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Medical device distributor enters into multimillion-dollar agreement
Gilbert + Tobin has advised LifeHealthcare Group Limited on its multimillion-dollar scheme of arrangement with an Australian-based equity firm.
Emma Musgrave
Firm: Gilbert + Tobin (LifeHealthcare Group Limited)
Value: $211 million
Area: Finance
Key players: The Gilbert + Tobin team was led by corporate advisory partners John Williamson-Noble and Tim Gordon and lawyers Chris Morse and Jenny Leung.
Deal significance: LifeHealthcare is described as an independent medical device distributor over a wide range of high-end products across clinically specialised divisions, while PEP is described as an Australian-based private equity firm, with approximately $2.5 billion of funds under advisement.
As part of this transaction LifeHealthcare and Pacific Health Supplies BidCo Pty Limited, an entity wholly owned by funds advised by PEP, have entered into a binding scheme implementation deed.
If implemented, the transaction will result in PEP acquiring all of the shares in LifeHealthcare for $3.75 per share, a 46 per cent premium to the last closing price of LifeHealthcare shares on 2 February 2018, according to a statement from Gilbert + Tobin.
“The offer price represents an implied enterprise value for LifeHealthcare of approximately $211 million,” the statement said.
“LifeHealthcare’s directors have unanimously recommended that LifeHealthcare shareholders vote in favour of the scheme in the absence of a superior proposal and subject to the independent expert concluding that the scheme is in the best interests of LifeHealthcare shareholders.
“The deal is subject to customary conditions, including approvals by LifeHealthcare shareholders and the court, as well as FIRB (Foreign Investment Review Board) approval.”
Commenting further on the deal, partner Tim Gordon said: “We’ve always been delighted to support LifeHealthcare throughout the different stages of its development and we’re thrilled to now advise on this milestone transaction”.
“The proposed acquisition by a leading Australian private equity fund is a credit to LifeHealthcare’s strong performance and excellent reputation in the medical devices space,” he added.
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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