Issue 8 2019

86 Acquisition International - Issue 8 2019 The value of mergers and acquisitions (M&A) targeting global healthcare companies in July 2019 reached the second-highest recorded for trailing 12 months due to two deals each worth more than USD 1,000 million, according to Zephyr, the M&A database published by Bureau van Dijk. ephyr shows the value of deals targeting the healthcare sector in July continued to fluctuate as 119 deals worth an aggregate USD 5,917 million were announced over the four weeks, compared to 157 deals totalling USD 1,243 million in June. In a year- on-year comparison, volume fell back at a faster rate of 32 per cent, from 176 deals in August 2018, while value jumped 51 per cent from USD 3,925 million. The result indicates volume was not a driver of growth in July, rather, value was boosted by individual deals with single high valuations. In all, the value of healthcare deals in July was second only to March (USD 20,281 million) for the trailing 12 months due to two deals each worth more than USD 1,000 million and which, together, accounted for 45 per cent of the month’s total. They were also the third- and fourth-largest deals announced in 2019 to date as New Frontier entered into an agreement to acquire a stake in US-incorporated and China-based United Family Healthcare from TPG Capital Advisors and Shanghai Fosun Pharmaceutical for USD 1,343 million and I Squared Capital Advisors is offering USD 1,298 million for a 65 per cent stake in Domidep of France. However, the biggest healthcare deal by far announced in 2019 to date features Centene announcing the public takeover of WellCare Health Plans for USD 17,300 million. It is currently the only deal in the sector worth more than USD 10,000 million and is worth more than five times the second-largest deal, which is also the highest-valued private equity and venture capital-backed transaction for the period, which features Brookfield Asset Management completing the buyout of Healthscope for USD 3,050 million. Western Europe was the main target region by value in July, with USD 2,809 million-worth of deals, followed by North America with USD 2,397 million, the Far East and Central Asia (USD 542 million), Africa (USD 163 million) and Oceania (5 million). However, in terms of overall value for 2019 to date, North America led the way with a total USD 25,212 million, a significant portion of which is due to the USD 17,300 million buyout of WellCare. In conclusion, healthcare M&A has been steadily tracking upwards for the last couple of years as corporate acquirors have opted for inorganic growth through acquisitions while intense competition with private equity investors for quality acquisitions has pushed up valuations in the sector. It remains to be seen if such activity can be sustained in the second half of 2019 to make the overall 12 months into a banner year for the sector. Company: Bureau van Dijk E-Mail: bvd@bvdinfo.com Web: www.bvdinfo.com Healthcare Z “...the biggest healthcare deal by far announced in 2019 to date features Centene announcing the public takeover of WellCare Health Plans for USD 17,300 million.”