ConvaTec is spending $321 million on 180 Medical, an Oklahoma City maker of sterile-use catheters and urologic and disposable medical supplies.
180 Medical sells products for urinary incontinence, spinal cord injuries, multiple sclerosis and other urological conditions, the company said. ConvaTec, which is owned by Nordic Capital and Avista Capital Partners, is financing the deal through its credit agreement and expects to close it in the third quarter.
ConvaTec focuses on four areas: ostomy care, wound therapeutics, infusion devices, and continence and critical care. The 180 Medical buy is likely to boost the company's urological business, and the successful bid comes after ConvaTec was thwarted in its attempts to buy wound-care specialist Kinetic Concepts last year.
ConvaTec was in the late stages of a $6.5 billion buyout of Kinetic Concepts when the deal fell apart in September 2011, with a source telling Reuters that the company ran into "a hole in the financing that [it] could not fill." Kinetic Concepts was eventually sold for $6.3 billion to a group led by Apax Partners.
The company began as Bristol-Myers Squibb's ($BMS) wound-care unit, but was sold to Nordic and Avista in 2008 for $4.1 billion.
- read ConvaTec's statement
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