January 2022: Healthcare M&A Snapshot

A summary of the key mergers & acquisitions across the UK healthcare market in January 2022. A copy of the report can be downloaded below:

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Key Sector Deals

Acquisition of Voyage Care by Wren House

• A significant exit for Partners Group and Duke Street, with another infrastructure investor entering the sector due to the perceived stability of the market

• The third major transaction in the specialist care sector in recent months, following the Priory and Elysium Healthcare

• Consolidation of the sector continues at pace, however there may be some question marks over future exit options and multiples for mid-market buy and build strategies

Marlowe’s £135m acquisition of Optima Health

• A major step in Marlowe’s aggressive expansion into the UK occupational health market at a multiple of over 12x EBITDA

• An impressive exit for CBPE, generating a 6.5x money multiple

• The transaction underlines the attractiveness of the occupational health market as employers become more proactive in their approach to ensuring employee wellbeing, combined with the increasing use of technology to support this

Acquisition of Medequip by Medux

• Acquisition of the UK’s leading provider of community equipment and complementary services to local authorities and the NHS

• Provides Dutch corporate, Medux, with a significant UK presence and the possibility of extracting material procurement synergies

• Driven by the ongoing movement towards individuals remaining at home for longer, supported by advances in technology and specialist equipment which allow independent living

Nordic Capital’s acquisition of Care Fertility

• Having grown to a network of 24 clinics across the UK, Nordic Capital’s investment is made with the aim of driving the international expansion of the business

• The deal represents a successful exit for Silverfleet, generating a money multiple of 2.6x and an IRR of over 40%

• This highlights the continued attractiveness of the IVF market to investors due to favourable demand drivers and further opportunity for international consolidation

Healthcare Market Activity

Private Equity Activity

Sub-sector	Target	Acquirer / Investor	Exiting PE	EV
Dental	Alloway Place	Clyde Munro (Synova)	N/A	N/D
IVF	Care Fertility	Nordic Capital	Silverfleet	N/D
Specialist Care	Green Rose	Swanton Care (Apposite)	N/A	N/D
Pharma	Stirling Anglian Pharmaceuticals	Kent Pharma (Apposite)	N/A	N/D
Specialist Care	Ludlow Street Healthcare	Holmleigh Care (Ancala)	N/A	N/D
Occupational Health	Optima Health	Marlowe	CBPE	£135m
Specialist Care	Voyage Care	Wren House	Partners Group Duke Street	N/D

Venture Capital Activity

Target	Description	Investors	Investment
Pathfinder Medical	Medical devices for vascular procedures	BGF Parkwalk Deepbridge	£8.5m
Engitix Therapeutics	Proprietary human extracellular matrix drug target discovery platform	Netherton Investments Dompe Farmaceutici	$54m

IPOs

Target	Description	Market	Market Cap
Genflow Biosciences	Development of novel therapeutics targeting ageing in dogs and humans	LSE	£23.4m (£3.7m raised)