The medical technology company has agreed to be acquired by American Industrial Partners in an all-cash deal.
Avanos Medical has entered into a definitive agreement to be acquired by affiliates of American Industrial Partners (AIP), an operationally oriented industrials investor, in an all-cash transaction valued at approximately $1.272 billion.
“Our agreement with AIP is a milestone for Avanos that reflects the strong momentum across the business,” says Gary Blackford, Avanos board chair, in a release. “After careful consideration alongside our independent advisors, we are confident this agreement with AIP represents the right path forward for Avanos and its stockholders.”
Strategic Focus and Innovation
Avanos has spent recent years narrowing its focus within the medical technology sector. The partnership with AIP is intended to support the company’s innovation roadmap and strengthen its competitive position through increased flexibility and resources.
“Over the past several years, we have taken deliberate steps to become a more focused medical technology organization, leaning into the categories where we can deliver the most clinical value,” says David Pacitti, Avanos chief executive officer, in a release. “Partnering with AIP will better enable us to build on our progress, advance our innovation roadmap, and strengthen our competitive position with enhanced flexibility and resources.”
Operational Support for Growth
AIP intends to leverage its operational capabilities to support the next phase of commercial execution for Avanos. The investment firm highlighted the company’s existing platform and market positions as key drivers for the acquisition.
“Avanos is a differentiated medical technology company with strong positions in attractive categories and a compelling platform for continued growth,” says Joel Rotroff, partner at AIP, in a release. “We look forward to partnering with the Avanos team to build on the company’s momentum and support the next phase of innovation and commercial execution.”
Sunny Li, partner at AIP, notes the work the management team has done to position the company for growth, as well as the strength of the company’s people and products.
“We believe this partnership, together with AIP’s deep operational capabilities, will help advance management’s vision and position Avanos for long-term success,” says Li, partner at AIP, in a release.
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