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Global medical equipment deals market: $7.5 billion valuation in Q1 2013

Press release   •   May 01, 2013 13:57 BST

M&As and asset transactions in the global medical equipment market reported a decline in the number of deals in Q1 2013 with 139 deals, compared to 162 deals in Q1 2012, reflecting a decrease of 14%. On a quarter-on-quarter basis, the number of deals decreased in Q1 2013, compared to 164 deals in Q4 2012. Deal activity slowed as companies have been apprehensive about their investments owing to macroeconomic and geopolitical concerns.

Deal values of M&As reported an increase with $7.5 billion in Q1 2013, compared to $7.2 billion in Q1 2012. However, on a quarter-on-quarter basis, deal values decreased 40% in Q1 2013, compared to $12.6 billion in Q4 2012. Healthcare IT and in-vitro diagnostic markets recorded the highest number of deals in Q1 2013 with 31 deals and 25 deals, respectively.

Cardinal Health, Inc., a provider of health care services, completing the acquisition of AssuraMed, Inc., a provider of disposable medical products to patients suffering from chronic diseases, from Clayton, Dubilier & Rice, Inc. and GS Capital Partners L.P, private equity firms, for a purchase consideration of $2,070m, is the only deal that exceeded $1 billion mark in Q1 2013. This acquisition is expected to enable Cardinal Health to broaden its reach, and serve patients with chronic diseases or those under post-acute care; extend its core capabilities to the home care segment with a specialized and scalable platform; improve its ability to service customers across the ambulatory care channel, including care sites such as physician offices and in support of home health agencies; improve its payor relationships and expertise; deliver branded medical products directly to patients, consumers and local home medical equipment providers; extend its offerings to retail pharmacy and health system customers; supply to home health care channel product lines including ostomy, diabetes, insulin therapy, urological, wound care and incontinence.

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