We announced two great acquisitions of our partner companies by prominent top tier multinational firms, Shire’s acquisition of Advanced BioHealing and McKesson’s acquisition of Portico Systems.
Portico officially closed yesterday for which Safeguard expects to receive $38.1 million in aggregate cash proceeds, that represents a four times cash-on-cash return and a 36% IRR, now that’s on the heels of GE Healthcare and Eli Lilly’s acquisition of Clarient and Avid Radiopharmaceuticals respectively that occurred in December of 2010.
As a result of all this activity, Safeguard enjoys improved financial strength and flexibility with excellent liquidity and access to capital.
In March, we repurchase substantially all of Safeguard’s convertible notes due in 2024. Our debt-to-equity ratio improved to 1 to 8 at June 30th, that’s from 1 to 3 at year end 2010 and 1 to 2 at year end 2009. Now in 2006 as we embarked upon this current strategy that ratio stood at 1 to 1. So as you can see, we’ve improved a much of our long-term obligations with exit expectations and cash deployment plans.Value creation is both the objective and the motivation behind Safeguard’s progress. Our life sciences and technology partner companies remain well-positioned for continued growth and improved profitability. Our deal teams continue to evaluate promising, high potential businesses in our targeted verticals.Now, our optimism is really high for creating additional value in 2011 and beyond. That confidence stems from Safeguard’s disciplined focus on specific segments of life sciences and technology industries that exploit five strategic growth driving themes maturity, migration, convergence, compliance and cost containment.In life sciences we target opportunities in the areas of lower relative technological and regulatory risk, namely in the molecular and point-of-care diagnostics, medical devices, regenerative medicine, specialty pharmaceuticals and selected healthcare services.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV