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Bristol Sells ConvaTec Unit for $4.1 Billion

A group of pricate equity firms is buying the wound care business in a deal expected to close in the third quarter.

Bristol-Myers Squibb

(BMY) - Get Bristol-Myers Squibb Company Report

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.

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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.