached on November 2.
PRICE/REVENUE:
PRICE/INCOME:
The merger will establish one of the largest health insurers in Michigan. HealthPlus members will still have access
to the same provider networks, coverage and services they have at present. Both HealthPlus and HAP intend to
maintain their individual and employer group customers and partnerships each has formed over the years. January
1, 2016 is the planned effective date for this transaction.
TARGET: Clarity Health ACQUIRER: SCI Solutions
LISTING: Private LISTING: Private
LOCATION: Seattle, Washington CEO: Joel French PHONE: 408-378-0262
UNITS: 655 Campbell Technology
Parkway, Suite 250
FAX:
REVENUE: Campbell, California 95008
NET INCOME: WEB SITE: www.scisolutions.com
Clarity Health is a leading insurance
preauthorization and referral management solution
for medical practices, hospitals and health systems.
SCI operates a cloud-based service for a network of hospitals and
independent providers. Provider networks utilize SCI’s service to
coordinate patient care transitions, schedule patients, automate
referrals and manage orders.
ANNOUNCEMENT DATE: November 3, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The combination of Clarity Health and SCI Solutions creates one of the largest referral management and care
coordination software firms in the industry, serving more than 10,000 physician practices and 700 hospitals, health
systems and imaging centers in 275 geographic markets across the United States. Columbia Pacific Advisors and
ORIX Ventures participated in the transaction, as did current SCI investors The Wicks Group and New Enterprise
Associates. The combined company will be headquartered in Seattle.
The Health Care M&A Report, 4th Quarter, 2015 174
TARGET: Medicaid business of
Columbia United Providers
ACQUIRER: Molina Healthcare, Inc.
LISTING: Private LISTING: NYSE: MOH
LOCATION: Vancouver, Washington CEO: Dr. Joseph Mario
Molina
PHONE: 562-435-3666
UNITS: 200 Oceangate, Ste. 100 FAX: REVENUE: Long Beach, California 90802
NET INCOME: WEB SITE: www.molinahealthcare.com
Columbia United Providers, Inc. (CUP). CUP
provides coverage for medical services throughout
the Southwest Region of Washington serving more
than 55,000 Medicaid members in Clark County.
Molina Healthcare subsidiary Molina Healthcare of Washington,
Inc. is acquiring the Medicaid business of Columbia United
Providers, Inc. On a trailing 12-month basis, MOH generated
revenue of $12.7 billion, EBITDA of $489.9 million and net income
of $147.2 million.
ANNOUNCEMENT DATE: November 12, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Cash on hand. PRICE/REVENUE:
PRICE/INCOME:
As a part of the transaction, Molina Healthcare of Washington will receive the right to assume CUP’s Medicaid
membership in the state of Washington, as well as certain other rights and assets related to the operation of the
Medicaid business. The transaction is expected to close during the first quarter of 2016.
TARGET: Medicaid and MIChild
businesses of HAP Midwest
ACQUIRER: Molina Healthcare, Inc.
LISTING: Private LISTING: NYSE: MOH
LOCATION: Dearborn, Michigan CEO: Dr. Joseph Mario
Molina
PHONE: 562-435-3666
UNITS: 200 Oceangate, Ste. 100 FAX: REVENUE: Long Beach, California 90802
NET INCOME: WEB SITE: www.molinahealthcare.com
HAP Midwest Health Plan, Inc. is a wholly owned
subsidiary of Health Alliance Plan (HAP) and the
Henry Ford Health System, based in southeastern
Michigan. It currently arranges health care services
for approximately 85,000 Medicaid and MIChild
members.
Molina Healthcare subsidiary Molina Healthcare of Michigan, Inc.
is acquiring certain assets of HAP's Medicaid and MIChild
businesses. On a trailing 12-month basis, it generated revenue of
$12.7 billion, EBITDA of $489.9 million and net income of $147.3
million.
ANNOUNCEMENT DATE: November 24, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Cash on hand. PRICE/REVENUE:
PRICE/INCOME:
As a part of the transaction, Molina Healthcare of Michigan will receive the right to assume certain assets related
to HAP Midwest’s Medicaid and MIChild businesses in Regions 9 and 10 of the State of Michigan and transition
those members to Molina Healthcare of Michigan. The closing of the transaction is expected to coincide with the
start of Molina’s new managed care contract with the State of Michigan for the Comprehensive Health Care
Program on January 1, 2016.
The Health Care M&A Report, 4th Quarter, 2015 175
TARGET: Medicaid business of Better
Health Network
ACQUIRER: Molina Healthcare, Inc.
LISTING: Private LISTING: NYSE: MOH
LOCATION: Chicago, Illinois CEO: Dr. Joseph Mario
Molina
PHONE: 562-435-3666
UNITS: 40,000 Medicaid members 200 Oceangate, Ste. 100 FAX: REVENUE: Long Beach, California 90802
NET INCOME: WEB SITE: www.molinahealthcare.com
Better Health Network, LLC is an Accountable
Care Entity owned and operated by several local
Chicago providers. It serves nearly 40,000 members
in the Medicaid Family Health program in Cook
County.
Molina Healthcare subsidiary Molina Healthcare of Illinois Inc. is
acquiring the Medicaid assets of Better Health Network. On a
trailing 12-month basis, MOH generated revenue of $12.7 billion,
EBITDA of $489.9 million and net income of $147.3 million.
ANNOUNCEMENT DATE: November 30, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Financed with available cash. PRICE/REVENUE:
PRICE/INCOME:
As part of the transaction, Molina Healthcare of Illinois will receive the right to transition Better Health's Medicaid
members in Cook County and assume certain assets related to the operation of the Medicaid business. This
transaction is expected to close in the second quarter of 2016.
TARGET: Avanti Healthcare ACQUIRER: Chase Templeton
LISTING: Private LISTING: Private
LOCATION: United Kingdom CEO: PHONE: 44 800 018 3633 UNITS: 5, Arkwright Court,
Commercial Road
FAX:
REVENUE: Darwen, Lancashire, United Kingdom BB3 0FG
NET INCOME: WEB SITE: www.chasetempleton.co.uk
Avanti Healthcare was founded in 1996 by CEO
Glen Smith, who is exiting the insurance business to
focus on his Avanti Travel Insurance business.
Chase Templeton is one of the UK's leading health insurance and
protection specialists. It protects more than 110,000 lives through
both individual and company medical plans.
ANNOUNCEMENT DATE: December 3, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The acquisition brings a further £6.8m of annual premium income (API) and over 1,500 clients to the business.
Following a series of acquisitions, including major deals with Atlas Consulting Group and Consilium Employee
Benefits, Chase Templeton has now added some £40m API to its books in the last three months and £55m in 2015
as a whole.
The Health Care M&A Report, 4th Quarter, 2015 176
TARGET: Group Health Cooperative ACQUIRER: Kaiser Permanente
LISTING: Nonprofit LISTING: Nonprofit
LOCATION: Seattle, Washington CEO: Bernard J. Tyson PHONE: 510-271-5800
UNITS: 590,000 (members) Kaiser Plaza, 19th Floor FAX: REVENUE: $3,700,000,000 (annual, 2014) Oakland, California 94612
NET INCOME: WEB SITE: kaiserpermanente.org
Group Health Cooperative is a nationally
recognized health system offering both care
delivery and insurance coverage. It covers nearly
590,000 patients throughout Washington state.
Kaiser Permanente serves more than 10 million members in eight
states and the District of Columbia. It is one of the country's leading
health care providers and a not-for-profit health plan.
ANNOUNCEMENT DATE: December 4, 2015 PRICE: $1,800,000,000 PRICE PER UNIT: $ 3,051 TERMS: The money will create a new
community foundation as part of the
transaction.
PRICE/REVENUE: .49
PRICE/INCOME:
The combination will advance the growth of the integrated model for health care and coverage together and expand
Kaiser Permanente's reach, adding nearly 590,000 members. Pending approvals by Group Health's voting
membership and regulatory entities, the organization would become fully integrated with Kaiser and operate as a
new, eighth region.
TARGET: Managed HealthCare
Solutions
ACQUIRER: Arthur J. Gallagher & Co.
LISTING: Private LISTING: NYSE: AJG
LOCATION: Atlanta, Georgia CEO: J. Patrick Gallagher
Jr.
PHONE: 630-773-3800
UNITS: 2 Pierce Place FAX: REVENUE: Itasca, Illinois 60143
NET INCOME: WEB SITE: www.ajg.com
Managed HealthCare Solutions provides employee
benefit consultation, management and brokerage
services for clients throughout the southern United
States.
Arthur J. Gallagher & Co. provides insurance brokerage and risk
management services in the U.S. and worldwide. On a trailing 12-
month basis, it generated revenue of $5.2 billion, EBITDA of
$742.4 million and net income of $346.0 million.
ANNOUNCEMENT DATE: December 18, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Managed HealthCare Solutions specializes in cost management, employee engagement and creative plan design
and funding arrangements for group health insurance programs. Its services complement Arthur J. Gallagher's
presence in the southern United States.
The Health Care M&A Report, 4th Quarter, 2015 177
TARGET: Avesis Incorporated ACQUIRER: Guardian Life Insurance
LISTING: OTC: AVSS LISTING: Private
LOCATION: Phoenix, Arizona CEO: Deanna M. Mulligan PHONE: 888-482-7342
UNITS: 7 Hanover Square FAX: REVENUE: $ 9,560,000 (ttm, 2015) New York, New York 10004
NET INCOME: $- 1,110,000 (ttm,
EBITDA) WEB SITE: www.guardianlife.com
Avesis Incorporated provides vision, dental and
hearing plans, with 3 million members administered
under Medicaid, CHIP and Medicare Advantage
programs and 1.5 million covered by group vision
programs.
Guardian Life Insurance Company of America is one of the nation's
largest mutual life insurers, with $6.8 billion in capital and $1.3
billion in operating income in 2014.
ANNOUNCEMENT DATE: December 21, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Avesis has partnerships with managed care organizations holding government contracts in 21 states. This
acquisition strengthens Guardian's government programs business with an experienced management team, a
scalable operating and technology platform, existing relationships with managed care organizations and a broad
product portfolio.
TARGET: EmblemHealth's MLTC
plans
ACQUIRER: GuildNet
LISTING: Private LISTING: Nonprofit
LOCATION: New York, New York CEO: Dr. Alan R. Morse PHONE: 800-932-4703
UNITS: 2,000 (members) 15 West 65th Street FAX: REVENUE: New York, New York 10023
NET INCOME: WEB SITE: www.guildnetny.org
EmblemHealth is the largest health insurance
provider based in New York State. In November
2015, it announced it would no longer provide
Managed Long Term Care (MLTC) to nearly 2,000
members.
GuildNet provides managed long-term care plans for frail and
chronically ill New Yorkers, as well as Medicaid Advantage Plus
(MAP) plans and Fully Integrated Dual Advantage Plans (FIDA). It
has more than 18,000 members.
ANNOUNCEMENT DATE: December 22, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
GuildNet offers health plans for people who have Medicare and Medicaid and qualify for nursing-home-level care,
but are able to continue to live safely in their communities with support from GuildNet. Cain Brothers served as
sole advisor to EmblemHealth in connection with the sale and assisted in initiating, structuring and negotiating the
transaction.
The Health Care M&A Report, 4th Quarter, 2015 178
MEDICAL DEVICES
TARGET: Cardea Associates, Inc. ACQUIRER: Cardiac Insight, Inc.
LISTING: Private LISTING: Private
LOCATION: Seattle, Washington CEO: Brad Harlow PHONE: 206-442-3098
UNITS: 2002 156th Avenue NE FAX: REVENUE: Bellevue, Washington 98105
NET INCOME: WEB SITE:
Cardea Associates works to improve screening for
heart health. CardeaScreen™ is a proprietary
diagnostic product that measures and records the
electrical activity of the heart and aids the physician
to make a determination of the risks associated with
sudden cardiac arrest.
Cardiac Insight, Inc. develops advanced body-worn sensing and
computing technologies for applications in cardiology, respiratory
and other complex disease states.
ANNOUNCEMENT DATE: October 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Cardea Associates brings to market compelling ECG technologies that greatly enhance the ECG data for the
purpose of finding potential life threatening conditions in young athletes. CardeaScreen™ is aligned very well
with Cardiac Insight's field of expertise. Cardiac Insight is looking to introduce body worn sensing technologies in
the future and CardeaScreen™ will help this goal.
TARGET: nContact ACQUIRER: AtriCure, Inc.
LISTING: Private LISTING: NASDAQ: ATRC
LOCATION: Morrisville, North Carolina CEO: Michael H. Carrel PHONE: 513-755-4100
UNITS: 6217 Centre Park Drive FAX: REVENUE: $ 8,200,000 2014 West Chester, Ohio 45069
NET INCOME: WEB SITE: www.atricure.com
nContact’s mission is to transform the underserved
arrhythmia market through the advancement of less
invasive ablation alternatives for cardiac
arrhythmias.
AtriCure develops and manufactures methods to ablate tissue during
surgical procedures to create precision lesions. On a trailing 12-
month basis, it generated revenue of $117.9 million and a net loss of
$16.0 million.
ANNOUNCEMENT DATE: October 4, 2015 PRICE: $ 99,020,000 Approximate PRICE PER UNIT: TERMS: nContact will receive an upfront
payment of 3.7 million shares of
AtriCure common stock, valued at
$24.60 per share, and approximately $8
million in cash. There's a $50 million in
additional contingent consideration drug
trial and approval.
PRICE/REVENUE: 12.08
PRICE/INCOME:
nContact shareholders are entitled to additional sales-based contingent consideration on revenue in excess of an
annual growth rate of greater than 25% through 2019. The transaction will combine two companies committed to
solving the challenges associated with the most serious forms of Afib. nContact had 2014 revenues of $8.2 million
and is projected to grow approximately 25% in 2015. The transaction closed on October 13, 2015.
The Health Care M&A Report, 4th Quarter, 2015 181
TARGET: Excelsior Medical
Corporation
ACQUIRER: ICU Medical, Inc.
LISTING: Private LISTING: NASDAQ: ICUI
LOCATION: Neptune, New Jersey CEO: Vivek Jain PHONE: 949-366-2183
UNITS: 951 Calle Amanecer FAX: 946-366-8368 REVENUE: San Clemente, California 92673
NET INCOME: WEB SITE: www.icumed.com
Excelsior Medical, a portfolio company of
RoundTable Healthcare Partners, manufactures
healthcare devices used to disinfect and protect
access into a patient's bloodstream. It developed the
SwabCap® and SwabFlush® products.
ICU Medical develops, manufactures and sells medical devices used
in infusion therapy, oncology and critical care applications. On a
trailing 12-month basis, it generated revenue of $320.7 million,
EBITDA of $82.7 million and net income of $37.1 million.
ANNOUNCEMENT DATE: October 5, 2015 PRICE: $ 59,500,000 PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Concurrent with this acquisition, ICU Medical sold the operating assets of SwabFlush and other products to
Medline Industries, Inc. for $27 million. Both transactions are expected to close within a week.
TARGET: Operating assets of
SwabFlush®
ACQUIRER: Medline Industries, Inc.
LISTING: NASDAQ: ICUI LISTING: Private
LOCATION: San Clemente, California CEO: Charlie Mills PHONE: 847-949-5500
UNITS: One Medline Place FAX: 800-351-1512 REVENUE: Mundelein, Illinois 60060
NET INCOME: WEB SITE: www.medline.com
ICU Medical, Inc. is selling the operating assets of
SwabFlush®, a product line it acquired when it
purchased Excelsior Medical Corporation from
RoundTable Healthcare Partners on October 5,
2015.
Medline Industries is a global manufacturer and distributor of
medical supplies and clinical solutions.
ANNOUNCEMENT DATE: October 5, 2015 PRICE: $ 27,000,000 PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This transaction was announced concurrent with ICU Medical's $59.5 million acquisition of medical device maker
Excelsior Medical. SwabFlush was developed by Excelsior and is used to disinfect and protect access to a patient's
bloodstream.
The Health Care M&A Report, 4th Quarter, 2015 182
TARGET: Alfa Rhythm Ltd. ACQUIRER: Generex Biotechnology Corporation
LISTING: Private LISTING: OTCQB: GNBT
LOCATION: Worcester, Massachusetts CEO: Mark A. Fletcher PHONE: 416-364-2551
UNITS: 555 Richomond Street W., Ste.
604
FAX: 647-547-7104
REVENUE: Toronto, Ontario M5V 3B1
NET INCOME: WEB SITE: www.generex.com
Alfa Rhythm is a privately held Israeli company
that has developed a proprietary trans-cranial
electro-biometric stimulator for the treatment of
symptoms of attention deficit hyperactivity
disorder, depression, anxiety and sleep disorders.
Generex Biotechnology is a development-stage company that
researches, develops and commercializes drug delivery systems and
technologies for metabolic and immunological diseases.
ANNOUNCEMENT DATE: October 6, 2015 PRICE: $ 5,000,000 PRICE PER UNIT: TERMS: A 51% equity interest in Alfa, to be paid
in accordance with an Alfa business
plan identifying a timeline, milestones
and a budget. Generex will also receive
a royalty equal to 8% of gross sales of
the products.
PRICE/REVENUE:
PRICE/INCOME:
Alfa intends to initially market its Alfa Rhythm stimulator product as a wellness product in North America and
Europe while undertaking the clinical work that is a condition precedent to regulatory approval of the product for
the treatment of disorders such as epilepsy and Parkinson's disease.
TARGET: MediTemp Ltd. ACQUIRER: Generex Biotechnology Corporation
LISTING: Private LISTING: OTCQB: GNBT
LOCATION: Worcester, Massachusetts CEO: Mark A Fletcher PHONE: 416-364-2551
UNITS: 555 Richmond St. W, Ste. 604 FAX: 647-547-7104 REVENUE: Toronto, Ontario M5V 3B1
NET INCOME: WEB SITE: www.generex.com
MediTemp Ltd. has developed a proprietary cooling
technology designed to improve sperm quality in
men rendered infertile due to varicoceles, an
enlargement of the veins in the scrotum. Its chief
product is Varicure.
Generex Biotechnology is a development-stage company engaged
in the research, development and commercialization of drug
delivery systems and technologies. It has not reported financial for
the fiscal year ending July 31, 2015.
ANNOUNCEMENT DATE: October 13, 2015 PRICE: $ 5,000,000 PRICE PER UNIT: TERMS: $5 million for a 51% equity interest in
MediTemp, to be paid in accordance
with a MediTemp business plan
identifying timeline, milestones and a
budget. Generex will also receive a
royalty on sales of the products.
PRICE/REVENUE:
PRICE/INCOME:
MediTemp's Varicure product, which has been patented in the United States, Europe and Canada, is a compact,
portable and comfortable device that facilitates localized cooling of the testicles to enhance male fertility by
improving sperm quality. The anticipated per-unit cost of the Varicure device will be lower than traditional
treatments for male infertility and will obviate surgical intervention.
The Health Care M&A Report, 4th Quarter, 2015 183
TARGET: rTMS technology ACQUIRER: Rio Grande Neurosciences
LISTING: Private LISTING: Private
LOCATION: Redwood City, California CEO: Steven Gluckstern PHONE: 415-988-7001
UNITS: 732a Chenery Street FAX: REVENUE: San Francisco, California 94131
NET INCOME: WEB SITE: www.riograndeneurosciences.com
Rio Grande Neurosciences acquired Cervel
Neurotech’s multi-coil Transcranial Magnetic
Stimulation (rTMS) technology, including all
related patent applications, issued patents,
trademarks and equipment.
Rio Grande Neurosciences researches, develops and commercializes
a range of non-invasive brain stimulation electroceuticals™. The
company focuses on neurological conditions that are underserved
by drug-based approaches.
ANNOUNCEMENT DATE: October 20, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The patented rTMS system is based on foundational intellectual property developed at Stanford University. The
use of repetitive TMS is a proven and FDA-approved therapy for the treatment of drug resistant major depressive
disorder. In addition to treating that condition, Rio Grande and others are conducting clinical research on the use of
rTMS as a potential treatment for chronic pain, PTSD, addiction and other diseases. Mitchell Silberberg & Knupp
LLP represented Rio Grande Neurosciences.
TARGET: TriVascular Technologies ACQUIRER: Endologix, Inc.
LISTING: NASDAQ: TRIV LISTING: NASDAQ: ELGX
LOCATION: Santa Rosa, California CEO: John McDermott PHONE: 949-595-7200
UNITS: 2 Musick FAX: REVENUE: $ 34,720,000 (ttm) Irvine, California 92618
NET INCOME: $- 50,500,000 (EBITDA) WEB SITE: www.endologix.com
TriVascular develops and commercializes
technologies to significantly advance minimally
invasive treatment of abdominal aortic aneurysms.
Endologix develops and manufactures minimally invasive
treatments for aortic disorders. On a trailing 12-month basis, it
generated revenue of $153.2 million and a net loss of $49.9 million.
ANNOUNCEMENT DATE: October 26, 2015 PRICE: $211,000,000 PRICE PER UNIT: TERMS: The transaction is valued at $9.10 per
TRIV share, or a total of approximately
$211 million, based on Endologix's
closing price of $13.81 per share on
October 23, 2015.
PRICE/REVENUE: 6.08
PRICE/INCOME: - 4.18
TriVascular will survive the merger as a wholly-owned subsidiary of Endologix. Piper Jaffray is acting as the
financial advisor to Endologix and Stradling Yocca Carlson & Rauth is serving as legal counsel. J.P. Morgan
Securities is acting as the financial advisor to TriVascular, and Arnold & Porter LLP is serving as legal counsel.
The Health Care M&A Report, 4th Quarter, 2015 184
TARGET: Nipro Diagnostics ACQUIRER: Sinocare Group
LISTING: TYO: 8086 LISTING: SHE: 300298
LOCATION: Fort Lauderdale, Florida CEO: Shaobo Li PHONE: -89936174
UNITS: No. 265, Guyuan Road FAX: -89936175 REVENUE: Changsha, China 410205
NET INCOME: WEB SITE: www.sinocare.com
Nipro Diagnostics, a wholly owned subsidiary of
Nipro Corporation, is a global consumer health and
wellness company that is a leading developer,
manufacturer and marketer of advanced
performance products for people with diabetes.
Sinocare Group is fully dedicated to the innovation of biosensor
technology and promoting diabetic self-management by using blood
glucose monitoring systems in China.
ANNOUNCEMENT DATE: October 27, 2015 PRICE: $273,000,000 Approximate PRICE PER UNIT: TERMS: Approximately $273 million in cash. PRICE/REVENUE:
PRICE/INCOME:
This transaction combines one of the fastest growing blood glucose monitoring companies in the United States
with the fastest growing blood glucose monitoring company in China. Nipro Corporation will continue to purchase
certain products in agreed upon markets from Sinocare Group. The transaction closed on January 7, 2016. Upon
completion of the acquisition, the company has been renamed Trividia Health.
TARGET: Perseon Corporation ACQUIRER: Galil Medical Inc.
LISTING: NASDAQ: PRSN LISTING: Private
LOCATION: Salt Lake City, Utah CEO: Martin J. Emerson PHONE: 651-287-5000
UNITS: 4364 Round Lake Road FAX: 877-510-7757 REVENUE: $ 2,720,000 (ttm) Arden Hills, Minnesota 55122
NET INCOME: $- 13,330,000 (ttm) WEB SITE: www.galilmedical.com
Perseon Corporation, a life sciences company,
develops, manufactures, markets and services
medical systems to treat cancer and benign diseases
using heat therapy.
Galil Medical is a global leader in delivering innovative cryotherapy
ablation solutions. The company's products are used by
interventional radiologists and surgeons to ablate cancerous and
non-cancerous tumors affecting the kidney, bone, lung, liver and
prostate.
ANNOUNCEMENT DATE: October 27, 2015 PRICE: $ 10,600,000 Approximate PRICE PER UNIT: TERMS: Galil Medical will pay $1.00 per share
in cash, plus $0.02 per warrant for each
of the publicly traded warrants.
PRICE/REVENUE: 3.90
PRICE/INCOME: - .80
In addition to revenue synergies, Gailil Medical expects to realize an estimated reduction of at least $5 million in
combined operating expenses from this transaction. With strong revenue growth, attractive gross margins and
significant cost savings, it's targeting a positive EBITDA for the combined company by 2017. The transaction is
expected to close during the fourth quarter of 2015 or the first quarter of 2016.
The Health Care M&A Report, 4th Quarter, 2015 185
TARGET: MedCore AB ACQUIRER: Karo Bio AB
LISTING: Private LISTING: STO: KARO
LOCATION: Kista, Sweden CEO: Anders O. Lonner PHONE: 46 86 08 60 00
UNITS: Halsovagen 7 FAX: 46 87 74 82 61 REVENUE: Huddinge, Sweden 141 57
NET INCOME: WEB SITE: www.karobio.com
MedCore AB markets primarily licensed products
to pharmacies and hospitals in the Nordic region.
The products target the therapeutic areas of
diabetes, anesthesia/intensive care and surgery.
Karo Bio Aktiebolag (publ) operates as a research and development
company that specializes in nuclear receptors as target proteins to
develop new drugs. On a trailing 12-month basis, it generated
revenue of $19.1 million and a net loss of $68.6 million.
ANNOUNCEMENT DATE: October 28, 2015 PRICE: $ 2,134,295 PRICE PER UNIT: TERMS: The purchase price is SEK 18 million in
new shares for a 90% stake in MedCore.
After the share issue, a cash offer will
be made to remaining shareholders
corresponding to the price in the share
offer.
PRICE/REVENUE:
PRICE/INCOME:
This is Karo's second acquisition in October 2015, having paid approximately $30 million for the Swereco Group
on October 2. The MedCore acquisition is in keeping with Karo's strategy to consolidate its sector in the Nordic
region.
TARGET: PC Werth Ltd ACQUIRER: IntriCon Corporation
LISTING: Private LISTING: NASDAQ: IIN
LOCATION: London, England CEO: Mark S. Gorder PHONE: 651-636-9770
UNITS: 1260 Red Fox Road FAX: 651-636-9503 REVENUE: Arden Hills, Minnesota 55112
NET INCOME: WEB SITE: www.intricon.com
PC Werth Ltd is a leading supplier of hearing
healthcare products and equipment to the United
Kingdom’s National Health Service (NHS).
IntriCon Corp. designs, develops, engineers and manufactures body-
worn devices and electronic products. On a trailing 12-month basis,
it generated revenue of $67.2 million, EBITDA of $4.4 million and
a net income of $1.7 million.
ANNOUNCEMENT DATE: November 3, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
In December 2014, IntriCon entered into an exclusive agreement with PC Werth Ltd, to distribute its high-quality
hearing aid products in the United Kingdom. IntriCon expects the acquisition will generate $4.5 million to $5.5
million in revenue on an annualized basis, and be accretive to earnings per share. IntriCon will continue to use the
PC Werth tradename and Kamplex brand. The transaction is expected to close by the end of 2015.
The Health Care M&A Report, 4th Quarter, 2015 186
TARGET: Mindray Medical
International Limited
ACQUIRER: Excelsior Union Limited
LISTING: NYSE: MR LISTING: Private
LOCATION: Shenzhen, China CEO: Xu Hang PHONE:
UNITS: FAX: REVENUE: $1,330,000,000 ttm Cayman Islands
NET INCOME: $171,370,000 ttm WEB SITE:
Mindray Medical International develops,
manufactures and markets medical devices
worldwide.
Solid Union Limited, a subsidiary of Excelsior Union, will merge
into Mindray and will become a wholly owned subsidiary of
Excelsior Union Limited. It does not have a published corporate
address or contact information.
ANNOUNCEMENT DATE: November 4, 2015 PRICE: $3,300,000,000 Approximate PRICE PER UNIT: TERMS: Excelsior Union Limited will pay
$28.00 per ordinary share of Mindray.
