Business
Bioventus Announces Divestiture of its Advanced Rehabilitation Business to Accelmed Partners
DURHAM, N.C., Oct. 01, 2024 (GLOBE NEWSWIRE) -- Bioventus Inc. (Nasdaq: BVS) (“Bioventus” or the “Company”), a global leader in innovations for active
About this update from Bioventus Inc.
[{"type":"text","content":"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 $45 million, including $25 million in cash at close (subject to a working capital adjustment) and up to $20 million in potential post-closing earn-out payments. At the time of closing, the Company expects to net approximately $20 million after fees and expenses, which will be used to repay existing debt. “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 $50 million and annual Adjusted EBITDA by approximately $6 million. 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 an...