Bioventus Announces Divestiture of its Advanced Rehabilitation Business to Accelmed Partners
Bioventus Inc. (Nasdaq: BVS) has announced the sale of its Advanced Rehabilitation business, part of its Bioness subsidiary, to Accelmed Partners for $45 million. The deal includes $25 million in cash at closing and up to $20 million in potential earn-out payments. Bioventus expects to net approximately $20 million after fees and expenses, which will be used to repay existing debt.
The divestiture will reduce Bioventus's annual revenue by about $50 million and annual Adjusted EBITDA by approximately $6 million. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
This strategic move allows Bioventus to focus on its core business and improve liquidity, while positioning the Advanced Rehabilitation business for growth under Accelmed's management. Moelis & Company and Reed Smith LLP are advising Bioventus on the transaction.
Bioventus Inc. (Nasdaq: BVS) ha annunciato la vendita della sua divisione Advanced Rehabilitation, parte della sua controllata Bioness, a Accelmed Partners per 45 milioni di dollari. L'accordo include 25 milioni di dollari in contanti alla chiusura e fino a 20 milioni di dollari in potenziali pagamenti variabili. Bioventus prevede di nettere circa 20 milioni di dollari dopo le spese e i costi, che saranno utilizzati per ripagare debiti esistenti.
La dismissione ridurrà il fatturato annuale di Bioventus di circa 50 milioni di dollari e l'EBITDA rettificato annuale di circa 6 milioni di dollari. Si prevede che la transazione si chiuda nel quarto trimestre del 2024, soggetta a condizioni di chiusura consuete.
Questa mossa strategica consente a Bioventus di concentrarsi sul suo core business e migliorare la liquidità, mentre posiziona la divisione Advanced Rehabilitation per la crescita sotto la gestione di Accelmed. Moelis & Company e Reed Smith LLP stanno consigliando Bioventus nella transazione.
Bioventus Inc. (Nasdaq: BVS) ha anunciado la venta de su negocio de Rehabilitación Avanzada, parte de su filial Bioness, a Accelmed Partners por 45 millones de dólares. El acuerdo incluye 25 millones de dólares en efectivo al cierre y hasta 20 millones de dólares en posibles pagos por rendimiento. Bioventus espera netear aproximadamente 20 millones de dólares después de tarifas y gastos, que se utilizarán para pagar deudas existentes.
La desinversión reducirá los ingresos anuales de Bioventus en aproximadamente 50 millones de dólares y el EBITDA ajustado anual en aproximadamente 6 millones de dólares. Se espera que la transacción se cierre en el cuarto trimestre de 2024, sujeta a condiciones de cierre habituales.
Este movimiento estratégico permite a Bioventus centrarse en su negocio principal y mejorar la liquidez, a la vez que posiciona el negocio de Rehabilitación Avanzada para el crecimiento bajo la gestión de Accelmed. Moelis & Company y Reed Smith LLP están asesorando a Bioventus en la transacción.
Bioventus Inc. (Nasdaq: BVS)는 Bioness 자회사에 속하는 Advanced Rehabilitation 사업부를 Accelmed Partners에 4500만 달러에 매각한다고 발표했습니다. 이번 거래에는 마감 시 2500만 달러의 현금과 최대 2000만 달러의 성과 기반 지불이 포함됩니다. Bioventus는 수수료 및 비용 후에 약 2000만 달러를 순이익으로 예상하며, 이는 기존 부채 상환에 사용될 예정입니다.
이 분할은 Bioventus의 연간 수익을 약 5000만 달러 줄이고, 연간 조정 EBITDA를 약 600만 달러 감소시킬 것으로 보입니다. 이번 거래는 2024년 4분기에 마감될 것으로 예상되며, 일반적인 마감 조건에 따라 진행됩니다.
이 전략적 결정은 Bioventus가 핵심 사업에 집중하고 유동성을 개선하는 동시에, Advanced Rehabilitation 사업부를 Accelmed 관리 하에 성장하도록 자리잡게 합니다. Moelis & Company와 Reed Smith LLP는 이번 거래에 대해 Bioventus를 자문하고 있습니다.
