Medical technology company Avanos Medical, Inc. has sold its Respiratory Health business to SunMed Group Holdings, LLC in a definitive agreement. The deal includes substantially all of the assets primarily used in the RH business, including fixed assets and inventory, among others. SunMed is a leading North American manufacturer and distributor of consumable medical devices for anesthesia and respiratory care with a comprehensive product portfolio that spans the continuum of care from first responders to hospitals and home care. The transaction is expected to close later this year as part of Avanos' ongoing three-year transformation process that aims to optimize its portfolio by focusing on higher-margin and higher-growth markets.
Keywords: Avanos Medical, Respiratory Health business, SunMed Group Holdings
Avanos Medical will provide transition services after closing while enhancing balance sheet flexibility giving additional capacity for deploying capital into M&A opportunities within core categories and markets such as Digestive Health and Pain Management & Recovery products. This sale represents an important step towards achieving these goals while enabling them to succeed in more profitable areas where they are well positioned.
Additionally, Alston & Bird LLP served as legal counsel for Avanos while Goodwin Procter LLP was serving as SunMed's legal counsel during the divestiture process.