Category — Investors

Bridgepoint will be concluding the acquisition of UK care services provider Care UK.

Care UK provides care services through it’s facilities as well as in the growing home care sector. In addition they are a provider of NHS Walk-In centers. The acquisition is valued at 309 million Euro (about 460 million US Dollars).

Jamie Wyatt, director responsible for Bridgepoint’s UK healthcare investment activity, said, “Today’s offer is a fair one that comes with the unanimous recommendation of the independent directors of Care UK to the Care UK shareholders, and which will allow Care UK to accelerate growth and undertake selective acquisitions in a way that it was unable to as a quoted business.”

As an aside this compares in several ways with the 920 million US Dollar investment that Blackstone made to take (homecare services provider) Apria private in the USA. We wrote about this last year “Why Invest In Homecare? – Revisited – Blackstone Bids For Apria“.

Of course Care UK and Bridgepoint will continue to be going up against the likes of the agile and behemoth Bupa who is also not sitting still.

To view other Bridgepoint healthcare investments click here and adjust the tab.

With the age and population demographic being so favorable, these types of deals in services and facilities will only continue.

Frank Barlin is Managing Partner at Sibaya LifeScience!

Press Release:

Handicare takes the next step to success

2 February 2010 – Midlands based Stairlift manufacturer Minivator has signed a deal to become the latest member of the family of companies in the Norwegian based Handicare, subject to regulatory approval.

Previously owned by its Directors and Gresham PE, Minivator Group has had an exceptional growth record, indeed it continued to experience double digit growth throughout the testing economic climate of recent years. With a core product range of stairlifts Minivator has expanded its presence establishing operations in North America and Germany and have recently started its own manufacturing base in the Far East. It has seen expansion within the UK having taken on new premises at least four times in the last three years.

As one of the world’s leading manufacturers of stairlifts with a turnover of approx. 55 million Euro, and 420 employees selling to over 35 countries the Minivator Group was a desirable prospect for many companies. The board were in no rush to sell, choosing instead to spend time finding the perfect partner to move forward with. They found such a match with the Handicare Group. Minivator CEO Mike Lord commented “We were looking for a buyer who not only made sound business sense but who was also a great fit with the culture and values that Minivator holds at its core. We are delighted with the deal and are looking forward to seeing what the future holds. We believe exciting times are ahead and being part of a larger and well established group that holds similar ethical beliefs will open up many opportunities that will be mutually beneficial and rewarding.”

The healthcare company Handicare AS, owned by Herkules Private Equity Fund1, was founded in 1986 and has operations in technical aids like wheelchairs and home care products in addition to adaptation of cars for elderly and physically disabled people. Through its subsidiary Puls, the Group also has a leading position in Norway in the sales of capital goods and consumables to hospitals and institutions. Handicare has its headquarters in Moss, Norway, and has subsidiaries in Sweden, Denmark, Germany, the Netherlands, England, Belgium, Poland, USA and Canada, and distribute its own products to an additional 30 markets. Handicare has just shy of 1000 employees and reached sales over 250 million Euro in 2009.

Handicare CEO Per Gunnar Borhaug explained “Handicare has grown both organically and through the acquisition of successful companies that had the same drive as Handicare: the desire to provide excellent products and services that help improve the quality of life for the less able, the elderly and those who care for them. Having identified Minivator Group as a financially promising acquisition target we were delighted to find that they had the kind of culture that would fit right in with Handicare’s other companies.”

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For further information concerning this press release please contact:

Per Gunnar Borhaug, CEO Handicare, +47 69 24 44 28

Mike Lord, CEO Minivator, +44 (0) 1384 40 87 00

[1] Herkules Private Equity Fund 1 is an investment fund with Euro 250 million in capital from 25 Norwegian and international investors. Herkules Capital has in total 1,4 bill Euro under its administration. HPEF has a financial strength which enables them to take a dominant position of ownership in well-established companies with a potential for further growth. Herkules acquired Handicare in July 2005 and has during the latest three years tripled the size of Handicare and is aiming for further growth.

More about Handicare over time on this blog

Press release:

Handicare acquires Ligtvoet Products

Helmond – 30 June 2009 – Handicare acquires manufacturing company Ligtvoet Products, part of the Harting-Bank Group. Ligtvoet Products, also known as Lipro, develops and manufactures care and rehab mobility products for disabled people. The dealer organisation Ligtvoet will continue to be part of the Harting-Bank Group.

