Bristol-Myers Squibb to sell ConvaTec

Bristol-Myers Squibb has announced that it has signed a definitive agreement to sell its ConvaTec unit to Nordic Capital Fund VII and Avista Capital Parners.

The company will sell the business segment for a total of $4.1 billion (2.1 billion pounds) subject to adjustments based on the audited financial statements for the unit in its audited 2007 fiscal statements and closing working capital.

The deal is subject to the delivery of these audited statements and customary regulatory approvals and is due to close in the third quarter of this year.

ConvaTec is involved in the development and marketing of ostomy care products and novel wound therapeutics.

James M Cornelius, chairman and chief executive officer of Bristol-Myers Squibb, said: “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.”

He added that since this decision was made the company has announced the sale of its medical imaging unit, the proposed carve-out initial public offering of Mead Johnson and this latest deal regarding ConvaTec.

Earlier this month, ConvaTec announced the redesign of its Flexi-Seal Faecal Management System for easier use and storage.