This price represents a premium of 1.9%
over the company's closing price of
$27.47 per ADS on June 3, 2015, the
day before they received its going
private "proposal."
PRICE/REVENUE: 2.48
PRICE/INCOME: 19.26
The merger is expected to close during the first quarter of 2016. Lazard Asia (Hong Kong) Limited (Lazard") is
serving as the financial advisor to the Special Committee. Shearman & Sterling and Walkers are serving as U.S.
legal counsel and Cayman Islands legal counsel to the Special Committee.
TARGET: BioFusionary ACQUIRER: Life Care Medical Devices Limited
LISTING: Private LISTING: OTC: LCMD
LOCATION: Wheat Ridge, Colorado CEO: Richard J. Prati PHONE: 386-410-4239
UNITS: 257 Minorca Beach Way, Ste.
1606
FAX: 386-256-1547
REVENUE: New Smyrna Beach, Florida 32169
NET INCOME: WEB SITE: www.lcmd.com
Rocky Mountain Biosystems, Inc. (RMBI) is selling
all of BioFusionary's assets and license, including
all patents, trademarks and know-how used in
BioFusionary's business.
Life Care Medical Devices (LCMD) is focused on the development,
production and distribution of non-invasive and minimally-invasive
technologies.
ANNOUNCEMENT DATE: November 10, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
LCMD gains the rights to market and sell the BioFusionary Bebe, a non-invasive system that uses electromagnetic
induction to generate and deliver focused energy to the collagen-rich dermis and subcutaneous tissues. Bebe is Life
Care's first important step in its expansion plan to launch its proprietary LapCap2® device for use in laparoscopic
surgery and by building a robust portfolio of synergistic products.
The Health Care M&A Report, 4th Quarter, 2015 187
TARGET: Interventional radiology
portfolio
ACQUIRER: Boston Scientific Corporation
LISTING: Private LISTING: NYSE: BSX
LOCATION: San Antonio, Texas CEO: Michael F. Mahoney PHONE: 508-683-4000
UNITS: 300 Boston Scientific Way FAX: REVENUE: Marlborough, Massachusetts 01752
NET INCOME: WEB SITE: www.bostonscientific.com
CeloNova Biosciences, a global developer and
manufacturer of endovascular and interventional
cardiology technologies, is selling its interventional
radiology business.
Boston Scientific develops, manufactures and markets medical
devices for use in various interventional medical specialties. On a
trailing 12-month basis, it generated revenue of $7.3 billion,
EBITDA of $1.8 billion and a net loss of $396 million.
ANNOUNCEMENT DATE: November 10, 2015 PRICE: $ 70,000,000 PRICE PER UNIT: TERMS: $70 million upfront payment, plus
additional payments contingent on
regulatory and sales milestones.
PRICE/REVENUE:
PRICE/INCOME:
The transaction includes the CeloNova Embozene Tandem Drug-Elutable Microspheres that 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. Latham & Watkins
advised Boston Scientific in this transaction.
TARGET: Mound Laser and Photonics
Center, Inc.
ACQUIRER: Resonetics
LISTING: Private LISTING: Private
LOCATION: Kettering, Ohio CEO: Thomas Burns PHONE: 603-886-6772
UNITS: 44 Simon Street FAX: REVENUE: Nashua, New Hampshire 03060
NET INCOME: WEB SITE: www.resonetics.com
Mound Laser is a leader in laser micro
manufacturing of precise metal components for the
medical device and defense industry.
Resonetics, a portfolio company of Sverica Capital Mangement
LLC, is a leading provider of laser micro manufacturing solutions to
the medical device and diagnostic industry.
ANNOUNCEMENT DATE: November 10, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
With the acquisition of Mound Laser, Resonetics will now expand beyond its current focus of polymers and glass
and offer customers a broader array of solutions and material expertise. Sverica initially invested in Resonetics in
October 2014. Since then, Resonetics has grown by nearly 50% and opened a second manufacturing facility in San
Diego.
The Health Care M&A Report, 4th Quarter, 2015 188
TARGET: Lensar, Inc. ACQUIRER: Alphaeon Corporation
LISTING: Private LISTING: Private
LOCATION: Orlando, Florida CEO: Robert E. Grant PHONE:
UNITS: 18191 Von Karman Ave., Ste.
500
FAX:
REVENUE: Irvine, California 92612
NET INCOME: WEB SITE: www.alphaeon.com
Lensar is a leading global developer of
Femtosecond Laser Systems. Its Lensar Laser
System was designed for patients seeking a
premium vision outcome following the removal of
cataracts.
Alphaeon is a lifestyle healthcare company that promotes consumer
wellness, beauty and performance. It works in partnership with
board-certified physicians ensuring access to leading advancements
in lifestyle healthcare.
ANNOUNCEMENT DATE: November 16, 2015 PRICE: $ 59,000,000 PRICE PER UNIT: TERMS: Cash, stock and assumed debt. On Nov.
12, 2015, it completed a private
placement of Series B Preferred stock in
a transaction led by Sailing Capital,
H&S Ventures LLC, Longitude Capital
and Chow Tai Fook Enterprises.
PRICE/REVENUE:
PRICE/INCOME:
This acquisition expands Alphaeon's global ophthalmology business and enables it to provide advanced technology
to its broad network of more than 2,000 board-certified ophthalmologists globally. This transaction is expected to
close on or before December 31, 2015.
TARGET: SurgiQuest, Inc. ACQUIRER: CONMED Corporation
LISTING: Private LISTING: NASDAQ: CNMD
LOCATION: Milford, Connecticut CEO: Curt R. Hartman PHONE: 315-797-8375
UNITS: 525 French Road FAX: 315-797-0321 REVENUE: Utica, New York 13502
NET INCOME: WEB SITE: www.conmed.com
SurgiQuest, Inc. is a privately-held venture-backed
company, that develops, manufactures, and markets
the AirSeal® System, the first integrated access
management technology for use in laparoscopic and
robotic procedures.
CONMED develops and manufactures medical instruments and
systems used in orthopedics, general surgery and similar medical
procedures. On a trailing 12-month basis, it generated revenue of
$717.6 million, EBITDA of $123.6 million and net income of $34.0
million.
ANNOUNCEMENT DATE: November 16, 2015 PRICE: $265,000,000 PRICE PER UNIT: TERMS: CONMED will pay SurgiQuest $265
million on a cash-free, debt-free basis.
The transaction will be financed through
a combination of cash and borrowings
under a new credit facility.
PRICE/REVENUE:
PRICE/INCOME:
The AirSeal® System is a highly differentiated technology which is fast becoming the standard of care in
laparoscopic and robotic surgery. CONMED does not expect the acquisition to have a material impact on fiscal
year 2015 operating results. In fiscal year 2016, the acquisition is expected to add $55 to $60 million to the
company’s revenue, and it projects net cost savings will approximate $15 million per year. The transaction closed
on January 4, 2016.
The Health Care M&A Report, 4th Quarter, 2015 189
TARGET: Aircraft Medical ACQUIRER: Medtronic plc
LISTING: Private LISTING: NYSE: MDT
LOCATION: Edinburgh, Scotland CEO: Omar S. Ishrak PHONE: 353 1 438 1700
UNITS: 20 On Hatch, Lower Hatch
Street
FAX:
REVENUE: Dublin, Ireland 2
NET INCOME: WEB SITE: www.medtronic.com
Aircraft Medical develops handheld, high-quality
video laryngoscopes used by anesthesiologists and
critical care professionals to intubate patients.
Medtronic manufactures and sells device-based medical therapies
worldwide. On a trailing 12-month basis, it generated revenue of
$23.1 billion, EBITDA of $7.0 billion and net income of $2.6
billion.
ANNOUNCEMENT DATE: November 18, 2015 PRICE: $110,000,000 PRICE PER UNIT: TERMS: All cash transaction. PRICE/REVENUE:
PRICE/INCOME:
The acquisition expands Medtronic's portfolio of solutions for dealing with difficult airways and addresses the
preventable issue of respiratory compromise. Aircraft Medical's devices enable clinicians to see a patient's vocal
cords, allowing them to more quickly and effectively insert the breathing tube into the trachea. The net impact from
this transaction is expected to be earnings neutral in fiscal year 2015 and neutral to accretive to earnings thereafter.
TARGET: CMOSIS ACQUIRER: ams AG
LISTING: Private LISTING: SIX: AMS
LOCATION: Antwerp, Belgium CEO: Kirk Laney PHONE: +43 3136 500
UNITS: Tobelbader Strasse 30 FAX: REVENUE: $ 64,026,000 Projected 2015 Unterpremstaetten, Austria 08141
NET INCOME: WEB SITE: ams.com
CMOSIS, a portfolio company of TA Associates,
supplies high performance standard and customized
area and line scan CMOS image sensors for
demanding imaging applications.
ams is a leading worldwide provider of high-performance sensor
and analog solutions.
ANNOUNCEMENT DATE: November 20, 2015 PRICE: $235,034,800 Approximate PRICE PER UNIT: TERMS: ams will acquire 100% of CMOSIS
shares from TA Associates and
management shareholders for
approximately €220 million. Funded
through cash and available credit lines.
PRICE/REVENUE: 3.67
PRICE/INCOME:
The acquisition expands ams’ optical sensor portfolio and market leadership with high-value solutions for machine
vision, medical, photographic and scientific imaging. The transaction is expected to close in Q4 of 2015.
The Health Care M&A Report, 4th Quarter, 2015 190
TARGET: Coherex Medical, Inc. ACQUIRER: Biosense Webster, Inc.
LISTING: Private LISTING: NYSE: JNJ
LOCATION: Salt Lake City, Utah CEO: Shlomi Nachman,
President
PHONE: 909-839-8500
UNITS: 3333 Diamond Canyon Road FAX: 909-468-2905 REVENUE: South Diamond Bar, California 91765
NET INCOME: WEB SITE: www.biosensewebster.com
Coherex Medical focuses on clinical trials to
expand the development and adoption of novel
structural heart devices. Coherex’s flagship product
is the minimally invasive WaveCrest® device.
Biosense Webster, Inc. provides products and solutions for the
diagnosis and treatment of cardiac arrhythmias. It operates as a
subsidiary of Johnson & Johnson.
ANNOUNCEMENT DATE: November 20, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Outcome Capital served as the exclusive strategic and financial advisor to Coherex Medical for the transaction.
Coherex' WaveCrest device is designed to block the most common source of blood clots to prevent the occurrence
of stroke in at-risk patients with atrial fibrillation (AF). Coherex has received CE Mark approval for the Coherex
WaveCrest System.
TARGET: Creagh Medical Ltd. ACQUIRER: SurModics, Inc.
LISTING: Private LISTING: NASDAQ: SRDX
LOCATION: Ballinasloe, Ireland CEO: Gary R. Maharaj PHONE: 952-500-700
UNITS: 9924 West 74th Street FAX: 952-500-7001 REVENUE: Eden Prairie, Minnesota 55344
NET INCOME: WEB SITE: www.surmodics.com
Creagh Medical develops and manufactures
percutaneous transluminal angioplasty balloon
catheters. It is located between the Galway and
Athlone medical device hubs in Ireland.
SurModics provides surface modification and in vitro diagnostic
technologies to the healthcare industry. On a trailing 12-month
basis, it generated revenue of $61.9 million, EBITDA of $24.4
million and net income of $13.5 million.
ANNOUNCEMENT DATE: November 20, 2015 PRICE: $ 16,820,858 PRICE PER UNIT: TERMS: Upfront payment of €18 million, and up
to €12 million based on achievement of
revenue and value-creating operational
milestones.
PRICE/REVENUE:
PRICE/INCOME:
The Creagh business is expected to generate $3.5 million to $4 million of revenue for SurModics in fiscal year
2016. The acquisition will be dilutive on a GAAP and adjusted earnings per share basis in SurModic's fiscal year
2016, and adjusted earnings per share to reflect the amortization, contingent consideration accretion, due diligence,
transaction and other integration costs.
The Health Care M&A Report, 4th Quarter, 2015 191
TARGET: Liberator Medical Holdings,
Inc.
ACQUIRER: C. R. Bard Inc.
LISTING: NYSE: LBMH LISTING: NYSE: BCR
LOCATION: Stuart, Florida CEO: Timothy M. Ring PHONE: 908-277-8000
UNITS: 730 Central Avenue FAX: 908-277-8412 REVENUE: $ 80,000,000 (ttm) Murray Hill, New Jersey 07974
NET INCOME: $ 13,270,000 (EBITDA) WEB SITE: www.crbard.com
Liberator Medical distributes direct-to-consumer
durable medical supplies for seniors and others with
chronic illness in the United States.
C.R. Bard designs, manufactures, packages, distributes and sells
medical, surgical, diagnostic and patient care devices worldwide.
On a trailing 12-month basis, it generated $3.4 billion, EBITDA of
$1.0 billion and net income of $131.1 million.
ANNOUNCEMENT DATE: November 20, 2015 PRICE: $181,000,000 PRICE PER UNIT: TERMS: PRICE/REVENUE: 2.26
PRICE/INCOME: 13.64
The acquisition represents a compelling fit for Bard and enhances its position in the home care market in the
United States. The company expects the transaction to add approximately $70 million to 2016 net sales, and to be
slightly accretive to adjusted cash earnings per share in 2016. The company estimates that in 2017 this acquisition
will increase the organic revenue growth rate of the company and contribute between 5 and 10 cents of adjusted
cash EPS. The transaction is expected to close in the first quarter of 2016.
TARGET: BioStructures LLC ACQUIRER: Bioventus LLC
LISTING: Private LISTING: Private
LOCATION: Newport Beach, California CEO: Tony Bihl PHONE: 919-474-6700
UNITS: 4721 Emperor Blvd. #100 FAX: REVENUE: Durham, North Carolina 27703
NET INCOME: WEB SITE: www.bioventusglobal.com
BioStructures is a leading medical device company
focused on developing innovative proprietary
platforms in bioresofbable bone graft products for a
broad range of spinal and orthopedic fusion
procedures.
Bioventus is an orthobiologics company with two product
portfolios, Biovenus Active Healing Therapies and Bioventus
Surgical.
ANNOUNCEMENT DATE: November 30, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The BioStructures product portfolio includes synthetic, allograft, collagen and demineralized bone matrix solutions
for surgeons. Its products align with Bioventus' strategy to become a leader in orthobiologics.
The Health Care M&A Report, 4th Quarter, 2015 192
TARGET: SNaP® Therapy System ACQUIRER: Acelity L.P. Inc.
LISTING: Private LISTING: Private
LOCATION: Sunnyvale, California CEO: Joe Woody PHONE: 800-275-4524
UNITS: 12930 Interstate 10 West FAX: REVENUE: San Antonio, Texas 78249
NET INCOME: WEB SITE: www.acelity.com
SNaP® Therapy System is a disposable negative
pressure wound therapy (NPWT) line of products
from Spiracur, a privately-held medical device
company.
Acelity and its subsidiaries are a global advanced wound care and
regenerative medicine company. Acelity's three subsidiaries are
Kinetic Concepts, Inc., LifeCell Corporation and Systagenix Wound
Management, Limited.
ANNOUNCEMENT DATE: December 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
SNaP® Therapy System is designed to treat a range of complex and hard-to-heal wounds with portable, non-
powered negative pressure technology, primarily in the post-acute setting. The acquisition of the SNaP® business
accelerates Acelity’s plans for disposable NPWT and increases access to the post-acute market by strengthening
the company’s portfolio of offerings for customers in need of comprehensive wound care solutions.
TARGET: AppianFx ACQUIRER: CONMED Corporation
LISTING: Private LISTING: NASDAQ: CNMD
LOCATION: Solana Beach, California CEO: Curt R. Hartman PHONE: 315-797-8375
UNITS: 525 French Road FAX: 315-797-0321 REVENUE: Utica, New York 13502
NET INCOME: WEB SITE: www.conmed.com
KFx Medical is selling AppianFx, a unique soft
tissue fixation system.
CONMED develops and manufactures medical instruments and
systems used in orthopedics, general surgery and similar medical
procedures. On a trailing 12-month basis, it generated revenue of
$717.6 million, EBITDA of $123.6 million and net income of $34.0
million.
ANNOUNCEMENT DATE: December 4, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The AppianFx system fits perfectly within the broad CONMED Sports Medicine product line. The transaction
closed on December 4, 2015.
The Health Care M&A Report, 4th Quarter, 2015 193
TARGET: Global distribution of
STERIZONE VP4 Sterilizer
ACQUIRER: Getinge Infection Control
LISTING: Private LISTING: STO: GETIB
LOCATION: Quebec, Canada CEO: Joacim Lindoff PHONE: +46 (0) 10 335 0000
UNITS: Ekebergsvägen 26 FAX: REVENUE: Getinge, Sweden 305 75
NET INCOME: WEB SITE: www.getinge.com
TSO3 Inc., an innovator in sterilization technology
for medical devices, has granted five-year exclusive
global distribution rights for its FDA-cleared
STERIZONE VP4 Sterilizer.
Getinge Infection Control is one of three business areas within
Getinge Group. The Getinge Infection Control consists of two
divisions; Healthcare and Life Science. Getinge has 36 subsidiaries.
ANNOUNCEMENT DATE: December 14, 2015 PRICE: $ 7,663,598 Approximate PRICE PER UNIT: TERMS: The five year agreement includes a one-
off license fee amounting to
approximately 65 M SEK.
PRICE/REVENUE:
PRICE/INCOME:
The STERIZONE VP4 Sterilizer was cleared for commercialization in the United States in December 2014 and
recently received clearance in Canada to terminally sterilize multichannel flexible endoscopes. The agreement
offers immediate sales opportunity in the United States.
TARGET: Stericool ACQUIRER: Getinge Infection Control
LISTING: Private LISTING: STO: GETIB
LOCATION: Ankara, Turkey CEO: Joacim Lindoff PHONE: +46 (0) 10 335 0000
UNITS: Ekebergsvägen 26 FAX: REVENUE: $ 2,361,218 -2015 Getinge, Sweden 305 75
NET INCOME: WEB SITE: www.getinge.com
Stericool manufactures hydrogen peroxide based
solution low temperature sterilizers for emerging
markets.
Getinge Infection Control is one of three business areas within
Getinge Group. The Getinge Infection Control consists of two
divisions; Healthcare and Life Science. Getinge has 36 subsidiaries.
ANNOUNCEMENT DATE: December 14, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition will be included under the Getinge's new business category unit Surgical Workflows and will
increase potential for growth in the price sensitive Tier 2 markets in East/ South Europe and rest of the world.
Stericool's sales are expected to total 20 M SEK in 2015. The transaction is expected to close on January 1, 2016.
Net sales in 2016 are estimated at 25 M SEK and EBITDA is expected at 4.5 M SEK.
The Health Care M&A Report, 4th Quarter, 2015 194
PHARMACEUTICALS
TARGET: Representaciones e
Investigaciones Médicas
(Rimsa)
ACQUIRER: Teva Pharmaceutical Industries Ltd.
LISTING: Private LISTING: NYSE: TEVA
LOCATION: Nuevo Leon, Mexico CEO: Erez Vigodman PHONE: 972 3 926 7267
UNITS: 5 Basel St., P.O. Box 3190 FAX: REVENUE: $227,000,000 2014 Petach Tikva, Israel 49131
NET INCOME: WEB SITE: www.tevapharm.com
Rimsa is a leading pharmaceutical manufacturing
and distribution company in Mexico. Also
associated with this deal is a portfolio of products
and companies, intellectual property, assets and
pharmaceutical patents in Latin America and
Europe.
Teva develops, manufactures, markets and distributes generic,
specialty and other pharmaceutical products worldwide. On a
trailing 12-month basis, it generated revenue of $20.2 billion,
EBITDA of $6.3 billion and net income of $2.5 billion.
ANNOUNCEMENT DATE: October 1, 2015 PRICE: $2,300,000,000 PRICE PER UNIT: TERMS: The transactions will be funded through
a combination of cash on hand and lines
of credit.
PRICE/REVENUE:
PRICE/INCOME:
Through this acquisition, Teva will become a leading pharmaceutical company in Mexico, which is the second
largest market in Latin America and one of the top five emerging markets globally. Teva expects the deal will yield
substantial and achievable synergies and offer a platform for growth in the region. Teva expects to close these
transactions by early first quarter, 2016. Citi acted as financial advisor to Teva. Goldman Sachs acted as financial
advisor to Rimsa.
TARGET: Right to commercialize
Vitaros
ACQUIRER: Ferring Pharmaceuticals
LISTING: NASDAQ: APRI LISTING: Private
LOCATION: San Diego, California CEO: Michel Pettigrew, COO PHONE: 41 58 301 00 00
UNITS: Ch. De la Vergognausaz 50 FAX: REVENUE: Saint Prex, Switzerland 1162
NET INCOME: WEB SITE: www.ferring.com
Ferring will have the exclusive right to
commercialize Vitaros in the territory of Latin
America and certain Caribbean countries. Vitaros is
used for the treatment of erectile dysfunction. It was
developed by Apricus Biosciences, Inc.
Ferring Pharmaceuticals is a research-driven specialty
biopharmaceutical group active in global markets. Its subsidiaries
operate in nearly 60 countries and market its products in 110
countries.
ANNOUNCEMENT DATE: October 1, 2015 PRICE: $ 2,250,000 PRICE PER UNIT: TERMS: Upfront payment. Apricus is also
eligible to receive up to $16 million in
regulatory and sales milestone
payments, in addition to royalties based
on Ferring's net sales of the product in
the Territory.
PRICE/REVENUE:
PRICE/INCOME:
Vitaros is a new potential entrant into the ED treatment market, offering a range of benefits that make it appealing
to a large number of patients. According to IMS Health, the global ED market in 2014 was in excess of $6.7 billion
annually. Outside of the United States, Vitaros has the potential to generate for Apricus over $200 million in future
milestone payments, as well as potential royalty revenue on net product sales.
The Health Care M&A Report, 4th Quarter, 2015 197
TARGET: Rights to 2 PKU drugs ACQUIRER: BioMarin Pharmaceutical, Inc.
LISTING: Private LISTING: NASDAQ: BMRN
LOCATION: Darmstadt, Germany CEO: Jean-Jacques
Bienaime
PHONE: 415-506-6700
UNITS: 770 Lindaro Street FAX: 415-382-7889 REVENUE: San Rafael, California 94901
NET INCOME: WEB SITE: www.bmrn.com
Merck Serono has sold all global rights to Kuvan®
and pegvaliase, both of which help to treat
phenylketonuria (PKU), an autosomal recessive
genetic disorder.
BioMarin develops and commercializes pharmaceuticals for serious
diseases and medical conditions. On a trailing 12-month basis, it
generated revenue of $861.5 million and a net loss of $211.8
million.
ANNOUNCEMENT DATE: October 1, 2015 PRICE: $380,310,400 Approximate PRICE PER UNIT: TERMS: BioMarin will provide Merck with an
upfront payment of €340 million. Up to
an additional €185 million in milestones
payments.
PRICE/REVENUE:
PRICE/INCOME:
In 2005, Merck acquired from BioMarin the exclusive rights to Kuvan and the option to develop pegvaliase in
markets outside of the U.S. and Japan. Total Kuvan revenue to BioMarin for full-year 2016 is expected to be
between $320 million and $350 million, including revenue from new ROW territories. The transaction is expected
to close in January 2016.
TARGET: Rights to fasinumab
(REGN475)
ACQUIRER: Mitsubishi Tanabe Pharma Corporation
LISTING: NASDAQ: REGN LISTING: TSE: 4508
LOCATION: Tarrytown, New York CEO: Masayuki Mitsuka PHONE: 81 6 6205 5085
UNITS: 2-6-18, Kitahama, Chuo-ku FAX: REVENUE: Osaka, Japan 541-8505
NET INCOME: WEB SITE: www.mt-pharma.co.jp
Fasinumab (REGN475) is Regeneron
Pharmaceuticals' NGF antibody in late-stage
development for musculoskeletal pain. MTPC will
obtain exclusive development and commercial
rights to fasinumab in Japan, Korea and nine other
Asian countries, excluding China.
Mitsubishi Tanabe Pharma Corporation manufactures and sells
pharmaceuticals in Japan and internationally. On a trailing 12-
month basis, it generated revenue of $3.5 billion, EBITDA of
$830.4 million and net income of $373.8 million.
ANNOUNCEMENT DATE: October 1, 2015 PRICE: $ 55,000,000 PRICE PER UNIT: TERMS: Regeneron will receive up to $55
million in upfront and other near-term
payments. The agreement provides for
additional payments to Regeneron of up
to $170 million in R&D reimbursement
payments and development milestones.
PRICE/REVENUE:
PRICE/INCOME:
Regeneron is also eligible for additional one-time purchase price adjustment payments of up to $100 million total
upon achievement of specified annual net sales. MTPC has proven experience marketing biologics for
rheumatology and pain management, which makes it an ideal partner in Asia for Regeneron.
The Health Care M&A Report, 4th Quarter, 2015 198
TARGET: Swereco Group ACQUIRER: Karo Bio Aktiebolag
LISTING: Private LISTING: STO: KARO
LOCATION: Stockholm, Sweden CEO: Anders Lonner,
Executive Chairman
PHONE: 46 8 608 60 00
UNITS: Hälsovägen 7 FAX: 46 8 774 8261 REVENUE: Huddinge, Sweden 141 57
NET INCOME: WEB SITE: www.karobio.com
Swereco Group consists of the companies Mabs,
Innotech, makers of the Trix tick lasso, and Dosett.
Swereco markets OTC products mainly to
pharmacies or directly to healthcare providers.
Karo Bio is a development company focused on broadening its
operations to include projects and products closer to market. On a
trailing 12-month basis, it generated revenue of $19.1 million,
EBITDA loss of $57.0 million and net income loss of $68.6 million.
ANNOUNCEMENT DATE: October 2, 2015 PRICE: $ 30,124,275 Approximate PRICE PER UNIT: TERMS: The purchase price for Swereco
amounts to 250 million SEK. The sum
consists of a cash component of 118
million SEK and the remaining part of
new shares.
PRICE/REVENUE:
PRICE/INCOME:
The acquisition of Swereco is an important step for Karo Bio to start to build a profitable business. There're many
small companies in the field of non-prescription medicines and Medical Device field in the Nordic area, Karo Bio
plans to have an active role in the consolidation of those companies.
TARGET: 5 branded hormonal
products
ACQUIRER: Alvogen
LISTING: XETRA: BAYN.DE LISTING: Private
LOCATION: Russia CEO: Robert Wessman PHONE: 973-796-3400 UNITS: 10B Bloomfield Ave. FAX: REVENUE: Pine Brook, New Jersey 07058
NET INCOME: WEB SITE: www.alvogen.com
Bayer Pharma AG in Russia and CIS are selling five
branded hormonal products known as Klimonorm, a
hormone replacement therapy; and Progynova,
Triquilar, Microgynon and Climene.
Alvogen is a global pharmaceutical company focused on
developing, manufacturing and selling generic, brand, over-the-
counter brands (OTC) and biosimilar products.
ANNOUNCEMENT DATE: October 6, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The acquisition of these well-established brands further strengthens and diversifies Alvogen’s branded portfolio in
Central Eastern Europe particularly in such a lucrative segment as Women Healthcare. Alvogen has built a solid
growth platform across the region, with a presence in 11 markets including Russia and CIS, Romania, Hungary,
Bulgaria, Ukraine and the West Balkans.
The Health Care M&A Report, 4th Quarter, 2015 199
TARGET: Locemia's intranasal
glucagon
ACQUIRER: Eli Lilly and Company
LISTING: Private LISTING: NYSE: LLY
LOCATION: Montreal, Quebec CEO: Dr. John C.
