Gyrus will manage the HV business through CORCYM, a recently established company, owned by entities funded and controlled by Gyrus
LivaNova to divest HV business to Gyrus. (Credit: Adam Radosavljevic from Pixabay.)
Medical technology firm LivaNova has completed the initial closing of the divestiture of its heart valve (HV) business to Gyrus Capital (Gyrus) for an enterprise value of €60m.
Gyrus is a Switzerland-based investment company focused on investments in the healthcare and sustainability sectors.
The deal to acquire LivaNova’s heart valve business was announced in December last year.
Livanova’s HV business will be managed by CORCYM, an independent company owned by entities funded and controlled by Gyrus.
LivaNova chief executive officer Damien McDonald said: “The completion of the HV sale to Gyrus Capital allows LivaNova to optimise its portfolio and sharpen its focus on cardiovascular and neuromodulation, our two areas of excellence.
“We are now better positioned to accelerate growth in our core, dedicate resources toward executing promising pipeline opportunities, and enhance our operational excellence to best serve our patients and deliver maximum value to shareholders.”
Livanova’s HV business has a comprehensive portfolio of products including Perceval, a suture-less aortic valve, and Memo 4D, a semi-rigid mitral annuloplasty ring.
The medical technology company claimed that together with its mechanical valves, the portfolio will address the varied requirements of cardiac surgeons and patients worldwide.
In the initial closing, CORCYM acquired most of the LivaNova HV business, including its manufacturing facilities in Saluggia and Vancouver and associated assets in other regions.
As part of the global HV business divestiture, nearly 850 employees would be moved to CORCYM, which has major operations in Saluggia, Italy and Vancouver, Canada.
LivaNova and CORCYM intend to complete the transfer of the commercial operations in several local jurisdictions through this year.
LivaNova estimates its HV business to generate around $70m in net revenues, starting from this month till 31 December 2021.
Goldman Sachs & Co served as the financial advisor and Cleary Gottlieb Steen & Hamilton as legal counsel to LivaNova on the transaction, while Medeor served as transaction and business advisor to Gyrus.