MARKET ANALYSIS

Healthcare M&A Weekly 1.3.23

The healthcare industry is rapidly evolving, with the lines between the healthcare technology and services sectors blurring – creating the catalyst for innovation, transformation, and continued market activity. TripleTree’s Healthcare M&A Weekly summarizes recent activity and highlights the industry transactions shaping the future of healthcare.
  

• 5th Century Partners, a purpose-driven private investment firm committed to driving economic and social impact, announced that it has made a majority investment in LSL Healthcare, a leading manufacturer of single-use medical devices, IV start kits, surgical procedure kits and hospital supplies. Read more here.

 

• Amyris completes negotiation of key terms for strategic transaction with Foris Ventures. Amyris, Inc. (Nasdaq: AMRS), a leading synthetic biotechnology company accelerating the world's transition to sustainable consumption through its Lab-to-Market™ technology platform, announced that it has entered into a definitive purchase agreement for the purchase and sale of 20,000,000 shares of the Company's common stock and warrants to purchase up to an aggregate of 15,000,000 shares of common stock in a registered direct offering. Read more here.

 

• Arthur J. Gallagher & Co., a global insurance brokerage, risk management, and consulting services firm, has announced their agreement to acquire Buck, an integrated HR, pensions, and employee benefits consulting, technology, and administration services firm. Read more here.

 

• Avista Capital Partners, a leading private equity firm focused exclusively on healthcare, announced its acquisition of Spear Education, a tech-enabled provider of digital and in-person clinical training, practice analytics and consulting solutions for the dental market. Read more here.

 

• Berkeley Lights (Nasdaq: BLI), a life sciences tools company, and IsoPlexis (Nasdaq: ISO), a company empowering labs to leverage the cells and proteome changing the course of human health, announced a definitive agreement under which Berkeley Lights will acquire IsoPlexis in an all-stock transaction valued at $57.8 million. Read more here.

 

• Buchanan Street Partners has acquired an office building in Laguna Beach for $28.1 million. The property was purchased from a fund manager in New York City, according to a Dec. 21 report from globest.com. Oakbrook Plaza is a four-story, 120,354-square-foot property located in close proximity to MemorialCare Saddleback Medical Center, along with several retirement homes. Read more here.

 

• Care Advantage has expanded its reach even further into Northern Virginia with the acquisition of in-home care provider Care Perfections Health Services LLC. The move comes just a week after Care Advantage acquired the Reston, Virginia-based Lighthouse Healthcare Inc., a private-pay personal care company. Read more here.

 

• Clinical-stage biotech Catalyst Biosciences (NASDAQ:CBIO) and GNI Group definitively agree to Catalyst's purchase of GNI's F351 program, China-based commercial-stage pharma company Beijing Continent. Read more here.

 

• CC Wellness, a recognized leader in FDA 510(k) premarket certification and top-tier pharmaceutical company that specializes in the development of Class II medical devices as well as cosmetic, OTC, and organic products, has acquired one of the top-selling lubricant labels on Amazon, the premier brand Shibari. Read more here.

 

• Kansas City healthcare tech startup Community CareLink (CCL) received an investment from Paul Black, formerly the CEO of Allscripts and COO of Cerner Corp., who joined the startup’s board of directors and became a minority shareholder. Read more here.

 

• Cornerstone Treatment Facilities Network, an inpatient addiction care company, was acquired by Aurora Health. Read more here.

 

• Fujifilm announced that it has entered into an asset purchase agreement to acquire Dynamyx, the digital pathology business of Inspirata. Completion of the transaction is subject to closing conditions and scheduled for early 2023. Read more here. 

 

• GLO Healthcare, a healthcare platform created by private equity investor CapVest Partners LLP, has completed the acquisition of Calyx, an software and services provider of medical imaging, IRT, CTMS, RIM and EDC for the clinical trials industry. Calyx will join GLO’s development and delivery of diagnostic testing for major cancers and other diseases. Read more here.

 

• Groupe Selection, a Laval, Quebec-based operator of senior care facilities in Canada which filed for creditor protection in mid-November, will shed 36 of its 48 senior homes in transactions with Revera and Blackstone. Read more here.

 

• Ingenovis Health, Inc. a leading technology-enabled healthcare talent provider backed by private investment firms Cornell Capital and Trilantic North America, announced that it has acquired Springboard Healthcare, a leading healthcare travel staffing and education company specializing in cardiovascular medicine. Read more here.

 

• Integrated DNA Technologies, which is backed by Summit Partners, has acquired Next Generation Sequencing (NGS) research assays from Invitae Corporation (NYSE: NVTA) under the trademarked name Archer, based in Boulder, Colorado. Integrated DNA Technologies is a Skokie, Illinois-based developer of nucleic acid products for life sciences research. Read more here.

