Nordic Capital and Avista in partial exit for ConvaTec

Due to strong investor demand, the GPs have increased the size of a recently announced placing and will sell an aggregate 250 million of ordinary shares at 322 pence apiece, which represented gross proceeds of £805m, according to local market reports.

Initially, the vendors had agreed to a sale of 200 million shares, according to a statement, and were understood to be expecting £688m in proceeds.

Goldman Sachs International, Merrill Lynch International and UBS are acting as joint bookrunners for the transaction.

Following the deal, the sellers have agreed to a 90-day lock-up period.

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.

In October 2016, the company floated on the London stock exchange with a £4.39bn market cap. ConvaTec received gross proceeds of £1.47bn from the offering, which was primarily earmarked for the repayment of debts. The bookbuilding consisted of 375 million shares.

More recently, the GPs sold two share blocks worth nearly $2bn in March 2017, reaping a 15.5% premium on the stock's October 2016 IPO price. Following the sale in March, Nordic Capital owned around 16% of the company's share capital, while Avista held around 7%.

Company
Headquartered in Reading and founded in 1978, ConvaTec develops medical products focusing on chronic conditions, such as advanced wound care, ostomy care, continence and critical care, as well as infusion devices.

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).

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