MARKET ANALYSIS

Healthcare M&A Weekly 5.8.23

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.
 

• Aptorum Group [NASDAQ:APM], a pharmaceutical firm, has entered into a non-binding Letter of Intent and Term Sheet to merge its 100% subsidiary, Paths Innovation Limited with Universal Sequencing Technology Corporation, a San Diego and Boston-based company dedicated to the development and commercialization of advanced proprietary DNA sequencing technologies. Read more here.

 

• ARC Health, a Beachwood, OH-based, Thurston Group-backed provider of mental health care, has acquired Positive Change Counseling Center (PCCC), a leading mental health practice in San Diego and Ventura counties. Read more here.

 

• Astellas Pharma [TYO: 4503] announced it has entered a definitive agreement to acquire US-based ophthalmology drugmaker Iveric Bio [NASDAQ: ISEE] for $40 per share in cash for a total equity value of approximately $5.9B. Read more here.

 

• CareTrust REIT [NYSE:CTRE], a San Clemente, California-based real estate investment trust, acquired a 148-bed skilled nursing facility in the greater Atlanta metropolitan area. Read more here. CareTrust REIT also acquired a 136-unit, two-facility memory care portfolio located in the greater Chicago metropolitan area. Read more here.

 

• Centene Corporation [NYSE: CNC] announced that it has signed a definitive agreement to sell Apixio, a leading artificial intelligence platform that enables value-based care, to New Mountain Capital. Read more here.

 

• Espire Dental, a Rallyday Partners-backed dental organization, announced the acquisition of Anderson Family Dental in Colorado Springs, CO. Read more here.

 

• Headlands Research, a San Francisco-based clinical research site organization backed by KKR & Co, has acquired Clinvest Research, a Springfield, MO-based clinical research site. Read more here.

 

• Hildred Capital Management, a healthcare-focused private equity firm that specializes in partnering with middle-market companies, announced that it has completed a strategic investment in AleraCare, leading provider of infusion and specialty pharmacy services across the country. Read more here.

 

• HouseWorks, a Boston, Massachusetts-based provider of personal care services, has acquired home care provider Care and Help Home Care. Read more here.

 

• Initial Therapeutics, a South San Francisco, California-based drug developer, raised $75M in a Series A funding round from Apple Tree Partners. The funding marks Initial Therapeutics' launch and will be used to grow the company. Read more here.

 

• Intrinsic, an omni-channel consumer health company, today announced a $15 million equity fundraise to focus exclusively on women's health. The new capital, which brings the company's total funding to $128 million raised to date, includes participation from new investors FCA Venture Partners and MAP Investco, along with existing investors Define Ventures, Link Ventures, Redesign Health, and others. Read more here.

 

• Kindbody, a New York City-based provider of fertility and family planning services, raised $25M in a funding round from Morgan Health, a business unit of JPMorgan Chase & Co. [NYSE:JPM]. Founded in late 2018, Kindbody is the fertility benefits provider for 112 large employers, covering more than 2.4 million lives. Read more here.

 

• KIRCO, a Troy, Michigan-based full-service corporate real estate and investment company, announced the acquisition of a senior living community, Brookmeadow at Blue Hills, based in Boston, Massachusetts. Read more here.

   

• Living at Reflections, a Novato, California-based substance abuse treatment company, has received an investment from Traverse Pointe Partners.  Read more here.

 

• Medical Specialists of the Palm Beaches, a primary care-focused, multi-specialty physician group practice in South Florida, announced it has acquired Cohen Medical Associates, a primary care practice based in Delray Beach, Florida. Read more here.

 

• Oak Dental Partners, an Atlanta, Georgi-based dental service organization, has obtained $153M senior secured credit facility from Comvest Credit Partners. The financing will be used to refinance the Company’s existing debt and support near-term acquisitions. Comvest also made an equity co-investment in the business. Read more here.

 

• OCLI Vision and Spectrum Vision Partners (SVP) have acquired three practices; Buffalo Niagara Retina Associates, Ophthalmology Associates of Western New York, and Retina Consultants of Western New York. Spectrum Vision Partners is a portfolio company of Blue Sea Capital. Read more here.

   

• Option Care Health, Inc. [NASDAQ:OPCH], a Bannockburn, IL-based provider of home and alternate site infusion services, and Amedisys, Inc. [NASDAQ:AMED], a Baton Rouge, LA-based provider of home health, hospice and high-acuity care, will merge. The transaction values Amedisys at $3.6B. The combined company generated revenues of $6.2B and adjusted EBITDA of $622M on a combined basis. Read more here.

 

• Patient Square Capital, a healthcare investment firm, announced it has invested $300M to form Elevage Medical Technologies, a company to support promising medical device companies by providing capital and deep strategic expertise. Read more here.

 

• The Pennant Group [NASDAQ:PNTG], an Eagle, ID-based home health, hospice and senior living company, announced the acquisition of the assets of Benefit Home Healthcare and Benefit By Your Side, providers of skilled home health, private duty, and community health services in Colorado Springs, Colorado. Read more here.

 

• Probo Medical, an Avista-backed provider of medical imaging equipment, parts, repair, and services, has acquired the Bremen, IN-based MRI coil repair operation from Creative Foam, a Fenton, MI-based design, engineering, and manufacturing solutions provider to the transportation and healthcare sector. Read more here.

 

• TTG Imaging Solutions, the Pittsburgh, Pennsylvania-based health services provider backed by Sentinel Capital Partners, acquired Suwanee, Georgia-based Digirad Health, a provider of nuclear medicine technologies, from Star Equity Holdings. Read more here.

 

• Trilogy Home Healthcare, a West Palm Beach, FL-based, leading Medicare-licensed home healthcare company backed by Kinderhook Industries, has been sold to CenterWell Home Health, based in Atlanta, GA. Read more here.

 

• US Heart & Vascular, a Nashville, TN-based national provider of support services to cardiovascular physician practices, has secured funding from Rubicon Founders. The funding will be used to expand capabilities and build the premier, cardiovascular focused, value-based model. Formed in 2021, US Heart & Vascular is a portfolio company of Ares Management. Read more here.

 

• Uwill, a Natick, MA-based mental health and wellness solution for colleges and students, announced it has completed a $30M Series A funding round from Education Growth Partners. 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.