May 2022: Healthcare M&A Snapshot


This snapshot summarises the key mergers & acquisitions, private equity and venture capital transactions across the UK healthcare sector in May 2022.

A PDF copy of the report can be downloaded here:

Notable Sector Deals


Lonsdale Capital’s acquisition of Today’s Dental Group

  • Lonsdale’s acquisition of Today’s Dental, a group of eight practices, creates another buy and build platform within the sector

  • Driven by an experienced team with expertise in executing serial acquisitions, the business will be well placed to build a pipeline of deals for future growth

  • The deal outlines the continued attractiveness of the UK dental sector for private equity investors

  • Despite consolidation occurring over a number of years, there is still ample opportunity for inorganic growth and the creation of scale within a relatively short timeframe due to the number of independently owned practices

Acquisition of Pennine MSK Partnership by Vita Health

  • A strategic acquisition for Vita Health, strengthening its provision of NHS MSK services to extend across six regions

  • Adding a team of over 90 clinical staff, Pennine MSK specialises in orthopaedics, rheumatology and persistent pain around the Oldham area

  • With over 20 million people in the UK living with an MSK condition and over £5bn spent by the NHS annually on treatment, this is a large market with strong growth drivers

  • The deal bolsters Vita’s NHS contracts and further acquisitions across the sector are likely in due course as larger players look to expand their footprint and capitalise upon organic market growth

Peal Capital’s acquisition of Derma Medical

  • An interesting transaction given the aesthetic market’s transition towards a more regulated environment

  • Derma Medical is a multinational training provider for non-surgical aesthetic treatments, providing medical professionals with recognised qualifications in non-invasive injectable procedures

  • With a forecast CAGR of 9.6% in the global facial injectables market and a growing focus on suitably trained professionals, Derma Medical will be ideally placed to benefit from these sector tailwinds

  • Peal’s funding will be utilised to support the next phase of international expansion for the business

Acquisition of Champion Health by Physitrack

  • The acquisition of Champion Health, a workplace health platform, bolsters Physitrack’s presence in the buoyant corporate wellness market

  • By combining Champion with it’s existing subscription-based wellness offering, Access, Physitrack is building a comprehensive health and wellness product for SMEs and larger enterprises

  • Day one consideration of £2.5m represents a revenue multiple of c.7x, with a further earnout worth up to c.£7.9m based on future financial targets

  • Following its listing on the Nasdaq OMX First North market, Physitrack has been aggressive in its M&A strategy as it looks to expand its service offering and geographical presence rapidly


Healthcare market activity


Private equity activity

Sub-sector

Target

Acquirer/Investor

Exiting PE

Dental

DD Group

Sun European Partners

Palamon

Dental

Today's Dental

Lonsdale Capital

N/A

Physio

Pennine MSK Partnership

Vita Health (Archimed)

N/A

Listed acquirer acitivty

Sub-sector

Target

Acquirer

Consideration

Digital Health

Champion Health

Physitrack

£2.5m*

Vet

Anton Vets

CVS

£6m

*Day one consideration with an earnout worth up to c.£7.9m


Venture Capital Activity

Target

Description

Lead Investor

Investment

Inovus

Surgical training technology

Norgine Ventures

$7m

MyMynd

Workplace wellbeing platform

Triple Point Ventures

£650k

Nebu-Flow

Surface acoustic wave nebulisers

Foresight Williams

£1.7m

Zapped Skin

Tele-dermatology Platform

Jenson Funding Partners

£220k