This snapshot summarises the key mergers & acquisitions, private equity and venture capital transactions across the UK healthcare sector in July 2022.
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Notable Sector Deals
Trinity Homecare's acquisition of Premier Homecare
Another successful bolt-on for Trinity Homecare following Limerston Capital’s investment in early 2020
The addition of Premier Homecare to the group brings quality live-in and domiciliary care services across the South West
This represents the sixth acquisition for Trinity as they seek to generate further scale and expand geographic presence
By targeting the private pay segment, the business continues to consolidate a fragmented market where few other acquirers are highly active
Given the platform was originally acquired as part of a carve-out, the business should also be capable of recognising significant cost savings in the short term
MBO of Inspire Scotland funded by Thincats
The MBO of Inspire Scotland represents another notable deal within the children’s services sector which continues to show strong levels of M&A
The majority of transactions, however, have been focused on the English market (where fees are perceived to be higher) and this deal represents one of the first purely Scottish deals in recent times
Despite negative publicity in recent months, the sector remains buoyant with demand drivers strong and a number of consolidators active in the market
The deal also highlights Thincats growing prevalence in funding lower mid-market healthcare transactions, particularly within residential care
NVMs investment into YorkTest
NVM’s £10m investment into YorkTest is another example of strong investor appetite in the home testing market
YorkTest provides tests for food intolerance and allergies, and has shown significant growth over the last two years as demand has soared
The funding will be used to launch ten new home health tests, invest in new equipment, and continue the expansion into new markets such as the US
The deal highlights the growing trend of individuals taking a more proactive approach to their health and a greater willingness to pay for D2C services
It follows a raft of VC and PE investments in home testing, ranging from general health tests to specific niches such as fertility and sexual health
Acquisition of Precedental by ALS
The acquisition of Precedental is another successful deal for Amalgamated Laboratory Solutions (ALS) in the dental labs sector
Backed by PE firm Ansor, ALS has quietly continued to consolidate the dental labs market since its inception in 2019, whilst most other acquirers have remained focused on dental practices
By acquiring small, primarily family-owned businesses, the group plans to utilise digital transformation and automated manufacturing to create efficiencies and synergies
It will be fascinating to see how this plays out as the business generates greater scale through both organic and inorganic means
Healthcare Market Activity
Private Equity Activity
Sub-sector | Target | Acquirer/Investor | Exiting PE |
Dental | Shipston Dental Practice | Envisage Dental (Phoenix) | N/A |
Labs | YorkTest | NVM | N/A |
CMO | Steripack | Inflexion | Great Point Partners |
Elderly Care | New Century Care | Gresham House | N/A |
Dom Care | Premier Homecare | Trinity Homecare (Limerston) | N/A |
Medical Devices | Spectrum Medical Group | CVC Capital | N/A |
Dental | Precedental | ALS Dental (Ansor) | N/A |
Venture Capital Activity
Target | Lead Investor | Investment | |
Cytomos | Cell analysis platform for use in drug development, vaccine production and cell/gene therapy manufacturing | Archangels | £1.6m |
Lottie | A comparison website for residential care and independent living | General Catalyst | £6.1m |
Orcha | Digital health quality management platform to ensure digital health products are introduced safely | Maven | £1m |
Oto | Digital Health company focused on tinnitus | Octopus Ventures | $3.3m |
Physiomedics | Self-assessment tool for muscle and joint problems | Archangels | £1.5m |
Suvera | Supports remote services for patients with long term chronic conditions such as diabetes | Morningside Ventures | £5m |