Drugs
Bristol Sells ConvaTec Unit for $4.1 Billion
Elizabeth Trotta
05/02/08 - 04:54 PM EDT
Bristol-Myers Squibb BMY announced Friday after the market close a deal to sell ConvaTec, its wound therapeutics business unit, for $4.1 billion.
The New York drugmaker is selling the business to Nordic Capital Fund VII, a group of private equity funds, and private equity firm Avista Capital Partners in a deal expected to close in the third quarter. The ConvaTec unit, which will transition to a standalone company, will continue to be run by CEO Dave Johnson.
The sale is part of Bristol's previously announced strategic review of non-pharmaceutical assets, which has already resulted in the sale of its Medical Imaging and a proposed sppin off of Mead Johnson.
Bristol's shares, which ended the regular session up 1.8% at $23.25, were gaining another 4 cents to $23.39 in recent after-hours trading Friday.