 

• Integrative Life Network, a nationally recognized family of premier trauma-focused treatment programs including Integrative Life Center, Begin Again Institute, and Boulder Recovery, is expanding with a new acquisition of New Mexico-based treatment center, Shadow Mountain. Read more here.

 

• Ivy Rehab, a national leader in outpatient musculoskeletal rehabilitation and pediatric services and New Jersey's largest physical therapy provider, has added two clinics to its market-leading footprint through its latest partnership with Maximum Performance Physical Therapy and Sports Rehabilitation. Read more here.

 

• Johnson & Johnson (NYSE: JNJ), the world’s largest, most diversified healthcare products company, announced it has completed its acquisition of Abiomed, Inc. Abiomed is now part of Johnson & Johnson and will operate as a standalone business within Johnson & Johnson’s MedTech segment. Read more here.

 

• Kite, a Gilead Company (Nasdaq: GILD), and Tmunity Therapeutics, announced that the companies have signed an agreement in which Kite will acquire Tmunity, a clinical-stage, private biotech company focused on next-generation CAR T-therapies and technologies. The acquisition of Tmunity complements Kite’s existing in-house cell therapy research capabilities by adding additional pipeline assets, platform capabilities, and a strategic research and licensing agreement with the University of Pennsylvania (Penn). Read more here.

 

• KKR, a leading global investment firm, and Bushu Pharmaceuticals Ltd. announced the signing of definitive agreements under which KKR will acquire all shares in Bushu Pharma from BPEA EQT. Following the transaction’s completion, KKR aims to accelerate Bushu Pharma’s growth and further position the Company as a leading contract development and manufacturing organization (“CDMO”) for the pharmaceuticals market in Japan and worldwide. Read more here.

 

• Miravo Healthcare definitively agreed to be acquired by Searchlight Pharma for USD 91.4m EV. Read more here.

 

• The Oncology Institute, Inc. (NASDAQ: TOI), one of the largest value-based community oncology groups in the United States, has acquired the Chino, CA practice of Dr. Labib Hashimi. The acquisition enhances TOI’s geographic coverage in California, with the Chino practice marking TOI’s 42nd clinic in the Golden State. Read more here.

 

• Orthotic Holdings, Inc., a global leader in custom medical devices for healthcare providers who treat conditions associated with the lower extremities, announced that it has secured a majority investment from Summit Partners Credit Advisors. Read more here.

 

• Philadelphia Hand to Shoulder Center, one of the largest and most recognized hand and upper extremity focused musculoskeletal (MSK) practices in the country, has announced that they have become part of HOPCo’s Northeast-based musculoskeletal practice management platform and will partner with Premier Orthopaedics, one of the largest MSK practices in the region. Read more here.

 

• Quadrant Private Equity has bought a majority interest in Aidacare, an Australia-based distributor of healthcare equipment, with a view to supporting domestic and international growth. Read more here.  

 

• Resolution Health, a provider of data analytics-driven personal healthcare guidance, received funding from BDC Horizon. The company provides information and services that improve the quality and reduce the cost of healthcare. The company also provides analytic services to pharmaceutical biotech, genomic and proteomic companies. Read more here (subscription required).

 

• Rise Health, a primary care platform that leverages technology to operate and support value-based primary care clinics, announced the closing of a growth equity investment by Lorient Capital and Martis Capital to support continued market expansion. Read more here.

 

• Sanisure, a leading, vertically-integrated player in the single- use bioprocessing technology space, is pleased to announce the acquisition of Medical Elastomer Development, Inc, a silicone extrusion facility from Q Holding, a 3i portfolio company. This state-of-the-art facility located in Twinsburg, Ohio, serves many industry- leading customers in both the medical device and bioprocessing markets. Read more here.

 

• Vistagen (Nasdaq: VTGN), a late clinical-stage biopharmaceutical company aiming to transform the treatment landscape for individuals living with anxiety, depression, and other central nervous system (CNS) disorders, and Pherin Pharmaceuticals, Inc., a clinical-stage drug development company focused on the discovery and development of investigational pherine compounds for treatment of neuropsychiatric and neuroendocrine conditions (Pherin), announced that the companies have entered into a definitive agreement under which Vistagen will acquire Pherin for approximately 12.4 million shares of Vistagen common stock and a nominal amount of cash. Read more here.

 

• Western Dental, an Orange, California-based dental support organization, backed by New Mountain Capital, has acquired Sahara Dental Center and Las Vegas Smile Center. Sahara Dental Center and Las Vegas Smile Center have provided a variety of cosmetic and orthodontic services to the Las Vegas area for several years. Read more here.

 

This is a partial list of transaction activity across the healthcare industry and is not intended to be a complete listing. Transaction information was identified from various sources and TripleTree may or may not have acted as the financial advisor for the transactions listed. All product names, logos and brands are property of their respective owners. All company, product and service names used in this communication are for identification purposes only. Use of these names, logos and brands does not imply endorsement.