Long-term care-related mergers and acquisitions topped all other segments in healthcare for deal volume in a high-volume third quarter, according to a new analysis by PwC.
Long-term care transactions represented 102 of 261 healthcare deals during the quarter, according to a report by the firm’s deals practice. Those transactions represented 39% of the volume — the largest percentage of any healthcare segment — and 11% of the value of healthcare deals in the quarter, according to PwC. The volume of long-term care deals was up 32.5% year-over-year, and value was down 35.3%.
The behavioral care subsector saw the most growth in volume, and hospitals and behavioral health saw the most growth in value, according to PwC. Deal value in healthcare was highest for hospitals.
One “notable” private equity transaction in long-term care deal called out in the report was the acquisition of two continuing care retirement communities by Arcapita in a deal reportedly valued at more than $100 million. On its website, Arcapita said the two communities, in Chicago, have a combined total of approximately 1,100 units and are operated by Senior Care Development and Life Care Services.
The Arcapita deal was one of four long-term care deals priced at $100 million or more in the quarter, PwC said, also citing real estate investment trust Ventas’ announced acquisition of Brookdale Senior Living’s Brookdale Battery Park independent living community in Manhattan for $194 million.
PwC said data for the report came from Deal Search Online, HealthCareMandA, S&P Capital IQ and Dealogic Equity Capital Markets Analytics as well as press releases and other publicly available information.