Avanos Medical (AVNS) Sells Respiratory Health Business to SunMed Group Holdings
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Avanos Medical, Inc. (NYSE: AVNS) today announced it has entered into a definitive agreement to sell its Respiratory Health (RH) business to SunMed Group Holdings, LLC (SunMed).
Headquartered in
The divestiture of the RH business represents a key component of Avanos' ongoing three-year transformation process, and accelerates the Company's efforts to focus its portfolio on markets where it is well positioned to succeed.
"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," said
"SunMed has deep experience and strong expertise in the global respiratory health consumables market, making it an ideal home for Avanos' RH business," said
Sale of the RH Business
The transaction includes substantially all of the assets primarily used in the RH business, including fixed assets, inventory, intangible assets – including the BALLARD*, MICROCUFF* and endOclear* brands – and long-term leases for two manufacturing facilities located in
Avanos will provide transition services after closing as SunMed works to integrate its new RH business within its product portfolio.
The net proceeds from the transaction will enhance Avanos' balance sheet flexibility and provide additional capacity for Avanos to deploy capital in a focused and disciplined approach to M&A in the Company's core categories and markets.
The transaction is expected to close in late 2023, subject to customary closing conditions. The Company plans to share additional details about the transaction during its Investor Day event on
Alston & Bird LLP is serving as legal counsel to Avanos. Goodwin Procter LLP is serving as SunMed's legal counsel.
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