28th Jan 2022 09:29
(Alliance News) - ConvaTec Group PLC on Friday said it has agreed to acquire US-focused medical device company Triad Life Sciences Inc for USD125 million.
Memphis, Tennessee-based Triad focuses on the development of biologically-derived products to address unmet clinical needs in surgical wounds.
The acquisition, therefore, serves as an entry into the "rapidly-growing" wound biologics segment for ConvaTec, a Reading, Berkshire-headquartered medical products and technologies firm.
This segment is currently estimated to be worth around USD1.8 billion per year globally with projected high single-digit percentage growth per year, it said.
Furthermore, Triad is expected to "strengthen" the company's advanced wound care position in the US.
ConvaTec said the initial consideration is USD125 million with two potential additional payments of USD25 million, each relating to short-term milestones.
Additionally, there are two earnout payments conditional on performance during the first and the second year post-completion, it added. The maximum earnout of USD275 million is based on Triad's stretching financial performance over the period.
The transaction is expected to close during the first quarter of this year.
"This transaction will strengthen our Wound Care business and enable ConvaTec to enter the rapidly growing wound biologics segment. Triad Life Sciences has innovative and differentiated products and an exciting pipeline which is consistent with our vision," ConvaTec's Chief Executive Karim Bitar commented.
Triad's Chief Executive Russell Olsen added: "ConvaTec has an impressive reputation and unique capabilities in advanced wound care, based on decades of innovation. We are excited to be joining ConvaTec and look forward to accelerating the growth of our innovative technology platform."
Shares were up 1.3% at 170.15 pence each on Friday morning in London.
By Abby Amoakuh; [email protected]
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