Bioventus Inc. (Nasdaq: BVS) a annoncé la vente de sa division Réhabilitation Avancée, faisant partie de sa filiale Bioness, à Accelmed Partners pour 45 millions de dollars. L'accord comprend 25 millions de dollars en espèces à la clôture et jusqu'à 20 millions de dollars en paiements potentiels basés sur la performance. Bioventus s'attend à un bénéfice net d'environ 20 millions de dollars après frais et dépenses, qui seront utilisés pour rembourser des dettes existantes.
Cette cession réduira le revenu annuel de Bioventus d'environ 50 millions de dollars et l'EBITDA ajusté annuel d'environ 6 millions de dollars. La transaction devrait être clôturée au quatrième trimestre de 2024, sous réserve des conditions de clôture habituelles.
Cette démarche stratégique permet à Bioventus de se concentrer sur son activité principale et d'améliorer sa liquidité, tout en positionnant la division Réhabilitation Avancée pour la croissance sous la gestion d'Accelmed. Moelis & Company et Reed Smith LLP conseillent Bioventus dans cette transaction.
Bioventus Inc. (Nasdaq: BVS) hat den Verkauf seines Geschäftsbereichs für fortschrittliche Rehabilitation, das zu seiner Tochtergesellschaft Bioness gehört, an Accelmed Partners für 45 Millionen Dollar angekündigt. Der Deal umfasst 25 Millionen Dollar in bar bei Abschluss und bis zu 20 Millionen Dollar an möglichen variablen Zahlungen. Bioventus erwartet, nach Gebühren und Ausgaben rund 20 Millionen Dollar netto zu erzielen, die zur Rückzahlung bestehender Schulden verwendet werden sollen.
Die Abspaltung wird den Jahresumsatz von Bioventus um etwa 50 Millionen Dollar und das bereinigte EBITDA um etwa 6 Millionen Dollar verringern. Die Transaktion wird voraussichtlich im vierten Quartal 2024 abgeschlossen, vorbehaltlich üblicher Abschlussbedingungen.
Dieser strategische Schritt ermöglicht es Bioventus, sich auf sein Kerngeschäft zu konzentrieren und die Liquidität zu verbessern, während das Geschäft für fortschrittliche Rehabilitation unter der Leitung von Accelmed auf Wachstum ausgerichtet wird. Moelis & Company und Reed Smith LLP beraten Bioventus in dieser Transaktion.
- Sale of Advanced Rehabilitation business for $45 million, including $25 million cash at close
- Expected net proceeds of $20 million to be used for debt repayment
- Improved focus on core business operations
- Enhanced liquidity position
- Reduction in annual revenue by approximately $50 million
- Decrease in annual Adjusted EBITDA by about $6 million
Insights
This divestiture is a significant move for Bioventus, impacting both its financial structure and strategic focus. The
The transaction's impact on Bioventus's financials is mixed. While it improves the balance sheet by reducing debt, it also decreases revenue and EBITDA. The
For investors, this represents a trade-off between short-term financial improvement and long-term growth potential. The market's reaction will likely depend on how effectively Bioventus redeploys resources into its core business and whether the improved focus translates into accelerated growth in remaining segments.
This divestiture marks a strategic shift for Bioventus, streamlining its portfolio to focus on core competencies. The Advanced Rehabilitation business, while valuable, may have been a distraction from Bioventus's primary growth drivers. By selling to Accelmed, a specialized HealthTech investor, Bioventus ensures the divested unit receives focused attention and investment for growth.
The transaction highlights a trend in the medical device industry where companies are increasingly specializing and divesting non-core assets. This allows for more targeted R&D and marketing efforts, potentially leading to faster innovation and market penetration in key areas. For Bioventus, this could mean accelerated development in its remaining product lines, particularly in orthopedics and regenerative medicine.
Investors should watch for how Bioventus reinvests the proceeds and leverages its newfound focus. The success of this strategy will depend on the company's ability to accelerate growth in its core segments to offset the revenue loss from the divestiture.
