Nordic Capital and Avista Capital Partners announced that once their $4.1 billion acquisition of wound care company ConvaTec closes, they will merge it with Unomedical, a Copenhagen-based provider of single-use medical devices that is already sponsored by Nordic Capital.
Nordic Capital and Avista Capital Partners announce today that following the closing of their acquisition of ConvaTec, a world leader in the development and marketing of innovative wound therapeutics and ostomy care products based in Skillman, New Jersey, which is anticipated to occur in the third quarter, they intend to combine it with Unomedical, a leading manufacturer of single-use medical devices based in Copenhagen. Nordic Capital Fund VII and Avista Capital Partners announced on May 2, 2008, a definitive agreement to acquire ConvaTec from Bristol-Myers Squibb Company. Unomedical is currently owned by Nordic Capital Fund IV.
The combination of the two companies will create a global healthcare company with an expanded offering of products and product-related services for customers. The combined company will continue to be known as ConvaTec and be led by current ConvaTec CEO, David Johnson. The transaction will be subject to customary regulatory approvals, including merger control.
“As a stand-alone company, ConvaTec will embark on a plan of accelerated growth and innovation, and today's announcement of intent is the first step in that direction. The future integration of Unomedical with ConvaTec will provide specific opportunities, particularly in specialty hospital devices, that we intend to maximize across our global markets,” said David Johnson, CEO, ConvaTec.
“By combining with ConvaTec, Unomedical will gain new potential as part of a world-leading business in offering single-use devices to hospitals and home healthcare sectors. Through ConvaTec's broad global presence and size, Unomedical gains a scale of operations that creates growth opportunities that will benefit both our customers and employees. Personally, I am committed to supporting the ConvaTec management team until year end to ensure a smooth integration process,” said Henrik Brandt, CEO, Unomedical.
“This transaction will unite two established healthcare companies uniquely positioned to build upon each other's strengths in medical technologies, product offerings and call points in acute and chronic care sectors. Together, the two companies will be able to realize significant growth from combining Unomedical's assets with ConvaTec's extensive global operations,” said Kristoffer Melinder, Partner, Nordic Capital.
“These are two strong franchises which, as a combined enterprise under the leadership of David Johnson, will be better-positioned to realize their potential within the medical device industry. We look forward to working with the Unomedical and ConvaTec teams to grow this exciting business,” said David Burgstahler, Partner, Avista Capital Partners.
ConvaTec had net sales of USD 1,155 million (EUR 745 million) in 2007 and has approximately 3,500 employees. The company is a world leader within ostomy care and wound therapeutics.
Unomedical's revenues in 2007 were approximately DKK 2,000 million (EUR 265 million) and the company employs some 4,500 employees. The company has gone through a period of major restructurings that together with innovation have led to significantly stronger market positions. The Unomedical Infusion Devices Division has developed into a world leading supplier of infusion sets to insulin pump companies. Within the Unomedical Hospital Care Division the significantly strengthened sales organizations and increased cost competitiveness together with innovation have led to higher growth and a strong competitive position, especially in
For over 30 years, ConvaTec, currently a division of Bristol-Myers Squibb Company, has been a pioneer in developing and marketing innovative wound therapeutics and ostomy care products that have helped improve the lives of millions of people worldwide. Today, ConvaTec continues to be at the forefront of the movement to change the way health care professionals are managing chronic and acute wounds, emphasizing the principles of advanced wound healing and evidence-based medicine. From its headquarters in
Unomedical is a leading provider of single-use medical devices with global operations. Within Hospital Care, Unomedical is one of
About Nordic Capital
Nordic Capital is a group of private equity funds creating value in its investments through committed ownership and by targeting strategic development and operational improvements. Founded in 1989, Nordic Capital was one of the private equity pioneers in northern
About Avista Capital Partners
Founded in 2005, Avista Capital Partners is a leading private equity firm with offices in