Nordic Capital, Avista place £2bn ConvaTec block

ConvaTec's shares were priced at 260 pence apiece in the sale, representing a 15.5% premium on the stock's October 2016 IPO price.

Initially, 389.1 million ordinary shares were sold to Danish biotech company Novo, equivalent to 19.95% of ConvaTec's shares. Separately, a block of 375 million additional shares were disposed of in an accelerated bookbuilding process. The combined value of the two blocks were worth £1.986bn. The share sell-downs come just five months after ConvaTec was listed on the London Stock Exchange with a £4.1bn market cap.

The initial accelerated bookbuilding had consisted of 300 million shares, but was increased to 375 million due to investor demand.

Following the sale, Nordic Capital owns around 16.1% of the company's share capital, while Avista holds around 7.03%. The duo have agreed to a 90-day lockup period following the placing, though this can be waived by the bookrunners.

Goldman Sachs, Merrill Lynch and UBS acted as joint bookrunners in the placing.

Previous funding
Nordic Capital and Avista acquired a majority stake in ConvaTec from Bristol-Myers Squibb in 2008 for $4.1bn. Nordic Capital drew from its sixth and seventh funds to back the deal.

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

Company
Headquartered in Reading and founded in 1978, ConvaTec develops and distributes infusion devices and medical products for use in wounds, 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).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• Healthcare
• UK / Ireland
• Nordic Capital
• Partial sale