Lechleiter
PHONE: 317-276-2000
UNITS: Lilly Corporate Center FAX: REVENUE: Indianapolis, Indiana
NET INCOME: WEB SITE: www.lilly.com
Locemia Solutions is a privately held specialty
pharmaceutical company focused on treatments for
diabetes. It is selling its intranasal glucagon, a
potential treatment for severe hypoglycemia in
people with diabetes treated with insulin.
Eli Lilly discovers, develops, manufactures and sells pharmaceutical
products worldwide. On a trailing 12-month basis, it generated
revenue of $19.6 billion, EBITDA of $4.9 billion and net income of
$2.0 billion.
ANNOUNCEMENT DATE: October 9, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Locemia's intranasal glucagon is currently in Phase 3 clinical testing, and could be the first needle-free treatment
for severe hypoglycemia, if it is approved by the FDA.
TARGET: Worldwide license to CSF1R ACQUIRER: Bristol-Myers Squibb Company
LISTING: NASDAQ: FPRX LISTING: NYSE: BMY
LOCATION: San Francisco, California CEO: Giovanni Caforio
M.D.
PHONE: 212-546-4000
UNITS: 345 Park Avenue FAX: REVENUE: New York, New York 10154
NET INCOME: WEB SITE: www.bms.com
Five Prime has entered into an exclusive worldwide
license and collaboration agreement for the
development and commercialization of Five Prime’s
colony stimulating factor 1 receptor (CSF1R)
antibody program, including FPA008.
Bristol-Myers discovers, develops, licenses, manufactures, markets
and sells biopharmaceutical products. On a trailing 12-month basis,
it generated revenue of $16.4 billion, EBITDA of $4.6 billion and
net income of $1.8 billion.
ANNOUNCEMENT DATE: October 15, 2015 PRICE: $350,000,000 PRICE PER UNIT: TERMS: Five Prime will receive an upfront
payment of $350 million, and can
receive up to $1.05 billion in
development and regulatory milestone
payments per anti-CSF1R product for
oncology indications, and up to $340
million for non-oncology indications.
PRICE/REVENUE:
PRICE/INCOME:
This agreement replaces the companies’ existing clinical collaboration agreement to evaluate the preliminary
efficacy of combining Opdivo (nivolumab), Bristol-Myers Squibb’s programmed-death 1 (PD-1) immune
checkpoint inhibitor, with FPA008 in six tumor types. Bristol-Myers Squibb has undisputed leadership in the
immuno-oncology landscape, deep clinical development and regulatory expertise and an established commercial
infrastructure to deliver important new therapies to patients, this will help maximize the potential of FPA008.
The Health Care M&A Report, 4th Quarter, 2015 200
TARGET: Precision Biologics, Inc. ACQUIRER: NantWorks
LISTING: Private LISTING: Private
LOCATION: Dallas, Texas CEO: Patrick Soon-Shiong PHONE: 310-883-1300
UNITS: 9920 Jefferson Boulevard FAX: REVENUE: Culver City, California 90232
NET INCOME: WEB SITE: www.nantworks.com
Precision Biologics is a biopharmaceutical company
developing tumor-specific monoclonal antibodies
(mAbs) and companion diagnostics to treat solid-
tumor cancers.
NantWorks, LLC, founded by renowned physician scientist and
inventor of the first human nanoparticle chemotherapeutic agent
Abraxane®, Dr. Patrick Soon-Shiong, develops and delivers next-
generation diagnostics and therapeutics.
ANNOUNCEMENT DATE: October 19, 2015 PRICE: $ 50,000,000 PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Precision Biologics is leveraging its proprietary library of cancer vaccines to accelerate innovation. By connecting
this platform with diagnostic and immunotherapy technologies available at NantWorks and NantOmics, the
company is now able to develop compounds that could change the way we detect and treat cancer. Evolution
Venture Partners acted as sole financial advisor to Precision Biologics in connection with this transaction.
TARGET: VBI Vaccines Inc. ACQUIRER: SciVac Therapeutics Inc.
LISTING: NASDAQ:VBIV LISTING: TSX:VAC
LOCATION: Cambridge, Massachusetts CEO: Dr. Curtis A.
Lockshin
PHONE: 972 8 948 0625
UNITS: Gad Feinstein Road, P.O. Box
580
FAX:
REVENUE: $ 250,960 (ttm) Rehovot, Israel 7610303
NET INCOME: $- 15,720,000 (ttm) WEB SITE: www.scivactherapeutics.com
SciVac has agreed to acquire VBI to form a
commercial-stage company with a licensed hepatitis
B (HBV) vaccine and a pipeline of preventative and
therapeutic vaccine candidates.
SciVac Therapeutics is a commercial-stage biopharmaceutical
company that focuses on developing recombinant biological
products to prevent and treat infectious and immune diseases in
Israel. On a trailing 12-month basis, it generated revenue of $2.4
million and EBITDA loss of $4.3 million.
ANNOUNCEMENT DATE: October 26, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Each share of VBI common stock will
be converted into the right to recive
20.808 common shares of SciVac. In
aggregate, VBI stockholders will
receive approx. 541,573,712 common
shares of SciVac, representing 42% of
outstanding shares.
PRICE/REVENUE:
PRICE/INCOME:
A newly-formed wholly owned subsidiary of SciVac will merge with and into VBI, with VBI surviving the merger
as a wholly owned subsidiary of SciVac, and SciVac will change its name to VBI Vaccines Inc. The acquisition of
VBI provides SciVac with access to an impressive portfolio of vaccine candidates that may address large unmet
needs in both infectious diseases and oncology.
The Health Care M&A Report, 4th Quarter, 2015 201
TARGET: Novira Therapeutics, Inc. ACQUIRER: Johnson & Johnson
LISTING: Private LISTING: NYSE: JNJ
LOCATION: Doylestown, Pennsylvania CEO: Alex Gorsky PHONE: 732-524-0400
UNITS: One Johnson & Johnson Plaza FAX: REVENUE: New Brunswick, New Jersey 08933
NET INCOME: WEB SITE: www.jnj.com
Novira Therapeutics is a clinical-stage
biopharmaceutical company developing therapies
for curative treatment of chronic hepatitis B virus
(HBV) infection. The acquisition includes Novira's
portfolio of novel antivirals, including its lead
candidate, NVR 3-778.
Johnson & Johnson manufactures and markets a broad range of
products in the healthcare field. On a trailing 12-month basis, JNJ
generated revenue of $70.5 billion, EBITDA of $22.6 billion and
net income of $14.7 billion.
ANNOUNCEMENT DATE: November 4, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Johnson & Johnson looks to use its vast experience in viral diseases to combine with Novira's recent breakthroughs
to deliver novel medicines for patients suffering from the chronic hepatitis B virus (HBV) infection. Novira is
backed by Versant Ventures, 5AM Ventures and Canaan Partners. The transaction closed on December 4, 2015.
TARGET: License to develop diabetes
treatments
ACQUIRER: Sanofi
LISTING: KRX: 128940 LISTING: NYSE: SNY
LOCATION: Seoul, Korea CEO: Olivier Brandicourt PHONE: 33 1 53 77 40 00
UNITS: 54, Rue La Boetie FAX: 33 1 53 77 42 96 REVENUE: Paris, France 75008
NET INCOME: WEB SITE: www.sanofi.com
Hanmi Pharmaceutical Co., Ltd. has agreed to
develop a portfolio of experimental, long-acting
diabetes treatments using its proprietary
LAPSCOVERY platform, with the goal to minimize
the frequency of treatment and dose required.
Sanofi researches, develops, and markets various therapeutic
solutions. On a trailing 12-month basis, it generated revenue of
$41.0 billion, EBITDA of $12.1 billion and net income of $5.8
billion.
ANNOUNCEMENT DATE: November 5, 2015 PRICE: $434,820,000 Approximate PRICE PER UNIT: TERMS: Hanmi will receive an upfront payment
of €400 million and is eligible for up to
€3.5 billion in development, registration
and sales milestone, as well as double
digit royalties on net sales.
PRICE/REVENUE:
PRICE/INCOME:
Sanofi gets an exclusive worldwide license to develop and commercialize three treatments. Hanmi will retain an
exclusive option to co-commercialize the products in Korea and China. The Quantum Portfolio is based on
Hanmi's proprietary LAPSCOVERY (Long Acting Protein/Peptide Discovery) Technology platform.
The Health Care M&A Report, 4th Quarter, 2015 202
TARGET: ZS Pharma ACQUIRER: AstraZeneca plc
LISTING: NASDAQ: ZSPH LISTING: NYSE: AZN
LOCATION: Coppell, Texas CEO: Pascal Soriot PHONE: 44 20 7604 8000
UNITS: 2 Kingdom Street FAX: 44 20 7604 8151 REVENUE: $-107,550,000 (ttm) London, United Kingdom W2 6BD
NET INCOME: $-110,210,000 (EBITDA,
ttm) WEB SITE: www.astrazeneca.com
ZS Pharma uses its proprietary ion-trap technology
to develop novel treatments for hyperkalaemia,
associated with chronic kidney disease and chronic
heart failure. Its lead compound is ZS-9, a potential
best-in-class for treating hyperkalaemia.
AstraZeneca engages in the discovery, development and
commercialization of prescription medicines worldwide. On a
trailing 12-month basis, it generated revenue of $24.6 billion,
EBITDA of $6.3 billion and net income of $1.7 billion.
ANNOUNCEMENT DATE: November 6, 2015 PRICE: $2,700,000,000 Approximate PRICE PER UNIT: TERMS: $90 per share in an all-cash transaction,
or approximately $2.7 billion in
aggregate transaction value. ZSPH stock
closed at $63.31 on Nov. 5, 2015 and at
$89.04 on Nov. 6, 2015.
PRICE/REVENUE: - 25.10
PRICE/INCOME: - 24.50
Upon completion, ZS Pharma will become a wholly owned subsidiary of AstraZeneca. The transaction does not
impact AstraZeneca’s financial guidance for 2015. It is expected to generate product sales from 2016, with
minimal earnings dilution over 2016 and 2017, becoming accretive to AstraZeneca’s core earnings from 2018. The
transaction closed on December 17, 2015.
TARGET: PurinePharma ACQUIRER: Geritrex Corporation
LISTING: Private LISTING: Private
LOCATION: Massena, New York CEO: Mitch Blashinsky PHONE: 914-668-4003
UNITS: 144 E. Kingsbridge Road FAX: REVENUE: Mount Vernon, New York 10550
NET INCOME: WEB SITE: www.geritrex.com
PurinePharma is a private-label manufacturer and
distributor of over-the-counter generic products. It
specializes in liquid nasal, allergy, and cough and
cold products for retail clients in the United States
and abroad.
Geritrex, a portfolio company of BelHealth Investment Partners,
manufactures generic over-the-counter products and
pharmaceuticals. BelHealth acquired Geritrex in July 2015.
ANNOUNCEMENT DATE: November 9, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition expands Geritrex's business from semi-solid manufacturing into liquids, and marks its entrance to
the private-label retail channel. Geritrex also gains a manufacturing facility with liquid product capability, which
received FDA approval in April 2015.
The Health Care M&A Report, 4th Quarter, 2015 203
TARGET: Rights to oxyntomodulin-
based therapies
ACQUIRER: Janssen Pharmaceuticals, Inc.
LISTING: KRX: 128940 LISTING: NYSE: JNJ
LOCATION: Seoul, South Korea CEO: James F. List, M.D.,
Ph.D.
PHONE: 609-730-2000
UNITS: 1125 Trenton-Harbourton Road FAX: REVENUE: Titusville, New Jersey 08560
NET INCOME: WEB SITE: www.janssen.com
Hanmi Pharmaceutical Co., Ltd. is selling the
worldwide rights, excluding China and Korea, to
develop and commercialize oxyntomodulin-based
therapies, including HM12525A.
The Janssen Pharmaceutical Companies of Johnson & Johnson
address unmet needs in cardiovascular and metabolic diseases,
immunology, infectious disease, neuroscience and oncology.
ANNOUNCEMENT DATE: November 9, 2015 PRICE: $105,000,000 PRICE PER UNIT: TERMS: Hanmi will receive an upfront payment
of $105 million, and is eligible for up to
$810 million in potential clinical
development, regulatory and sales
milestones.
PRICE/REVENUE:
PRICE/INCOME:
If HM12525A is successfully commercialized, Hanmi would also be eligible for tiered double-digit royalty
payments. HM12525A is an oxyntomodulin-based therapy (GLP-1/glucagon receptor dual agonist) that has shown
evidence of improving multiple metabolic parameters that lead to improved blood glucose, body weight, and
insulin sensitivity. This asset has the potential, as a once-weekly therapy, to be a best-in-class oxyntomodulin-
based therapy.
TARGET: Rights to cebranopadol ACQUIRER: Depomed Inc.
LISTING: Private LISTING: NASDAQ: DEPO
LOCATION: Aachen, Germany CEO: James A. Schoeneck PHONE: 510-744-8000
UNITS: 7999 Gateway Blvd., Suite 300 FAX: 510-744-8001 REVENUE: Newark, California 94560
NET INCOME: WEB SITE: www.depomed.com
Grünenthal GmbH has agreed to sell the U.S. and
Canadian rights to cebranopadol and its related
follow-on compound. Cebranopadol is a novel, first-
in-class analgesic in development to treat moderate
to severe chronic nociceptive and neuropathic pain.
Depomed develops products for pain and other central nervous
system conditions in the United States. On a trailing 12-month
basis, it generated revenues of $426.2 million, EBITDA of $213.2
million and a net income of 49.6 million.
ANNOUNCEMENT DATE: November 17, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Depomed expects to conduct an End-of-Phase 2 meeting with the FDA in 2016, and to begin Phase 3 development
by 2017. Cebranopadol has patent protection through 2032, with the potential for extension to 2037. As part of this
agreement, Depomed has resolved its patent litigation with Endo Pharmaceuticals for alleged infringement of three
of Depomed's patents by Endo's OPANA® ER product. Baker Botts LLP represented Depomed in the connection
with this transaction. The deal is expected to close in the fourth quarter of 2015.
The Health Care M&A Report, 4th Quarter, 2015 204
TARGET: VistaPharm Inc. ACQUIRER: Vertice Pharma, LLC
LISTING: Private LISTING: Private
LOCATION: Birmingham, Alabama CEO: Don DeGolyer PHONE:
UNITS: 28 King Street FAX: REVENUE: London, United Kingdom SW1Y 6QW
NET INCOME: WEB SITE:
VistaPharm specializes in delivering generic
pharmaceutical and OTC products for the hospital
market, retail pharmacy and specialized clinical
setting.
Vertice Pharma, a newly formed generic and specialty
pharmaceutical company, is a portfolio company of Warburg
Pincus, which is backing the company with a line of equity
investment of up to $300 million. The company was incorporated
on October 21, 2015.
ANNOUNCEMENT DATE: November 17, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Vertice Pharma will focus on acquiring specialty pharmaceutical companies and products, including both branded
and generic products, to create a durable specialty pharmaceutical business of scale. Its first acquisition is
VistaPharm, which will maintain its manufacturing and distribution facilities in Largo, Florida. Jefferies served as
exclusive financial advisor to Vertice Pharma. Simpson Thacher & Bartlett acted as legal advisors to Warburg
Pincus.
TARGET: Abstral® (fentanyl)
Sublingual Tablet
ACQUIRER: Sentynl Therapeutics Inc.
LISTING: NASDAQ: GALE LISTING: Private
LOCATION: Portland, Oregon CEO: Matt Heck PHONE: 858-720-4517
UNITS: 265 Santa Helena # 208 FAX: REVENUE: Solana Beach, California 92075
NET INCOME: WEB SITE:
Galena Biopharma, Inc. purchased Abstral®
(fentanyl) Sublingual Tablets in 2013. Abstral® is a
treatment option for inadequately controlled
breakthrough cancer pain (BTcP).
Sentynl Therapeutics is a California based pharmaceutical company
that received US approval in 2000, for Levorphanol tartrate
(indicated for pain).
ANNOUNCEMENT DATE: November 20, 2015 PRICE: $ 8,000,000 PRICE PER UNIT: TERMS: $8 million cash upfront and up to $4
million in additional cash upon the
achievement of certain sales milestones.
PRICE/REVENUE:
PRICE/INCOME:
Galena Biopharma acquired the U.S. rights to Abstral from Swedish drug maker Orexo AB in March 2013. The
company is selling Abstral because it is shifting focus and resources to its clinical development programs. Mizuho
Securities acted as exclusive advisor to Galena Biopharma on this transaction, which closed on November 19,
2015.
The Health Care M&A Report, 4th Quarter, 2015 205
TARGET: Allergan plc ACQUIRER: Pfizer, Inc.
LISTING: NYSE: AGN LISTING: NYSE: PFE
LOCATION: Dublin, Ireland CEO: Ian Read PHONE: 212-733-2323
UNITS: 235 East 42nd Street FAX: REVENUE: $19,610,000,000 (ttm) New York, New York 10017
NET INCOME: $7,640,000,000 (EBITDA) WEB SITE: www.pfizer.com
A wholly owned subsidiary of Allergan will be
merged with and into Pfizer, and the Allergan
parent company will be renamed Pfizer plc after the
closing. Allergan CEO Brent Saunders will become
president and chief operating officer of the
combined company.
Pfizer is a global biopharmaceutical company. The combined
company is expected to maintain Allergan's Irish domicile. Pfizer
plc will have its global operational headquarters in New York and
its principal executive offices in Ireland.
ANNOUNCEMENT DATE: November 23, 2015 PRICE: $160,000,000,000 PRICE PER UNIT: TERMS: Reverse merger. Allergan shareholders
will receive 11.3 shares of the combined
company for each of their AGN shares.
Pfizer stockholders will receive one
share of the combined company for each
Pfizer share.
PRICE/REVENUE: 8.16
PRICE/INCOME: 20.94
Following the transaction, Pfizer shareholders will own 56% of the combined company and Allergan shareholders
will own 44%. Guggenheim, Goldman, Centerview and Moelis are serving as Pfizer's financial advisors for the
transaction, with Wachtell, Lipton; Skadden, Arps; and A&L Goodbody as its legal advisors. J.P. Morgan and
Morgan Stanley are serving as Allergan's financial advisors and Cleary Gottlieb; Latham & Watkins; and Arthur
Cox are its legal advisors. The transaction is expected to close in the second half of 2016.
TARGET: Global rights to CGRP
antagonists
ACQUIRER: Teva Pharmaceutical Industries Ltd.
LISTING: TSE: 4565 LISTING: NYSE: TEVA
LOCATION: Hertfordshire, United Kingdom CEO: Erez Vigodman PHONE: 972 3 926 7267
UNITS: 5 Basel St., P.O. Box 3190 FAX: 972 3 923 4050 REVENUE: Petach Tikva, Israel 49131
NET INCOME: WEB SITE: www.tevapharm.com
Heptares Therapeutics, a subsidiary of Sosei, is
selling the exclusive global rights to develop,
manufacture and commercialize novel, small-
molecule calcitonin gene-related peptide (CGRP)
antagonists.
Teva develops, manufactures, markets and distributes generic,
specialty and other pharmaceutical products worldwide. On a
trailing 12-month basis, it generated revenue of $19.9 billion,
EBITDA of $6.6 billion and net income of $1.8 billion.
ANNOUNCEMENT DATE: November 25, 2015 PRICE: $ 10,000,000 PRICE PER UNIT: TERMS: Upfront for research funding. Heptares
is eligible to receive additional
research, development and
commercialization milestone payments
of up to $400 million, plus royalties.
PRICE/REVENUE:
PRICE/INCOME:
CGRP is used for the treatment of migraines. Approximately 36 million people in the United States and 8
million people in Japan suffer from migraines. CGRP antagonists will offer further opportunities that are
highly complementary to Teva's promising candidate, TEV-48125, an anti-CGRP antibody.
The Health Care M&A Report, 4th Quarter, 2015 206
TARGET: Poli Group Holding S.r.l. ACQUIRER: Almirall, S.A.
LISTING: Private LISTING: MCE: ALM.MC
LOCATION: Lugano, Switzerland CEO: Jorge Gallardo PHONE: 34 93 291 30 00
UNITS: Ronda General Mitre, 151 FAX: 34 93 291 31 80 REVENUE: Barcelona, Spain 8022
NET INCOME: WEB SITE: www.almirall.com
Poli Group comprises three operating companies
(Taurus Pharma GmbH, Polichem S.A. and
Polichem S.r.l). Poli Group is an international niche
pharmaceutical company that develops and sells
mainly proprietary products (both drugs and
medical devices).
Almirall is a global company based in Barcelona dedicated to
providing valuable medicines and medical devices through its R&D,
agreements and alliances.
ANNOUNCEMENT DATE: November 30, 2015 PRICE: $395,649,050 Approximate PRICE PER UNIT: TERMS: €365 million. The transaction will be
funded using Almirall's available cash
balance and is expected to be accretive
to Adjusted EPS in year 1. Almirall will
also pay up to an additional €35 million
for achieving development milestones.
PRICE/REVENUE:
PRICE/INCOME:
This acquisition moves Almirall further into a specialty pharma model focused on dermatology. The transaction is
expected to close by the end of 2015 or beginning of 2016. Nomura International plc is acting as exclusive
financial adviser and BonelliErede is acting as legal advisor to Almirall. Banca IMI is acting as exclusive financial
adviser and Gianni, Origoni, Grippo, Cappelli & Partners is acting as legal advisor to Poli Group.
TARGET: U.S. rights to 2 dermatology
products
ACQUIRER: Almirall, S.A.
LISTING: NYSE: GSK LISTING: MCE: ALM.MC
LOCATION: Brentford, United Kingdom CEO: Eduardo Sanchiz PHONE: 34 93 291 30 00
UNITS: Ronda General Mitre, 151 FAX: 34 93 291 31 80 REVENUE: Barcelona, Spain 8022
NET INCOME: WEB SITE: www.almirall.com
Aqua Pharmaceuticals, LLC and its parent company
Almirall have acquired the U.S. rights to 2
dermatology products, VELTIN® (clindamycin
phosphate and tretinoin) Gel, 1.2%/0.025% and
ALTABAX® (retapamulin) Ointment, 1%.
Almirall is a global company based in Barcelona dedicated to
providing valuable medicines and medical devices through its R&D,
agreements and alliances.
ANNOUNCEMENT DATE: November 30, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Both VELTIN® and ALTABAX® will be promoted through Aqua in the United States.
The Health Care M&A Report, 4th Quarter, 2015 207
TARGET: Exclusive license toVAP-1
inhibitor
ACQUIRER: Roche
LISTING: Private LISTING: SIX: RO
LOCATION: Maple Grove, Minnesota CEO: Dr. Severin Schwan PHONE: 41 61 688 11 11
UNITS: Konzern-Hauptsitz
Grenzachersan 124
FAX: 41 61 691 93 91
REVENUE: Basel, Switzerland 4070
NET INCOME: WEB SITE: www.roche.com
Proximagen Ltd., a subsidiary of Upsher-Smith, has
agreed to the further development of a novel, oral
small molecule inhibitor of Vascular Adhesion
Protein 1 (VAP-1). The VAP-1 inhibitor is in Phase
2 clinical development.
Roche operates in the pharmaceuticals and diagnostics businesses in
Europe, North America and Asia. On a trailing 12-month basis, it
generated revenue of $49.5 billion, EBITDA of $18.7 billion and
net income of $8.8 billion.
ANNOUNCEMENT DATE: December 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Proximagen will receive an upfront
payment, along with downstream
development, regulatory and sales
milestones, as well as tiered royalties on
net sales of a potential future product
containing the molecule.
PRICE/REVENUE:
PRICE/INCOME:
Roche is granted a worldwide exclusive license to develop and commercialize the compound. In a novel
collaboration model, Proximagen and Roche will conduct additional Phase 2 studies to further define the
therapeutic potential of the VAP-1 inhibitor. Based on this data, Roche will assume responsibility for late stage
development and worldwide commercialization. The transaction is subject to the expiration or early termination of
the applicable U.S. Hart-Scott-Rodino waiting period.
TARGET: Benznidazole program ACQUIRER: KaloBios Pharmaceuticals, Inc.
LISTING: Private LISTING: Nasdaq: KBIO
LOCATION: Undisclosed, CEO: Martin Shkreli PHONE: 650-243-3100
UNITS: 442 Littlefield Avenue FAX: REVENUE: South San Francisco, California 94080
NET INCOME: WEB SITE: www.kalobios.com
Savant Neglected Diseases, LLC, a privately held
specialty pharmaceutical company, is selling the
benznidazole program for the treatment of Chagas
disease.
KaloBios is a biopharmaceutical company that develops
monoclonal antibody therapeutics for the treatment of cancer in the
United States. On a trailing 12-month basis, it had a net loss of
$30.2 million.
ANNOUNCEMENT DATE: December 3, 2015 PRICE: $ 2,000,000 PRICE PER UNIT: TERMS: KaloBios will pay an upfront payment
of $2 million, plus regulatory milestones
and a royalty based on product sales.
PRICE/REVENUE:
PRICE/INCOME:
An estimated 300,000 patients in the United States are afflicted with Chagas disease. Benznidazole is currently
unavailable in the United States or Europe. KaloBios intends to file for Orphan Drug Designation and Fast Track
Designation for benznidazole in Chagas disease. The transaction is expected to close by the end of 2015.
The Health Care M&A Report, 4th Quarter, 2015 208
TARGET: Exclusive license to sexual
health products
ACQUIRER: Bio Task
LISTING: OTC: INNV LISTING: Private
LOCATION: San Diego, California CEO: Dr. Bassam B. Damaj PHONE: 603 7782 0512
UNITS: 151 Jalan PJS 3/7 Taman
Medan Baru
FAX: 603 7783 2553
REVENUE: $ 867,220 (ttm) Selangor, Malaysia 46150
NET INCOME: $- 4,400,000 (ttm) WEB SITE: www.biotask.net
Innovus Pharma has granted Bio Task the exclusive
license to market and sell men's and women's sexual
health products Zestra®, Zestra Glide®,
EjectDelay®, Sensum+® and Vesele® in Malaysia.
Bio Task is dedicated to improving the quality of the healthcare to
the general public by promoting innovative quality products from
clinical diagnostics to targeted therapies in the fields of cancer,
diabetes, sexual disorders and viral infections.
ANNOUNCEMENT DATE: December 3, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Innovus Pharma will receive an upfront
payment and is eligible to receive up to
$34 million dollars in sales milestone
payments plus an agreed-upon transfer
price.
PRICE/REVENUE:
PRICE/INCOME:
This is Innovus Pharma's eleventh commercial partnership for its products. In 2015, the company has signed
partnerships in 61 countries for its products.
TARGET: Liaoning TianYi Biological
Pharmaceutical Co.
ACQUIRER: Eisai Co. Ltd.
LISTING: Private LISTING: TYO: 4523
LOCATION: Benxi, Liaoning Province, China CEO: Karuo Naito PHONE: 81-3-3817-3700
UNITS: 4-6-10 Koishikawa, Bunkyo-ku FAX: REVENUE: Tokyo, Japan 112-8088
NET INCOME: WEB SITE: www.eisai.com
Liaoning TianYi Biological Pharmaceutical Co.
Ltd. is a generic pharmaceutical company that
manufactures and markets pharmaceutical products
and active pharmaceutical ingredients.
Eisai Co. Ltd is a global pharmaceutical company. Its China holding
company, Eisia China Holdings Ltd., is making this acquisition.
ANNOUNCEMENT DATE: December 3, 2015 PRICE: $ 77,961,984 Approximate PRICE PER UNIT: TERMS: RMB 500 million (approximately ¥9.6
billion, based on 1 RMB = 19.2
Japanese yen).
