Bristol-Myers Squibb sells ConvaTec to PE firms for $4.1 billion

03 May 2008

Bristol-Myers Squibb Co has agreed to sell its wound therapy and surgical care unit ConvaTec to private equity firms Nordic Capital and Avista Capital Partners for $4.1 billion (€2.65 billion).

ConvaTec is a world leader in the development and marketing of innovative wound therapeutics and ostomy care products.

Bristol-Myers, which is shifting its focus to biopharmaceuticals, plans to use the proceeds from the sale to fund new projects and acquisitions.

Bristol-Myers said it is shifting focus to biopharmaceuticals and developing biotechnology medicines as they have much higher profit margins than businesses such as wound care.

The company recently sold its medical imaging business to Avista in January for $525 million and plans an initial public offer by year-end to sell about 10 to 20 per cent of its Mead Johnson nutritional business.

''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.