TheChek News Flow

This is a roundup of the largest pending deals in the healthcare sector over the last month, where targets are global, according to Mergermarket data. The date shows the last update published by this news service. This list does not take into account deals that may have been completed but have not yet been made public.

Stallergenes / Greer Laboratories (30/03/2015)

Stallergenes [EPA:GENP] announced on 3 March 2015 that it had received a proposal from its majority shareholder Ares Life Sciences, which sought to bring together the activities of Stallergenes and US company Greer Laboratories to form the global leader in allergy immunotherapy. Ricol Lasteyrie Corporate Finance has been appointed as independent expert. Stallergenes has also hired Lazard to assist in the analysis of the terms and conditions of the proposed transaction. Ledouble is the official Court-Appointed Valuation Expert.

Primary Health Care (29/03/2015)

Several commercial lenders are said to be involved in financing discussions to support a leveraged buyout of Primary Health Care [ASX:PRY], a health group, the Australian Financial Review reported. Primary is not yet believed to have received an approach but funding talks indicate that a buyer may be getting serious about making an offer. Primary has a market capitalisation of AUD 2.57bn (USD 2.02bn).

Bayer’s blood glucose meter business (28/03/2015)

Panasonic Healthcare, a Japanese maker of medical equipment, will make a JPY 100bn (USD 836m) offer to Bayer [ETR: BAYN] to acquire its blood glucose meter business in an auction, the Nihon Keizai Shimbun reported. Bayer will run an auction to sell the business, which has annual revenue of about JPY 100bn. Other companies are also expected to make bids.

BioMarin Pharmaceutical (27/03/2015)

Shire [LON:SHP] is interested in merging with California-based BioMarin Pharmaceutical [NASDAQ:BMRN], the Betaville blog reported. Shire recently approached BioMarin regarding a deal, though it is unclear if there have been any further developments. Lazard and Morgan Stanley are advising Shire and the latter has been named as the leader in financing for the deal. BioMarin is believed to have drafted financial advisers as well, including Centreview Partners or Evercore, to defend it against a larger predator. Shire might not be the lone suitor interested in the target, as Roche was also reported to have been interested in BioMarin a few years ago.

Aspen Pharmacare (26/03/2015)

GlaxoSmithKline [LON:GSK] could look to sell the rest of its stake in Aspen Pharmacare Holdings [JSE:APN] to gain more liquidity, Mergermarket reported. Given that GSK has committed to paring back to its core products, it would most likely be a seller of the Aspen stake in the long term. It could do so as soon as the lock-up period expires and could also be looking at other non-core stakes to sell down.

Amoun Pharmaceuticals (26/03/2015)

Amoun Pharmaceuticals, the Egypt-based drugs group, has replaced Jefferies Group, the sale adviser it appointed in 2014, with Goldman Sachs, according to the Washington Post. The paper cited Amoun CEO Mohamed Roushdy. Amoun shareholders are also open to a possible initial public offering. Amoun’s owners include Capital Group, Concord International Investments, and the Rohatyn Group, who acquired the veterinary and human drugs maker in 2006. The company is now worth around USD 700m-USD 800m.

Smith & Nephew (26/03/2015)

Smith & Nephew [LON:SN] Chief Executive Olivier Bohuon has downplayed the prospects of the UK-based medical devices manufacturer getting involved in industry consolidation, the Financial Times reported. Bohuon said Smith & Nephew has no wish to take part in further consolidation due to low growth in the medical devices sector. As previously reported, Stryker [NYSE:SYK] disclosed last year that it had considered bidding for Smith & Nephew. Johnson & Johnson [NYSE:JNJ] was also reportedly interested in making a takeover bid.

Becton Dickinson (25/03/2015)

Becton Dickinson, a Franklin Lakes, New Jersey-based medical-devices and services company, is working with advisers on the potential sale of its respiratory-devices business in a deal that could command USD 1.5bn - USD 2bn, according to a newswire report. It cited a Becton Dickinson spokesperson who confirmed the company was conducting a strategic review of all of its assets, but said it hasn't decided on any specific strategy.