PRICE/REVENUE:
PRICE/INCOME:
Through this acquisition, Eisai will enter the generic pharmaceutical market in China, in addition to expanding its
existing business focused on new medicines. It also strengthens its Chinese business platform, established 25 years
ago, and gives the Japanese company a business base in the Benxi business district. This agreement is expected to
have a minor impact on Eisai's consolidated result forecasts for the period ending March 30, 2016.
The Health Care M&A Report, 4th Quarter, 2015 209
TARGET: Trigen/Vertical Holdings
LLC
ACQUIRER: Osmotica Holdings Corp. Ltd.
LISTING: Private LISTING: Private
LOCATION: Sayreville, New Jersey CEO: Praveen Tyle, PhD PHONE: 770-509-4500
UNITS: 895 Sawyer Road FAX: 770-509-3944 REVENUE: Marietta, Georgia 30062
NET INCOME: WEB SITE: www.osmotica.com
Vertical/Trigen Holdings, a portfolio company of
Avista Capital Partners, has agreed to merge with
Osmotica. Vertical Pharmaceuticals, LLC
specializes in women's health preparations. Trigen
Laboratories is a generic pharmaceutical company.
Osmotica Holdings is a global specialty pharmaceutical company
with operations in Argentina, Hungary and the United States. It uses
its proprietary osmotic technology platform to develop and
commercialize pharmaceutical products.
ANNOUNCEMENT DATE: December 4, 2015 PRICE: Merger PRICE PER UNIT: TERMS: The combined company will be jointly
owned by the current owners of
Vertical/Trigen and Osmotica.
PRICE/REVENUE:
PRICE/INCOME:
The combination brings together two highly complementary businesses with demonstrated expertise in developing
commercially successful pharmaceutical products. The new entity will assume the Osmotica name and will
continue to offer Vertical/Trigen's full portolio of branded and generic products. Jefferies LLC provided financial
advice to Osmotica. Covington & Burling LLP acted as legal counsel to Osmotica. Weil, Gotshal & Manges LLP
acted as legal counsel to Vertical/Trigen.
TARGET: Collaboration on cancer
immunotherapy
ACQUIRER: Roche
LISTING: NASDAQ: PIRS LISTING: SIX: RO
LOCATION: Boston, Massachusetts CEO: Dr. Severin Schwan PHONE: 41 61 688 11 11
UNITS: Konzern-Hauptsitz
Grenzachersan 124
FAX: 41 61 691 93 91
REVENUE: Basel, Switzerland 4070
NET INCOME: WEB SITE: www.roche.com
Pieris Pharmaceuticals, Inc. will discover,
characterize and optimize its proprietary
Anticalin®-based drug candidates against an
undisclosed target.
Roche operates in the pharmaceuticals and diagnostics businesses in
Europe, North America and Asia. On a trailing 12-month basis, it
generated revenue of $49.5 billion, EBITDA of $18.7 billion and
net income of $8.8 billion.
ANNOUNCEMENT DATE: December 8, 2015 PRICE: $ 6,400,000 Approximate PRICE PER UNIT: TERMS: Pieris will receive an upfront payment
of CHF 6.5 million and committed
research funding, milestone payments
and mid single-digit to low double-digit
royalties on any future product sales.
Milestone payments could surpass CHF
415 Million.
PRICE/REVENUE:
PRICE/INCOME:
Roche will be responsible for IND-enabling activities, clinical development and worldwide marketing of any
resulting products. Anticalins are a novel class of protein therapeutics validated in the clinic and by partnerships
with leading pharmaceutical companies.
The Health Care M&A Report, 4th Quarter, 2015 210
TARGET: PaxVax, Inc. ACQUIRER: Cerberus Capital Management, LP
LISTING: Private LISTING: Private
LOCATION: Redwood City, California CEO: Stephen A. Feinberg PHONE: 212-891-2100
UNITS: 875 Third Avenue FAX: REVENUE: New York, New York 10022
NET INCOME: WEB SITE: www.cerberuscapital.com
PaxVax is a fully integrated specialty vaccine
company that develops, manufactures and
commercializes innovative vaccines against
infectious diseases.
Cerberus is a private investment firm, with more than $28 billion
under management invested in four primary strategies: distressed
securities & assets; control and non-control private equity;
commercial mid-market lending and real estate-related investments.
ANNOUNCEMENT DATE: December 8, 2015 PRICE: $105,000,000 PRICE PER UNIT: TERMS: Cerberus has acquired a majority
economic interest in the company.
Ignition Growth Capital and other
existing investors will remain as
minority shareholders.
PRICE/REVENUE:
PRICE/INCOME:
This investment allows PaxVax to eliminate debt and to focus on growing its Vivotif® typhoid vaccine business
and launching vaccines that are still in clinical development to treat cholera, anthrax, HIV and hepatitis A. Morgan
Lewis & Bocklus LLP served as outside legal advisor to PaxVax on the transaction. Lowenstein Sandler LLP
served as outside legal advisor to Cerberus on the transaction. DLA Piper served as outside legal advisor to Ignition
on the transaction.
TARGET: Crealta Holdings LLC ACQUIRER: Horizon Pharma plc
LISTING: Private LISTING: NASDAQ: HZNP
LOCATION: Glendale, Wisconsin CEO: Timothy P. Walbert PHONE: 353 1 772 2100
UNITS: Connaught House, 1st Floor FAX: REVENUE: Dublin, Ireland 4
NET INCOME: WEB SITE: www.horizonpharma.com
Crealta is a specialty pharmaceutical company with
two marketed medicines, Krystexxa and Migergot.
Krystexxa is the first and only FDA-approved
medicine for chronic refractory gout, an orphan
disease and type of arthritis caused by uric acid
build up in the blood.
Horizon Pharma focuses on medicines for the treatment of arthritis,
pain, inflammatory and/or orphan diseases. On a trailing 12-month
basis, it generated revenue of $616 million, EBITDA of $113.7
million and a net loss of $16.1 million.
ANNOUNCEMENT DATE: December 11, 2015 PRICE: $510,000,000 PRICE PER UNIT: TERMS: Cash. PRICE/REVENUE:
PRICE/INCOME:
Horizon expects the acquisition to add $70 to $80 million in net sales and $45 to $50 million in adjusted EBITDA
in the first 12 months after closing. The deal leverages its rheumatology infrastructure and sales force, and adds a
biologic medicine in an orphan disease with strong intellectual property protection through 2027. Jefferies LLC
acted as financial advisor to Horizon Pharma in the transaction. Cooley LLP and McCann FitzGerald served as
Horizon's legal advisors.
The Health Care M&A Report, 4th Quarter, 2015 211
TARGET: 8 Sanofi U.S. drug products ACQUIRER: Wood Creek Capital Management, LLC
LISTING: NYSE: SNY LISTING: Private
LOCATION: Bridgewater, New Jersey CEO: PHONE: 203-401-3220
UNITS: 157 Chursch Street, 20th Floor FAX: 203-401-3219 REVENUE: New Haven, Connecticut 06510
NET INCOME: WEB SITE: www.woodcreekcap.com
Sanofi U.S. is selling eight of its marketed drug
products: Anzemet® injection and tablets,
Claforan® injection/IM/IV, Demerol® tablets,
Drisdol® capsules and oral solution, Hiprex®
tablets, Lasix® tablets, Norpramin® tablets and
Trental® tablets.
Wood Creek Capital Management, a subsidiary of Babson Capital
Management, acquired the Sanofi products through a new company,
US Pharmaceuticals Holdings II LLC. Validus Pharmaceuticals will
serve as exclusive manager for the products.
ANNOUNCEMENT DATE: December 14, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
These products give Validus Pharmaceuticals opportunities to generate sales in several new therapeutic markets
and represents a significant growth catalyst for the company. Validus is focused on acquiring, reformulating and
marketing FDA-approved prescription products.
TARGET: Collaboration on vadadustat ACQUIRER: Mitsubishi Tanabe Pharma Corp.
LISTING: NASDAQ: AKBA LISTING: TSE: 4508
LOCATION: Cambridge, Massachusetts CEO: Masayuki Mitsuka PHONE: 81-6-6205-5085
UNITS: 3-2-10, Dosho-machi, Chuo-ku FAX: REVENUE: Osaka, Japan
NET INCOME: WEB SITE: www.mt-pharma.co.jp
Akebia Therapeutics has agreed to collaborate with
MTPC to develop and commercialize vadadustat
(formerly AKB-6548), an oral therapy for the
treatment of anemia related to chronic kidney
disease, in Japan and certain other countries in Asia.
Mitsubishi Tanabe Pharma Corp. (MTPC) is a research-driven
pharmaceutical company focused on treatments for autoimmune
diseases, diabetes and kidney disease, diseases of the central
nervous system and other conditions.
ANNOUNCEMENT DATE: December 14, 2015 PRICE: $ 40,000,000 PRICE PER UNIT: TERMS: $40 million upfront, and up to an
additional $60 million for costs
associated with the global Phase 3
program. In addition, AKBA is eligible
for up to $250 million in additional
milestone payments.
PRICE/REVENUE:
PRICE/INCOME:
MTPC will also make tiered royalty payments, from low teens up to 20%, on sales of vadadustat in Japan, Taiwan,
South Korea, Indonesia, India and other Asian countries.
The Health Care M&A Report, 4th Quarter, 2015 212
TARGET: Exclusive rights to Sprix
Nasal Spray
ACQUIRER: Teva Pharmaceutical Industries
LISTING: NASDAQ: EGLT LISTING: NYSE: TEVA
LOCATION: Wayne, Pennsylvania CEO: Erez Vigodman PHONE: 972 3 926 7267
UNITS: 5 Basel Street, PO Box 3190 FAX: 972 3 923 4050 REVENUE: Patch Tikva, Israel 49131
NET INCOME: WEB SITE: www.tevapharm.com
Egalet Corporation, a specialty pharmaceutical
company, has granted exclusive marketing and
commercialization rights to Sprix Nasal Spray in
Israel, Gaza and the West Bank.
Teva Pharmaceutical Industries develops, manufactures and markets
generic, specialty and other pharmaceutical products worldwide. On
a trailing 12-month basis, it generated revenue of $19.9 billion,
EBITDA of $6.6 billion and net income of $1.8 billion.
ANNOUNCEMENT DATE: December 14, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Egalet will receive an undisclosed
upfront payment, sales-based milestones
and will share in the profits from net
sales of Sprix in those territories.
PRICE/REVENUE:
PRICE/INCOME:
Sprix Nasal Spray is a non-steroidal anti-inflammatory drug indicated in adult patients for the short-term
management of moderate to moderately severe pain that requires analgesia at the opioid level.
TARGET: IBA Molecular ACQUIRER: CapVest Partners LP
LISTING: Private LISTING: Private
LOCATION: Louvain-La-Neuve, Belgium CEO: Randl Shure,
managing partner
PHONE: 44(0)20 7389 7900
UNITS: 100 Pall Mall FAX: REVENUE: London, United Kingdom SW1Y 5NQ
NET INCOME: WEB SITE: www.capvest.co.uk
IBA Molecular is being sold by Ion Beam
Applications SA and SK Capital Partners. It
develops, manufactures and distributes
radiopharmaceutical products used in molecular
imaging, with operations across Europe and Asia.
CapVest Partners is an established European mid-market private
equity firm focused on acquiring market leading companies
supplying essential products and services.
ANNOUNCEMENT DATE: December 14, 2015 PRICE: $ 60,637,499 Approximate PRICE PER UNIT: TERMS: EUR 55 million in cash, representing a
capital gain of EUR 30 million ($33
million) based on the current valuation
in IBA's books.
PRICE/REVENUE:
PRICE/INCOME:
IBA Molecular is being sold by Ion Beam Applications S.A. (40% ownership) and SK Capital Partners (60%
ownership). IBA sold the U.S. portion of IBAM to Illinois Health and Science in August 2015. This transaction
concerns the remainder of the IBAM business and its closing will complete IBA's exit from this business. The
closing is expected by the end of the first quarter of 2016.
The Health Care M&A Report, 4th Quarter, 2015 213
TARGET: Takeda's respiratory
business
ACQUIRER: AstraZeneca plc
LISTING: Tokyo: 4502 LISTING: NYSE: AZN
LOCATION: Osaka, Japan CEO: Pascal Soriot PHONE: 44 20 7604 8000
UNITS: 2 Kingdom Street FAX: 44 20 7604 8151 REVENUE: London, United Kingdom W2 6BD
NET INCOME: WEB SITE: www.astrazeneca.com
Takeda Pharmaceutical Company Ltd is selling its
core respiratory business, including expanded rights
to roflumilast (marketed as Daliresp in the U.S. and
Daxas in other countries), the only approved oral
PDE4 inhibitor for the treatment of COPD.
AstraZeneca focuses on prescription medicines in the areas of
infection, cardiovascular, metabolic, respiratory, inflammation,
autoimmune, oncology and neuroscience. On a trailing 12-month
basis, it generated revenue of $24.6 billion, EBITDA of $6.3 billion
and net income of $1.7 billion.
ANNOUNCEMENT DATE: December 16, 2015 PRICE: $575,000,000 PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
AstraZeneca has marketed Daliresp in the United States since the acquisition of the rights from Actavis in the first
quarter of 2015. Full acquisition of the global rights will support its respiratory franchise and complement the
company's portfolio of treatment for severe COPD. Annual global sales of the three core medicines acquired,
excluding any AstraZeneca sales of Daliresp in the US, were $198 million for the period ending in March 2015.
This transaction is expected to close in the first quarter of 2016.
TARGET: Acerta Pharma B.V. ACQUIRER: AstraZeneca plc
LISTING: Private LISTING: NYSE: AZN
LOCATION: OSS, The Netherlands CEO: Pascal Soriot PHONE: 44 20 7604 8000
UNITS: 2 Kingdom Street FAX: 44 20 7604 8151 REVENUE: London, United Kingdom W2 6BD
NET INCOME: WEB SITE: www.astrazeneca.com
Acerta Pharma is a clinical-stage biopharmaceutical
company that has a potential best-in-class
irreversible oral Bruton's tyrosine kinase (Btk)
inhibitor, acalabrutinib (ACP-196), currently in
Phase 3 development for B-cell blood cancers, and
in Phase 1/2 for other trials.
AstraZeneca focuses on prescription medicines in the areas of
infection, cardiovascular, metabolic, respiratory, inflammation,
autoimmune, oncology and neuroscience. On a trailing 12-month
basis, it generated revenue of $24.6 billion, EBITDA of $6.3 billion
and net income of $1.7 billion.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: $4,000,000,000 PRICE PER UNIT: TERMS: 55% of the entire issued share capital of
Acerta, comprised of $2.5 billion
upfront and unconditional consideration
of $1.5 billion to be paid by receipt of
the first regulatory approval of ACP-196
in the U.S., or by the end of 2018.
PRICE/REVENUE:
PRICE/INCOME:
AstraZeneca has the rights to buy the remaining 45% of shares in Acerta at a price of approximately $3.0 billion
net of certain costs and payments incurred by AstraZeneca. If approved, AstraZeneca believes ACP-196 could sell
more than $5 billion a year and contribute to its oncology business. Goldman, Sachs & Co. is acting as lead
financial advisor and Jefferies LLC is serving as joint financial advisor to Acerta. Morgan, Lewis & Bockius and
Nauta Durlih are serving as legal counsel to Acerta.
The Health Care M&A Report, 4th Quarter, 2015 214
TARGET: Global partnership on
filgotinib
ACQUIRER: Gilead Sciences, Inc.
LISTING: NASDAQ: NBI LISTING: NASDAQ: GILD
LOCATION: Mechelen, Belgium CEO: Dr. John C. Martin,
PhD
PHONE: 650-574-3000
UNITS: 333 Lakeside Drive FAX: 650-578-9246 REVENUE: Foster City, California 94404
NET INCOME: WEB SITE: www.gilead.com
Galapagos NV has agreed to partner with Gilead to
develop and commercialize its JAK1-selective
inhibitor, filgotinib, for inflammatory indications.
Phase 2 trial data show it has the potential to be
effective in patients with rheumatoid arthritis and
Crohn's.
Gilead is a biopharmaceutical company specializing in medicines in
areas of unmet need. On a trailing 12-month basis, it generated
revenue of $31.5 billion, EBITDA of $22.4 billion and net income
of $16.9 billion.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: $725,000,000 PRICE PER UNIT: TERMS: Galapagos will receive $300 million for
a license fee and a $425 million equity
investment. In addition, it is eligible for
payments of up to $1.35 billion in
milestones, with tiered royalties starting
at 20%.
PRICE/REVENUE:
PRICE/INCOME:
The companies will collaborate on the global development of filgotinib starting with the initiation of Phase 3 trails
in rheumatoid arthritis. Gilead's $425 million equity investment in Galapagos consists of subscribing to shares at a
price of €58 per share, which represents a 20% premium compared with the average share price over the last 30
days. Gilead will own approximately 15% of the outstanding share capital of Galapagos, depending on the $/€
exchange rate at closing.
TARGET: Matawan Pharmaceuticals'
Retin-A portfolio
ACQUIRER: Perrigo Company plc
LISTING: Private LISTING: NYSE: PRGO
LOCATION: Cranford, New Jersey CEO: Joseph C. Papa PHONE: 353 1 604 0031
UNITS: Lower Grand Canal Street FAX: REVENUE: Dublin, Ireland 2
NET INCOME: WEB SITE: www.perrigo.com
Matawan Pharmaceuticals, LLC. is selling its
portfolio of generic dosage forms and strengths of
Retin-A® (tretinoin). Perrigo was the authorized
generic distributor of these products from 2005 to
2013 before the agreement was terminated.
Perrigo develops, manufactures and distributes over-the-counter and
generic prescription drugs, nutritional products and APIs. On a
trailing 12-month basis, it generated revenue of $5.0 billion,
EBITDA of $1.5 billion and a net income of $144.3 million.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Generic and brand sales of Retin-A® were approximately $287 million for the 12 months ending October 2015.
The transaction is expected to immediately exceed Perrigo's ROIC threshold and add more than $0.20 in adjusted
EPS within the first 12 months post-close after the exclusion of estimates for intangible amortization, transaction
costs and integration related expenses. The transaction is expected to close in the first quarter of 2016.
The Health Care M&A Report, 4th Quarter, 2015 215
TARGET: Global portfolio of
hemostasis products
ACQUIRER: Mallinckrodt plc
LISTING: NASDAQ: MDCO LISTING: NYSE: MNK
LOCATION: Parsippany, New Jersey CEO: Mark Christopher
Trudeau
PHONE: 44 4246 263 051
UNITS: Perth House, Millennium FAX: REVENUE: Chesterfield, United Kingdom S41 8 ND
NET INCOME: WEB SITE: www.mallinckrodt.com
The Medicines Company is selling its global
portfolio of three hemostasis products: Recothrom®
Thrombin tropical (recombinant), PreveLeak™ and
Raplixa™ (fibrin sealant).
Mallinckrodt focuses on specialty pharmaceutical and
biopharmaceutical products, and nuclear imaging agents in
worldwide markets. On a trailing 12-month basis, it generated
revenue of $3.35 billion, EBITDA of $1.3 billion and net income of
$305.7 million.
ANNOUNCEMENT DATE: December 18, 2015 PRICE: $175,000,000 PRICE PER UNIT: TERMS: $175 million upfront, including
inventory, and up to $235 million in
additional consideration for future
milestone payments.
PRICE/REVENUE:
PRICE/INCOME:
The addition of the three hemostasis products boosts Mallinckrodt's growing hospital portfolio, and specifically
expands on its current surgical pain management offering. This transaction is expected to be accretive in fiscal
2017, driving organic growth for these products in the low double-digits. Leerink Partners LLC is acting as
financial advisor, and WilmerHale is acting as legal advisor to The Medicines Company. This transaction is
expected to close in the first quarter of 2016.
TARGET: Late-stage HIV R&D assets ACQUIRER: ViiV Healthcare
LISTING: NYSE: BMY LISTING: NYSE: GSK
LOCATION: New York, New York CEO: David Redfern PHONE: 44 20 8380 6200
UNITS: 980 Great West Road FAX: REVENUE: Brentford, Middlesex, United Kingdom TW8 9GS
NET INCOME: WEB SITE: www.viivhealthcare.com
Bristol-Myers Squibb is selling its late-stage HIV
R&D assets, including fostemsavir (BMS-663068),
an attachment inhibitor, currently in Phase 3
development for heavily treatment-experienced
patients.
ViiV Healthcare is the global HIV business of GlaxoSmithKline
plc.
ANNOUNCEMENT DATE: December 18, 2015 PRICE: $317,000,000 PRICE PER UNIT: TERMS: $317 million upfront, followed by
development and first commercial sales
milestones of up to $518 million, and
tiered royalties on sales.
PRICE/REVENUE:
PRICE/INCOME:
This is one of two transactions announced between these parties on this date. Fostemsavir has received a
Breakthrough Therapy Designation from the FDA and is expected to be filed for regulatory approval in 2018. The
transaction also includes a maturation inhibitor (BMS-955176), currently in Phase 2b development, and a back-up
maturation inhibitor candidate (BMS-986173). The two transactions are expected to close independently during the
first half of 2016.
The Health Care M&A Report, 4th Quarter, 2015 216
TARGET: Zuplenz® oral soluble film ACQUIRER: Midatech Pharma, plc
LISTING: NASDAQ: GALE LISTING: NASDAQ: MTP
LOCATION: Portland, Oregon CEO: Dr. James Neil
Phillips
PHONE: 44 1235 841 575
UNITS: 65 Innovation Dr., Milton Park FAX: REVENUE: Abingdon, United Kingdom X14 4RQ
NET INCOME: WEB SITE: www.midatechgroup.com
Galena Biopharma, Inc. is selling its Zuplenz®
(ondansetron) Oral Soluble Film product, which
uses proprietary PharmFilm® technology from
MonoSol Rx.
Midatech is an international specialty pharmaceutical company
focused on oncology and other therapeutic areas with three
marketed products in the U.S. On a trailing 12-month basis, it
generated revenue of $669,280 and a net loss of $16.8 million.
ANNOUNCEMENT DATE: December 18, 2015 PRICE: $ 3,750,000 PRICE PER UNIT: TERMS: $3.75 million in cash upfront, and up to
$26 million in additional cash upon the
achievement of certain sales milestones.
Galena will pay MonoSol Rx $900,000
of the upfront fee and 20% of any future
milestone payments.
PRICE/REVENUE:
PRICE/INCOME:
Galena had previously announced its intention to divest itself of its two commercial assets, and this transaction is
the second of those deals. With the sale of Zuplenz, the company will now focus on advancing its cancer
immunotherapy clinical development pipeline, which is led by its Phase 3 product candidate, NeuVax. Mizuho
Securities is acting as exclusive advisor to Galena Biopharma on this transaction. This transaction closed on
December 24, 2015.
TARGET: License to ENHANZE™
platform
ACQUIRER: Eli Lilly and Company
LISTING: NASDAQ: HALO LISTING: NYSE: LLY
LOCATION: San Diego, California CEO: Dr. John C.
Lechleiter
PHONE: 317-276-2000
UNITS: Lilly Corporate Center FAX: REVENUE: Indianapolis, Indiana 46285
NET INCOME: WEB SITE: www.lilly.com
Halozyme Therapeutics, Inc. is licensing its
ENHANZE™ platform to Lilly to combine with
proprietary Lilly compounds to develop and
commercialize products.
Eli Lilly discovers, develops, manufactures and sells pharmaceutical
products worldwide. On a trailing 12-month basis, it generated
revenue of $19.7 billion, EBITDA of $5.3 billion and net income of
$2.4 billion.
ANNOUNCEMENT DATE: December 21, 2015 PRICE: $ 25,000,000 PRICE PER UNIT: TERMS: Halozyme will receive an initial $25
million payment, followed by milestone
payments of up to $160 million for each
of up to five collaboration targets valued
at up to $800 million.
PRICE/REVENUE:
PRICE/INCOME:
ENHANZE™ is Halozyme's proprietary drug delivery platform based on its patented recombinant human
hyaluronidase enzyme (rHuPH20) that temporarily degrades hyaluronan to aid in the dispersion and absorption of
other injected therapeutic drugs. Lilly will pay Halozyme mid-single digit royalties if any products are
commercialized.
The Health Care M&A Report, 4th Quarter, 2015 217
TARGET: License to tivozanib in
Europe
ACQUIRER: EUSA Pharma
LISTING: NASDAQ: AVEO LISTING: Private
LOCATION: Cambridge, Massachusetts CEO: Lee Morley PHONE: +44 (0) 3305001140
UNITS: Ground Floor, Suite F,
Breakspear Park
FAX:
REVENUE: Hempstead, England HP2 4TZ
NET INCOME: WEB SITE: www.eusapharma.com
AVEO Oncology has agreed to grant an exclusive
license for the European rights to tivozanib to
EUSA Pharma. Tivozanib is used for the treatment
of advanced renal cell carcinoma.
EUSA Pharma is a specialty pharmaceutical company founded in
March 2015. It has a portfolio of five approved and several named-
patient specialty hospital products.
ANNOUNCEMENT DATE: December 21, 2015 PRICE: $ 2,500,000 PRICE PER UNIT: TERMS: AVEO will receive an upfront research
and development funding payment of
$2.5 million, and up to $394 million in
potential payments and milestones.
PRICE/REVENUE:
PRICE/INCOME:
AVEO has retained the commerical rights to tivozanib in oncology in North America. Between this partnership and
previous agreements with Ophthotech and Pharmstandard relating to tivozanib, AVEO can potentially receive over
$35 million in the next 18 months. This would provide substantial additional funding to support AVEO's tivozanib
development strategy for North America.
TARGET: Avita Medical Limited
respiratory business
ACQUIRER: Medical Developments International
Limited
LISTING: ASX: AVH LISTING: ASX: MVP
LOCATION: Melbourn, United Kingdom CEO: John Sharman PHONE: 61 3 9547 1888
UNITS: 56 Smith Road FAX: 61 3 9547 0262 REVENUE: Springvale, Australia 3171
NET INCOME: WEB SITE: www.medicaldev.com
Avita Medical develops and distributes regenerative
products for the treatment of a broad range of
wounds, scars and skin defects. Avita Medical’s
respiratory business includes Breath-A-Tech® and
Funhaler®.
Medical Developments International Limited manufactures and
distributes pharmaceutical drugs, and medical and veterinary
equipment. On a trailing 12-month basis, it generated revenue of
$11.6 million, EBITDA of $3.2 million and net income of $1.5
million.
ANNOUNCEMENT DATE: December 24, 2015 PRICE: $ 2,640,000 PRICE PER UNIT: TERMS: $2.2 million cash. MVP also has the
option to grant either 125,000 new MVP
shares escrowed for 6 months or an
additional $44,000 in cash.
PRICE/REVENUE:
PRICE/INCOME:
This acquisition will transform MVP’s Australian respiratory business and help establish it as a market leader in
asthma respiratory devices. The acquisition significantly improves MVP’s gross margins and is expected to be EPS
positive from the start. This acquisition is expected to close in early February 2016.
The Health Care M&A Report, 4th Quarter, 2015 218
PHYSICIAN MEDICAL GROUPS
TARGET: 3 physician practices in
Florida
ACQUIRER: IPC Healthcare, Inc.
LISTING: Private LISTING: NASDAQ: IPCM
LOCATION: Ocala, Florida CEO: Dr.Adam D. Singer PHONE: 888-447-2362
UNITS: 4605 Lankershim Blvd., Ste.
617
FAX:
REVENUE: North Hollywood, California 91602
NET INCOME: WEB SITE: www.hospitalist.com
IPC Healthcare has acquired the following practices
in Ocala, Florida: Ocala Hospital Group, PA;
Hospitalists of Ocala, LLC; and Ocala Geriatric
Services.
