Sector News

ConvaTec owners appoint banks to explore sale – sources

October 15, 2014
Energy & Chemical Value Chain
(Reuters) – ConvaTec’s owners have appointed Morgan Stanley and Goldman Sachs to explore a sale of the medical device maker which could be worth up to $10 billion, sources familiar with the matter said.
 
Private equity firms Avista Capital Partners and Nordic Capital are preparing the groundwork for a possible sale or initial public offering (IPO) in 2015 for the Luxembourg-based company, said the sources who spoke on condition of anonymity because the process is private.
 
Mergers and acquisitions in the healthcare space have hit a record pace so far this year, in part driven by U.S. companies seeking to redomicile in countries that have a lower corporate tax rate, in a practice known as inversion.
 
Kimberley-Clark and 3M are considered likely bidders for ConvaTec, said the sources, adding that the U.S. firms’ interest was not motivated by tax inversion issues.
 
ConvaTec, Nordic Capital, 3M, Goldman Sachs and Morgan Stanley declined to comment. Kimberley Clark and Avista Capital did not immediately respond to requests for comment.
 
Reuters reported in August that some U.S. companies including diversified manufacturer 3M and medical equipment makers CareFusion Corp and C.R. Bard Inc were potentially exploring a deal, but that ConvaTec wanted to boost its value further before launching an auction or IPO.
 
CareFusion has since been swallowed by medical equipment supplier Becton Dickinson & Co for $12.2 billion, taking them out of the field.
 
Also, in recent weeks equity markets have stumbled and the market for IPOs has stalled.
 
Avista Capital Partners and Nordic Capital acquired ConvaTec from Bristol-Myers Squibb Co in 2011 for $4.1 billion. 3M and Kimberley-Clark were among the contenders for ConvaTec at the time, according to people familiar with the matter.
 
ConvaTec reported earnings before interest, tax, depreciation and amortization (EBITDA) of $502.5 million in 2013, up 15 percent year-on-year. It is hoping to exceed $600 million in EBITDA this year, sources have said.
 
The company makes wound care and ostomy care products at 11 manufacturing sites in eight countries, and sells them in more than 100 countries.
 
BY SOPHIE SASSARD AND ANJULI DAVIES (Editing by Pravin Char)

comments closed

Related News

July 14, 2024

Europe ethylene spot prices turn firmer on demand, feedstock, looming cracker turnarounds

Energy & Chemical Value Chain

European ethylene spot prices have firmed week on week on the back of better-than-expected demand amid higher feedstock values and an increasing focus on upcoming planned cracker maintenance outages. Spot deals this week have been reported at discounts of 32-35% on the pipeline, prior deals had been at discounts of around 38-39%.

July 14, 2024

Marcel Imwinkelried appointed new Siegfried CEO

Energy & Chemical Value Chain

He will succeed Reto Suter, who has led the Siegfried Group as CEO ad interim since the departure of Wolfgang Wienand on May 1, 2024. Suter will now focus on his role as Chief Financial Officer for Siegfried. Wienand will become CEO of Swiss competitor Lonza.

July 14, 2024

Honeywell acquires Air Products’ LNG technology, business for $1.8B

Energy & Chemical Value Chain

Honeywell Inc. (Charlotte, North Carolina) has reached agreement to acquire Air Products’ (Leigh Valley, Pennsylvania) liquefied natural gas process technology and equipment business for $1.81 billion. The deal is expected to close before the end of the year. The price represents a multiple of 13 times the unit’s estimated 2024 EBITDA.

How can we help you?

We're easy to reach