Wound Therapy, Surgical Care Unit Sold by Bristol-Myers
Two private equity firms, Avista Capital Partners and Nordic Capital, have reached an agreement with Bristol-Myers Squibb whereby the two purchase Bristol’s wound therapy and surgical care unit, ConvaTec. An announcement detailing the deal was printed on the Bristol Myers website. The purchase price is $4.1 billion and the deal is expected to close during the third quarter of this year.
Bristol will leverage the funds gained from the sale to support the company’s shift to biopharmaceuticals. The renewed focus on drug development has been emerging as lucrative drug products begin to come off patent and be available in generic form, significantly decreasing company revenue.
In order to support this goal, the company already completed the sale of the medical imaging unit. That was sold for $525 million, as reported previously on HospitalBuyer.
May 7, 2008 Related topics: Mergers & Acquisitions