Merger & acquisition volume in the medical device space jumped nearly 40% this year, but the real news is a surge in valuations, which soared some 504% compared with 2013.
Merger & acquisition activity surged this year in the medical device industry, with both the number and value of deals climbing to new heights after years of decline, according to a MassDevice.com analysis.
The number of deals during 2014 rose 39.0% to 57, from 41 in 2013, according to our look at transactions with announced values. But the real news is the surge in valuations: The total value of those 57 deals soared 504.1% to $86.39 billion, compared with just $14.3 billion last year.*
Nearly half of that value represents the blockbuster, $43 billion union of Medtronic (NYSE:MDT) and Covidien (NYSE:COV). Excluding that deal, the other 56 were collectively worth $43.4 billion – incredibly, still a whopping 203.4% over 2013.
The 10 biggest deals were worth a collective $79.6 billion ($36.6 billion absent Medtronic/Covidien):
- Medtronic: $43 billion for Covidien
- Zimmer: $13.45 billion for Biomet
- Becton Dickinson: $12.2 billion for CareFusion
- Wright Medical: $3.3 billion for Tornier
- Danaher: $2.14 billion for Nobel Biocare
- Steris: $1.9 billion for Synergy Health
- Smith & Nephew: $1.7 billion for ArthroCare
- Sterigenics: $826 million for Nordion
- Merz: $600 million for Ulthera
- CareFusion: $500 million for GE Healthcare’s Vital Signs
Several companies were particularly acquisitive this year, making multiple buyouts across the space:
- Medtronic: 6 deals for a total of $43.97 billion ($965 million excluding Covidien)
- Covidien: 5 deals worth at least $186 million
- Stryker: 4 deals worth at least $667 million
- Becton Dickinson: 3 deals worth at least $12.2 billion
- Wright Medical: 3 deals worth a total of $3.4 billion
- Sorin Group: 3 deals worth at least $40 million
Other notable multiple acquirers include:
- Danaher: Nobel Biocare for $2.14 billion and Devicor Medical, by its Leica division, for an undisclosed amount;
- St. Jude Medical: CardioMEMS for $455 million and
NeuroTherm for $200 million;
- Boston Scientific: Bayer’s interventions assets for $415 million and its remaining stake in IoGyn for $65 million; and
- Spectranetics: AngioScore for $230 million and Covidien’s Stellarex balloon assets for $30 million as part of the Medtronic buyout.