Nordic Capital Fund VII and Avista Capital Partners Agree to Acquire ConvaTec Business for approximately $4.1 Billion
NEW YORK--(Business Wire)--
Bristol-Myers Squibb Company (NYSE:BMY) announced today it has
signed a definitive agreement to sell its ConvaTec business unit to
Nordic Capital Fund VII ("Nordic Capital") and Avista Capital Partners
("Avista") for $4.1 billion subject to adjustments based on ConvaTec's
audited 2007 financial statements and closing working capital.
ConvaTec is a world leader in the development and marketing of
innovative wound therapeutics and ostomy care products.
"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 James M. Cornelius, chairman and
chief executive officer, Bristol-Myers Squibb Company. "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.
"These decisions support our next-generation BioPharma strategy.
We will now have additional financial resources to expedite that
strategy as we continue to work to help patients prevail over serious
diseases."
Dave Johnson, who will remain the CEO of ConvaTec, said, "I am
excited to partner with Nordic Capital and Avista Capital Partners as
we transition ConvaTec to a stand-alone company. Both firms have a
proven track record of success in the healthcare industry. They are
passionate believers in ConvaTec's future growth and will be strong
supporters of the ConvaTec business. Their deep experience in guiding
strategy and backing companies will help take ConvaTec to the next
level of success as an independent company."
The transaction is subject to customary regulatory approvals and
delivery of ConvaTec's audited 2007 financial statements. The closing
is anticipated in the third quarter of 2008.
Nordic Capital and funds associated with Avista have severally
guaranteed the obligations of the newly formed purchaser under the
purchase agreement. The purchaser has entered into a fully committed
loan agreement which provides for funding by the lenders with no
material conditions other than the conditions under the purchase
agreement and customary conditions relating to the delivery of closing
documents and financial information as well as conditions related to
the status of the purchaser.
Citigroup Global Markets Inc. and Morgan Stanley & Company Inc.
served as financial advisors for Bristol-Myers Squibb and Cravath,
Swaine & Moore, LLP, served as legal counsel for the company.
Bear, Stearns International Limited acted as financial advisor for
Nordic Capital and Avista Capital Partners and White & Case, LLP,
served as legal counsel to Nordic Capital and Avista.
About Bristol-Myers Squibb
Bristol-Myers Squibb is a global biopharmaceutical company whose
mission is to extend and enhance human life. For more information
visit www.bms.com
About ConvaTec
For nearly 30 years, ConvaTec 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 Skillman, New
Jersey, the company oversees more than 3,400 employees in 91 countries
serving patients and their healthcare professionals on six continents.
For more information, please visit www.convatec.com.
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
Europe and has invested in a large number of companies operating in
different sectors. For more information, please visit
www.nordiccapital.com
About Avista Capital Partners
Founded in 2005, Avista Capital Partners is a leading private
equity firm with offices in New York, NY and Houston, TX. Avista's
strategy is to make controlling or influential minority investments
primarily in growth-oriented energy, healthcare and media companies.
Through its team of seasoned investment professionals and industry
experts, Avista seeks to partner with exceptional management teams to
invest in and add value to well-positioned businesses. For more
information, visit www.avistacap.com.
Forward-Looking Statements
This press release contains "forward-looking statements" as that
term is defined in the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are based on current
expectations and involve inherent risks and uncertainties, including
factors that could delay, divert or change any of them, and could
cause actual outcomes and results to differ materially from current
expectations. No forward-looking statement can be guaranteed.
Forward-looking statements in this press release should be evaluated
together with the many risks and uncertainties that affect
Bristol-Myers Squibb's business, including those identified in
Bristol-Myers Squibb's Annual Report on Form 10-K for the year ended
December 31, 2007, particularly under "Item 1A. Risk Factors."
Bristol- Myers Squibb undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
For Bristol-Myers Squibb:
Communications:
Brian Henry, 609-252-3337
Pete Paradossi, 812-429-7413
or
Investor Relations:
John Elicker, 212-546-3775
or
Investor Relations:
Suketu Desai, 609-252-5796
or
For Nordic Capital
Maria Grimberg
maria.grimberg@jklgroup.com
or
Anders Lindberg
anders.lindberg@jklgroup.com
or
For Avista Capital Partners
Diana Postemsky, 212-521-4805
Copyright Business Wire 2008
