CG Results Healthcare has advised The Hive Health Group on its acquisition by Kin + Carter
- Service: M&A
- Sector: Healthcare
- Sub Sector: Pharma Commercialisation Services, Digital Marketing
- Engagement Type: Sell Side
The Health Hive Group Limited is a leading independent healthcare strategic consulting and communications business. The Group consists of three divisions which operate under one philosophy: to improve patient outcomes by identifying, understanding and creating change in healthcare communications.
Since being founded in 2008, Hive has consistently created and delivered innovative solutions and high quality products for its clients. Hive has established trusted, multi-level relationships with its clients, who include 6 of the top 10 pharmaceutical companies.
In 2013 Hive worked with over 60 brands and delivered over 600 individual projects for clients across the globe and in therapy areas including respiratory, immunology, oncology, diabetes, virology, vaccines and orphan drugs. Hive is based in London and employs over 70 people.
Hive’s founders aim to use their patient-centric approach to create the world’s best healthcare communications consultancy. Hive’s powerful offering has allowed it to grow rapidly since formation and there is strong and increasing demand for its products and services from leading biopharmaceutical companies, particularly in the US.
The founders see a huge opportunity to grow their business by expanding the Group’s service offering and geographic reach. The founders engaged CG Results Healthcare to identify an entrepreneurial partner to assist them in these ambitious growth plans and CG Results provided on-going strategic advice before commencing a competitive sales process.
CG Results Healthcare organised a competitive process to identify the best partner for Hive, resulting in a series of meetings between Hive’s management and a selection of international healthcare consultancies & communications providers and sector-specific private equity firms. There was a high level of interest from prospective partners, and St Ives PLC was chosen as the best fit for Hive.
Hive generated unaudited adjusted EBITDA of £3.0 million for the financial year ended 31 December 2013 on revenue of £9.1 million.
St Ives will pay up to a maximum of £50 million for Hive, on a cash free, debt free basis. Initial consideration of £20.9 million will be satisfied by approximately £16.8 million in cash and the balance in St Ives shares. Further consideration of up to £29.1 million may be payable (to be satisfied 80% in cash and 20% in shares) dependent on incremental financial performance for the years ending 31 December 2014, 2015 and 2016.
St Ives Group PLC is the UK’s leading provider of marketing solutions and publishing services. The business has invested heavily in its marketing services division and has a track record of supporting innovative and fast-growing businesses. Following the acquisition, Hive will operate as a subsidiary of St Ives, continuing to be managed from its current headquarters by the existing management team, including founding directors Ian Busby, Jas Hummel and Tim Scorer.
When we started this process we knew we wanted to find an organisation that would help us do things differently and to do that we needed to find advisers that took the time to understand that. The CG Results team did a great job in working with us to define the best way forward.