IPC Healthcare provides acute hospitalist and post-acute care
services in the United States. On a trailing 12-month basis, it
generated revenue of $713.8 million, EBITDA of $70.4 million and
net income of $33.3 million.
ANNOUNCEMENT DATE: October 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The acquisitions complement IPC Healthcare's existing market presence for acute and post-acute services in the
Ocala region. The three acquisitions are expected to add more than 130,000 encounters on a combined annualized
basis.
TARGET: Lifestages Centers for
Women
ACQUIRER: Premier Health
LISTING: Private LISTING: Nonprofit
LOCATION: Dayton, Ohio CEO: James R. Pancoast PHONE: 937-738-5772
UNITS: 8 (physicians) 110 North Main Street FAX: REVENUE: Dayton, Ohio 45402
NET INCOME: WEB SITE: www.premierhealth.com
Lifestages Centers for Women (formerly Lifestages
Samaritan Centers for Women) offers
comprehensive healthcare for women such as
obstetrics, gynecology and bladder and pelvic
health. The practice includes eight physicians.
Premier Health operates five area hospitals, nine outpatient centers,
two long-term care facilities. Its physician group, Premier Health
Specialists, is the largest group of specialty care practices in the
Miami Valley.
ANNOUNCEMENT DATE: October 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The acquisition will strengthen Premier's existing OB/GYN expertise, which has about 10 other practices
elsewhere in the region. This is part of a string of acquisition by Premier to add small specialty practices to
enhance its outpatient services. Lifestages will continue to operate under the affiliation of Premier Health
Specialists, and is rebranding under the Premier Health umbrella.
The Health Care M&A Report, 4th Quarter, 2015 221
TARGET: Cancer Care & Hematology
of Niagara
ACQUIRER: Roswell Park Cancer Institute
LISTING: Private LISTING: Nonprofit
LOCATION: Niagara Falls, New York CEO: Dr. Candace S.
Johnson
PHONE: 716-845-2300
UNITS: 1 (physician) 655 Elm Street FAX: REVENUE: Buffalo, New York 14203
NET INCOME: WEB SITE: www.roswellpark.org
Cancer Care & Hematology of Niagara is a private
oncology practice operated by Dr. Mohamed
Ahmed in 2008.
Roswell Park Cancer Institute (RCPI) is a 133-bed hospital with
292 physicians on staff. It is comprised of two organizations,
Roswell Park Cancer Institute Corporation and Health Research Inc.
Roswell Park Division.
ANNOUNCEMENT DATE: October 19, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Cancer Care & Hematology of Niagara will remain in its present location on Military Road in Niagara Falls, but
will change its name to Roswell Park Hematology Oncology of Niagara.
TARGET: Hospital Medicine
Consultants, LLC
ACQUIRER: IPC Healthcare, Inc.
LISTING: Private LISTING: NASDAQ: IPCM
LOCATION: Chicago, Illinois CEO: Dr. Adam Singer PHONE: 888-447-2362
UNITS: 4605 Lankershim Blvd., Ste.
617
FAX:
REVENUE: North Hollywood, California 91602
NET INCOME: WEB SITE: www.hospitalist.com
Hospital Medicine Consultants consists of four
physicians in two primary specialties, internal
medicine and nurse practitioner.
IPC Healthcare provides acute hospitalist and post-acute care
services, and manages the care of hospitalized patients. On a trailing
12-month basis, it generated revenue of $728.8 million, EBITDA of
$59.7 million and net income of $28.8 million.
ANNOUNCEMENT DATE: October 22, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition expands IPC's presence in the northwestern suburbs of Chicago. It is expected to add more than
20,000 encounters on a combined annualized basis.
The Health Care M&A Report, 4th Quarter, 2015 222
TARGET: 3 orthopedic practices ACQUIRER: Ortho Rhode Island
LISTING: Private LISTING: Private
LOCATION: Rhode Island CEO: Michael Bradley PHONE: 401-459-4001 UNITS: 285 Promenade ST. FAX: REVENUE: Providence, Rhode Island 02908
NET INCOME: WEB SITE: orthopedicsri.com
Blackstone Orthopedics & Sports Medicine,
Foundry Orthopedics & Sports Medicine and South
County Orthopedics, are merging to form Ortho
Rhode Island.
Ortho Rhode Island is the result of the consolidation of three
orthopedic practices, with 14 locations throughout Rhode Island and
nearly 40 providers serving the orthopedic needs of patients in
Rhode Island and southern Massachusetts.
ANNOUNCEMENT DATE: October 27, 2015 PRICE: Merger PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The group formed knowing that when practices join together, physicians make quicker decisions for improving
patient care and managing costs. Ortho Rhode Island is not controlled by any hospital or institution. It remains a
private orthopedic practice, and is the largest privately held orthopedic provider in the state.
TARGET: Digestive Specialty Care,
Inc.
ACQUIRER: Premier Health
LISTING: Private LISTING: Nonprofit
LOCATION: Troy, Ohio CEO: James R. Pancoast PHONE: 937-738-5772
UNITS: 3 (physicians) 110 N. Main Street FAX: REVENUE: Dayton, Ohio 45402
NET INCOME: WEB SITE: www.premierhealth.com
Digestive Specialty Care is a three- physician
practice that offers diagnosis and treatment for
diseases and disorders of the gastrointestinal tract
and digestive system.
Premier Health operates five area hospitals, nine outpatient centers,
two long-term care facilities and provides numerous other services.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Digestive Specialty Care has been renamed Premier Gastroenterology Specialists, and is part of the hospital's
Premier Health Specialists division.
The Health Care M&A Report, 4th Quarter, 2015 223
TARGET: Questcare Medical Services ACQUIRER: Envision Healthcare Holdings, Inc.
LISTING: Private LISTING: NYSE: EVHC
LOCATION: Dallas, Texas CEO: William A. Sanger PHONE: 303-495-1200
UNITS: 6200 S. Syracuse Way, Ste. 200 FAX: REVENUE: $160,000,000 (est. annual
revenue) Greenwood Village, Colorado 80111
NET INCOME: WEB SITE: www.evhc.net
Questcare Medical Services and its subsidiary, QRx
Medical Management LLC, are being acquired.
Questcare Medical has more than 800 clinical
providers at 50 facilities in Texas, Oklahoma and
Colorado. QRx is a management services
organization.
Envision Healthcare Holdings provides physician-led outsourced
medical services to consumers, hospitals, healthcare systems and
others. On a trailing 12-month basis, it generated revenue of $5.1
billion, EBITDA of $579 million and net income of $153 million.
ANNOUNCEMENT DATE: November 3, 2015 PRICE: $135,000,000 Approximate PRICE PER UNIT: TERMS: PRICE/REVENUE: .84
PRICE/INCOME:
Questcare clinicians manage patient care across multiple hospital-based clinical specialties, including emergency
department, hospitalist, critical care unit and pediatric and obstetric hospitalist care services. In addition, it provides
post-acute facility-based care as well as primary care, urgent care and telemedicine services. The transaction is
expected to close in the fourth quarter of 2015.
TARGET: Valley Anesthesiology &
Pain Consultants
ACQUIRER: Sheridan
LISTING: Private LISTING: NASDAQ: AMSG
LOCATION: Phoenix, Arizona CEO: Christoper A. Holden PHONE: 800-437-2672
UNITS: 1613 N. Harrison Parkway FAX: REVENUE: Sunrise, Florida 33323
NET INCOME: WEB SITE: sheridanhealthcare.com
Valley is one of the largest independent
anesthesiology practices in the country. It provides
anesthesiology and pain management services
through more than 240 physicians and 38 allied
health providers to 21 hospitals and 25 ambulatory
surgery centers.
Sheridan is the physician services division of AmSurg Corp.,
acquired in 2014 for $2.3 billion. It provides outsourced physician
services in multiple specialties to hospitals, ASCs and other
healthcare facilities.
ANNOUNCEMENT DATE: November 3, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Sheridan provides anesthesiology, neonatology, radiology and emergency medical services. As of September 30,
2015, AmSurg owned and operated 253 ambulatory surgery centers in 34 states, and provided physicians to more
than 360 healthcare facilities in 27 states. Houlihan Lokey served as the exclusive financial advisor to Valley
Anesthesiology and assisted in initiating, structuring, and negotiating the transaction on behalf of the company.
The transaction closed on November 2, 2015.
The Health Care M&A Report, 4th Quarter, 2015 224
TARGET: Medical Management
Corporation of America
ACQUIRER: PracticeMax
LISTING: Private LISTING: Private
LOCATION: Brewster, New York CEO: Bill Carns PHONE: 480-374-7200
UNITS: 9382 East Bahia Dr., #B202 FAX: REVENUE: Scottsdale, Arizona 85260
NET INCOME: WEB SITE: www.practicemax.com
Medical Management Corporation is one of the
largest medical practice management companies in
the northeastern U.S., specializing in orthopedics,
spine, neurosurgery, intraoperative
neuromonitoring, neurology, physical medicine and
more.
PracticeMax is a national provider of practice management and
healthcare technology services, including billing, software, data
analytics and satisfaction research for medical practice and clinical
operations.
ANNOUNCEMENT DATE: November 10, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
PracticeMax serves more than 5,500 providers in all 50 states, processing more than $1.6 billion in annual charges
for more than 44 different specialties. This acquisition expands its presence in the northeastern United States.
TARGET: Amity Health, LLC ACQUIRER: IPC Healthcare, Inc.
LISTING: Private LISTING: NASDAQ: IPCM
LOCATION: Wichita, Kansas CEO: R. Jeffrey Taylor PHONE: 800-818-1498
UNITS: 4605 Lankershim Blvd., Ste.
617
FAX:
REVENUE: North Hollywood, California 91602
NET INCOME: WEB SITE: www.hospitalist.com
Amity Health focuses on post-acute services and
population health management in the Wichita area.
IPC Healthcare is a leading national acute hospitalist and post-acute
provider group practice company. On a trailing 12-month basis, it
generated revenue of $728.8 million, EBITDA of $66.7 million and
net income of $28.3 million.
ANNOUNCEMENT DATE: November 13, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition expands IPC's post-acute market presence in Wichita, and is expected to add more than 13,000
encounters on an annualized basis.
The Health Care M&A Report, 4th Quarter, 2015 225
TARGET: Kansas City Vascular PC ACQUIRER: Vascular Surgery Associates
LISTING: Private LISTING: Private
LOCATION: Kansas City, Missouri CEO: Mike Waldschmidt,
MD
PHONE: 816-781-5006
UNITS: 7 (physicians) 2521 Glenn Hendren Dr., Ste. 1 FAX: REVENUE: Liberty, Missouri 64068
NET INCOME: WEB SITE: www.vsalib.com
Kansas City Vascular was formed in 1984 by Dr.
Karl Stark. Its five physicians serve seven hospitals
in the Kansas City area.
Vascular Surgery Associates specializes in minimally invasive
treatment of varicose and spider veins. The practice has two
physicians.
ANNOUNCEMENT DATE: November 17, 2015 PRICE: Merger PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The two practices will combine to form Midwest Aortic & Vascular Institute, with seven surgeons and four offices
in Independence, Lee's Summit, Liberty and North Kansas City, Missouri. This transaction closed on January 1,
2016.
TARGET: Anesthesia Services
Associates, PLLC
ACQUIRER: PhyMed Management, LLC
LISTING: Private LISTING: Private
LOCATION: Hendersonville, Tennessee CEO: Sami S. Abbasi PHONE: 855-331-4999
UNITS: 110 29th Avenue North, Suite
301
FAX:
REVENUE: Nashville, Tennessee 37203
NET INCOME: WEB SITE: www.phymed.com
Anesthesia Services Associates provides anesthesia
department management and staffing for TriStar
Hendersonville Medical Center, an HCA hospital,
and several ambulatory surgery centers in the area.
PhyMed Management is a physician-owned company comprised of
anesthesia, pain management and critical care professionals serving
healthcare systems and ambulatory surgery centers.
ANNOUNCEMENT DATE: November 19, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Waller Lansden Dortch & Davis, LLP acted as legal counsel to Anesthesia Services Associates in the transaction,
and Edgemont Capital Partners, LP acted as exclusive financial advisor. The transaction closed on November 16,
2015.
The Health Care M&A Report, 4th Quarter, 2015 226
TARGET: Heartland Geriatrics, LLC ACQUIRER: IPC Healthcare, Inc.
LISTING: Private LISTING: NASDAQ: IPCM
LOCATION: Overland Park, Kansas CEO: Dr. Adam Singer PHONE: 888-447-2362
UNITS: 4605 Lankershim Blvd., Ste.
617
FAX:
REVENUE: North Hollywood, California 91602
NET INCOME: WEB SITE: www.hospitalist.com
Heartland Geriatrics, LLC is in Overland Park,
Kansas. This acquisition is expected to add more
than 15,000 encounters on a combined annualized
basis.
IPC Healthcare provides acute hospitalist and post-acute care
services, and manages the care of hospitalized patients. On a trailing
12-month basis, it generated revenue of $728.8 million, EBITDA of
$66.7 million and net income of $28.3 million.
ANNOUNCEMENT DATE: November 19, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition complements IPC's existing market presence for acute and post-acute services in the Kansas City
area.
TARGET: South Metro Primary Care ACQUIRER: Primary Physician Partners
LISTING: Private LISTING: Private
LOCATION: Denver, Colorado CEO: Kenneth Nielsen PHONE: 720-612-6600
UNITS: 320 (clinicians) 1125 17th St #1000 FAX: REVENUE: Denver, Colorado 80202
NET INCOME: WEB SITE:
South Metro Primary Care is an independent
practice association (IPA) that covers the south and
eastern areas of the metro Denver area.
Primary Physician Partners is an independent practice association
(IPA) that covers the north and west portions of the Denver metro
area.
ANNOUNCEMENT DATE: November 23, 2015 PRICE: Merger PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The practices are merging to form PHPprime, which will be managed by Physician Health Partners, a Denver area
medical management company. Collectively, PHPprime will have more than 320 primary care providers including
family practice physicians, geriatricians and internal medicine physicians, nurse practitioners and physician
assistants. The group consists of 85 clinically integrated and community-based medical practices.
The Health Care M&A Report, 4th Quarter, 2015 227
TARGET: ProCare Systems Inc. ACQUIRER: North American Partners in Anesthesia
LISTING: Private LISTING: Private
LOCATION: Grand Rapids, Michigan CEO: John F. Di Capua PHONE: 516-945-3000
UNITS: 68 S. Service Road, Suite 350 FAX: REVENUE: Melville, New York
NET INCOME: WEB SITE: napaanesthesia.com
ProCare Systems is a management services
organization focused on chronic pain management.
ProCare provides services to three chronic pain
management practices at 13 locations throughout
Michigan.
North American Partners in Anesthesia (NAPA) is the leading
single-specialty anesthesia and periopertive management company
in the United States. NAPA currently manages 27 hospital and
office-based chronic pain management locations.
ANNOUNCEMENT DATE: December 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
ProCare will serve as NAPA’s strategically focused Center of Excellence, specializing in managing and growing
chronic pain management practices throughout the United States. The combined organization will focus its efforts
on helping patients manage and alleviate their chronic pain through a data-driven patient experience system
TARGET: Salinas Valley PrimeCare
Medical Group
ACQUIRER: Salinas Valley Memorial Healthcare
System
LISTING: Private LISTING: Nonprofit
LOCATION: Salinas, California CEO: Pete Delgado PHONE: 831-757-4333
UNITS: 20 Physicians 450 Eat Romie Lane FAX: REVENUE: Salinas, California 93901-4029
NET INCOME: WEB SITE: www.svmh.com
Salinas Valley PrimeCare is a 20-physician
primary/specialty medical group in the Salinas
Valley, south of San Francisco.
Salinas Valley Memorial Healthcare System is an integrated
network of healthcare programs, services and facilities that serves
residents of Monterey County. The 269-bed Salinas Valley
Memorial Hospital is the cornerstone of the system.
ANNOUNCEMENT DATE: December 4, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Salinas Valley PrimeCare Medical Group provides care to more than 40,000 residents annually through its two
primary care locations, an urgent care center and a full service diagnostic laboratory. This strategic transaction
strengthens Salinas Valley Memorial's reach and the expansion of its urgent care platform, Doctors on Duty.
Brown Gibbons Lang & Company advised Salinas Valley Memorial on the transaction.
The Health Care M&A Report, 4th Quarter, 2015 228
TARGET: Premier Emergency Medical
Specialists, PLLC
ACQUIRER: Sheridan
LISTING: Private LISTING: NASDAQ: AMSG
LOCATION: Phoenix, Arizona CEO: Robert Coward PHONE: 800-437-2672
UNITS: 49 (physicians) 1613 N. Harrison Parkway FAX: REVENUE: Sunrise, Florida 33323
NET INCOME: WEB SITE: sheridanhealthcare.com
Premier Emergency Medical Specialists has 49
physicians providing care in the Phoenix market,
and is the exclusive provider of emergency services
for two Dignity Health Hospitals: Chandler
Regional Medical Center and Mercy Gilbert
Medical Center.
Sheridan is the Physician Services division of AmSurg Corp. It
provides outsourced physician services to hospitals, ASCs and other
healthcare facilities primarily in the areas of anesthesiology
services, children's services, emergency medicine and radiology
services.
ANNOUNCEMENT DATE: December 7, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition marks Sheridan's entry into the emergency medicine specialty market in Phoenix and adds to
AmSurg's presence in Arizona. Edgemont Capital Partners, L.P. acted as exclusive financial advisor to Premier
Emergency Medical Specialists PLLC.
TARGET: Surgery Center of Athens ACQUIRER: Surgical Care Affiliates
LISTING: Private LISTING: NASDAQ: SCAI
LOCATION: Athens, Georgia CEO: Andrew Hayek PHONE: 800-768-0094
UNITS: 13 (physicians) 520 Lake Cook Road, Ste. 250 FAX: REVENUE: Deerfield, Illinois 60015
NET INCOME: WEB SITE: scasuregery.com
The partnership operates an ambulatory surgical
facility that represents an important access point for
high quality, low cost surgical services in Athens
and the surrounding region.
Surgical Care Affiliates partners with physicians, health systems
and health plans across the country to develop and operate surgical
facilities. As of Sept. 30, 2015, it operated 194 surgical facilities,
109 of which are in affiliation with health system partnerships.
ANNOUNCEMENT DATE: December 7, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This transaction expands SCA's presence in Georgia to three locations and aligns SCA with an additional 13
physicians.
The Health Care M&A Report, 4th Quarter, 2015 229
TARGET: Moorestown Foot
Specialists, LLC
ACQUIRER: Foot Health Centers, P.A.
LISTING: Private LISTING: Private
LOCATION: Moorestown, New Jersey CEO: Lawrence Levin,
DPM
PHONE: 856-795-1003
UNITS: 52 Berlin Road, Ste. 5000 FAX: REVENUE: Cherry Hill, New Jersey 08034
NET INCOME: WEB SITE: www.foothealthcenters.com
Moorestown Foot Specialists is a solo-practitioner
office run by Dr. Ronald Barbella.
Foot Health Centers is a podiatry group that now provides services
in 35 locations in southern New Jersey. It has about 120,000 patient
visits per year, with revenue of $6 million to $7 million.
ANNOUNCEMENT DATE: December 8, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Sold for stock in Foot Health Centers
and a commensurate salary increase for
Dr. Barbella.
PRICE/REVENUE:
PRICE/INCOME:
This acquisition continues Foot Health Centers' strategy to acquire small podiatry practices in which the doctors
stay on and there is no purchase price. This acquisition expands Moorestown Foot Specialists as the office will
double in size, to 1,600 square feet, to accommodate another physician.
TARGET: Northside Anesthesiology
Consultants
ACQUIRER: Sheridan
LISTING: Private LISTING: NASDAQ: AMSG
LOCATION: Atlanta, Georgia CEO: Robert Coward,
president
PHONE: 800-437-2672
UNITS: 60 (physicians) 1613 N. Harrison Parkway FAX: REVENUE: Sunrise, Florida 33323
NET INCOME: WEB SITE: www.sheridanhealthcare.com
Northside Anesthesiology Consultants, LLC (NAC)
has 60 physicians providing care in the market, and
is the exclusive provider of anesthesiology for
Northside Hospital Healthcare System, with three
acute-care hospitals and 24 associated sites.
Sheridan, the Physician Services Division of AmSurg Corp.,
provides outsourced physician services in multiple specialties to
hospitals, ASCs and other healthcare facilities throughout the
United States.
ANNOUNCEMENT DATE: December 16, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
In addition to its physician providers, NAC also employs 125 anesthetists, as well as other clinical and
administrative personnel.
The Health Care M&A Report, 4th Quarter, 2015 230
TARGET: Everest Inpatient Physicians ACQUIRER: TeamHealth Holdings, Inc.
LISTING: Private LISTING: NYSE: TMH
LOCATION: Houston, Texas CEO: Michael D. Snow PHONE: 865-693-1000
UNITS: 265 Brookview Centre Way, St.
400
FAX:
REVENUE: Knoxville, Tennessee 37919
NET INCOME: WEB SITE: www.teamhealth.com
Everest Inpatient Physicians specializes in both
acute and post-acute medicine and provides services
for approximately 27,000 patient encounters
annually.
TeamHealth provides outsourced healthcare professional staffing
and administrative services to hospitals and other healthcare
providers. On a trailing 12-month basis, it generated revenue of $3.4
billion, EBITDA of $337.7 million and net income of $108.5
million.
ANNOUNCEMENT DATE: December 17, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
These acquisitions mark the company's first in the acute and post-acute care space following Team Health's merger
with IPC Healthcare on November 23. Everest Inpatient Physicians partners with six hospitals throughout
southwestern Houston, including Memorial Hermann Health System, an existing TeamHealth client for emergency
medicine, hospital medicine, OB/GYN hospitalist and urgent care services.
TARGET: Tampa Bay Emergency
Physicians, PL
ACQUIRER: U.S. Acute Care Solutions
LISTING: Private LISTING: Private
LOCATION: Tampa, Florida CEO: Dr. Dominic Bagnoli PHONE: 800-828-0898
UNITS: 45 (physicians) 4535 Dressler Road NW FAX: 330-493-8677 REVENUE: Canton, Ohio 44718
NET INCOME: WEB SITE: www.usacs.com
Tampa Bay Emergency Physicians employs 45
board-certified emergency medicine physicians and
30 physician assistants and nurse practitioners. The
practice sees nearly 200,000 patients annually.
U.S. Acute Care Solutions is a majority-physician-owned
organization established in April 2015 by Emergency Medicine
Physicians and the private equity firm Welsh, Carson, Anderson &
Stowe.
ANNOUNCEMENT DATE: December 22, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Tampa Bay Emergency Physicians will remain partners in their practice and become shareholders in USACS,
while gaining access to the resources and support of the larger company. Ropes & Gray LLP served as legal
counsel to USACS. MHT Midspan serviced as the financial advisor to Tampa Bay Emergency Physicians, and
Foley & Lardner served as its legal counsel.
The Health Care M&A Report, 4th Quarter, 2015 231
REHABILITATION
TARGET: Bradley & Monson Physical
Therapy
ACQUIRER: MOTION PT
LISTING: Private LISTING: Private
LOCATION: New York, New York CEO: Edward Miersch PHONE: 212-355-7827
UNITS: 160 East 56th Street FAX: 212-355-0963 REVENUE: New York, New York 10022
NET INCOME: WEB SITE: motionptg.com
Bradley & Monson offers physical therapy,
massage, independent fitness workouts and other
customized services to treat and prevent a wide
range of orthopedic conditions.
MOTION PT, formed by Pharos Capital Group in June 2015, is a
leading provider of physical therapy and occupational therapy
services in New York. It was formed through the combination of
MetroSportsMed and STAR Physical Therapy.
ANNOUNCEMENT DATE: October 7, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Bradley & Monson Physical Therapy is located on the Upper West Side of Manhattan. It was founded in 1981 by
Maggie Bradley and Lori Monson.
TARGET: Argent Rehabilitation
Services
ACQUIRER: ExamWorks Group, Inc.
LISTING: Private LISTING: NASDAQ: EXAM
LOCATION: Croydon, United Kingdom CEO: James K. Price PHONE: 404-952-2400
UNITS: 3280 Peachtree Road NE, Ste.
2625
FAX: 404-846-1554
REVENUE: $ 27,000,000 (approx.
annual) Atlanta, Georgia 30305
NET INCOME: WEB SITE: www.examworks.com
Argent Rehabilitation Services and Argent
Investigation Services are being acquired.
ExamWorks provides independent medical examinations, peer and
bill reviews, Medicare compliance and other related services in the
U.S., Canada, the UK and Australia. On a trailing 12-month basis, it
generated revenue of $813 million and EBITDA of $111.7 million.
ANNOUNCEMENT DATE: November 23, 2015 PRICE: $ 53,000,000 Approximate PRICE PER UNIT: TERMS: £35 million PRICE/REVENUE: 1.96
PRICE/INCOME:
This transaction makes ExamWorks' UK subsidiaries, Premex Group and 3rd Rehabilitation Services, one of the
UK's largest rehabilitation service providers. The combination provides incremental scale to operations and brings
expertise in the complex and high-value claim arena to the Premex portfolio.
The Health Care M&A Report, 4th Quarter, 2015 235
TARGET: 2 physical therapy practices ACQUIRER: ATI Physical Therapy
LISTING: Private LISTING: Private
LOCATION: Massachusetts CEO: Dylan Bates PHONE: 630-296-2222 UNITS: 790 Remington Blvd. FAX: REVENUE: Bolingbrook, Illinois 60440
NET INCOME: WEB SITE: www.atipt.com
ATI Physical Therapy has acquired Sports &
Physical Therapy Associates (SPTA) and Attain
Therapy + Fitness.
ATI is a comprehensive orthopedic rehabilitation provider,
specializing in research-based physical therapy, work conditioning,
functional capacity evaluations, sports medicine, women's health
and employer worksite solutions.
ANNOUNCEMENT DATE: December 8, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
SPTA and Attain Therapy + Fitness adds 29 outpatient physical therapy clinics in the state of Massachusetts,
elevating ATI's national coverage to 17 states. Sports & Physical Therapy Associates was advised by Provident
Healthcare Partners, LLC. Attain Therapy + Fitness was advised by BellMark Partners, LLC.
TARGET: Dynamic Care Physical
Therapy
ACQUIRER: MOTION PT
LISTING: Private LISTING: Private
LOCATION: Lawrence, New York CEO: Edward Miersch PHONE: 212-355-7827
UNITS: 160 East 56th Street FAX: 212-355-0963 REVENUE: New York, New York 10022
NET INCOME: WEB SITE: motionptg.com
Dynamic Care offers outpatient physical therapy
services, treating patients with a broad spectrum of
needs, including orthopedic sports injuries, post-
surgery, neurological disorders, low back pain and
vestibular issues.
MOTION PT, formed by Pharos Capital Group in June 2015, is a
leading provider of physical therapy and occupational therapy
services in New York. It was formed through the combination of
MetroSportsMed and STAR Physical Therapy.
ANNOUNCEMENT DATE: December 8, 2015 PRICE: Merger PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Founder and President of Dynamic Care, Jaime Madden and the company’s 13 employees will join MOTION PT
Group. This acquisition will help MOTION serve the metropolitan area and will help MOTION's goal of becoming
one the area's premier physical therapy networks.
The Health Care M&A Report, 4th Quarter, 2015 236
TARGET: Upstream Rehabilitation ACQUIRER: Revelstoke Capital Partners, LLC
LISTING: Private LISTING: Private
LOCATION: Birmingham, Alabama CEO: Mark M. King PHONE: 303-953-5100
UNITS: 3033 East 1st Ave., Ste. 501 FAX: REVENUE: Denver, Colorado 80206
NET INCOME: WEB SITE: www.revelstokecp.com
Charterhouse Equity Partners is selling its portfolio
company, Upstream Rehabilitation, which owns and
operates outpatient physical and occupational
therapy/rehabilitation clinics.
