Two deals to­tal $23.3 bil­lion

Modern Healthcare - - The Week In Healthcare - Paul Barr

The pro­lif­er­a­tion of big health­care deals con­tin­ued last week with news of a pend­ing $3.2 bil­lion pri­vate-equity buy­out of Emer­gency Med­i­cal Ser­vices Corp. and Sanofi-Aven­tis’ plans to pay $20.1 bil­lion in cash for Gen­zyme Corp.

Emer­gency Med­i­cal signed a de­fin­i­tive agree­ment to sell the pub­licly traded emer­gency trans­port and physi­cian ser­vices com­pany to pri­vate-equity firm Clayton, Du­bilier & Rice for a mar­ket-dis­counted price. The trans­ac­tion value also in­cludes net debt and es­ti­mated trans­ac­tion costs of ap­prox­i­mately $ 300 mil­lion, ac­cord­ing to a news re­lease from Emer­gency Med­i­cal.

The deal, ex­pected to close in the sec­ond quar­ter, was struck at $64 per share, which is 9% less than the $70.66 value of the stock at the close of Feb. 11, the Fri­day be­fore the an­nounce­ment was made early Feb. 14.

Emer­gency Med­i­cal Chair­man and CEO Wil­liam Sanger, how­ever, said in an in­ter­view that the com­pany’s share price had risen more than 30% since the com­pany an­nounced Dec. 14 that it was con­sid­er­ing strate­gic al­ter­na­tives to en­hance share­holder value, with the stock price clos­ing at $53.86 be­fore that an­nounce­ment.

Emer­gency Med­i­cal has two pri­mary busi­nesses—Amer­i­can Med­i­cal Re­sponse, a health­care trans­porta­tion com­pany, in­clud­ing ground and air trans­port, and EmCare, which of­fers out­sourced physi­cian ser­vices for ar­eas such as emer­gency de­part­ments, in­pa­tient ra­di­ol­ogy and anes­the­si­ol­ogy.

Ac­cord­ing to Emer­gency Med­i­cal’s most re­cent an­nual re­port, Toronto-based in­vest­ment firm Onex Corp. or its af­fil­i­ates con­trolled 82% of the com­pany’s vot­ing power.

Mean­while, the deal be­tween SanofiAven­tis and Cam­bridge, Mass.-based Gen­zyme comes af­ter the French drug­maker launched a hos­tile takeover bid.

Af­ter al­most nine months of back-and­forth, Sanofi-Aven­tis fi­nally de­cided Gen­zyme’s port­fo­lio of rare disease treat­ments was worth an ex­tra $5 a share over its orig­i­nal $69 per share of­fer, ac­cord­ing to the Associated Press.

The deal, which the boards of both com­pa­nies unan­i­mously ap­proved, is ex­pected to close early in the sec­ond quar­ter.

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