DURHAM, N.C., Oct. 01, 2024 (GLOBE NEWSWIRE) -- Bioventus Inc. (Nasdaq: BVS) (“Bioventus” or the “Company”), a global leader in innovations for active healing, announced today that it has signed a definitive agreement to sell its Advanced Rehabilitation business of its subsidiary, Bioness, to Accelmed Partners (“Accelmed”), a private equity firm focused on acquiring and growing commercial-stage HealthTech companies. The transaction includes a total cash consideration of
“This agreement reflects our deep respect for the Advanced Rehabilitation business and the many patients who benefit from its life-changing technology. The business will now be positioned in an environment that enables higher focus moving forward. Simultaneously, this divestiture allows Bioventus to focus on execution within our core, while also enhancing our liquidity,” said Rob Claypoole, Bioventus’s President and Chief Executive Officer.
Dr. Uri Geiger, Managing Partner of Accelmed, said, “We are excited to welcome the Advanced Rehabilitation business of Bioness to our investment portfolio. We believe Bioness’ Advanced Rehabilitation products are critical for helping patients with stroke and other neuromuscular conditions in their rehabilitation journey. We believe that there is a significant opportunity for growth and intend to invest in developing and extending the product line to continue improving patients’ lives.”
The divestiture of the Advanced Rehabilitation business reduces the Company’s annual revenue by approximately
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2024.
Moelis & Company LLC is acting as financial advisor and Reed Smith LLP is acting as legal advisor to Bioventus in connection with the sale of its Advanced Rehabilitation business. Jones Day and Stevens & Lee are acting as legal advisors to Accelmed.
About Bioventus
Bioventus delivers clinically proven, cost-effective products that help people heal quickly and safely. Its mission is to make a difference by helping patients resume and enjoy active lives. The Innovations for Active Healing from Bioventus include offerings for Pain Treatments, Restorative Therapies and Surgical Solutions. Built on a commitment to high quality standards, evidence-based medicine and strong ethical behavior, Bioventus is a trusted partner for physicians worldwide. For more information, visit www.bioventus.com, and follow the Company on LinkedIn and Twitter. Bioventus and the Bioventus logo are registered trademarks of Bioventus LLC.
About Accelmed Partners
Accelmed is a U.S.-based private equity firm focused on acquiring and investing in U.S. commercial stage, lower middle market HealthTech companies. Since 2009, Accelmed has deployed over
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws. Any statements contained herein that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements concerning the Company’s future growth, operating margins, market leadership and strategy, the expected proceeds from the divestiture, and the use of such proceeds to repay existing debt. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “may,” “might,” “objective,” “plan,” “possible,” “predict,” “project,” “propose,” “potential,” “positioned,” “seek,” “should,” “strive,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results to differ materially from those contemplated herein include, but are not limited to, our ability to successfully complete the planned divestiture of the Rehabilitation Business, our dependence on a limited number of products; our ability to develop, acquire and commercialize new products, line extensions or expanded indications; the continued and future acceptance of our existing portfolio of products and any new products, line extensions or expanded indications by physicians, patients, third-party payers and others in the medical community; our ability to achieve and maintain adequate levels of coverage and/or reimbursement for our products, the procedures using our products, or any future products we may seek to commercialize; our ability to recognize the benefits of our investments; our ability to complete acquisitions or successfully integrate new businesses, products or technologies in a cost-effective and non-disruptive manner; competition against other companies; our ability to continue to research, develop and manufacture our products if our facilities are damaged or become inoperable; failure to comply with the extensive government regulations related to our products and operations; enforcement actions if we engage in improper claims submission practices or in improper marketing or promotion of our products; the FDA regulatory process and our ability to obtain and maintain required regulatory clearances and approvals; the clinical studies of any of our future products that do not produce results necessary to support regulatory clearance or approval in the United States or elsewhere; we are subject to securities litigation and may be subject to similar or other litigation in the future, which will require significant management time and attention, result in significant legal expenses or costs not covered by our insurers, and may result in unfavorable outcomes; and the other risks identified in the Risk Factors section of the Company’s public filings with the Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and the quarterly reports on Form 10-Q, and as such factors may be further updated from time to time in the Company’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ materially from those set forth in the forward-looking statements.
Investor and Media Inquiries:
Dave Crawford
919-474-6787
dave.crawford@bioventus.com
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