Revelstoke Capital Partners LLC commits between $10 million and
$250 million per transaction in companies that have an EBITDA of
at least $5 million and have been operating and/or profitable for at
least three years.
ANNOUNCEMENT DATE: December 8, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Mezzanine capital was provided by a
group including Yukon Partners and
Northwestern Mutual Capital, and Ally
Corporate Finance acted as
administrative agent, sole lead arranger
and book runner on the senior credit
facility.
PRICE/REVENUE:
PRICE/INCOME:
Upstream Rehabilitation focuses on trauma, sport, work-related and post-surgical cases and has locations
throughout the southeastern United States, as well as Texas, Arizona, Utah, Oregon and Colorado. Winston &
Strawn LLP served as legal advisor to Revelstoke. Harris Williams & Co. served as financial advisor, and
Proskauer Rose LLP served as legal advisor, to Upstream in the transaction.
TARGET: Greco Physical Therapy and
Sports Performance
ACQUIRER: MOTION PT
LISTING: Private LISTING: Private
LOCATION: Greenvale, New York CEO: Edward Miersch PHONE: 212-355-7827
UNITS: 160 East 56th Street FAX: 212-355-0963 REVENUE: New York, New York 10022
NET INCOME: WEB SITE: motionptg.com
Greco Physical Therapy and Sports Performance
has two locations on the North Shore of Long
Island, in St. James and Greenvale, New York. The
company focuses on physical therapy treatments for
orthopedic and sports injuries.
MOTION PT Group was formed in June 2015 through the
combination of Brooklyn-based MetroSportsMed with Manhattan-
based STAR Physical Therapy. MOTION has over 200 employees.
Headquartered in New York City with 13 locations.
ANNOUNCEMENT DATE: December 16, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
In addition to this acquisition, MOTION PT has acquired two other physical therapy centers in the metropolitan
area. The three companies will become part of MOTION PT Group but will retain their individual brand identities.
The Health Care M&A Report, 4th Quarter, 2015 237
TARGET: ProActive Physical & Hand
Therapy
ACQUIRER: MOTION PT
LISTING: Private LISTING: Private
LOCATION: Bronx, New York CEO: Edward Miersch PHONE: 212-355-7827
UNITS: 160 East 56th Street FAX: 212-355-0963 REVENUE: New York, New York 10022
NET INCOME: WEB SITE: motionptg.com
ProActive Physical & Hand Therapy offers a
variety of physical and occupational therapy
services, including post-operative therapy, athletic
training and geriatric programs stressing balance,
muscle strengthening and fall prevention.
MOTION PT Group was formed in June 2015 through the
combination of Brooklyn-based MetroSportsMed with Manhattan-
based STAR Physical Therapy. MOTION has over 200 employees.
Headquartered in New York City with 13 locations.
ANNOUNCEMENT DATE: December 16, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
In addition to this acquisition, MOTION PT has acquired two other physical therapy centers in the metropolitan
area. The three companies will become part of MOTION PT Group but will retain their individual brand identities.
The Health Care M&A Report, 4th Quarter, 2015 238
OTHER SERVICES
TARGET: ElderWatch Plus, Inc. ACQUIRER: Senior Care Centers of America
LISTING: Private LISTING: Private
LOCATION: Philadelphia, Pennsylvania CEO: Jim Donnelly PHONE: 877-435-3372
UNITS: 6 Neshaminy Interplex, Suite
401
FAX: 215-642-6610
REVENUE: Trevose, Pennsylvania 19053
NET INCOME: WEB SITE: www.seniorcarectrs.com
ElderWatch Plus provides high quality care and
services to adults in need. It was established in
1996. ElderWatch will now be named Senior Care
of Overbrook Park.
Senior Care Centers of America, a portfolio company of Clearview
Capital, is the premier provider of adult day health services in the
United States with a total of 75 centers in 11 states.
ANNOUNCEMENT DATE: October 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
With this acquisition, Senior Care now operates 11 adult day health centers in Pennsylvania. This is its fourth
acquisition in Philadelphia County.
TARGET: San Antonio AirLIFE ACQUIRER: Air Methods Corporation
LISTING: Private LISTING: NASDAQ: AIRM
LOCATION: San Antonio, Texas CEO: Aaron D. Todd III PHONE: 303-792-7400
UNITS: 7301 South Peoria FAX: REVENUE: Englewood, Colorado 80112
NET INCOME: WEB SITE: www.airmethods.com
Baptist Health System of San Antonio, its joint
venture partner Tenet Healthcare (NYSE: THC) and
University Health System are selling San Antonio
AirLIFE, an air ambulance service with five bases
in south Texas.
Air Methods Corporation provides air medical emergency transport
services and systems in the United States. On a trailing 12-month
basis, it generated revenue of $1.0 billion, EBITDA of $259.8
million and net income of $99.3 million.
ANNOUNCEMENT DATE: October 5, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Air Methods acquired substantially all of San Antonio AirLIFE's assets, including the program name, branding,
medical equipment and the Flight Communication Center (FLTCOMM). In addition, Air Methods will acquire two
aircraft owned by University Health System. The program will continue to operate under the San Antonio AirLIFE
program name.
The Health Care M&A Report, 4th Quarter, 2015 241
TARGET: PharMEDium Healthcare
Holdings
ACQUIRER: AmerisourceBergen Corporation
LISTING: Private LISTING: NYSE: ABC
LOCATION: Lake Forest, Illinois CEO: Steven H. Collis PHONE: 610-727-7000
UNITS: 1300 Morris Drive FAX: 610-727-3600 REVENUE: Chesterbrook, Pennsylvania 19087
NET INCOME: WEB SITE: www.amerisourcebergen.com
PharMEDium Healthcare Holdings, Inc., a portfolio
company of Clayton, Dublier & Rice, provides
outsourced compounded sterile preparations to
acute care hospitals in the United States. It
maintains four compounding facilities and serves
over 3,000 U.S. hospitals.
AmerisourceBergen sources and distributes pharmaceutical
products to healthcare providers, pharmaceutical and biotech
manufacturers and specialty drug patients. On a trailing 12-month
basis, it generated revenue of $132 billion and EBITDA of $1.5
billion.
ANNOUNCEMENT DATE: October 6, 2015 PRICE: $2,575,000,000 PRICE PER UNIT: TERMS: Cash. PRICE/REVENUE:
PRICE/INCOME:
The acquisition is expected to be $0.22 to $0.26 accretive to the company's adjusted EPS in fiscal 2016 on a net
basis, and is expected to generate approximately $30 million in synergies by fiscal 2018. Morgan Stanley & Co.
LLC acted as financial advisor, and Cravath, Swaine & Moore LLP provided legal counsel to AmerisourceBergen.
JP Morgan Securities LLC and Credit Suisse acted as financial advisors and Debevoise & Plimpton LLC and K&L
Gates LLP provided legal counsel to PharMEDium. This transaction closed on November 6, 2015.
TARGET: Tech Pharmacy Services,
Inc.
ACQUIRER: Partners Pharmacy
LISTING: Private LISTING: Private
LOCATION: Houston, Texas CEO: Patrick Downing PHONE: 877-931-9111
UNITS: 70 Jackson Drive FAX: REVENUE: Cranford, New Jersey 07016
NET INCOME: WEB SITE: www.partnerspharmacy.com
Tech Pharmacy Services develops, manufactures
and markets the premier long-term care automated
pharmacy solution, AP PharmaSystem™, which
includes AP PassportTM, AP OncallTM and AP
SolutionsTM.
Partners Pharmacy is the third largest long-term care pharmacy in
the United States. Partners Pharmacy provides services to more than
60,000 residents around the country.
ANNOUNCEMENT DATE: October 6, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
TPS's facility-based medication dispensing technology represents the future of long-term care pharmacy services,
and Partners Pharmacy is looking to expand its availability to promote solutions that allow for immediate
medication availability to patients.
The Health Care M&A Report, 4th Quarter, 2015 242
TARGET: Mediscan ACQUIRER: Cross Country Healthcare, Inc.
LISTING: Private LISTING: NASDAQ: CCRN
LOCATION: Woodland Hills, California CEO: William J. Grubbs PHONE: 561-998-2232
UNITS: 6551 Park of Commerce
Boulevard, N.W.
FAX:
REVENUE: $ 40,000,000 (estimated for
2015) Boca Raton, Florida 33487
NET INCOME: WEB SITE: www.crosscountryhealthcare.com
Mediscan provides temporary healthcare staffing
and workforce solutions to both the healthcare and
education markets. While largely concentrated in
California, Mediscan provides services across 11
states to more than 300 clients through more than
70 specialties.
Cross Country Healthcare provides healthcare staffing and
workforce solutions in the United States. On a trailing 12-month
basis, it generated revenue of $755.7 million, EBITDA of $25.1
million and net income loss of $22.3 million.
ANNOUNCEMENT DATE: October 19, 2015 PRICE: $ 33,000,000 PRICE PER UNIT: TERMS: The purchase price includes $28 million
in cash and $5 million in shares of the
company’s common stock, CCRN. The
sellers are eligible for an additional $7
million in cash for performance bonuses
over the next two years.
PRICE/REVENUE: .83
PRICE/INCOME:
The acquisition will expand Cross Country’s customer reach into acute care hospitals, particularly in the large and
growing California market, and it will add a new customer base in the growing education staffing market. One of
Mediscan’s founding members, Val Serebryany, as well as its President and Chief Executive Officer, Dennis
Ducham, will remain with the business after the transaction closes. This deal closed on November 2, 2015.
TARGET: McGuire Group Pharmacy ACQUIRER: PharMerica Corporation
LISTING: Private LISTING: NYSE: PMC
LOCATION: Cheektowaga, New York CEO: Gregory S. Weishar PHONE: 502-627-7000
UNITS: 1901 Campus Place FAX: REVENUE: Louisville, Kentucky 40299
NET INCOME: WEB SITE: www.pharmerica.com
McGuire Group, an operator of skilled-nursing
facilities in western New York, Long Island and
Michigan, is selling its McGuire Group Pharmacy
subsidiary.
PharMerica is an institutional pharmacy services company in the
United States, serving healthcare facilities. On a trailing 12-month
basis, it generated revenue of $2.0 billion, EBITDA of $133.8
million and net income of $23.6 million.
ANNOUNCEMENT DATE: October 20, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
McGuire Group Pharmacy provides comprehensive pharmacy services to long-term care facilities and other
customers in the Buffalo-Niagara Falls metropolitan area.
The Health Care M&A Report, 4th Quarter, 2015 243
TARGET: Medco ACQUIRER: Epic Health Services, Inc.
LISTING: Private LISTING: Private
LOCATION: Houston, Texas CEO: Chris Roussos PHONE: 214-466-1340
UNITS: 5220 Spring Valley Road, Ste.
400
FAX:
REVENUE: Dallas, Texas 75254
NET INCOME: WEB SITE: epichealthservices.com
Medco provides enteral feeding, nutritional
formulas, incontinence products, respiratory
equipment, as well as diabetic, urological and
wound care supplies to patients throughout Texas
and Louisiana.
Epic Health Services, a portfolio company of Webster Capital,
provides pediatric skilled nursing and therapy to more than 6,000
patients in its service areas.
ANNOUNCEMENT DATE: October 20, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Now with the addition of Louisiana, Epic will now serve 34,000 patients in 17 states, positioning the company as
the largest comprehensive pediatric provider in the country. The acquisition expands Epic’s service lines to include
incontinence products and respiratory equipment, in addition to specialty pharmacy, diabetic, urological, ostomy
and wound care supplies. Medco will combine with Option 1 Healthcare Solutions, an enteral nutrition provider
based in Chandler, Arizona, which was acquired by Epic in early September.
TARGET: Nitin Lifesciences Limited ACQUIRER: Recipharm AB
LISTING: Private LISTING: RECI-B. ST
LOCATION: Karnal, India CEO: Thomas Eldered PHONE: 46 86 02 52 00
UNITS: Lagervagen 7 FAX: REVENUE: Jordbro, Sweden 136 50
NET INCOME: WEB SITE: www.recipharm.com
Nitin Lifesciences was founded and is owned by the
Sobti family. It is a contract manufacturing facility
(CMO) that makes sterile injectables.
Recipharm AB (publ) operates as a pharmaceutical contract
development and manufacturing organization. On a trailing 12-
month basis, it generated revenue of $3.1 billion, EBITDA of
$478.6 million and net income of $246.9 million.
ANNOUNCEMENT DATE: October 20, 2015 PRICE: $224,762,271 PRICE PER UNIT: TERMS: SEK 872 million in cash to acquire 74%
of the shares in Nitin Lifesciences. PRICE/REVENUE:
PRICE/INCOME:
Recipharm will join forces with the Sobti family to grow the current business into a leading position in the Indian
sterile injectable CDMO market. The combined entity will have current pro-forma revenue of SEK 3.5 billion
($420,228,604) and EBITDA of SEK 607 million ($72,879,646). This deal firmly establishes Recipharm's
emerging market strategy and provides exposure and direct entry into the rapidly expanding Indian market.
The Health Care M&A Report, 4th Quarter, 2015 244
TARGET: Talyst's hardware division ACQUIRER: Columbia Pacific Advisors, LLC
LISTING: Private LISTING: Private
LOCATION: Kirkland, Washington CEO: Kevin Barber,
portfolio manager
PHONE: 206-728-9063
UNITS: 1910 Fairview Ave. E, #500 FAX: REVENUE: Seattle, Washington 98102
NET INCOME: WEB SITE: www.columbiapacific.com
Talyst provides medication management and
dispensing solutions to hospitals and skilled nursing
facilities. Its pharmacy management software
business is not part of this transaction.
Columbia Pacific Advisors, LLC manages more than $1 billion
across a variety of alternative investment strategies, including
private equity, public equity, real estate, distressed debt and special
situation lending.
ANNOUNCEMENT DATE: October 20, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The transaction will result in the separation of Talyst's acute care and long-term care pharmacy management
business from the 340B software business. The acquired company has been renamed Talyst Systems, LLC. The
two companies will continue to work closely together to best serve their joint customers and offer valuable
solutions to healthcare systems of all sizes.
TARGET: Affordable Care, Inc. ACQUIRER: Berkshire Partners LLC
LISTING: Private LISTING: Private
LOCATION: Raleigh, North Carolina CEO: Larry Hamelsky,
managing director
PHONE: 617-227-0050
UNITS: 200 Clarendon Street, 35th
Floor
FAX: 617-227-6105
REVENUE: Boston, Massachusetts 02116
NET INCOME: WEB SITE: berkshirepartners.com
American Capital Equity is selling its portfolio
company, Affordable Care, Inc. ACI is the leading
dental support organization for affiliated dental
practices that focus exclusively on tooth
replacement services.
Berkshire Partners has invested in more than 110 middle market
companies since 1986 through eight private equity funds with
aggregate commitments of more than $11 billion. It seeks to invest
$50 million to $500 million of equity capital in each portfolio
company.
ANNOUNCEMENT DATE: October 22, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Affordable Care is now the largest denture- and implant-services provider in the United States, supporting a
network of more than 200 affiliated practices in 39 states under the retail names Affordable Dentures and
Affordable Dentures & Implants. Jefferies LLC and William Blair & Company LLC acted as financial advisers to
ACI. Ropes & Gray LLP served as legal counsel to Berkshire Partners. King & Spalding served as legal counsel to
American Capital Equity and ACI.
The Health Care M&A Report, 4th Quarter, 2015 245
TARGET: Advanced Foot Care
Centers
ACQUIRER: Extremity Healthcare
LISTING: Private LISTING: Private
LOCATION: Chatanooga, Tennessee CEO: Dr.David Helfman PHONE: 770-384-0284
UNITS: 900 Circle 75 Parkway, Ste.
900
FAX: 770-384-7638
REVENUE: Atlanta, Georgia 30339
NET INCOME: WEB SITE: www.extremityhealthcare.com
Advanced Foot Care Centers operates six locations,
with two in north Georgia and four in Tennessee. It
has 33 employees, including six physicians and 27
clinical and staff workers.
Extremity Healthcare, through its subsidiary Village Podiatry
Centers, LLC, is acquiring Advanced Foot Care. EHI was created in
2011 by the founding shareholders of Village Podiatry Group. It
serves as a holding and management services company.
ANNOUNCEMENT DATE: October 23, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition adds six locations to the 30 already operated by Village Podiatry, and establishes its entry into
Tennessee. EHI will use the existing brand reputation of Advanced Foot Care to leverage the expansion of its
model on a local, regional and national level. Advanced Foot Care is now a wholly owned subsidiary of EHI and
will continue to operate under its own name.
TARGET: Embassy Dental ACQUIRER: Marquee Dental Partners
LISTING: Private LISTING: Private
LOCATION: Nashville, Tennessee CEO: James Usdan PHONE: 615-620-5990
UNITS: 2505 21st Avenue South, Suite
204
FAX:
REVENUE: Nashville, Tennessee 37212
NET INCOME: WEB SITE: www.marqueedentalpartners.com
Embassy Dental is a multi-office, multi-specialty
dental practice with seven offices in the greater
Nashville area.
Marquee Dental is a premier dental support organization, founded in
2015 with an investment of $35 million from Chicago Pacific
Founders.
ANNOUNCEMENT DATE: October 28, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This is Marquee Dental Partners' first major acquisition. The company plans to grow its practice roster in the
coming months. The company will affiliate with dental offices and practice groups in growth markets with a
history of providing high quality care, initially focusing on markets including Tennessee, Kentucky and Alabama.
The Health Care M&A Report, 4th Quarter, 2015 246
TARGET: Aesynt ACQUIRER: Omnicell, Inc.
LISTING: Private LISTING: NASDAQ: OMCL
LOCATION: Cranberry Township, Pennsylvania CEO: Randall A. Lipps PHONE: 650-251-6100
UNITS: 590 East Middlefield Road FAX: 650-251-6266 REVENUE: Mountain View, California 94043
NET INCOME: WEB SITE: www.omnicell.com
Aesynt was acquired by Francisco Partners in 2013.
Aesynt enables health systems to reduce cost and
improve patient safety through the integration,
automation and management of medication
preparation and delivery system-wide.
Omnicell, Inc. provides automation and business analytics software
solutions for medication and supply management in healthcare
worldwide. On a trailing 12-month basis, it generated revenue of
$463.1 million, EBITDA of $66.0 million and net income of $31.6
million.
ANNOUNCEMENT DATE: October 29, 2015 PRICE: $275,000,000 PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Aesynt brings distinct capacities in dispensing systems, central pharmacy robotics, IV robotics and analytics.
Aesynt’s robust medication management tools will complement Omnicell’s product portfolio and international
footprint. Omnicell’s financial advisor in this transaction was Greenhill & Co., LLC and Sidley Austin LLP,
Cooley LLP and Jones Day served as legal counsel. Francisco Partners was advised by Robert W. Baird & Co. and
Kirkland & Ellis LLP.
TARGET: 14 urgent care centers ACQUIRER: HCA
LISTING: Private LISTING: NYSE: HCA
LOCATION: Las Vegas, Nevada CEO: R. Milton Johnson PHONE: 615-344-9551
UNITS: One Park Plaza FAX: REVENUE: Nashville, Tennessee 37203
NET INCOME: WEB SITE: www.hcahealthcare.com
Urgent Care Extra is selling its Nevada operations,
which consist of 14 urgent care centers around Las
Vegas.
HCA operates 168 hospitals, three psychiatric hospitals and one
rehabilitation hospital, as well as 114 freestanding surgery centers.
On a trailing 12-month basis, it generated revenue of $39.1 billion,
EBITDA of $7.7 billion and net income of $2.1 billion.
ANNOUNCEMENT DATE: November 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The 14 centers join HCA's Sunrise Health System in Las Vegas, which includes four hospitals and four surgery
centers. The purchase also includes six additional urgent care centers that are under development in the market.
With this acquisition, HCA now has 65 urgent care centers in various markets.
The Health Care M&A Report, 4th Quarter, 2015 247
TARGET: Next Medical Staffing ACQUIRER: Health Carousel
LISTING: Private LISTING: Private
LOCATION: Dayton, Ohio CEO: Bill DeVille PHONE: 855-655-4544
UNITS: 1700 Madison Road, Ste. 100 FAX: 513-793-3341 REVENUE: Cincinnati, Ohio 45206
NET INCOME: WEB SITE: www.healthcarousel.com
Next Medical Staffing employs about 100 registered
nurses, nurse practitioners, physicians and other
health care professionals who work under contracts
with hospital systems and other facilities in
Cincinnati and Dayton.
Health Carousel staffs medical centers nationwide with registered
nurses and other health professionals on a contract basis. It has
more than 400 workers under contract at hospitals, outpatient
centers, long-term care and rehab facilities, and home health
agencies.
ANNOUNCEMENT DATE: November 3, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Next Medical will continue to operate in Dayton under its current branding, leadership and staff. Health Carousel
plans to expand the staff employed at Next Medical to support the company's growth into new markets. Together,
the companies employ more than 500 healthcare workers across 38 states.
TARGET: Arise Healthcare ACQUIRER: Surgical Care Affiliates, Inc.
LISTING: Private LISTING: NASDAQ: SCAI
LOCATION: Austin, Texas CEO: Andrew Hayek PHONE: 800-768-0094
UNITS: 520 Lake Cook Road, Ste. 250 FAX: REVENUE: Deerfield, Illinois 60015
NET INCOME: WEB SITE: www.scasurgery.com
Arise Ventures, LLC, dba Arise Health, has sold its
interests in its multi-specialty surgical facilities and
related ancillary service locations. They are Arise
Austin Medical Center, Cedar Park Surgery Center,
Stonegate Surgery Center and Hays Surgery Center.
Surgical Care Affiliates partners with physicians, health systems
and health plans to develop and implement surgery strategies. As of
Sept. 30, 2015, it operated 194 surgical facilities, 109 of which are
in affiliation with health system partnerships.
ANNOUNCEMENT DATE: November 4, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Surgical Care Affiliates acquired Arise Healthcare's interest in each of the facilities and will provide management
services to the facilities. The transaction expands SCA's presence in Austin from one location to five. Coker
Capital Advisors acted as the exclusive financial advisor to Arise in this transaction.
The Health Care M&A Report, 4th Quarter, 2015 248
TARGET: Luker Pharmacy
Management
ACQUIRER: PharMerica Corporation
LISTING: Private LISTING: NYSE: PMC
LOCATION: Blanco, Texas CEO: Gregory S. Weishar PHONE: 502-627-7000
UNITS: 1901 Campus Place FAX: REVENUE: Louisville, Kentucky 40299
NET INCOME: WEB SITE: www.pharmerica.com
Luker Pharmacy Management provides pharmacy
management services to hospitals and other
healthcare facilities, primarily in Texas.
PharMerica provides pharmacy services to healthcare facilities,
pharmacy management services to hospitals and specialty infusion
services. On a trailing 12-month basis, it generated revenue of $2.0
billion, EBITDA of $133.8 million and net income of $23.6 million.
ANNOUNCEMENT DATE: November 5, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition expands PharMerica's footprint in Texas. The company now operates 94 institutional pharmacies,
15 specialty home infusion pharmacies and five specialty oncology pharmacies in 45 states. Its customers are
institutional healthcare providers, such as skilled nursing facilities, assisted living facilities, hospitals, individuals
receiving in-home care and patients with cancer.
TARGET: WorkWell Medical Group
LLC
ACQUIRER: Salt Creek Capital
LISTING: Private LISTING: Private
LOCATION: Salinas, California CEO: Luke J. Mitchell,
managing director
PHONE: 415-238-4876
UNITS: 1001 O'Brien Drive FAX: REVENUE: Menlo Park, California 94025
NET INCOME: WEB SITE: www.saltcreekcap.com
WorkWell Medical Group offers patients and
employers an in-house network of specialists, a
multidisciplinary rehabilitation facility and a mobile
medical clinic. It provides a complete suite of
healthcare services through its five urgent care
clinics.
Salt Creek Capital partners with experienced operating executives to
acquire profitable companies with up to $100 million of revenue.
ANNOUNCEMENT DATE: November 10, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
WorkWell Medical owns and manages five medical clinics providing occupational medicine, workers
compensation care and case management, as well as urgent care services through the central coast of California.
Edgemont Capital Partners, LP acted as exclusive financial advisor to WorkWell Medical Group. This transaction
closed on October 22, 2015.
The Health Care M&A Report, 4th Quarter, 2015 249
TARGET: Outcome Resources ACQUIRER: Hospice Pharmacy Solutions
LISTING: Private LISTING: Private
LOCATION: Rocklin, California CEO: Mike Nault PHONE: 817-385-4494
UNITS: 1221 Corporate Dr. E. FAX: REVENUE: Arlington, Texas 76006
NET INCOME: WEB SITE: hospicepharmacysolutions.com
Outcome Resources, a portfolio company of New
Capital Partners, provides pharmacy benefit
management solutions, support and services
specifically geared to hospice providers nationwide.
Hospice Pharmacy Solutions provides pharmacy benefit
management services to hospice operators, including automated
CMS-required reports and software interfaces to help.
ANNOUNCEMENT DATE: November 11, 2015 PRICE: Merger PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Corporate headquarters will be in Dallas and the company will operate under the name Hospice Pharmacy
Solutions. The new executive leadership will include current CEO Mike Nault as executive chairman and Jack
Sayler, president of Outcome Resources, as president.
TARGET: Premier Dermatology ACQUIRER: Forefront Dermatology
LISTING: Private LISTING: Private
LOCATION: Crest Hill, Illinois CEO: Kenneth H. Katz,
President
PHONE: 920-663-2886
UNITS: 1515 Randolph Court FAX: REVENUE: Manitowoc, Wisconsin 54220
NET INCOME: WEB SITE: forefrontdermatology.com
Premier Dermatology is a full service dermatology
group offering the latest in medical, surgical, and
cosmetic dermatology. It has six locations
throughout the western suburbs of Chicago.
Forefront Dermatology, a portfolio company of Varsity Healthcare
Partners, is a network of dermatology practices providing general,
surgical and cosmetic dermatology care and related laboratory
services.
ANNOUNCEMENT DATE: November 19, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This transaction establishes Forefront Dermatology’s presence in Illinois with the addition of six clinics: Crest Hill,
Naperville, Morris, New Lenox, Oak Park, and Yorkville. Forefront Dermatology now employs more than 80
board-certified dermatologists and 30 physician extenders across 75 clinics in nine states. Brown Gibbons Lang's
Healthcare & Life Sciences team served as the exclusive financial advisor to Premier Dermatology in the
transaction. The transaction closed on November 20, 2015.
The Health Care M&A Report, 4th Quarter, 2015 250
TARGET: DenTek Oral Care, Inc. ACQUIRER: Prestige Brands Holdings, Inc.
LISTING: Private LISTING: NYSE: PBH
LOCATION: Maryville, Tennessee CEO: Ronald M. Lombardi PHONE: 914-524-6800
UNITS: 660 White Plains Road FAX: REVENUE: Tarrytown, New York 10591
NET INCOME: WEB SITE: www.prestigebrandsinc.com
DenTek is a worldwide leader in innovative oral
care products including floss picks, interdental
brush cleaners, dental guards, disposable dental
picks, braces care and dental repair products.
Prestige Brands markets and distributes brand name over-the-
counter healthcare and household cleaning products. On a trailing
12-month basis, it generated revenue of $785.9 million, EBITDA of
$274.3 million and net income of $103.0 million.
