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Best of the Middle Market: Healthcare, Pharma & Biotech

By Deal Staff
|
Published: June 25th, 2020

Our next installment of our Best of the Middle Market series, we rundown the nominees for our healthcare, pharmaceutical and biotechnology deals of the year, as well as select dealmakers and firms in the sector.

In the middle market, in particular, healthcare services such as behavioral health, in-home care and staffing, remained hot, with consolidation led by private equity and a handful of strategic acquirers. In the pharmaceutical and biotech arena, oncology drugs garnered a lot of attention while research and development were also key to dealmaking, especially in the middle market.

Much like every industry amid the recent coronavirus pandemic, healthcare generally has garnered a new level of attention, some good and some bad. Regardless, we take this unique lull to celebrate the dealmakers behind some of the most influential and exemplary deals of 2019.

For more on the awards, or to have your firm profiled as part of the series, please contact Jenney.Smith@thedeal.com or check out the shortlist for more information.

Featured dealmaker in Healthcare, Pharma and Biotechnology

Matthew Rizzo

A partner in the firm’s corporate and financial services department and private equity practice, Willkie’s Matthew Rizzo has worked with a range of PE clients in the middle market, with a strong focus on healthcare.
Full profile

Featured Deals in the Middle Market 

*Healthcare, Pharma & Biotech Finalists*

Clearview sells Advanced Medical Personnel Services to AMN Healthcare
Target/Seller: Advanced Medical Personnel Services Inc./
Clearview Capital LLC
Investment Adviser:
Piper Jaffray & Co.
Outside Counsel:
Alston & Bird LLP
PR Firm:
BackBay Communications Inc.
Acquirer: AMN Healthcare Services Inc.
Outside Counsel:
Krevolin & Horst LLC
Description: After a four-year hold, Clearview Capital LLC agreed to sell healthcare staffing company Advanced Medical Personnel Services Inc. to AMN Healthcare Services Inc. (AMN). The price tag is $200 million, plus up to an additional $20 million based on Advanced’s financial performance this year, according to a news release issued by the buyer on April 30. During Clearview’s ownership, Advanced more than tripled its revenue and Ebitda, Blevins said. Advanced has an annualized run rate of about $140 million of revenue and adjusted Ebitda of $20 million, according to the news release.
Deal Memo
More on the process
Awards Information

LabCorp retools Covance through M&A with Envigo
Target/Seller:
Envigo nonclinical research services
business/Envigo International Holdings Inc.
Investment Adviser:
Wells Fargo Securities LLC
Jefferies LLC
Outside Counsel:
Cahill Gordon & Reindel LLP
Acquirers:
Covance Inc./Laboratory Corp. of America Holdings Inc.
Investment Adviser:
Goldman, Sachs & Co.
Counsel to I-bank:
Skadden, Arps, Slate, Meagher & Flom LLP
Outside Counsel:
Hogan Lovells
Description: Life sciences firm Laboratory Corp. of America Holdings (LH) on April 17 revamped its Covance drug development unit with purchase of the non-clinical contract research services business of Envigo International Holdings Inc. Simultaneously, the Princeton, N.J.-based company announced it would divest Covance’s research products division to Envigo’s research models services business. With the proposed transactions, Covance grew its non-clinical drug development capabilities, while East Millstone, N.J.-based Envigo will become a pure-play research model and services business.
Envigo Deal Memo
Covance Deal Memo
More on the process
Awards Information

Merck, ImmuneMerck acquires late-stage immunotherapy company Immune Design
Target:
Immune Design Corp.
Investment Adviser:
Lazard Ltd.
Counsel to I-bank:
Sullivan & Cromwell LLP
Outside Counsel:
Cooley LLP
Acquirer:
Merck & Co.
Investment Adviser:
Credit Suisse Group
Outside Counsel:
Gibson, Dunn & Crutcher LLP
Description: Merck & Co. (MRK) in February 2019 agreed to buy late-stage immunotherapy company Immune Design Corp. for $5.85 per share in cash or about $300 million. Seattle-based Immune Design uses in vivo approaches to enable the body’s immune system to battle disease. Analysts praised the deal as both affordable and inline with expectations from Merck. For the target, the deal brought it together with a familiar face. Merck and Immune entered into a pact in 2015 to collaborate on combination studies of two Immune Design therapies with Merck’s Keytruda for Non-Hodgkin’s lymphoma and melanoma.
Deal Memo
More on the process
Awards Information

Gryphon LearnGryphon Investors acquires majority stake in Learn Behavioral from LLR Partners
Target/Seller:
Learn Behavioral/LLR Partners Inc.
Investment Adviser:
Harris Williams & Co.
Outside Counsel:
McGuireWoods LLP
Acquirer:
Gryphon Investors LP
Investment Adviser:
Berkery, Noyes & Co.
Outside Counsel:
Kirkland & Ellis LLP
PR Firm:
Lambert Blicksilver
Description: Gryphon Investors on March 19, 2019 made its first investment in the behavioral health realm with its purchase of a majority stake in Learn Behavioral from LLR Partners Inc. Baltimore-based Learn, founded in 2006, offers treatment services for autism and related disorders in homes, dedicated centers and schools. It serves north of 4,000 families in 23 states, according to the news release. LLR and senior management will retain minority stakes in the business.
Deal Memo
More on the process
Awards Information

AtriCure acquires fellow medical device company SentreHeart
Target/Seller:
SentreHeart Inc.
Investment Adviser:
Guggenheim Securities LLC
Outside Counsel:
Goodwin Procter LLP
Acquirer:
AtriCure Inc.
Investment Adviser:
Piper Jaffray & Co.
Outside Counsel:
Pepper Hamilton LLP

Description:  On Aug. 12, AtriCure Inc. said it would significantly grow its addressable markets with a deal to buy fellow medical device company SentreHEART Inc. for up to $300 million. Terms of the deal included an upfront payment of about $40 million in cash and stock plus up to $260 million in potential milestone payments. Redwood City, Calif.-based SentreHEART, founded in 2005, has developed technology for remote delivery of suture for closure of anatomic structures including the left atrial appendage. AtriCure, based in Mason, Ohio, offers technologies for the treatment of atrial fibrillation and related conditions.
Deal Memo
Awards Information

Nominees for other healthcare categories including investment bank, law firm and dealmaker can be found here.

To have your firm profiled as part of the series, please contact Jenney.Smith@thedeal.com or check out the shortlist for more information.

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