Medical solutions company ConvaTec Group has agreed to acquire US-based medical device company Triad Life Sciences in a deal valued at around $450m.

Based in Memphis of Tennessee, Triad is engaged in the development of biologically-derived innovative products for surgical wounds, chronic wounds and burns.

The deal consists of $125m initial consideration, as well as two potential additional payments of $25m each relating to short-term milestones.

The transaction also covers two earnout payments conditional on performance during first year and second year completion. It is anticipated to facilitate the maximum earnout of $275m based on stretching financial performance over the period.

ConvaTec Group CEO Karim Bitar said; “Today’s announcement marks another successful step in our strategic intent of pivoting to sustainable and profitable growth. This transaction will strengthen our Wound Care business and enable ConvaTec to enter the rapidly growing wound biologics segment.

“Triad Life Sciences has innovative and differentiated products and an exciting pipeline which is consistent with our vision – Pioneering trusted medical solutions to improve the lives we touch.  We are delighted that Russ and the team have decided to join ConvaTec.”

Triad’s offerings include InnovaMatrixAC and InnovaBurn, which are said to be the first FDA 510(k) cleared porcine placenta‐derived extracellular matrix products in the US.

Its product portfolio is also comprised of new products for advanced wound care, in addition to the technology platform suitable for the regenerative medicine segment.

With more than 50 employees, Triad is expected to benefit from ConvaTec’s global commercial, quality and operations, as well as research and development (R&D) capabilities.

The acquisition of Triad will allow ConvaTec to enter into the wound biologics segment.

Subject to regulatory approvals and other customary conditions, the deal is expected to be completed in the first of this year.