ANNOUNCEMENT DATE: November 23, 2015 PRICE: $225,000,000 PRICE PER UNIT: TERMS: $225 million on a debt-free, cash-free
basis. PRICE/REVENUE:
PRICE/INCOME:
The acquisition of DenTek will expand Prestige’s portfolio of iconic OTC brands into the fast-growing specialty
oral care products category in the U.S., Australia and Europe. This transaction would add pro forma revenues and
adjusted EBITDA of approximately $60 million and $23 million, respectively on an annualized basis. Sawaya
Segalas served as financial advisor and Sidley Austin LLP served as legal counsel to the sellers. The transaction
will close during the first half of calendar year 2016.
TARGET: Smile Doctors ACQUIRER: Sheridan Legacy Group
LISTING: Private LISTING: Private
LOCATION: Auston, Texas CEO: Jonathan Lewis,
Partner
PHONE: 312-324-0879
UNITS: 400 N. Michigan Avenue, Suite
900
FAX:
REVENUE: Chicago, Illinois 60611
NET INCOME: WEB SITE: www.sheridanlegacy.com
Smile Doctors provides management services to
orthodontic practices focused on both adults and
children in Texas and Georgia.
Sheridan Legacy Group is a lower middle-market private equity
firm.
ANNOUNCEMENT DATE: November 23, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Smile Doctors expects that Sheridan’s insights will help it execute the roll-out of the Smile Doctors model across a
broader geography. The transaction was led by Lewis, Sean Dempsey and Chase Culbertson. Additional capital
was provided by Thurston Group, and the Chicago Corporation advised Smile Doctors on the transaction. The
transaction was financed by Twin Brook Capital Partners.
The Health Care M&A Report, 4th Quarter, 2015 251
TARGET: Superior Vision Corp. ACQUIRER: Centerbridge Partners, L.P.
LISTING: Private LISTING: Private
LOCATION: Rancho Cordova, California CEO: Dan Osnoss,
Managing Director
PHONE: 212-672-5000
UNITS: 375 Park Avenue, 12th Floor FAX: REVENUE: New York, New York 10152
NET INCOME: WEB SITE: www.centerbridge.com
Superior Vision Corp., a portfolio company of
Nautic Partners, LLC, is a comprehensive eyecare
company with member-centric solutions for the
group, Medicare and Medicaid markets. Nautic
Partners acquired it in 2012.
Centerbridge Partners is a private investment firm with
approximately $25 billion in capital under management. The firm
focuses on private equity and credit investments.
ANNOUNCEMENT DATE: November 25, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Superior Vision is well positioned for continued expansion in both the commercial group and government pay
markets. The transaction is expected to close by the end of the first quarter of 2016. Houlihan Lokey acted as
financial advisor, and Locke Lord acted as legal counsel to Superior Vision. Macquarie Capital (USA) acted as
financial advisor, and Willkie Farr & Gallagher acted as legal counsel to Centerbridge.
TARGET: Alpha Review Corporation ACQUIRER: GENEX Services LLC
LISTING: Private LISTING: Private
LOCATION: Naperville, Illinois CEO: Peter C. Madeja PHONE: 610-964-5100
UNITS: 440 East Swedesford Road,
Suite 1000
FAX:
REVENUE: Wayne, Pennsylvania 19087
NET INCOME: WEB SITE: www.genexservices.com
Alpha Review Corporation is a medical bill review
company servicing insurance carriers, large self-
insured entities and third-party administrators. It
was formed in 1995.
GENEX Services provides managed care services enabling
workers’ compensation payers and risk managers to transform their
bottom lines. Genex is a managed care leader with more than 2,900
employees and 47 service locations throughout North America.
ANNOUNCEMENT DATE: November 30, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Genex significantly strengthens its bill review footprint with this acquisition, complementing its expertise with
targeted cost management programs, such as specialty review, extensive PPO networks and data analysis. The
Alpha Review management team will remain in place and continue to operate under its brand following the
transaction. Corporate Finance Associates of Chicago served as the exclusive strategic and financial advisor to
Alpha Review Corporation on the transaction.
The Health Care M&A Report, 4th Quarter, 2015 252
TARGET: XenologiQ ACQUIRER: Certara
LISTING: Private LISTING: Private
LOCATION: Canterbury, United Kingdom CEO: Edmundo Muniz PHONE: 609-716-7900
UNITS: 100 Overlook Center, Suite 101 FAX: REVENUE: Princeton, New Jersey 08540
NET INCOME: WEB SITE: www.certara.com
XenologiQ is a quantitative systems pharmacology
(QSP) consultancy. QSP integrates quantitative
drug data with knowledge of the drug’s mechanism
of action.
Certara is a biosimulation and regulatory writing consultancy,
focused on optimizing and increasing the predictability of crucial
R&D, regulatory and patient care decisions. Certara works with
1,200 commercial companies, 250 academic institutions and
numerous regulatory agencies.
ANNOUNCEMENT DATE: December 1, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This transaction will strengthen Certara’s biosimulation capabilities, allowing it to link biological systems and
disease processes. The XenologiQ team will join Certara’s Simcyp® division. The directors of XenoloqiQ will take
up leadership positions within the Simcyp QSP organization.
TARGET: Quotient Clinical ACQUIRER: GHO Capital Partners LLP
LISTING: Private LISTING: Private
LOCATION: Nottingham, United Kingdom CEO: Mike Mortimer,
Executive Partner
PHONE: +44 20 3700 7440
UNITS: 44 Davies Street FAX: REVENUE: London, United Kingdom W1K 5JA
NET INCOME: WEB SITE: http://ghocapital.com/
Quotient Clinical is an early-stage clinical research
organization (CRO) that helps its biotech and
pharmaceutical customers improve their R&D
productivity.
Global Healthcare Opportunities, aka GHO Capital, was founded in
2014 as a specialist healthcare investment adviser based in London.
ANNOUNCEMENT DATE: December 2, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Quotient Clinical's Translational Pharmaceutics® platform offers an integrated approach to drug formulation
development, real-time manufacturing and clinical testing within a single location. The outsourced early-stage drug
development market is expected to grow strongly over the next five years.
The Health Care M&A Report, 4th Quarter, 2015 253
TARGET: PMG Research, Inc. ACQUIRER: ICON plc
LISTING: Private LISTING: NASDAQ: ICLR
LOCATION: Winston-Salem, North Carolina CEO: Ciaran Murray PHONE:
UNITS: South County Business Park,
Leopardstown
FAX:
REVENUE: Dublin, Ireland 18
NET INCOME: WEB SITE: www.iconplc.com
PMG is an integrated network of clinical research
sites consisting of 48 physician practices and large,
multi-specialty healthcare institutions throughout
North Carolina, South Carolina, Tennessee and
Illinois.
ICON, a contract research organization (CRO), provides outsourced
development services to the pharmaceutical, biotech and medical
device industries. On a trailing 12-month basis, it generated revenue
of $1.6 billion, net income of $221.2 million and EBITDA of
$323.5 million.
ANNOUNCEMENT DATE: December 7, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
PMG conducts clinical trials in all major therapeutic areas with particular experience in cardiology, dermatology,
endocrinology, gastroenterology, men's health, neurology, pulmonology, rheumatology, vaccine, and women's
health trials. In addition to a proprietary research database of clinical trial participants, PMG has access to more
than 2 million patient lives via electronic health records through their unique partnerships with healthcare systems
and community physician practices.
TARGET: Bohle Family Dentistry ACQUIRER: Marquee Dental Partners
LISTING: Private LISTING: Private
LOCATION: Paducah, Kentucky CEO: James Usdan PHONE: 615-620-5990
UNITS: 2505 21st Avenue South, Suite
204
FAX:
REVENUE: Nashville, Tennessee 37212
NET INCOME: WEB SITE: www.marqueedentalpartners.com
Bohle Family Dentistry is a multi-specialty dental
practice based in Paducah, Kentucky serving the
west Kentucky and Illinois markets.
Marquee Dental, a portfolio company of Chicago Pacific Founders,
is a premier dental support organization, founded in 2015 with an
investment of $35 million.
ANNOUNCEMENT DATE: December 8, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Marquee Dental announced its first acquisition of a seven-office Nashville dental practice in October 2015 and
plans to rapidly grow its practice roster in the coming months. Through this acquisition, Marquee has begun to
further expand its footprint in the Mid-South. Marquee will leave in-place Bohle Family Dentistry’s practice and
staff. Dr. Chip Bohle, DMD, will remain actively involved in the practice in addition to serving as Marquee
Dental’s Chief Dental Officer for the State of Kentucky.
The Health Care M&A Report, 4th Quarter, 2015 254
TARGET: MD Minor Emergency and
Family Medicine
ACQUIRER: CRH Healthcare LLC
LISTING: Private LISTING: Private
LOCATION: Canton, Alabama CEO: Bill Miller PHONE: 678-424-1490
UNITS: 2675 Paces Ferry Rd. SE, Ste.
200
FAX:
REVENUE: Atlanta, Georgia 30339
NET INCOME: WEB SITE: crhhealthcare.com
MD Minor Emergency and Family Medicine
operates two urgent care centers, one in Canton,
Alabama and the other in Villa Rica, Georgia. It
was founded by Dr. Charles Cooley.
CRH Healthcare partners with urgent care organizations to provide
services in the Atlanta metropolitan area. With this acquisition, it
operates 16 urgent care centers under the Physicians Immediate
Med and Peachtree Immediate Care brands.
ANNOUNCEMENT DATE: December 8, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
CRH Healthcare plans to consolidate all Atlanta area locations under the Peachtree Immediate Care brand in the
first quarter of 2016. It will also offer employers more locations for occupational health services. This transaction
closed on December 1, 2015.
TARGET: Active Day / Senior Care ACQUIRER: Audax Group
LISTING: Private LISTING: Private
LOCATION: Trevose, Pennsylvania CEO: Geoffrey S. Rehnert PHONE: 617-859-1500
UNITS: 101 Huntington Avenue FAX: 617-859-1600 REVENUE: Boston, Massachusetts 02199
NET INCOME: WEB SITE: www.audaxgroup.com
Active Day / Senior Care, a portfolio company of
Clearview Capital, is a leading national provider of
adult day health services and in-home personal care,
with more than 80 locations across the country.
Audax Group is an investment firm focused on the middle market. It
manages about $9 billion in assets across its private equity,
mezzanine debt and private senior debt businesses.
ANNOUNCEMENT DATE: December 9, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Audax’s resources and experience with healthcare services businesses will help Active Day / Senior Care open
new facilities and pursue strategic add-on acquisitions. Lincoln International advised Active Day / Senior Care and
Clearview Capital. Ropes & Gray served as legal counsel to Audax Group.
The Health Care M&A Report, 4th Quarter, 2015 255
TARGET: Trover Solutions Inc. and
Equian
ACQUIRER: New Mountain Capital, LLC
LISTING: Private LISTING: Private
LOCATION: Various CEO: Steven B. Klinsky PHONE: 212-720-0300 UNITS: 787 7th Ave, 49th Floor FAX: 212-582-2277 REVENUE: New York, New York 10019
NET INCOME: WEB SITE: www.newmountaincapital.com
ABRY Partners is selling Trover Solutions, and
Great Point Partners is selling Equian. New
Mountain Capital plans to merge the two
companies.
New Mountain Capital, LLC manages private equity, public equity
and credit capital with aggregate assets under management totaling
more than $15.0 billion.
ANNOUNCEMENT DATE: December 9, 2015 PRICE: $225,000,000 PRICE PER UNIT: TERMS: Equian was purchased for $225 million
in cash. No price was given for Trover
Solutions.
PRICE/REVENUE:
PRICE/INCOME:
The merged company will have more than 1,100 professionals serving more than 300 healthcare and insurance
customers across the U.S., including nine of the top 10 healthcare payers. The combination will benefit all
constituents of the healthcare system, including payers, patients, healthcare providers and other entities that are
facing increasing pressure to reduce costs and improve efficiency. Eir Partners advised New Mountain.
TARGET: Med Staff On-Call ACQUIRER: Med-Call Healthcare
LISTING: Private LISTING: Private
LOCATION: Chicago, Illinois CEO: James Hoke PHONE: 312-795-0765
UNITS: 430 West Erie Street, Suite 205 FAX: REVENUE: Chicago, Illinois 60654
NET INCOME: WEB SITE: www.med-call.com
Med Staff On-Call provides nursing staff on a
contract, per diem, travel and temp-to-permanent
basis to healthcare facilities. Med Staff services
more than 60 hospitals and clinics in the Midwest.
Med-Call Healthcare provides nursing and allied healthcare
professionals to healthcare facilities of any size, need or specialty.
ANNOUNCEMENT DATE: December 10, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Med-Call plans to merge all operations under the Med-Call brand name. It will now be serving more than 150
facilities.
The Health Care M&A Report, 4th Quarter, 2015 256
TARGET: Legacy Medical Imaging ACQUIRER: BC Technical
LISTING: Private LISTING: Private
LOCATION: Fort Worth, Texas CEO: Mark Alvarez PHONE: 888-228-3241
UNITS: 7172 S. Airport Rd. FAX: 801-280-3900 REVENUE: West Jordan, Utah 84084
NET INCOME: WEB SITE: www.bctechnical.com
Legacy Medical Imaging is an independent service
organization (ISO) focused on all aspects of
diagnostic imaging. Legacy provides parts, service
and expertise.
BC Technical is the nation's largest non-OEM provider of medical
imaging solutions with expertise in all major OEM medical imaging
systems, including the latest PET, PET/CT, SPECT, SPECT/CT,
CT and MR technologies.
ANNOUNCEMENT DATE: December 14, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This acquisition will give BC Technical more experienced engineers in the field, allowing them to provide
advanced technical support to their customer base.
TARGET: 3 medical supply distributors ACQUIRER: Concordance Healthcare Solutions, LLC
LISTING: Private LISTING: Private
LOCATION: CEO: Tom Harris, Co
President
PHONE: 314-291-2900
UNITS: 13400 Lakefront Drive FAX: 800-352-1778 REVENUE: Earth City, Missouri 63045
NET INCOME: WEB SITE: www.mmsmedical.com
Kreisers, Inc., headquartered in Sioux Falls, South
Dakota; MMS, headquartered in Earth City,
Missouri; and Seneca Medical, headquartered in
Tiffin, Ohio, are merging to form Concordance
Healthcare Solutions, LLC.
Concordance Healthcare Solutions was created by the merger of
three medical supply distributors. Concordance will have
approximately 1,000 employees, 19 distribution centers and $1.1
billion in annual sales.
ANNOUNCEMENT DATE: December 15, 2015 PRICE: Merger PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
The combination will bring together three strong, growing and respected regional medical supply distributors.
MMS's executive vice president Tom Harris and Seneca's CEO, Roger Benz, will serve as co-presidents of
Concordance. The transaction is expected to close in the first quarter of 2016.
The Health Care M&A Report, 4th Quarter, 2015 257
TARGET: Integrated Pharmacy
Network
ACQUIRER: PharMerica Corporation
LISTING: Private LISTING: NYSE: PMC
LOCATION: Midland, Michigan CEO: Gregory S. Weishar PHONE: 502-627-7000
UNITS: 1901 Campus Place FAX: REVENUE: Louisville, Kentucky 40299
NET INCOME: WEB SITE: www.pharmerica.com
Integrated Pharmacy Network is a long-term care
pharmacy that provides comprehensive pharmacy
services to long-term care and other healthcare
facilities.
PharMerica operates as an institutional pharmacy services company
in the United States. On a trailing 12-month basis, it generated
revenue of $2.0 billion, EBITDA of $133.5 million and net inocme
of $18.1 million.
ANNOUNCEMENT DATE: December 15, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
This transaction was announced together with PharMerica's acquisition of Alternacare Infusion Pharmacy in
Olathe, Kansas. With these two acquisitions, PharMerica has achieved its goal of completing acquisitions that
generate at least $100 million of annualized sales, in the aggregate, in 2015. The company now operates 95
institutional pharmacies, 16 specialty home infusion pharmacies and five specialty oncology pharmacies in 45
states.
TARGET: 1-800-Contacts, Inc. ACQUIRER: AEA Investors LP
LISTING: Private LISTING: Private
LOCATION: Draper, Utah CEO: John L. Garcia PHONE: 212-644-5900
UNITS: 666 Fifth Avenue, 36th Floor FAX: 212-888-1459 REVENUE: New York, New York 10103
NET INCOME: WEB SITE: www.aeainvestors.com
Thomas H. Lee Partners, L.P. is selling a majority
interest in 1-800-Contacts, the largest direct-to-
consumer retailer of contact lenses and eyewear in
the United States. Thomas H. Lee Partners will
remain an investor in the company.
AEA Investors' Middle Market Private Equity Funds target equity
investments of more than $50 million with a focus on enterprise
values between $200 million and $2 billion.
ANNOUNCEMENT DATE: December 16, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: Majority stake. PRICE/REVENUE:
PRICE/INCOME:
Credit Suisse and Barclays, as well as an affiliate of the Merchant Banking Division of Goldman, Sachs & Co., are
providing debt financing. AEA was advised by Credit Suisse and Barclays, and THL and the company were
advised by CapM Advisors.
The Health Care M&A Report, 4th Quarter, 2015 258
TARGET: Allenex AB ACQUIRER: CareDx, Inc.
LISTING: Stockholm: ALNX, S+ LISTING: NASDAQ: CDNA
LOCATION: Stockholm, Sweden CEO: Dr. Peter Maag PHONE: 415-287-2300
UNITS: 3260 Bayshore Boulevard FAX: 415-287-2450 REVENUE: Brisbane, California 94005
NET INCOME: WEB SITE: www.caredx.com
Allenex develops, manufactures, markets and sells
products that match donor organs with potential
recipients prior to transplantation.
CareDx is a commercial stage molecular diagnostics company
focused on clinically differentiated diagnostic surveillance solutions
for transplant patients. On a trailing 12-month basis, it generated
revenue of $29.5 million and a net loss of $6.7 million.
ANNOUNCEMENT DATE: December 16, 2015 PRICE: $ 35,000,000 Approximate PRICE PER UNIT: TERMS: Approximately $35 million consisting
of a combination of cash and stock in
CareDx for approximately 78% of the
outstanding shares of Allenex AB.
PRICE/REVENUE:
PRICE/INCOME:
CareDx plans to launch a tender offer for the remaining 22% of the shares of Allenex in the first quarter of 2016.
The combination of CareDx and Allenex will create an international transplantation diagnostics company with
product offerings along the pre-/post-transplant continuum. The completion of the 78% of Allenex's shares is
expected to close by the end of March 2016. CareDx has secured a loan commitment from Oberland Capital SA
Davos LLC (“Oberland Capital”) pursuant to which Oberland Capital will lend up to $50 million.
TARGET: Immediate Medical Care ACQUIRER: U.S. HealthWorks
LISTING: Private LISTING: Private
LOCATION: Los Angeles, California CEO: Joseph T. Mallas PHONE: 661-678-2600
UNITS: 25124 Springfield Court, Ste.
200
FAX:
REVENUE: Valencia, California 91355
NET INCOME: WEB SITE: www.ushealthworks.com
Immediate Medical Care operates an occupational
and urgent care center in Los Angeles, as well as an
ancillary physical therapy facility nearby.
U.S. HealthWorks, a subsidiary of not-for-profit Dignity Health,
operates 224 occupational healthcare, urgent care centers and
worksites in 20 states. Its centers serve more than 13,000 patients
each day.
ANNOUNCEMENT DATE: December 18, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
U.S. HealthWorks currently has 37 centers throughout southern California. This acquisition brings the total
number of U.S. HealthWorks medical and worksite clinics to 224 nationwide, in 20 states.
The Health Care M&A Report, 4th Quarter, 2015 259
TARGET: Texan Urgent Care ACQUIRER: FastMed Urgent Care
LISTING: Private LISTING: Private
LOCATION: Texas CEO: Kyle A. Bohannon PHONE: 480-545-2787 UNITS: 890 W. Elliot Rd., Ste. 103 FAX: 480-545-1434 REVENUE: Phoenix, Arizona 85223
NET INCOME: WEB SITE: www.fastmed.com
Texan Urgent Care operates 14 clinics in the
Austin, San Antonio, Tomball and Waco
metropolitan areas.
FastMed Urgent Care, a portfolio company of ABRY Partners,
operates more than 100 clinics across Arizona, North Carolina and
Texas, providing urgent care and occupational health services.
ANNOUNCEMENT DATE: December 18, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
Texan Urgent Care centers have been rebranded under the FastMed name. FastMed will treat more than 1 million
patients in 2015.
TARGET: Xi’an iKang Health
Management
ACQUIRER: iKang Healthcare Group, Inc.
LISTING: Private LISTING: NASDAQ: KANG
LOCATION: Xi’an, China CEO: Lee Ligang Zhang PHONE: 86 10 5320 6688
UNITS: Shimao Tower, B-6th Floor FAX: REVENUE: Beijing, China 100022
NET INCOME: WEB SITE: www.ikanggroup.com
Xi’an iKang Health Management is selling a 70%
equity interest in its company. It owns and operates
three medical centers: Xi’an Lianhu INLUNG
Medical Center, Xi’an Weiyang INLUNG Medical
Center and Xi’an Yanta INLUNG Medical Center.
iKang Healthcare is China's largest private preventive healthcare
services provider. On a trailing 12-month basis, it generated revenue
of $335.9 million, EBITDA of $69.2 million and net income of
$32.0 million.
ANNOUNCEMENT DATE: December 22, 2015 PRICE: Not disclosed PRICE PER UNIT: TERMS: PRICE/REVENUE:
PRICE/INCOME:
iKang's nationwide heatlhcare network consists of 83 self-owned medical centers in 23 of the most affluent cities
in China. This acquisition will mark iKang’s entry into Xi’an, the capital city of Shaanxi. This transaction gives
iKang a stronger presence in northwest China.
The Health Care M&A Report, 4th Quarter, 2015 260
INDEX
Company Sector Page
11 senior living communities Long-Term Care 148
11 skilled nursing facilities Long-Term Care 137
14 urgent care centers Other 247
1-800-Contacts, Inc. Other 258
1DocWay e-Health 74
2 assisted living communities Long-Term Care 158, 161, 165
2 hospitals in North Carolina Hospitals 97
2 Indiana hospitals Hospitals 103
2 physical therapy practices Rehabilitation 236
2 retirement communities Long-Term Care 142
2 senior care facilities Long-Term Care 165
2 senior living communities Long-Term Care 137, 163
2 skilled nursing facilities Long-Term Care
121, 122, 131,
132, 144, 155
2 Texas skilled nursing facilities Long-Term Care 150
3 medical supply distributors Other 257
3 orthopedic practices Physician Medical Groups 223
3 physician practices in Florida Physician Medical Groups 221
3 seniors housing properties Long-Term Care 128, 129
3 skilled nursing facilities Long-Term Care 153
3D Medical Limited e-Health 71
4 assisted living communities Long-Term Care 138
4 behavioral health companies Behavioral Health Care 49
4 skilled nursing facilities Long-Term Care 161
5 branded hormonal products Pharmaceuticals 199
5 cancer immunotherapies Biotechnology 58
5 retirement communities Long-Term Care 125
5 Tenet hospitals Hospitals 99
6 seniors housing communities Long-Term Care 153
8 Sanofi U.S. drug products Pharmaceuticals 212
AAC Holdings, Inc. Behavioral Health Care 51
ABILITY Network e-Health 80
Abstral® (fentanyl) Sublingual Tablet Pharmaceuticals 205
Acadia Healthcare Company Behavioral Health Care 49, 50
Acelity L.P. Inc. Biotechnology 193
Acerta Pharma B.V. Pharmaceuticals 214
Active Day / Senior Care Other 255
Addus HomeCare Corporation Home Health Care 88
Adheron Therapeutics Biotechnology 55
Advanced Foot Care Centers Other 246
AEA Investors LP Private Equity 258
Aegis Living portfolio Long-Term Care 118
The Health Care M&A Report, 4th Quarter, 2015 263
Aesynt Other 247
AEW Capital Management Private Equity 161
Affordable Care, Inc. Other 245
Agenus Inc. Biotechnology 59, 64
Air Methods Corporation Other 241
Aircraft Medical Medical Devices 190
Akron Management LLC Long-Term Care 125
Al Noor Hospitals Group plc Hospitals 95
Albany Molecular Research Inc. Pharmaceuticals 113
AlexaCare Holdings, Inc. Home Health Care 88
Alfa Rhythm Ltd. Medical Devices 183
Allaire Healthcare Group Long-Term Care 126
Allenex AB Other 259
Allergan plc Pharmaceuticals 58, 206
Alliance Home Health Home Health Care 90
Alliance Oncology
Laboratories, MRI and
Dialysis 110
Almirall, S.A. Pharmaceuticals 207
Almost Family, Inc. Home Health Care 87
Alpha Review Corporation Other 252
Alphaeon Corporation Other 75, 189
Alpine Investors Private Equity 76
Alternacare Infusion Pharmacy Home Health Care 90
Alvogen Pharmaceuticals 199
Amedysis, Inc. Home Health Care 87
American HomePatient Home Health Care 89
American Realty Capital Healthcare Trust-
II REIT 117, 120, 166
American Realty Capital Healthcare Trust-
III REIT 168
AmerisourceBergen Corporation Other 242
Amity Health, LLC Physician Medical Groups 225
ams AG Medical Devices 190
Anesthesia Services Associates, PLLC Physician Medical Groups 226
Antibody pilot plant manufacturing facility Biotechnology 59
AOD Software e-Health 78
Apollo Global Management, LLC Investment Group 99
AppianFx Medical Devices 193
Aptean Inc. Other 69
Arcadian Cove Long-Term Care 117
Arden Courts of Arlington Long-Term Care 156
Argent Rehabilitation Services Rehabilitation 235
Arise Healthcare Other 248
The Health Care M&A Report, 4th Quarter, 2015 264
Ark Twin Valley Personal Care Home Long-Term Care 125
Arthur J. Gallagher & Co. Managed Care 177
Ascom e-Health 79
Aspen Skilled Healthcare, Inc. Long-Term Care 147
Assisted living community Long-Term Care 139
Astellas Pharma, Inc. Pharmaceuticals 61
AstraZeneca plc Pharmaceuticals 203, 214
Athena Health Care Systems Long-Term Care 164
ATI Physical Therapy Rehabilitation 236
Atlas Medical e-Health 71
AtriCure, Inc. Medical Devices 181
Auctus Capital Partners Private Equity 154
Audax Group Private Equity 255
Aurora Diagnostics
Laboratories, MRI and
Dialysis 110
Autumn Bridge, LLC Home Health Care 85
Avanti Healthcare Managed Care 176
Avesis Incorporated Managed Care 178
Avita Medical Limited respiratory business Pharmaceuticals 218
Baptist Health South Florida Hospital 93
Bartow Regional Medical Center Hospitals 95
BayCare Health System Hospital 95
BC Technical
Laboratories, MRI and
Dialysis 257
Behavior Health Holdings Behavioral Health Care 47
Benaissance e-Health 68
Benznidazole program Pharmaceuticals 208
Berkshire Partners LLC Private Equity 245
BestCare HomeCare Home Health Care 88
Bethesda Health, Inc. Hospitals 93
Bio Task Pharmaceuticals 209
BioFusionary Medical Devices 187
BioMarin Pharmaceutical, Inc. Biotechnology 198
Biosense Webster, Inc. Medical Devices 191
BioStructures LLC Medical Devices 192
BioTime, Inc. Biotechnology 60
Bioventus LLC Medical Devices 192
Birchwood Health Care Properties Private investment firm 133, 136, 143
Black Stone Operations, LLC Home Health Care 87
Blue Cross Blue Shield of Michigan Managed Care 76
Bohle Family Dentistry Other 254
Boston Scientific Corporation Medical Devices 188
Bradley & Monson Physical Therapy Rehabilitation 235
The Health Care M&A Report, 4th Quarter, 2015 265
Bristol-Myers Squibb Company Pharmaceuticals 56, 200
Brookhaven Memorial Hospital Hospital 122
C. R. Bard Inc. Medical Devices 192
Cambridge Place Long-Term Care 150
Cancer Care & Hematology of Niagara Physician Medical Groups 222
Capital Senior Living Corporation Long-Term Care 143
Capitol Seniors Housing Private Equity 140, 167
CapVest Partners LP Private Equity 213
Cardea Associates, Inc. Medical Devices 181
Cardiac Insight, Inc. Medical Devices 181
Cardiopxyl Pharmaceuticals, Inc. Biotechnology 56
CareDx, Inc.
