Two buyout firms have agreed to a multi-billion dollar deal that has committed debt financing. Do not adjust your screen, or wipe the Friday from your eyes. This is actually happening. Let’s all raise a cheery middle finger to the credit crunch.
Bristol-Myers Squibb has agreed to sell its ConvaTec unit to Avista Capital Partners and Nordic Capital for $4.1 billion. ConvaTec makes wound care and ostomy care products, which means that it no longer fits within pharma-only BMS.
“In December 2007, we announced our evolution into the leading next-generation BioPharma company and that as part of the transformation we would undergo a thorough strategic review of our non-pharmaceutical assets,” said BMS CEO James Cornelius in a press release. “Since then, we have announced the sale of Medical Imaging, the proposed carve-out initial public offering of Mead Johnson and the sale of ConvaTec.
The $4.1 billion question, of course, is who’s providing the debt and why. After all, it’s been tougher to get a loan out of Wall Street lately than a straight answer out of Roger Clemens.
I’ll have more on this deal Monday morning.
Update: I just got a fuller list of lenders: JPMorgan, Bank of Ireland, General Electric, HVB and DKW.