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Connell C - LB Mar 2022

European healthcare M&A roundup – June

The healthcare acquisitions across Europe and beyond that made the headlines in June

ResMed

We start with the biggest deal in June, that of MediFox Dan, a portfolio company of private equity house Hg Capital, and a German player in out-of-hospital software solutions, which agreed to be acquired by ResMed, a San Diego, California-headquartered medical devices supplier, in a $1 billion transaction.

For ResMed, the acquisition of MediFox Dan is a “landmark transaction” with strategic growth opportunities from unlocking “thousands” of providers and “millions” of patients and builds on ResMed’s existing business in Germany as a provider of cloud-connected medical devices and home care services for patients with sleep apnoea and other respiratory conditions.

Houlihan Lokey served as the sell-side advisor to Hg. The process attracted significant interest from global players, including both strategic players and large-cap financial sponsors with a healthcare and technology focus, according to Houlihan Lokey.

The transaction is expected to close in H2 2022.

Aurelius

Germany-based investment firm Aurelius has announced the simultaneous acquisition of dental bauer and Pluradent, two German dental distribution companies. The combined business will generate more than €300 million in revenues from DACH and adjacent markets.

The deals are conducted in close partnership with the Linneweh family which reinvested into the newly created market player and will stay on board as management team.

The transaction will be completed by Aurelius’ co-investment structure comprising the Aurelius European Opportunities IV Fund and the Aurelius Equity Opportunities.

Founded in 1947, dental bauer is a family-run business which offers consumable materials, capital equipment and devices, and technical and consulting services to dental practices and laboratories. It has been growing for many years through a lean and flexible organization, the establishment of new branches and locations, and through smaller and larger acquisitions within the industry.

Pluradent, headquartered in Offenbach am Main, is a German dental distributor, supplying dental facilities with consumable materials, equipment and devices, and technical services. The group also operates subsidiaries in Austria and Poland and an own distribution center in Kassel, Germany. After the company had been facing financial distress during Covid-19, insolvency proceedings were opened recently.

The deal is expected to close in Q3 2022.

Aurelius was advised on the transactions by LBBW (M&A), Noerr (Legal), Haver&Mailänder (Legal) Roland Berger (Commercial), OMMAX (Digital), Accuracy (Financial), Oppenhoff (Tax), Intargia (IT), EURO Transaction Solutions (Insurance).

Astorg

Private equity firm Astorg has acquired a majority stake in Avania, a Netherlands-based global clinical contract research organisation dedicated to medical technology, from primary buyout firm Kester Capital, which intends to retain a minority stake.

The value of the acquisition was not disclosed. Avania has an EBIDTA of €10 million and more than eight offices.

Astorg was advised by Rothschild, BDO, Dentons, Roland Berger and KPMG. Kester was advised by Results International, Osborne Clark, Nauta Dutilh, Smith Anderson, Addisons and BDO.

Humana

Swedish care services provider Humana remains highly acquisitive. In June it acquired the care company Vintergatan AB in Alingsås, Sweden and the Finnish care company Debora Lapsiperhepalvelut.

Vintergatan AB operates HVB (Homes for care or residence) with 11 apartments for young adults aged 18-25 and two supported housing apartments for young people aged 16-20. The company’s full-year income amounts to approximately SEK 14 million and the company has around 20 employees.

Debora Lapsiperhepalvelut is a nationwide care company in Finland that provides services to families and children in 12 locations for approximately 300 customers. Full-year revenues amount to approximately SEK 30 million.

Humana has agreed to acquire all shares in Vintergatan AB and Debora Lapsiperhepalvelut. Following the transfer, the two companies will be included in the business area Individual and family at Humana.

Eurofins

Worldwide laboratory testing services provider Eurofins Scientific has acquired a majority stake in Ajal for Laboratories, a food, tobacco and pharmaceutical testing laboratory based in Riyadh, from Saudi Ajal.

Ajal for Laboratories reported revenue of €15 million in 2021.

This is Eurofins’ first acquisition in the Kingdom of Saudi Arabia and represents a commitment to building a network of local and regional laboratories to support customers in the Middle East, and the rapidly growing food production and biopharma sectors in the KSA.

MedLife

In Romania, the healthcare services group MedLife has acquired Medicris, a provider of occupational health and related services in Bihor county.