Laboratories, MRI and
Dialysis 259
Carrington of St. Charles Place Long-Term Care 132
Carter Validus Mission Critical REIT II, Inc. REIT 145
Casa Reha Long-Term Care 141
Cascade Living Group Long-Term Care 140
Cassena Care, LLC Long-Term Care 155
Cell line development technology Biotechnology 59
Centerbridge Partners, L.P. Private Equity 252
Cerberus Capital Management, LP Private Equity 211
Certara Other 253
Charles River Laboratories International,
Inc.
Laboratories, MRI and
Dialysis 111
Chartwell Retirement Residences REIT 125
Chase Templeton Managed Care 176
Chateau at Carmichael Park Long-Term Care 154
Claddagh Commision, Inc. Behavioral Health Care 48
Clarient, Inc.
Laboratories, MRI and
Dialysis 109
Clarity Health Managed Care 174
Clinical Laboratory Partners
Laboratories, MRI and
Dialysis 111
CliniSys Group Ltd.
Laboratories, MRI and
Dialysis 109
CMOSIS Medical Devices 190
CNL Healthcare Properties, Inc. REIT 137
Coherex Medical, Inc. Medical Devices 191
Collaboration on antibody therapeutics Biotechnology 62
Collaboration on cancer immunotherapy Pharmaceuticals 210
Collaboration on gene editing technology Biotechnology 56
Collaboration on vadadustat Pharmaceuticals 212
Collaboration with BioAtla Biotechnology 63
College Hill Nursing and Rehab Long-Term Care 136
The Health Care M&A Report, 4th Quarter, 2015 266
Columbia Pacific Advisors, LLC Private Equity 245
Community Health Systems, Inc. Hospital 103
Community Intervention Services, Inc. Behavioral Health Care 47
Community Portable X-Ray, Inc.
Laboratories, MRI and
Dialysis 113
Companions Specialized Care Center Long-Term Care 139
Compassus Home Health Care 85
Compressus, Inc. e-Health 81
Computer Programs and Systems, Inc. e-Health 77
Concordance Healthcare Solutions, LLC Other 257
CONMED Corporation Medical Devices 189, 193
Consultants in Laboratory Medicine
Laboratories, MRI and
Dialysis 110
Continuum Healthcare LLC Long-Term Care 144
Copper Leaf Management Long-Term Care 152
Cornerstone at Longwood Long-Term Care 133
Courtside Cottages Long-Term Care 120
Courtyard Fountains Long-Term Care 166
Covenant Care Long-Term Care 159
Creagh Medical Ltd. Medical Devices 191
Crealta Holdings LLC Pharmaceuticals 211
CRH Healthcare LLC Other 255
Cross Country Healthcare, Inc. Other 243
Cytos Biotechnology AG Biotechnology 62
Dakavia Long-Term Care 163
Dauterive Hospital Hospitals 102
Deanwood Rehab and Wellness Center Long-Term Care 141
Delta Rehab Long-Term Care 147
DenTek Oral Care, Inc. Other 251
Depomed Inc. Pharmaceuticals 204
Digestive Specialty Care, Inc. Physician Medical Groups 223
Digirad Corporation
Laboratories, MRI and
Dialysis 108
DiNapoli Capital Partners REIT 162
Diversicare Healthcare Services, Inc. Long-Term Care 135
DMS Health Technologies, Inc.
Laboratories, MRI and
Dialysis 108
DNA Diagnostics Center
Laboratories, MRI and
Dialysis 107
Duke LifePoint Healthcare Hospital 97
Dyax Corp. Biotechnology 57
Dynamic Care Physical Therapy Rehabilitation 236
Eden Villa Long-Term Care 119
Eisai Co. Ltd. Pharmaceuticals 209
The Health Care M&A Report, 4th Quarter, 2015 267
ElderWatch Plus, Inc. Other 241
Eli Lilly and Company Pharmaceuticals 200, 217
Elmcroft skilled nursing portfolio Long-Term Care 152
Embassy Dental Other 246
EmblemHealth's MLTC plans Managed Care 178
Emerald Gardens of Woodburn Long-Term Care 159
Emeritus at Pantano Long-Term Care 140
Empire Crossing Retirement Community Long-Term Care 117
Endologix, Inc. Medical Devices 184
Envision Healthcare Holdings, Inc. Physician Medical Groups 224
Epic Health Services, Inc. Home Health Care 244
EUSA Pharma Pharmaceuticals 218
Everest Inpatient Physicians Physician Medical Groups 231
Evergreen Health Center Long-Term Care 164
ExamWorks Group, Inc. Other 235
Excelsior Medical Corporation Medical Devices 182
Excelsior Union Limited Other 187
Exclusive license to oncology drug
discovery Biotechnology 57
Exclusive license to sexual health
products Pharmaceuticals 209
Exclusive license toVAP-1 inhibitor Pharmaceuticals 208
Exclusive rights to Sprix Nasal Spray Pharmaceuticals 213
EXINI Diagnostics AB e-Health 68
Extendicare Inc. Long-Term Care 117, 142
Extremity Healthcare Other 246
Family Hospical, LLC Home Health Care 89
Family-owned business Long-Term Care 168
FastMed Urgent Care Other 260
Ferring Pharmaceuticals Pharmaceuticals 197
Foot Health Centers, P.A. Physician Medical Groups 230
Forefront Dermatology Other 250
Formation Capital, LLC Private Equity 49
Foundation HealthCare, Inc. Hospital 98
Fox Ridge portfolio Long-Term Care 166
Galil Medical Inc. Medical Devices 185
Generex Biotechnology Corporation Biotechnology 183
GENEX Services LLC Other 252
Genoa Other 74
Genstar Capital Private Equity 78
Geraldine L. Thompson Care Center Long-Term Care 126
Geriatric Essentials Behavioral Health Care 52
Geritrex Corporation Pharmaceuticals 203
The Health Care M&A Report, 4th Quarter, 2015 268
Getinge Infection Control Medical Devices 194
GHO Capital Partners LLP Private Equity 107, 253
Gilead Sciences, Inc. Pharmaceuticals 215
GlaxoSmithKline plc Pharmaceuticals 62
Global distribution of STERIZONE VP4
Sterilizer Medical Devices 194
Global partnership on filgotinib Pharmaceuticals 215
Global portfolio of hemostasis products Pharmaceuticals 216
Global rights to CGRP antagonists Pharmaceuticals 206
Good Samaritan Society HCBS-Heritage,
LLC Long-Term Care 86
GreatCall, Inc. e-Health 77
Greco Physical Therapy and Sports
Performance Rehabilitation 237
Green Courte Partners, LLC Private Equity 147
Group Health Cooperative Managed Care 177
Guardian Life Insurance Managed Care 178
GuildNet Managed Care 178
Harbour Pointe Retirement Long-Term Care 167
Harmon Hospital Behavioral Health Care 48
Harvest Retirement Community Long-Term Care 142
Haven Health Group Long-Term Care 121
HCA Hospital 247
Health Alliance Plan Managed Care 174
Health Carousel Other 248
Health Heritage e-Health 72
HealthCare Revenue Strategies LLC e-Health 67
HealthFusion Holdings, Inc. e-Health 73
Healthland Holding Inc. e-Health 77
HealthPlus of Michigan Managed Care 174
Heartland Geriatrics, LLC Physician Medical Groups 227
Hepregen Corporation Biotechnology 60
Heritage Healthcare Services, Inc. Home Health Care 86
Horizon Pharma plc Pharmaceuticals 211
Hospice Advantage Home Health Care 85
Hospice Pharmacy Solutions Other 250
Hospital Medicine Consultants, LLC Physician Medical Groups 222
Hospital Samaritano Hospitals 100
Hutcheson Medical Center Hospitals 101
IBA Molecular Pharmaceuticals 213
Iberia Medical Center Hospital 102
ICON plc Other 254
ICU Medical, Inc. Medical Devices 182
The Health Care M&A Report, 4th Quarter, 2015 269
Ide Management Group, LLC Long-Term Care 165
Ignyta, Inc. Biotechnology 60
iKang Healthcare Group, Inc. Other 260
ikaSystems e-Health 76
ImageVision.Net e-Health 80
Immediate Medical Care Other 259
Independence Healthcare Management Long-Term Care 154
Infinity HomeCare Home Health Care 87
In-state buyer Long-Term Care 118
In-state operator Long-Term Care 167
Integrated Pharmacy Network Other 258
Integrity Digital Solutions, LLC e-Health 75
Interventional radiology portfolio Medical Devices 188
IntriCon Corporation Medical Devices 186
Invoice Cloud, Inc. e-Health 80
IPC Healthcare, Inc. Physician Medical Groups
221, 222, 225,
227
iVantage Health Analytics e-Health 75
Janssen Pharmaceuticals, Inc. Pharmaceuticals 204
John J. Foley Skilled Nursing Facility Long-Term Care 122
John L. Montgomery Care Center Long-Term Care 126
Johnson & Johnson Pharmaceuticals 202
Joint venture Private Equity 124
Joint venture Long-Term Care 163
Kaiser Permanente Managed Care 177
KaloBios Pharmaceuticals, Inc. Biotechnology 208
Kansas City Vascular PC Physician Medical Groups 226
Karo Bio AB Biotechnology 186
Karo Bio Aktiebolag Pharmaceuticals 199
Kayne Anderson Real Estate Advisors Private Equity 148
Keiro Senior HealthCare portfolio Long-Term Care 119
Kindred Hallmark Long-Term Care 138
Kinnser Software, Inc. e-Health 72
KKR & Co. L.P. Private Equity 112
Konica Minolta Medical Imaging USA
Laboratories, MRI and
Dialysis 107
Korian Long-Term Care 141
Kuros Biosurgery Holding AG Biotechnology 62
Laboratory Corp. of America
Laboratories, MRI and
Dialysis 112
Late-stage HIV R&D assets Pharmaceuticals 216
Lavender & Wyatt Systems e-Health 70
Legacy Health Hospital 102
The Health Care M&A Report, 4th Quarter, 2015 270
Legacy Medical Imaging Other 257
Lehigh Valley Health Network Hospital 101
Lensar, Inc. Medical Devices 189
Lexington at Tazewell Long-Term Care 167
LGC Group
Laboratories, MRI and
Dialysis 112
LHC Group, Inc. Home Health Care 86
Liaoning TianYi Biological Pharmaceutical
Co. Pharmaceuticals 209
Liberator Medical Holdings, Inc. Medical Devices 192
Liberty Manor Long-Term Care 152
License to develop diabetes treatments Pharmaceuticals 202
License to ENHANZE™ platform Pharmaceuticals 217
License to Glycotope’s recombinant
technology Biotechnology 55
License to tavilermide (MIM-D3) Biotechnology 58
License to tivozanib in Europe Pharmaceuticals 218
Life Care Medical Devices Limited Medical Devices 187
LifePoint Health Hospital 94
Lifestages Centers for Women Physician Medical Groups 221
Ligand Pharmaceuticals Incorporated Biotechnology 63
Lincare Holdings Inc. Home Health Care 89
Lively e-Health 77
Local operator Long-Term Care 124
Locemia's intranasal glucagon Pharmaceuticals 200
Long-term care operator Long-Term Care 123
LTC Properties, Inc. REIT 48, 134, 150
Luker Pharmacy Management Other 249
Mach7 Technologies, Inc. e-Health 71
MaClay Healthcare Center Long-Term Care 154
Madison Partners Investment firm 159
Madison Realty Companies Private investment firm 133
Mainstreet Long-Term Care 137
Mallinckrodt plc Pharmaceuticals 216
Managed HealthCare Solutions Managed Care 177
Manning Gardens Nursing & Rehab Long-Term Care 160
Manorcare Health Services Long-Term Care 121
Marquee Dental Partners Other 246, 254
Matawan Pharmaceuticals' Retin-A
portfolio Pharmaceuticals 215
MatrixCare e-Health 78
Max Healthcare Hospital 97
Maybrook Healthcare Long-Term Care 157
The Health Care M&A Report, 4th Quarter, 2015 271
McGuire Group Pharmacy Other 243
MD Minor Emergency and Family
Medicine Other 255
Meadville Medical Center Hospital 93
Med Staff On-Call Other 256
MedAssets' SCM business e-Health 74
MedAssets, Inc. e-Health 73
Med-Call Healthcare Other 256
Medco Other 244
MedCore AB Medical Devices 186
Medicaid and MIChild businesses of HAP
Midwest Managed Care 175
Medicaid business of Better Health
Network Managed Care 176
Medicaid business of Columbia United
Providers Managed Care 175
Medicaid business of Loyola Physician
Partners Managed Care 173
Medical Developments International
Limited Pharmaceuticals 218
Medical Management Corporation of
America Physician Medical Groups 225
Medicalodges Herington Long-Term Care 133
Mediclinic International Ltd. Hospital 95
Mediscan Other 243
MediTemp Ltd. Medical Devices 183
Medline Industries, Inc. Medical Devices 182
MedMark Services, Inc. Behavioral Health Care 47
Medtronic plc Medical Devices 190
Medworxx e-Health 69
Memorial Family of Services Hospitals 98
Memorial Hospital of Salem County Hospitals 100
Memory care community Long-Term Care 134, 144
Merck KGaA Pharmaceuticals 57
Meridian Senior Living Long-Term Care 139
MetroStat Clinical Laboratory, Inc.
Laboratories, MRI and
Dialysis 114
Midatech Pharma, plc Pharmaceuticals 217
Mid-Atlantic Health Care, LLC Long-Term Care 161
Millennium Post Acute Rehabilitation Long-Term Care 134
Mindray Medical International Limited Medical Devices 187
Mitsubishi Tanabe Pharma Corp. Pharmaceuticals 212
Mitsubishi Tanabe Pharma Corporation Pharmaceuticals 198
MMO Behavioral Health Systems Behavioral Health Care 50
The Health Care M&A Report, 4th Quarter, 2015 272
Molina Healthcare, Inc. Managed Care 173, 175, 176
Montefiore Health System Hospital 94
Moorestown Foot Specialists, LLC Physician Medical Groups 230
Morton County Senior Communities Long-Term Care 123
MOTION PT Rehabilitation
235, 236, 237,
238
Mound Laser and Photonics Center, Inc. Medical Devices 188
NantHealth e-Health 72
NantWorks Pharmaceuticals 201
Nassau Reinsurance Group Managed Care 173
Navient Corporation Other 70
naviHealth Other 79
NcgCare Behavioral Health Care 50
nContact Medical Devices 181
NeoGenomics, Inc.
Laboratories, MRI and
Dialysis 109
Netsmart Technologies e-Health 70
New Century Hospice, LLC Home Health Care 85, 89
New Mountain Capital, LLC Private Equity 256
Next Medical Staffing Other 248
Nipro Diagnostics Medical Devices 185
Nitin Lifesciences Limited Other 244
Non-traded REIT REIT 127, 141, 146
North American Partners in Anesthesia Physician Medical Groups 228
Northbridge Companies Long-Term Care 162
Northside Anesthesiology Consultants Physician Medical Groups 230
Northstar Psychological Services, Inc. Behavioral Health Care 47
Not disclosed Long-Term Care 158
Novira Therapeutics, Inc. Pharmaceuticals 202
Novo Nordisk A/S Biotechnology 61
Nurses Registry and Home Health Corp. Home Health Care 86
NY investor group Investment group 160
Ocata Therapeutics, Inc. Biotechnology 61
OCS HomeCare and Hospice analytics
division e-Health 80
Octapharma AG Biotechnology 55
Old Mill Rehabilitation Long-Term Care 145
Olea Medical SA
Laboratories, MRI and
Dialysis 108
Olney Healthcare Center Long-Term Care 148
Omega Communities, LLC Long-Term Care 149
Omega Healthcare Investors, Inc. REIT 131
Omnicell, Inc. Other 247
The Health Care M&A Report, 4th Quarter, 2015 273
Oncotest GmbH
Laboratories, MRI and
Dialysis 111
Open Monoclonal Technology, Inc. Biotechnology 63
Operating assets of SwabFlush® Medical Devices 182
Optima Healthcare Solutions e-Health 76
OptumRx Inc. Other 88
Ortho Rhode Island Physician Medical Groups 223
Osmotica Holdings Corp. Ltd. Pharmaceuticals 210
Outcome Resources Other 250
Owner/operator Long-Term Care
132, 139, 158,
160
Oxford Capital Group Investment firm 127
Oxton Senior Living, LLC Long-Term Care 146, 150
Pacific Cancer Institute
Laboratories, MRI and
Dialysis 110
Pacifica Companies LLC Long-Term Care 119, 120
Pacifica Senior Living Long-Term Care 143
Pamplona Capital Management Investment Group 73
Paragon Healthcare Group, LLC Long-Term Care 156
Park at Riverchase Long-Term Care 149
Parkside Nursing Home Long-Term Care 157
Partners Pharmacy Other 242
Pathology, Inc.
Laboratories, MRI and
Dialysis 112
PatientSafe Solutions e-Health 69
Pavilion at Queens Long-Term Care 123
PaxVax, Inc. Pharmaceuticals 211
PC Werth Ltd Medical Devices 186
PDR Network, LLC e-Health 78
Peachtree Centre Long-Term Care 160
Perrigo Company plc Pharmaceuticals 215
Perseon Corporation Medical Devices 185
Pfizer Inc. Pharmaceuticals 63, 206
PharMEDium Healthcare Holdings Other 242
PharMerica Corporation Other
90, 243, 249,
258
Philhaven Behavioral Health Care 52
PhosImmune Inc. Biotechnology 64
PhyMed Management, LLC Physician Medical Groups 226
PMG Research, Inc. Other 254
Pocono Health System Hospitals 101
Poli Group Holding S.r.l. Pharmaceuticals 207
Portfolio of preclinical HIV assets Biotechnology 64
Post-acute campus Long-Term Care 129
The Health Care M&A Report, 4th Quarter, 2015 274
Post-acute facility Long-Term Care 130
Poteet Manor Long-Term Care 158
PPS Plus Software e-Health 72
Practice management business e-Health 67
PracticeMax Physician Medical Groups 225
Precision Biologics, Inc. Pharmaceuticals 201
Preferred Care Holdings LLC Long-Term Care 126
Premier Dermatology Other 250
Premier Emergency Medical Specialists,
PLLC Physician Medical Groups 229
Premier Health Hospital 221, 223
Prestige Brands Holdings, Inc. Other 251
Primary Physician Partners Physician Medical Groups 227
Prime Healthcare Services Hospital 96, 100
Prime Life Communities Long-Term Care 164
Private investor Long-Term Care 121
Private owner Long-Term Care 165
Private owner/operator Long-Term Care 169
Private skilled nursing company Long-Term Care 122
ProActive Physical & Hand Therapy Rehabilitation 238
ProCare Systems Inc. Physician Medical Groups 228
Progenics Pharmaceuticals, Inc. Pharmaceuticals 68
Pulse System, Inc. e-Health 67
PurinePharma Pharmaceuticals 203
Qforma, Inc. e-Health 81
QPharma, Inc. Other 81
Quality Systems, Inc. e-Health 73
Quest Diagnostics Inc.
Laboratories, MRI and
Dialysis 111
Questcare Medical Services Physician Medical Groups 224
Quotient Clinical Other 253
Radiant Senior Living Long-Term Care 159
Ramsey Woods Long-Term Care 120
Real estate investment firm Investment firm 144
Recipharm AB Other 244
Redstone Villa Long-Term Care 168
Regional operator Long-Term Care 123
Regional owner/operator Long-Term Care 138, 148
RegionalCare Hospital Partners Hospitals 99
Renaissance on Peachtree Long-Term Care 168
Representaciones e Investigaciones
Médicas (Rimsa) Pharmaceuticals 197
Resonetics Medical Devices 188
The Health Care M&A Report, 4th Quarter, 2015 275
Revelstoke Capital Partners, LLC Private Equity 237
RevSpring e-Health 67
RHA Health Services, LLC Behavioral Health Care 49
Right to commercialize Vitaros Pharmaceuticals 197
RightCare Solutions, Inc. e-Health 79
Rights to 2 PKU drugs Pharmaceuticals 198
Rights to cebranopadol Pharmaceuticals 204
Rights to fasinumab (REGN475) Pharmaceuticals 198
Rights to oxyntomodulin-based therapies Pharmaceuticals 204
Rights to taladegib oncology program Biotechnology 60
Rights to XMetA program Biotechnology 61
Rio Grande Neurosciences Medical Devices 184
River Valley Health Partners Hospitals 96
Riverglen House of Littleton Long-Term Care 145
ROC Seniors Housing Fund Manager, LLC Private Equity 153
Roche Pharmaceuticals 55, 208, 210
Roper Technologies, Inc. Other 71, 109
Roswell Park Cancer Institute Hospital 222
rTMS technology Medical Devices 184
Safire Care Investment group 153
Saket City Hospital Private Limited Hospitals 97
Salinas Valley Memorial Healthcare
System Hospital 228
Salinas Valley PrimeCare Medical Group Physician Medical Groups 228
Salt Creek Capital Private Equity 249
San Antonio AirLIFE Other 241
Sanofi Pharmaceuticals 58, 202
Schryver Medical LLC Medical Devices 113, 114
SCI Solutions e-Health 174
SciVac Therapeutics Inc. Pharmaceuticals 201
Senior Care Centers of America Other 241
Seniors housing property Long-Term Care 131
Sentynl Therapeutics Inc. Pharmaceuticals 205
Shady Nook Care Center Long-Term Care 155
Shasta View Nursing Center Long-Term Care 163
Sheridan Physician Medical Groups 224, 229, 230
Sheridan Legacy Group Private Equity 251
Shire plc Pharmaceuticals 57
Sienna Senior Living Long-Term Care 157
Signature HealthCARE Long-Term Care 152
SilverStone Health Care Real Estate, LLC Private Equity 149
Silverton Health Hospitals 102
Sinocare Group Medical Devices 185
The Health Care M&A Report, 4th Quarter, 2015 276
Skilled nursing facility Long-Term Care
118, 135, 143,
151
Smile Doctors Other 251
SNaP® Therapy System Medical Devices 193
Solutions Recovery, Inc. Behavioral Health Care 51
Somerset Subacute and Rehabilitation Long-Term Care 135
South Metro Primary Care Physician Medical Groups 227
Southern Regional Medical Center Hospitals 96
Spring Creek Rehabilitation and Health
Care Center Long-Term Care 156
Spring Creek Village Long-Term Care 124
St. Francis Hospital Inc. Hospitals 94
St. Luke's Cornwall Hospital Hospitals 94
Stericool Medical Devices 194
Suburban Adult Services Inc. Behavioral Health Care 48
Summit Healthcare REIT, Inc. REIT 138, 145
Sunnybrook Village Senior Community Long-Term Care 162
Sunnycrest Long-Term Care 162
Superior Vision Corp. Other 252
Surgery Center of Athens Physician Medical Groups 229
Surgical Care Affiliates Physician Medical Groups 229, 248
SurgiQuest, Inc. Medical Devices 189
SurModics, Inc. Medical Devices 191
Sutter Care at Home Home Health Care 90
Swereco Group Pharmaceuticals 199
Symphony Post Acute Care Network Long-Term Care 151
Takeda's respiratory business Pharmaceuticals 214
Talyst's hardware division Other 245
Tampa Bay Emergency Physicians, PL Physician Medical Groups 231
TeamHealth Holdings, Inc. Physician Medical Groups 52, 231
Tech Pharmacy Services, Inc. Other 242
Teva Pharmaceutical Industries Ltd. Pharmaceuticals 197, 206, 213
Texan Urgent Care Other 260
The Brookside Long-Term Care 149
The Cedars Long-Term Care 146
The Chartis Group Other 75
The Ensign Group, Inc. Long-Term Care 132, 134, 135
The Shores of Lake Phalen Long-Term Care 146
The Solana Company Long-Term Care 119
The Stratford at Maple Leaf Long-Term Care 140
The Tillers Long-Term Care 151
Titusville Area Hospital Hospitals 93
TL Management Long-Term Care 156
The Health Care M&A Report, 4th Quarter, 2015 277
Toshiba Medical Systems Corporation
Laboratories, MRI and
Dialysis 108
Traditions of Durham Retirement
Residence Long-Term Care 157
Traditions Senior Living & Memory Care Long-Term Care 127
Trigen/Vertical Holdings LLC Pharmaceuticals 210
Trilogy Health Services Long-Term Care 151
TriVascular Technologies Medical Devices 184
Trover Solutions Inc. and Equian Other 256
Turning Point Family CARE, PLLC Behavioral Health Care 50
U.S. Acute Care Solutions Physician Medical Groups 231
U.S. HealthWorks Other 259
U.S. rights to 2 dermatology products Pharmaceuticals 207
UAM's Traditional Insurance business Managed Care 173
UMS s.r.l. e-Health 79
Undisclosed Long-Term Care 155
United Medical Systems, Inc.
Laboratories, MRI and
Dialysis 114
UnitedHealth Group Inc. Hospital 100
University General Hospital Hospitals 98
UPMC Hospital 103
Upstream Rehabilitation Rehabilitation 237
US Lithotripsy, LP
Laboratories, MRI and
Dialysis 114
Valley Anesthesiology & Pain Consultants Physician Medical Groups 224
ValorBridge Partners Private Equity 101
Vascular Surgery Associates Physician Medical Groups 226
VBI Vaccines Inc. Pharmaceuticals 201
Verena at Virginia Center Long-Term Care 147
Versata Enterprises, Inc. Other 81
Vertex Pharmaceuticals Incorporated Pharmaceuticals 56
Vertice Pharma, LLC Pharmaceuticals 205
VHA-UHC Alliance NewCo. Inc. Other 74
Viera Manor Long-Term Care 127
ViiV Healthcare Pharmaceuticals 64, 216
Virginia Mason Health System Hospital 98
VistaPharm Inc. Pharmaceuticals 205
Viztek, LLC
Laboratories, MRI and
Dialysis 107
Vree Health e-Health 69
Warren Haven Nursing Home Long-Term Care 128
WCA Hospital Hospitals 103
Wedgewood South Long-Term Care 164
WellSpan Health Hospital 52
The Health Care M&A Report, 4th Quarter, 2015 278
WellStar Health System Hospital 99
Welltower Inc. REIT
118, 128, 129,
130, 131
Wesley Enhanced Living of Brodheadsville Long-Term Care 124
Wetsman Forensic Medicine, LLC Behavioral Health Care 51
WEX Inc. Other 68
WH Holdings Long-Term Care 128
Whitehouse Laboratories
Laboratories, MRI and
Dialysis 113
Windchime at the Village Long-Term Care 169
Windsor Estates Long-Term Care 136
Wood Creek Capital Management, LLC Private Equity 212
WorkWell Medical Group LLC Other 249
Worldwide license to CSF1R Pharmaceuticals 200
XenologiQ Other 253
Xi’an iKang Health Management Other 260
Xtend Healthcare e-Health 70
ZS Pharma Pharmaceuticals 203
Zuplenz® oral soluble film Pharmaceuticals 217
The Health Care M&A Report, 4th Quarter, 2015 279