Moving to expand its healthcare investment banking capabilities, Coopers & Lybrand Securities, an arm of the giant New York-based accounting firm, has agreed to buy privately held Shattuck Hammond Partners.
Under a definitive agreement signed last week, Coopers & Lybrand's small healthcare investment banking practice will be folded into Shattuck Hammond's operations. Effectively, the 33-member practice of Shattuck Hammond becomes Coopers & Lybrand's healthcare investment banking division. Neither firm would reveal how much Coopers & Lybrand paid to clinch the deal.
The sale is expected to close by May 15.
Coopers & Lybrand provides valuation, due diligence and other financial advisory services but doesn't have bond underwriting capabilities. It gains that and more with Shattuck Hammond, whose expertise includes merger and acquisition advisory services and tax-exempt underwriting.
Last year, Shattuck Hammond advised healthcare clients on $3.1 billion of mergers and acquisitions and served as an underwriter or adviser on $1.2 billion of tax-exempt financing.
At deadline, Coopers & Lybrand could not provide comparable figures.
Shattuck Hammond recently served as adviser to George Washington University on its joint venture with Universal Health Services, King of Prussia, Pa., and to Atlanta's Georgia Baptist Health Care System on its sale of Georgia Baptist Medical Center to Tenet Healthcare Corp.
"We look at this as a tremendous opportunity to enhance our revenue base by leveraging their contacts," said Michael Hammond, a partner and principal at Shattuck Hammond. He also sees synergies in combining the firms' merger and acquisition advisory businesses. Over time, he said he hopes to expand the combined firms' capital markets capabilities and may consider developing a merchant banking arm or establishing a separate fund to make equity investments in healthcare.