In Vivo is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

In Hospital Supply, Signs of an M&A Renaissance?

Executive Summary

Cardinal Health's acquisition of IV-pump specialist Alaris Medical Systems certainly came as no surprise. The company had been reportedly on the blocks for years. But the fact that Alaris fetched few takers was, certainly on some level, a reflection of the depressed prospects for hospital supply companies and, in turn, for M&A activity. Joining forces with Cardinal brings Alaris into the broader context of a bundled offering, and in the process, also reaffirms the value inherent in today's hospital supply marketplace. Teleflex's acquisition of Hudson Respiratory Care for $460 million marks a potentially more interesting deal. Teleflex officials have been looking for years for new properties to acquire, as part of a broader effort to build up and around their core businesses in wound closure and surgical instruments. The two deals taken together--Cardinal's acquisition of Alaris and Teleflex's of Hudson--suggest that deal-making in hospital supply is far from dead and may, in the future, be done from a business-building, rather than a business-fleeing posture.

You may also be interested in...



Tyco Healthcare: Surviving Scandal

The (literally) trials and tribulations of its parent, Tyco International, have been both irrelevant to its strongly performing medical device business, Tyco Healthcare, and maddeningly distracting at the same time. But it has shaped the company's strategy, most notably in moving the company away from acquisitions as an engine of growth, forcing Tyco Healthcare to focus more on R&D and new product development.

Teleflex: Hospital Supply's Best Kept Secret

The name Teleflex barely registers among most device executives and hospital customers, but the company's individual brands, Weck, Pilling, and Rusch, are well-known. Teleflex's greatest challenge lies in finding a middle ground between its niche approach, built on the strong brands of its individual businesses, and the resources available from a larger, coordinated corporate effort. It's an issue of identity: can Teleflex ever be anything other than a collection of strong brands?

Cardinal Moves Downstream in Drug Wholesaling

Through a series of innovative service acquisitions, Cardinal is moving closer to the point of dispensing and to the point where it can influence product selection.

Topics

Related Deals

UsernamePublicRestriction

Register

SC142222

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel