HomeM&A

IH Interests: M&A

Cooper Buys Teva's ParaGard IUD for $1.1B

The announcement follows Teva's decision to divest its women's health business.

Read More
J&J to Acquire Surgical Process Institute

SPI is a German company that develops surgical checklist software.

Read More

Cooper Buys Teva's ParaGard IUD for $1.1B

CooperSurgical announced this week that they would acquire Teva’s ParaGard intrauterine contraceptive device for $1.1 billion in cash. Bloomberg notes that the product recorded $168.0 million in sales over the last 12 months, suggesting a 6.5x revenue multiple for the transaction. ParaGard is copper-releasing and is the only non-hormonal IUD on the market in the U.S. The device is approved for marketing only in the U.S., and the transaction includes Teva’s ParaGard manufacturing facility in Buffalo, New York. The deal is expected to close by the end of the year, pending antitrust approval.

Teva has been selling assets to pay down debt, and intends to pursue the sale of the remaining assets of its global Women’s Health business, in addition to its Oncology and Pain businesses in Europe. The company expects to generate a total of $2B from the sale of these assets.


Posted September 14, 2017

J&J to Acquire Surgical Process Institute

J&J announced plans to acquire Surgical Process Institute, a German developer of software for the “standardization and digitalization of surgical workflows in the operating theatre.” Surgical checklists have been demonstrated to improve safety and reduce the rate of complications in surgical cases, and the acquisition is particularly timely, as reimbursement hinges increasingly on metrics associated with quality of care. In addition to patient safety and surgical team coordination, J&J says that the SPI technology reduces operating time, another important benefit for hospitals.

SPI’s products are already in use in several hospitals in Germany and other EU locations. Use of the software will expand throughout EMEA in 2018, and J&J reports that they will start conducting pilot programs in other regions in 2018, with full worldwide availability expected in 2019.

The transaction is expected to close in 4Q:17. Financial terms were not disclosed.


Posted October 23, 2017
TPG Capital to Acquire Exactech

The transaction is valued at $625 million, or 2.4x revenues.

Read More
Stryker to Acquire Entellus

The $662 million deal expands SYK's ENT presence.

Read More

TPG Capital to Acquire Exactech

Orthopedic devicemaker Exactech announced that they agreed to be taken private by TPG Capital for $42.00/share in cash, valuing the transaction at $625 million in total. This represents a 31% premium over the close on October 20 and a 2.4x revenue multiple. The company will continue to be headquartered in Gainesville, Florida, and the transaction is expected to close in 1Q:18.

TPG Capital was part of the consortium that acquired Biomet in 2007, later selling it to Zimmer for more than $13 billion.


Posted October 24, 2017

Stryker to Acquire Entellus

On Thursday, December 7th Stryker Corp (SYK) announced that they would acquire Entellus Medical (ENTL) for $662 million. Stryker is paying a significant premium of roughly 50 percent to where Entellus closed on Wednesday and approximately a 7.1x estimated 2017 revenues. According to Stryker, the deal will be dilutive to 2018 adjusted net earnings by approximately 4 cents per share.

Entellus markets a balloon sinus dilation system called XprESS for the treatment of chronic and recurrent sinusitis. The procedure can be performed in the office as well as in a hospital setting. They also market the MiniFESS line of surgical instruments for use in general sinus surgeries. In July, Entellus announced an acquisition of their own – a $25 million deal to buy Spirox, which makes an absorbable nasal implant that can be implanted using MIS techniques to treat nasal airway obstruction.

The acquisition highlights Stryker’s increasing strategic focus on the ENT market, which we at InnovaHealth Partners estimate is a $16 billion market growing around 5 percent per annum.


Posted December 07, 2017