US surgical device maker ConMed explores sale under investor pressure

ConMed Corp, the New York-based surgical device maker, is exploring a sale and has contacted rivals to gauge their buyout interest, Reuters yesterday reported, citing people familiar with the matter.

ConMed, which has a market cap of $1.2 billion and annual sales of $757 million, has recently come under attack from activist investors on the company's performance.

Voce Capital Management, which reportedly owns less than 1 per cent in ConMed, has sharply criticised the company's long-term under-performance, poor operating results and execution missteps, appalling corporate governance and sought an end to the company's subjugation by the founding Corasanti family, which holds just 2.3 per cent of ConMed's equity.

In a letter to ConMed's board in November, Voce Capital has sought nominating four of its candidates to the board and has also demanded that ConMed pursue strategic alternatives, including selling itself.

Voce's expects ConMed's shareholders are likely to receive in excess of 50 per cent premium of the stock's current value, if the board were to pursue a sale of the company with the assistance of professional advisors.

Reuters said that ConMed has asked its financial advisers, Bank of America Merrill Lynch and Greenhill & Co Inc, to approach larger orthopedic device makers regarding a potential sale of the company.

ConMed is a global medical technology company that specialises in the developing surgical and patient monitoring products and services for the orthopedic, sports medicine, general surgery, gynecology, gastroenterology, pulmonology, and anesthesiology markets.