Nordic Capital sells remaining shares in ConvaTec

Nicole Tovstiga
03 May 2018

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Nordic Capital has sold its remaining shares in UK-based medical products business ConvaTec Group, raising total gross proceeds of ТЃ315m.

The GP sold 143,158,828 shares, or around 7.3% of the issued share capital, to institutional investors through an accelerated bookbuild process. With shares priced at 220 pence apiece, the total gross proceeds amounted to £315m. ConvaTec has a market cap of £4.41bn.

Following the completion of the placing, Nordic Capital will no longer own any shares in the firm.

UBS acted as sole bookrunner.

Previous funding
Nordic Capital and Avista Capital Partners gained approval from the European Commission for the $4.1bn buyout of ConvaTec in July 2008. The approval required Nordic Capital to divest its holdings in wound care and ophthalmic needles as the investors intended to combine it with Unomedical, a manufacturer of single-use medical devices based in Copenhagen. Unomedical was owned by Nordic Capital Fund IV at the time.

The company floated on the London stock exchange with a £4.39bn market cap in October 2016. ConvaTec received gross proceeds of £1.47bn from the offering, which was primarily earmarked for the repayment of debt.

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%.

Nordic Capital and Avista extended their share sell-down in the business n June 2017, bringing gross proceeds from the offering to £805m.

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 $1.76bn in 2018 with an adjusted operating profit of $456.8m (3.3% lower than in 2017).

People
Nordic Capital – Kristoffer Melinder (partner).
ConvaTec – Paul Moraviec (CEO).