Ligtvoet Products, based in Helmond, the Netherlands, is a former family business which started as a bicycle manufacturer. Since 1965 Ligtvoet Products has specialized in developing and manufacturing high-quality comfort and rehab mobility products. Ligtvoet Products has a strong position in the Dutch market and export sales to Belgium and Switzerland. For now, Ligtvoet Products will continue to operate independently under the name Lipro. Handicare aims to integrate the company’s activities into the Handicare organisation by the end of the year. Handicare will take over all Ligtvoet Products’ staff.

Handicare is one of the fastest growing healthcare companies in Europe. The company offers solutions and support to increase the independence of disabled or elderly people as well as to improve the convenience of those who are caring for them.

The acquisition of Ligtvoet Products is part of Handicare’s growth ambitions. ”We will grow both organically and through acquisitions and we have a strong development internationally”, says Rens Schoenmakers, Senior Vice President Mobility of Handicare. ”With the expertise and products of Ligtvoet Products we are now able to offer a wider range of manual and power wheelchairs, and scooters. This will strengthen our position in the Netherlands as well as in other geographical markets,” says Schoenmakers.

”We are very positive about Ligtvoet Products becoming part of Handicare,” says Marco Jungschlager, CEO of Harting-Bank Group. ”The activities of Ligtvoet Products have a very good fit with Handicare. The organisation, expertise and extensive dealer network of Handicare can contribute to further development of the Lipro products. Additionally, we are very happy for our staff. Their jobs remain in the Netherlands, close to our operation in Helmond. Our Group will be able to fully focus on service and supplying solutions to the end users,” says Jungschlager.

About Handicare
The healthcare company Handicare AS, owned by Herkules Private Equity Fund, was founded in 1986 and offers solutions and support to increase the independence of disabled or elderly people as well as to improve the convenience of those who are caring for them. Handicare’s extensive range of products is designed to satisfy specific local market needs and includes high-quality mobility products, patient handling and bathroom safety products, stair lifts and car adaptations. Through its subsidiary Puls, the Handicare Group also has a leading position in Norway in the sales of capital goods and consumables to hospitals and institutions. Handicare, headquartered in Moss, Norway, has long-established operations in Sweden, Denmark, Germany, the Netherlands, United Kingdom, Belgium, Poland, USA and Canada, and distributes its own products to an additional 30 markets. The Handicare Group reached a sales revenue of 225 million Euros in 2008.

About Harting-Bank Group
Harting-Bank B.V., owned by NPM-Capital since 2006, was founded in 1836 and is a service-provider and supplier of care and rehab products for disabled people. The company focuses on the Dutch market, where it offers services on behalf of various customers to their clients. Customers include local authorities and health insurers. The Harting-Bank Group operates under various labels, including Harting-Bank and Ligtvoet. The Group has country-wide coverage with over 25 independent operations. Harting-Bank has chosen to focus on service and supplying solutions to end users and on qualitative and controlled growth. The Group reached a sales revenue of 100 million Euro in 2008.

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For more information, please contact:
Juliet de Kleijn
Communication Specialist
Handicare
T: +31 (0)492 593893
M: +31 (0)6 46308415
E: juliet.dekleijn@handicare.com

press release:

VMH HEALTH Awarded “Most Promising Life Science Technology Company” at Rice Alliance Life Science Venture Forum
HOUSTON – June 15, 2009 – VMH HEALTH was named one of the most promising Life Science companies at the 8th Annual Rice Alliance for Technology & Entrepreneurship Life Science Venture Forum in Houston last week.

Life Science companies showcased their new ventures for an audience of more than 400 attendees, including investors, venture capitalists, industry representatives, business leaders, advisors/mentors, service providers, and entrepreneurs.

Cynthia A. Doerr, M.D., partner, Essex Woodlands Health Ventures said of the presenters, “This is one of the most mature groups of healthcare-related company presentations that I have reviewed in Houston, and I intend to follow their progress closely.”
VMH Health is a spin-out company from Texas A&M Health Science Center and Scott and White Healthcare. The company has licensed patented technologies from these organizations to develop a diagnostic device and therapy for essential hypertension. The patents are based on over 25 years of research by scientist-physician Dr. Jules Puschett. The company is working with INCELL Corporation in San Antonio to manufacture the prototypes for diagnostic testing and therapeutics, and continues a collaborative effort with Texas A&M Health Science Center and Scott and White Healthcare to develop and commercialize the company’s products.
CEO, Gary Litwin, said of the recognition “we’re very pleased to have been recognized for our company’s efforts to date; we believe this news helps to validate our business mission”.