Patterson Companies’ rehabilitation supply business (18/03/2015)

Patterson Companies [NASDAQ:PDCO] is working with BofA Merrill Lynch to divest its rehabilitation supply business, as the medical supplies distributor hones in focus on its dental segment, according to Mergermarket. The carveout is expected to fetch a valuation of at least 9x EBITDA, or around USD 585m.

Salix Pharmaceuticals (17/03/2015)

Valeant Pharmaceuticals International [NYSE:VRX] could ask shareholders Bill Ackman and Jeff Ubben to help finance its increased takeover bid for Salix Pharmaceuticals [NASDAQ:SLXP], the Financial Times reported. Valeant on 16 March announced that it had increased its takeover offer for Salix from USD 158 (EUR 149) per share to USD 173 per share, an increase of USD 1bn. The increased bid values Salix at USD 15.8bn. Earlier in March Endo International [NASDAQ: ENDP] had also submitted a USD 175 per share proposal to acquire Salix, but later withdrew its offer.

Laboratoires Nutrition et Cardiometabolisme (11/03/2015)

French private equity group Seventure Partners has mandated Ferghana Partners to sell its portfolio company Laboratoires Nutrition et Cardiometabolisme (LNC), according to Mergermarket. The sale process is underway and a few CDAs have been signed with interested parties. Bidders in the medical nutrition space that are interested in clinically validated products could include players such as Nestle [VTX:NESN]. An independent payor's study has shown that the product has reimbursement potential in the US and EU with a USD 1bn (EUR 952m) market value.

Synlab (06/03/2015)

Synlab, a German laboratory group, may be sold, with potential suitors including Fresenius Medical Care [ETR:FME], according to a newswire report. Fresenius was mentioned along with private equity players. BC Partners is considering selling the laboratory operator and is thought to be working with investment bank Rothschild with regard to the possible divestment. BC Partners bought Synlab in a EUR 618m deal in 2009.

Mergermarket is a portfolio company of BC Partners.

Mindray Medical International (05/03/2015)

Mindray Medical International [Mai Rui Yi Liao; NYSE: MR] is a logical take-private target as it has been undervalued by US investors despite being one of China’s largest medical device companies, Mergermarket reported. Mindray has been approached by private equity firms for a take-private deal, including Citic PE. Discussions with Citic PE have been ongoing from last year. Mindray expects FY 2014 net revenue to reach around USD 1.3bn.

Genfit (04/03/2015)

Genfit [EPA:GNFT], a French drug developer, is looking to sell and has had early-stage talks with potential buyers, according to Bloomberg. A definitive decision has yet to be made and the EUR 1.5bn market cap company may opt not to sell. Shire [LON:SHP], Novartis [NYSE:NVS] and Sanofi [EPA:SAN] are some of the drugs companies that might be keen on acquiring Genfit. Earlier Mergermarket reported that Genfit could attract significant takeover interest in March if its lead pipeline product GFT505 produces favourable Phase IIb data.

Comcast Corporation announced today that it has entered into an agreement with the Company’s Vice Chairman and Chief Financial Officer, Michael J. Angelakis, to establish a new, strategic company that will focus on investing in and operating growth-oriented companies, both domestically and internationally.

"This is a time of tremendous change and opportunity in our core technology and media industries, as well as in adjacent business areas. We believe the ability to establish entrepreneurial ventures that partner with and participate in the growth of innovative companies can be an important driver of strategic and financial value creation for our company," said Brian L. Roberts, Chairman and Chief Executive Officer of Comcast.

"As Comcast approaches the completion of the Time Warner Cable merger and related transactions, and the integration plans are well advanced, Michael is ready and excited to turn his attention to the next phase of his career and relationship with Comcast," Mr. Roberts added.

Mr. Angelakis will serve as the Chief Executive Officer of the new company and bring his strengths of investing in and operating companies, with benefits accruing to Comcast shareholders. He will lead this new company with a mandate and the resources to pursue new areas of growth and diversification for Comcast.

The new company will have total capital commitments of up to $4.1 billion, of which $4.0 billion will be invested by Comcast, at least $40 million will be invested personally by Mr. Angelakis, with the remainder coming from other senior members of the new company’s management team. This new company will have an exclusive, 10-year partnership with Comcast as sole outside investor.

