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This metro Atlanta medical company agrees to be sold in $1.3 billion deal

Avanos Medical, a publicly traded company based in Alpharetta, will be taken private as part of the proposed deal.
The Alpharetta headquarters of Avanos Medical, a medical device company. (Courtesy of Avanos Medical)

Credit: Handout

Credit: Handout

The Alpharetta headquarters of Avanos Medical, a medical device company. (Courtesy of Avanos Medical)
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5 hours ago

Avanos Medical, a publicly traded medical device company based in Alpharetta, said Tuesday it has agreed to be acquired by affiliates of private equity firm American Industrial Partners.

The all-cash deal will take Avanos private and values the company at about $1.3 billion. Avanos shareholders will receive $25 a share as part of the agreement, which represents a premium of about 72.1% from Monday’s closing stock price, according to the company’s announcement.

New York-based AIP invests in industrial manufacturing, distributors and service providers across a variety of industries, including metals and mining, personal care and aerospace.

This acquisition brings Avanos back under the umbrella of a large parent company. Avanos was initially a wholly-owned subsidiary of Kimberly-Clark, which the personal care giant formed to hold its health care business, but was spun off as a separate business in 2014.

Over the years, Avanos has produced a variety of medical technology, but its main offerings now are specialty nutrition and non-opioid pain management products. These include pain pumps and external feeding tube equipment for patients ranging in age from neonatal to adults.

Avanos Medical's CORTRAK enteral access system for feeding tube placement. (Courtesy of Avanos Medical)

Credit: Handout

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Credit: Handout

“Over the past several years, we have taken deliberate steps to become a more focused medical technology organization, leaning into the categories where we can deliver the most clinical value. Partnering with AIP will better enable us to build on our progress, advance our innovation roadmap, and strengthen our competitive position with enhanced flexibility and resources,” Avanos CEO David Pacitti said in a statement.

“Avanos is a differentiated medical technology company with strong positions in attractive categories and a compelling platform for continued growth. We look forward to partnering with the Avanos team to build on the Company’s momentum and support the next phase of innovation and commercial execution,” said Joel Rotroff, a partner at AIP.

Even with the change in ownership, Avanos will keep its headquarters in Alpharetta. The deal is expected to close in the last half of the year.

About the Author

Mirtha Donastorg is a reporter on The Atlanta Journal-Constitution’s business team focusing on Black wealth, entrepreneurship, and minority-owned businesses as well as innovation at Atlanta’s HBCUs.

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