The one day event culminated in an announcement of the Most Promising Life Science Companies chosen from nearly 35 competitors and judged by the Rice Alliance Information Technology Advisory Board, based on the companies’ elevator pitch presentations. The exercise simulates meeting an investor on an elevator and having only 90 seconds to convince them to invest in your company.
In addition, five other new life science technology companies were pre-selected to present their 10 minute business plan presentation at the forum, and as one of the chosen five, were also named a Most Promising Life Science Technology Company.
Rice Alliance Director Brad Burke, announced the winners of the Most Promising Life Science Company awards at the event. “Every year the quality of companies improves. Many of the companies at this year’s event have developed prototypes, obtained proven results and are on their second round of funding. This makes them more appealing to investors, who have also expressed appreciation for the quality of the companies.”

The Forum was supported by Baker Botts, LLP, Essex Woodlands Health Ventures, Winstead Attorneys and Oracle with media sponsors Houston Business Journal and the BusinessMakers Radio Show. Elevator pitches from the competition can be heard at businessmakersradioshow.com starting June 20, 2009.

More information is available at:
vmhhealth.com and VMHHEALTH CEO Gary Litwin
glitwin@vmhhealth.com

The healthcare system in France is the envy of most developed countries of the world. France is also the worlds 5th largest country in terms of GDP.

This makes the above event one of the world’s top events from a business potential for those that have an interest in the rapidly expanding healthcare sectors concerning geriatrics, disability, homecare and institutional care – as the ageing population moves from acute to chronic care.

GerontExpo-handicap provides a venue for updating on the latest technologies, products, policies and trends as well as providing significant business opportunities for either manufacturers, distributors or service providers to significantly enhance their business by finding the right business partners in France and internationally.

As a plus HIT 2009 (Health Information Technologies) – will take place in the same venue and will be linked to GerontExpo-Handicap. HIT represents the rapidly growing French Healthcare IT industry and is expected to have over 100 participating companies – large and small.

Frank Barlin – Sibaya LifeScience! Managing Partner will be attending and can be contacted here.

While many business are slashing dividends BD continues to increase their dividend for the 36th continuous year. They also announced a stock repurchase program.

“This marks the 36th consecutive year of BD dividend increases. We continue to generate strong cash flow, allowing us to return significant dollars to our shareholders while continuing to make investments for the future,” said Edward J. Ludwig, BD Chairman, President and Chief Executive Officer. “Our strategy of increasing sustainable revenue growth through innovation, complemented by driving operating effectiveness and productivity, is working, and our shareholders continue to benefit.”

Complete story:

BD Board Declares Dividend Increase and Authorizes Additional Share Repurchases

November 25, 2008

Sunrise announced that they have divested their US and South America Guardian business. (by the way the Guardian brand was never strong in their European business).

Sunrise CEO Michael N. Cannizzaro said:

For Sunrise Medical this is an important step in our strategy of being the industry’s leading Mobility and Seating Company. We will work closely with Medline to insure a smooth and seamless transition for all of our valued customers

Medline DME Division President said:

The acquisition of the Guardian line marks a significant step forward in the growth and value-added development of our Durable Medical Equipment division,” said Dave Jacobs, president, Medline Durable Medical Equipment division. “Guardian has a long-standing reputation for excellence and innovation in the healthcare industry and we are very pleased to have the opportunity to build on that tradition. In addition to bolstering our competitive position in the marketplace, the acquisition of this highly respected brand expands the range of products, services and value we can offer our customers

My take on this is that this move represents the next stage in industry (re) focus. Sunrise, a former pure play manufacturer, has chosen to exit a lower value added business that is increasingly dominated by people that have been smart in terms of how they source product from Asia. Medline has considerable expertise in this area.

Of interest perhaps is that this was conducted under Michael N. Cannizzaro’s watch. He was hired in 2007 by Vestarcapital partners – private equity shareholder of Sunrise. At about the same time Sunrise had been split into two parts – namely their respiratory business and wheelchair and other businesses.

Vestarcapital had taken Sunrise private in 2000 and speculation is that they may be looking for an exit.

Last week I wrote about Handicare, a relatively highly differentiated European based rehab company that is rapidly reaching the revenues of Sunrise, that acquired Linido, a relatively low value patient aid business last week.

Interesting…