Unquote

Nordic- and Avista-backed ConvaTec in £4.4bn IPO

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Nordic Capital- and Avista Capital Partners-backed ConvaTec, a UK-based distributor of medical products, has priced its IPO on the London stock exchange, giving it a market cap of £4.39bn.

ConvaTec will receive gross proceeds of £1.47bn from the offering, which is primarily earmarked for the repayment of debts.

The offering, which comprises around 660 million shares priced at 225 pence apiece, represents 33.8% of the company's shares prior to the exercising of any overallotment option. The offering consists of 651.1 million new shares and 8.6 million existing shares.

Nordic and Avista will only sell shares in the event the overallotment option is exercised. Following the process, the two GPs will retain stakes of 45.1% and 19.5% respectively, which would decrease to 41.6% and 18% should the overallotment option be fully exercised.

On admission, ConvaTec will appoint former GlaxoSmithKline CEO Christopher Gent as non-executive chairperson and former Marks & Spencer non-executive director Steve Holliday as deputy chairperson.

Under the GPs' eight-year tenure, the business has expanded internationally via an acquisitive growth strategy, bolting on Danish medical devices company Unomedical and US-based urological catheter distributor 180 Medical.

Bank of America Merrill Lynch, Goldman Sachs International and UBS Investment Bank acted as joint global coordinators and joint bookrunners in the process. Credit Suisse, Deutsche Bank, JP Morgan Cazenove and Morgan Stanley also acted as joint bookrunners.

Previous funding
Nordic and Avista acquired a majority stake in ConvaTec from Bristol-Myers Squibb in 2008 for $4.1bn. Nordic's capital was drawn from its sixth and seventh funds.

Company
Headquartered in Reading and founded in 1978, ConvaTec develops and distributes infusion devices and medical products for use in wound, ostomy, continence and critical care. The company has a headcount of 9,050 and generated a turnover of $1.65bn in 2015 with EBITDA of $473.8m.

People
ConvaTec – Paul Moraviec (CEO).
NC Advisory – Raj Shah (partner); Kristoffer Melinder (managing partner).

Advisers
Company – Evercore Partners, Jim Renwick (corporate finance).

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