The acquisition includes all the assets related to Avanos’ Ballard, Microcuff and endOclear brands, comprising closed suction catheters, endotracheal tubes, and oral care solutions, along with R&D experts who support these brands
SunMed to buy Avano’s RH business. (Credit: Simon Orlob from Pixabay)
US-based medical device manufacturer SunMed has signed an agreement to acquire Avanos Medical’s respiratory health (RH) business for an undisclosed sum.
Avanos is a medical technology company engaged in providing healthcare solutions and medical devices focused on pain management and chronic care.
The acquisition includes all the assets related to Avanos’ Ballard, Microcuff and endOclear brands, along with R&D experts who support these brands.
SunMed will also acquire long-term leases for the medical technology company’s two manufacturing facilities, Magdalena and Nogales 2, in Mexico.
The three RH brands involved in the acquisition comprise closed suction catheters, endotracheal tubes, and oral care solutions.
The transaction is anticipated to be completed later this year, subject to certain customary closing conditions.
SunMed CEO Hank Struik said: “Adding these complementary brands into our growing portfolio solidifies SunMed’s leadership as the premier manufacturer of the anaesthesia and respiratory consumables that define product excellence and serve patients across the continuum of care.
“These products are the standard bearers of closed suction and endotracheal consumables and we deeply admire the clinical results that these exceptional products provide for patients in critical care and the trust they have built with practitioners.
“Combined with our expansive anaesthesia and respiratory consumables business, we are further strengthening SunMed’s ability to serve more clinicians around the world so they can provide the best patient outcomes.”
SunMed said that the acquisition will add Avanos’ top RH brands to its growing portfolio, to provide high-quality anaesthesia and respiratory care services to its customers.
Avanos said that the sale of the RH business is part of its ongoing three-year transformation process and supports its plans to focus its portfolio on markets.
The company intends to use the net proceeds from the sale to strengthen its balance sheet and deploy capital in its core categories and markets, in a focused and disciplined approach.
Alston & Bird served as legal counsel to Avanos, while Goodwin Procter served as legal counsel to SunMed on the transaction.
Avanos chief executive officer Joe Woody said: “Earlier this year, we shared our strategy and intent to optimize our portfolio by focusing on higher-margin and higher-growth markets – particularly in our Digestive Health and Pain Management & Recovery product categories.
“We expect that divesting the Respiratory Health business – along with our ongoing SKU rationalisation initiatives and future M&A opportunities – will allow us to meaningfully transform the financial profile of Avanos.”
Last month, SunMed completed the acquisition of Vyaire Medical’s business unit, which manufactures and markets respiratory and anaesthesia consumables.