News & Views

2nd March 2017

Montreux Healthcare Market Update, 2016 summary

The Healthcare market has remained buoyant in 2016. Over the past year specialist care providers saw six completed transactions, exhibiting a wider market motivation to consolidate smaller providers. Notably Cambian sold its adult services business to Cygnet Health Care for £377m and an EBITDA multiple of between 11.5-15x.

In the wider healthcare market M&A activity remained strong with 121 deals completed, marking the second buoyant year in the space; 2015 seeing 123 transactions. It is clear that global capital continues its attraction to UK Healthcare companies with 29 transactions made by international acquirers. Private Equity firm interest remained high, most notably shown through the BC Partners acquisition of 22 mental health hospitals from The Priory Group. Private Equity firm interest is perhaps the most interesting trend to chart for Montreux Capital Management due to the potential exit strategy for the Healthcare Fund once the portfolio matures.

Oliver Harris, CEO of Montreux Capital Management stated: “2016 marks the second year in which we have seen strong investments in the healthcare space both domestically and internationally. Within Specialist Care, deal flow remains strong and international interest in acquiring larger businesses is good news for our long term plan with a potential exit on the horizon. Of course, at Montreux our investors are very familiar with the opportunity the specialist care sector presents but of course, it is encouraging to see our assertions strengthened by yet more global institutional investor interest in the space.”

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