Ankura Presents Q3 2024 Healthcare M&A Trends: Key Takeaways
Deal News | Jan 14, 2025 | EIN
Ankura's quarterly review of healthcare transactions reveals a decline in merger and acquisition activities in the healthcare sector in the third quarter of 2024, falling to the lowest levels since 2020. This decline was influenced by high borrowing costs, inflation, and increased regulatory scrutiny. The review highlighted several significant transactions, such as the $8.9 billion acquisition of R1 RCM Inc. by TowerBrook Capital Partners and Clayton, Dubilier & Rice, and Carlyle's $3.8 billion acquisition of Baxter International’s Kidney Care segment. Despite the downturn in transaction volume, the hospital sector saw a spike in activities due to Steward Health Care's asset divestitures. The Professional Services sector remained robust, driven by dental practice transactions. Speculation suggests a possible recovery in 2025 as borrowing conditions potentially ease and legislative challenges gain clarity.
Sectors
- Healthcare Services
- Private Equity
- Professional Services
- Outsourced Services
Geography
- United States – The article covers M&A activities within the United States healthcare sector, detailing transactions and regulatory dynamics specific to U.S. healthcare.
Industry
- Healthcare Services – This sector involves companies that provide medical services, develop pharmaceuticals, manufacture medical equipment, and facilitate the provision of these services and products.
- Private Equity – Private Equity firms are featured as significant players in the investments and acquisitions of various healthcare-related companies.
- Professional Services – Refers to the sector where services like dentistry and physician practices are acquired by organizations such as DSOs.
- Outsourced Services – Includes businesses involved with billing, management services, and other operational activities outsourced by healthcare providers.
Financials
- $8.9 billion – The acquisition value for R1 RCM Inc. by TowerBrook Capital Partners and Clayton, Dubilier & Rice.
- $3.8 billion – The acquisition cost for Carlyle's purchase of Baxter International’s Kidney Care segment.
- $2.5 billion – Valuation of the recapitalization transaction for Soliant Health by The Vistria Group.
- $439.4 million – Value of the binding asset purchase agreement by Orlando Health to acquire three Florida hospitals from Steward Health Care.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ankura | Analyst | Company | Provides analysis and insights into healthcare sector transactions for Q3 2024. |
| TowerBrook Capital Partners | Acquirer | Company | Investment fund participating in the acquisition of R1 RCM Inc. |
| Clayton, Dubilier & Rice | Acquirer | Company | Investment fund participating in the acquisition of R1 RCM Inc. |
| Carlyle | Acquirer | Company | Reaching a definitive agreement to acquire Baxter International’s Kidney Care segment. |
| R1 RCM Inc. | Target Company | Company | Provider of technology-driven solutions for healthcare revenue management. |
| Baxter International Inc. | Selling Company | Company | Owner of the Kidney Care segment that Carlyle agreed to acquire. |
| Vantive | Target Company | Company | Will be the new name of Baxter International’s Kidney Care segment following its acquisition by Carlyle. |
| The Vistria Group | Investor | Company | Conducted a recapitalization transaction for Soliant Health. |
| Orlando Health | Acquirer | Company | Acquiring multiple hospitals from Steward Health Care. |
| Steward Health Care | Vendor | Company | Divesting several hospital assets following bankruptcy filing. |
| Prime Healthcare | Acquirer | Company | Agreed to acquire nine hospitals from Ascension Illinois. |