PE HUB Healthcare Wire Highlights, 6.20.19

healthcare, private equity, medicine

Investors keep on howlin’ for vet deals

Good morning!

There was no skipping a beat this week in healthcare M&A.

Thomas H. Lee Partners is snapping up Francisco Partners’ specialty EMR company, Nextech, after a deal with another suitor fell apart last year, I learned, while Europe’s Nordic Capital prevailed in a process for another U.S.-headquartered e-clinical company, ArisGlobal.

But it was retail health that took center stage.

Underscoring the veterinary care industry’s continued strong momentum and scarcity value: JAB, only four months after unexpectedly outbidding financial sponsors to take home the win for Quad-C’s Compassion First, surprised investors yet again when it revealed plans to scoop up an even larger U.S. vet chain: National Veterinary Associates.

JAB, which invests on behalf of Germany’s Reimann family, is buying NVA from existing investors Ares Management and OMERS Private Equity. Ares, whose investment dates to July 2014, sold a minority stake to OMERS two years ago.

Financial terms weren’t disclosed, but a couple sources speculated this week the deal commanded a valuation around the ballpark of $5 billion or greater. The deal with NVA came together outside of a formal process, I’m told.

JAB’s deal for Compassion-First earlier this year commanded a total EV of about $1.22 billion, after the buyer topped sponsors’ bids by more than $100 million.

Read my February story for more details on the longstanding relationship between JAB CEO Olivier Goudet and Compassion-First CEO John Payne.


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