With this deal, MedLife is consolidating its portfolio of services for patients and subscribers in Bihor county, MedLife said in a statement filed with the Bucharest Stock Exchange. Today MedLife operates in nearly 700 own and partner locations, including more than 230 clinics and hyper-clinics.

The financial details of the deal were not disclosed.

Medicris has been around for more than 20 years in the private medical services market in Oradea and offers outpatient medical services including occupational health, ophthalmology, internal medicine, ENT (ear, nose, and throat), psychology and others. It has a portfolio of more than 22,000 subscribers.

Earlier in the month, MedLife signed an agreement to take over an 80% stake in Timisoara-based Medici’s group.

Demant

Denmark-headquartered, global hearing healthcare and technology group Demant has completed the full acquisition of ShengWang, a network of hearing aid clinics in China.

Demant acquired the remaining 80% of the shares in ShengWang taking full ownership of the group. This follows the 20% minority investment announced on 4 March.

Including the consideration paid for the initial 20% minority investment, Demant will pay DKK 1,855 million on a cash- and debt-free basis for 100% ownership of which DKK 1,537 million will have cash flow effect in H2 2022, and the remaining DKK 318 million will be payable over the coming three years. The acquisition will be financed through existing cash reserves and already established credit facilities.

Affidea Group

In Spain,  the global diagnostic player Affidea bought Tecma clinic, a private healthcare provider in Valencia offering diagnostic imaging, outpatient services, dentistry, and medical check-ups for driving, firearm and nautical license. With this transaction, Affidea is reaching 320 centers at European level. This is the fourth acquisition that the company completes in 2022 at European level and the third in Spain over the last year.

Financial details of the transaction were not disclosed.

Medicover

Following, the acquisitions of Allenort Kliniki Terapii in Poland and Laurus Medical in Romania last month, the Stockholm-listed international health care services group Medicover announced the acquisition of the Germany-based dental services provider MeinDentist earlier this month.

According to a press release, MeinDentist reported 2021 revenues of  €31.4 million. The financial terms of the deal were not disclosed.

Triton Partners

Private equity firm Triton Partners has acquired a majority stake in Esperi Care, a Finnish care services provider, via its Triton Smaller Mid Cap Fund II.

The current owners Danske Bank, SEB and Ilmarinen will continue as minority shareholders in partnership with Triton. The financial details of the deal were not disclosed.

Founded in 2001, Esperi Care provides elderly care, mental care and disabled care. The company operates 112 elderly care locations in Finland, 41 nursing homes for mental care and 31 homes for disabled care. It has about 7.000 customer beds with 200 municipalities as customers. Esperi Care has approximately 6.400 employees.

Healiva

Healiva, a Swiss start-up developing end-to-end chronic and acute wound-care therapy has acquired two wound-healing cell therapy assets, EpiDex and healiva002, from Smith+Nephew, a global medical technology business for an undisclosed sum.

Delta Med

Delta Med, an Italian supplier of medical devices, has acquired AdriaMed, a supplier of elastomeric infusion pumps. AdriaMed’s shareholders will reinvest in the group. Francesco Di Florio will hold his position as chief executive of Adria Med and will be responsible for business development in international markets for the entire

The two companies combined will have a €45 million of revenue, more than 200 employees and 5 production facilities located across North and Center Italy

White Bridge Investments, the main shareholder of Delta Med, will retain the majority of the group. Delta Med was assisted by legal advisor White&Case. Gatti Pavesi Bianchi Ludovici, was in charge of the fiscal and tributary aspects. Deloitte was responsible for the financial and fiscal due diligence as well as the tax matters. AdriaMed was supported by Deloitte Legal. Deloitte Tax and Studio Di Majo were in charge of the fiscal aspects.

Elsewhere, the Germany-based fertility group Next Fertility is poised to acquire two clinics in Spain, according to PlantaDoce. The group has up to €10 million available to close these purchases, the report said adding that the company expects to increase its turnover forecast in Spain by 27.8% to €23 million.

Also, the London-listed private hospital group Mediclinic has rejected a £3.4 billion cash offer from a consortium of its biggest shareholder, Remgro, and shipping group Mediterranean Shipping Company (MSC), saying the proposal undervalued the company. The consortium had pitched the offer at 463p a share. Mediclinic and Remgro are based in Stellenbosch, South Africa.

According to Bloomberg, the Germany-based healthcare group Fresenius is intending to merge its hospital subsidiary Helios with another competitor. The report said that Fresenius has already held preliminary discussions with private equity groups such as KKR and CVC Capital.

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