Allied Manufacturers is moving from La Habra to Corona.
Allied, which makes everything from bicycle frames to parts for the aerospace, automotive and computer industries, will move to a 24,000-square-foot building in the Palisades Business Park, said Larry Null, senior vice president with Lee & Associates in Riverside.
Stowe/Passco LLC in Santa Ana, which Null represented, sold the building to Allied MA reporting service that tracks healthcare mergers and acquisitions found less enthusiasm for such deals in the third quarter.
Irving Levin Associates Inc. of New Canaan, Conn., reported that 174 transactions worth $7.9 billion occurred in the past quarter. The dollar amount is 68% lower than in the second quarter. Deal volume in the third quarter declined by 16%, down from $24.4 billion spent on 208 transactions during the previous quarter.
As for the deals themselves, 96 involved technology and 78 involved services. The largest sectors were biotechnology with 29 deals; medical devices with 26; pharmaceuticals with 25; and hospitals with 18.
Orange County companies included in the report were Beckman Coulter Inc., Fullerton, which acquired Anthos Labtec Instruments GMBH of Austria for an undisclosed amount; Interpore Cross International Inc., Irvine, which purchased American OsteoMedix Corp. of Virginia for $24.8 million; and Cartesian Technologies Inc., an Irvine-based company that was acquired by Genomic Solutions Inc., Ann Arbor, Mich., for $16.2 million.
As for money, 71%, or $5.68 billion, of the dollars spent during the quarter went to medical technology, down from $22.4 billion in the second quarter. Healthcare service deals in the third quarter totaled $2.26 billion, a slight jump from $2 billion spent in the prior quarter.
” The decline in transactions was expected as the economy weakened and equity values dropped,” said Stephen Monroe, a Levin Associates partner, in a release. “However, the plunge in dollar value was unusual and due to a sharp decline in large deals, with only 15 deals priced at more than $100 million.”
Overall quarter-to-quarter declines, according to Levin Associates, “may be partially attributed to an economy in near recession and the suspension of capital markets following Sept. 11.”
Levin Associates also noted that long-term care, laboratory and hospital sectors maintained recent activity levels during the quarter. Other healthcare services sectors, such as home health, managed care and physician medical groups, declined, showing little indication of investor interest.
As for the rest of the year, Levin Associates predicted that the majority of healthcare merger and acquisition activity is expected to continue in the third quarter’s leading sectors.
