BIS Services – M&A Runs & Volume Analysis
CONFIDENTIAL
M&A RUNS – EUROPEAN HEALTHCARE SECTOR
M&A Runs – European Healthcare Sector
Source: CapitalIQ
Provides senior residential care services Provides prosthetics for restoration of natural teeth Develops powered wheelchairs and communication systems for disabled people Develops products and therapies for chronic diseases Provides marine-originated omega-3 derived pharmaceutical products Manufactures pharmaceutical products Provides pharmaceuticals, medical supplies, and related care services Manufactures medicines and dietary supplements Manufactures medical devices for fracture management and physiotherapy Develops instruments, and software for anatomic pathology laboratories Manufactures generic pharmaceuticals for central nervous system Owns and operates hospitals and clinics Manufactures over-the-counter medicines and personal care products Manufactures dental implants, abutments, and medical device Manufactures radiotherapy solutions for the treatment of cancer Provides long-term and short-term dependency care services Manufactures generic pharmaceuticals for central nervous system Manufactures generic and specialty pharmaceuticals Provides branded medicines for hospitals, specialists, and general practitioners Manufactures blood test systems for allergy, asthma, and autoimmune diseases Manufactures generics and over-the-counter pharmaceutical products Provides health and medical care services Manufactures medical implants for esthetic and medical use Manufactures pharmaceutical and biopharmaceutical products Provides allergen immunotherapy treatments for severe respiratory allergies Wholesale trade pharmaceutical products to pharmacies Provides vaccines, proteins, and antibodies Manufactures injectable pharmaceuticals Provides healthcare and psychiatric treatment services Provides respiratory protection products and contamination protection clothing Manufactures generic medicines and biopharmaceuticals Manufactures protein electrophoresis diagnostic tests and analyzers Provides health and social care services Manufactures surgical equipment and devices for vision care Develops medical equipment and solutions Provides pharmaceutical formulas, instruments and pharmaceutical raw materials Provides drugs for the treatment of rare and life-threatening diseases Manufactures pharmaceutical products Provides generic pharmaceutical products Provides support services for people with mental health problems Manufactures injectable pharmaceutical products Manufactures generic pharmaceutical products Provides medical technologies
E
Tertianum AG Heraeus Kulzer GmbH Permobil AB Gambro AB Pronova BioPharma ASA Amdipharm Plc Mediq NV Aenova Holding GmbH BSN Medical GmbH Dako A/S Actavis Group Hf. Dr. Horst Schmidt Kliniken Gmbh Omega Pharma NV Astra Tech AB Nucletron BV Médica France, S.A. Specifar S.A. Sanitas AB Nycomed SICAR S.C.A. Phadia AB PharmaSwiss S.A. Capio Sanidad S.L. Q-Med AB Eurand N.V. Stallergenes SA Alliance Healthcare Deutschland AG Crucell N.V. Bioniche Pharma Aleris AB Sperian Protection SA ratiopharm GmbH Sebia SA Care UK Alcon Dräger Medical GmbH Arseus NV Swedish Orphan International AB Abbott Products SA Arrow Group Craegmoor Healthcare Fresenius Kabi Pharmaceuticals Zentiva N.V. ConvaTec Healthcare B S.a.r.l.
PL
Swiss Prime Site AG Mitsui Chemicals Investor AB Baxter International BASF AS Amdipharm Mercury Advent International BC Partners EQT Partners AB Agilent Technologies WATSON PHARMA Rhön-Klinikum Aktiengesellschaft Omega Pharma Invest NV DENTSPLY International Elekta AB Batipart SAS; Covéa Mutual Ins. GRp. Actavis Valeant Pharmaceuticals International Takeda Pharmaceutical Thermo Fisher Scientific Biovail International CVC Capital Partners Galderma Pharma S.A. Axcan Pharma Ares Life Sciences SA Alliance Boots GmbH Cilag Holding AG Mylan, Inc. Investor AB Honeywell International Teva Pharmaceutical Industries Cinven Limited Bridgepoint Advisers Limited Novartis AG Dragerwerk AG & Co. KGaA Waterland Private Equity Investments Swedish Orphan Biovitrum Abbott Laboratories Actavis Advent International Fresenius Kabi AG Sanofi Nordic Capital; Avista Capital Holdings
Business Description (Target)
EX TR
Target
M
11-Jun-13 4-Apr-13 27-Mar-13 4-Dec-12 21-Nov-12 15-Oct-12 24-Sep-12 6-Aug-12 11-Jun-12 17-May-12 25-Apr-12 9-Feb-12 2-Sep-11 22-Jun-11 21-Jun-11 26-May-11 25-May-11 24-May-11 19-May-11 19-May-11 1-Feb-11 10-Jan-11 13-Dec-10 1-Dec-10 28-Oct-10 18-Oct-10 6-Oct-10 14-Jul-10 2-Jul-10 19-May-10 18-Mar-10 15-Mar-10 3-Mar-10 4-Jan-10 29-Dec-09 9-Nov-09 5-Nov-09 26-Sep-09 16-Jun-09 18-Jul-08 7-Jul-08 18-Jun-08 7-May-08
Buyers
SA
Date
AC T
Since January, 2008 Transaction Value ($M)
533 579 844 4,014 941 589 1,485 621 2,274 2,944 5,988 399 1,388 1,948 525 304 620 457 13,767 3,513 524 1,165 1,185 580 500 612 2,334 550 361 1,394 4,936 1,093 742 28,913 421 126 588 7,653 1,744 579 5,720 2,056 4,100
Average Median
EV/ LTM Revenues
EV/ LTM EBITDA
P/E
2.31x 1.27x 3.44x 2.40x 2.87x 3.34x 0.40x 2.00x 2.74x 8.97x 2.39x 3.06x 1.35x 2.87x 2.85x 2.14x 5.18x 3.59x 2.71x 6.71x 2.11x 1.63x 4.62x 2.92x 3.67x 0.12x 4.66x 4.23x 1.07x 1.64x 2.27x 6.67x 1.09x 7.89x 0.66x 0.96x 5.59x 1.93x 2.70x 1.77x 8.14x 3.07x 3.55x
15.5x NA 15.7x NA 6.0x NA 8.1x NA 10.9x 29.2x 14.5x NA 8.3x 16.0x 14.0x 9.4x NA 10.8x 10.9x 16.5x NA 8.0x 18.2x NA 14.3x 7.6x NA NA 12.5x 12.3x 11.8x 13.3x 7.4x 20.6x NA 9.6x 18.7x NA NA NA 22.1x 11.8x NA
NA NA NA NA 18.0x NA 21.8x NA NA NA NA NA 13.3x 29.2x NA 23.9x NA 20.0x NA NA NA NA 32.9x NA 27.0x 11.0x NA NA NA 37.6x NA NA 19.7x 27.0x 50.0x 12.9x NA NA NA NA 46.9x 46.3x NA
3.15x 2.74x
13.4x 12.4x
27.3x 25.4x
CONFIDENTIAL
M&A VOLUME ANALYSIS – EUROPEAN HEALTHCARE SECTOR
M&A Volume Analysis – European Healthcare Sector
EBITDA multiples have consistently expanded since 2009, with the only exception year being 2012
PE multiples show a significant decline in YTD 2013 compared to historical period as there were only two disclosed values
Source: CapitalIQ.
30
$39.2
$22.7
384
$35.1
400
$21.8
20
200
0
EV/Revenue Multiple
$39.3
0
2008
2009
2010
2011
2012
14.0x
13.2x
11.6x
12.0x
12.2x
2008
2009
2.25x
2.28x
2010
2011
2.62x
1.00x 0.50x 0.00x 2012
YTD 2013
Average Implied Equity Value/LTM Net Income
E
16.0x
2.42x
1.50x
YTD 2013
Average Implied EV/LTM EBITDA
2.41x
2.77x
2.00x
EX TR
40
600 No. of Deals
60 50
3.00x 2.50x
10
Financial markets turmoil amidst the credit crisis impacted the deal activity in 2009, which was reflected in the lowest deal volume and value in the last five year period in that year
Revenue multiples have historically been range-bound; however they witnessed expansion in 2012 on account of select high multiple deals like Gecina’s acquisition of Portfolio of Six Nursing Homes at a multiple of 15.9x
597
800
691
14.8x
30.0x
12.8x
25.0x 10.3x
25.0x
26.7x
19.7x
20.0x
10.0x
P/E Multiple
70
747
713 $66.8
PL
761
Average Implied EV/LTM Revenue
8.0x
M
Peak in terms of deal value for Healthcare M&A in Europe occurred in 2010, however the peak in terms of deal volume occurred in 2008
80
EV/EBITDA Multiple
Transaction volume decreased 7% in 2012, compared to 2011, from 747 to 691 acquisitions. Deal value fell 10%, from $39.2 billion to $35.1 billion
SA
M&A Deal Value and Volume
Value ($ billions)
Key Points
AC T
Statistics
6.0x 4.0x 2.0x
0.0x
20.9x
22.3x
15.0x 9.7x
10.0x 5.0x 0.0x
2008
2009
2010
2011
2012
YTD 2013
2008
2009
2010
2011
2012
YTD 2013