Mergers and acquisitions in the healthcare world
The healthcare space has been full of activity in recent months, with mergers and buyouts helping to transform the industry little by little. Some familiar names in the industry have joined forces with other firms, creating a new healthcare landscape to be navigated. To keep you up to date on the latest developments, IHC provides a roundup of some of the changes to have hit the headlines. Do not hesitate to contact us if you would like more information on how these acquisitions might affect your cover.
ArchiMed, Rehabworks and Right Management
In September 2015, ArchiMed, a European private equity healthcare specialist, took over RehabWorks, the specialist business-to-business provider of physiotherapy and mental healthcare. RehabWorks focuses on preventative, occupational health, case management and rehabilitation solutions to employers, insurers, solicitors and government.
The move came in the wake of RehabWorks’ acquisition of another rehabilitation firm, Right Corecare. Speaking of the Right Corecare purchase in a statement at the time, Andy Holdcroft, CEO of RehabWorks, said: “This acquisition is a hugely exciting development for both businesses enabling us to build upon our respective strengths and offer our existing and new customers even more –optimising our superior reputation for quality and service.
“At RehabWorks we have been looking for the opportunity to incorporate an Employee Assistance Programme because we see it as such a key aspect of improving wellbeing and performance within today’s demanding workplace.
“Bringing the exceptional expertise offered by Right Corecare Ltd under our brand means we can do that with a very established and trusted partner. We see a huge advantage for executing our strategic plans in the public and private sectors.”
Jayne Carrington, managing director of Right Management Workplace Wellness, said: “We are really excited about these developments because of the scope and opportunity it now provides us in continuing to offer best in class services and to support our customers’ investments in employee health and wellbeing … Our business values are very similar so it feels like a superb ‘fit’ for both parties.”
AXA PPP buys Simplyhealth’s PMI business
AXA PPP bought Simplyhealth’s PMI business in the summer, taking over health cover for more than 200,000 individual, SME and corporate customers, and 400 staff in the firm’s Bristol offices.
In a statement, Keith Gibbs, chief executive, AXA PPP healthcare said: “With its well balanced, stable book of business, Simplyhealth’s PMI business will be an excellent addition to AXA PPP healthcare and this agreement has presented a rare opportunity to acquire complementary business in the UK. Both companies share a commitment to offering outstanding customer service, supporting their local communities and being an employer of choice.
“We look forward to working with Simplyhealth and its intermediary partners to ensure a smooth transition providing excellent service and continuing cover for all individual and business customers.”
Meanwhile, Romana Abdin, chief executive of Simplyhealth, which has been in the PMI market for 13 years, said: “This is a deal that makes sense for both sides. The sale of our PMI business will accelerate Simplyhealth’s strategy of investing in everyday healthcare, addressing the everyday conditions that stop people from making the most of life. AXA PPP healthcare has a long-term commitment to the PMI market and this sees them acquiring a business with well-aligned values and great customer service standards. We are delighted to have found a good home for our customers and people in AXA PPP healthcare.”
Almost all of Simplyhealth’s 390 Bristol employees will be transferred across to AXA PPP healthcare under a TUPE arrangement, under the terms of the deal, which sees AXA PPP take over the premises, as well as a small number of Simplyhealth employees who work on other UK sites.
Unum acquires National Dental Plan
Another summer acquisition, Unum announced in August that it was to buy National Dental Plan (NDP), the leading workplace dental insurance provider.
The acquisition of NDP from Capita plc was worth £31.7m, and is part of a wider expansion of the company’s portfolio. Unum said, announcing the deal, that recent growth up to 14% year-on-year, expected to continue apace, made the corporate dental insurance market very attractive.
Peter O’Donnell, Unum UK CEO, said: “NDP is a great business, providing market-leading dental insurance through the workplace, and we’re proud to have it become part of Unum. We see NDP as complementary to our existing operations, and Unum will retain NDP’s current management and employees.
They are vital for implementing our strategic vision for NDP, as well as continuing to deliver NDP’s great service to their existing 500 corporate customers and 150,000 insured employees.”
He added: “Businesses increasingly recognise that investment in staff wellbeing pays back through better productivity and retention, and lower sickness absence costs … We believe a well-balanced employee benefits package is a tangible way employers can support their workforce, and NDP’s dental offering clearly augments our portfolio here.”
NDP’s managing director Andrew Bower said the deal created “tremendous potential to expand access to dental insurance through the worksite”. He added: “We’re excited by the opportunity to broaden the reach of our proposition, through access to Unum’s strong distribution network and large customer base. This gives firm foundations for the continuity, growth and prosperity of this business.”
Health Assured takes over Capita EAP
The Manchester-based Health Assured, part of the Peninsula Business Services Group, has acquired Capita EAP. Both firms offer 24-hour employee assistance as part of workplace benefits.
Peter Done, group managing director of Peninsula Services Group, said in the Manchester Evening News: “The acquisition is a natural fit for Health Assured as it builds upon our existing strengths in the health and wellbeing market and supports our ambitious growth plans, moving more into the large corporate and insurance space.
“On behalf of our management team, I’d like to thank Capita for its support and dedication that has enabled us to ensure a smooth and successful transaction.
“We pride ourselves on service excellence and market innovation, and have a proven track record in integrating previous acquisitions. Client feedback tells us that we provide a valuable service and this acquisition means we can offer more businesses exceptional levels of wellbeing for their employees.”