Comcast will immediately commence a search for a successor Chief Financial Officer, and following the appointment of the new CFO, Mr. Angelakis will then serve as a Senior Advisor to Comcast. Mr. Angelakis will assist with the transition to the new CFO and begin the integration process for the Time Warner Cable and related transactions.

"I am thrilled that Michael will be leading this new initiative. His broad and deep experience in a variety of leadership roles within different industries will be a tremendous asset to the new company. He is an extraordinary leader and strategic partner, and has helped transform Comcast into the media and technology company that we are today," said Mr. Roberts. "His work to structure the NBCUniversal and Time Warner Cable transactions has been invaluable in laying the successful financial groundwork for Comcast. In the past, Comcast has made substantial investments in companies like QVC, Comcast Cellular and SpectrumCo, which have generated tremendous strategic and shareholder value. I couldn’t be more excited about the future and Michael’s role in building this new company."

"As we enter the final phase of the Time Warner Cable transaction, this is a great time to begin a transition and I am excited to start this new, entrepreneurial company," said Mr. Angelakis. "Our industry is dynamic and I am very excited and optimistic about the many opportunities available to Comcast. Comcast is a remarkably well-positioned company and it has been an honor to serve as the Company's Vice Chairman and CFO. I look forward to closing the Time Warner Cable and related transactions and commencing the integration process. As part of our new company, I am very pleased to continue the partnership with my current colleagues and to contribute to Comcast’s future growth and success."

Mr. Angelakis is the Deputy Chairman of the Federal Reserve Bank of Philadelphia and is a Trustee of Babson College. Prior to joining Comcast, Mr. Angelakis was a Managing Director and Member of the Investment and Management Committees at Providence Equity Partners, one of the leading, global private equity firms investing in technology, media and communications companies. Before joining Providence Equity Partners in 1999, Mr. Angelakis was President and Chief Executive Officer of State Cable TV Corporation and Aurora Telecommunications. He also served as a Vice President of Manufacturers Hanover Trust Company in New York, where he oversaw one of the bank’s media and communications portfolios. Additionally, Mr. Angelakis spent several years in London developing Manufacturers Hanover’s acquisition finance and merchant banking activities throughout Western Europe.

A more detailed description of the arrangements between Mr. Angelakis and Comcast is set forth in Comcast’s Current Report on Form 8-K to be filed with the Securities and Exchange Commission. The binding agreement for the arrangements will be attached to that filing.

- rise in inflation is not a requirement for increasing rates, policy should focus on inflation outlook and not current inflation

Corporate real estates are hot properties nowadays and so are the companies that service them.

CBRE Group, the world's largest commercial real estate services company by revenue, has agreed to acquire Johnson Controls' facilities management business for $1.47bn.

The division — called Global WorkPlace Solutions — provides on-site maintenance services for more than 1.8bn square feet of corporate real estate and had $4bn in revenue for the year to September 2014.

For CBRE, the deal would add more scale to its own real estate service business.

For Johnson, which will be the preferred provider of HVAC equipment, building automation systems to the portfolio of real estate and corporate facilities managed by CBRE and GWS, the deal is expected to generate up to $500m a year worth of new revenue for its building efficiency business.

Alex Molinaroli, chairman and CEO of Johnson Controls said:

This agreement with CBRE is a great step for both companies that will allow each of us to build upon our core strengths to create new sources of value for our customers.

In addition, the new strategic partnership provides another new, strong channel for Johnson Controls to serve CBRE and its clients around the world with our full portfolio of buildings technologies and services.

Shares of Johnson rose 3.6 per cent to $49.83 in pre-market trading.

Valeo was +43% on the last 12m

- Guides FY15 adj EBITDA $2.76B, FY16 $2.89B, FY17 $3.16B

- Cancels €3.4B in debt in 2014

- Expects to cancel €3.0B in 2015

- Follow up: Euro Area Finance Ministers to hold conference call on Wed, April 1st

- Call set for 09:00 ET/13:00 GMT