The $4.1 billion acquisition would be the largest financial sponsor deal since the credit crunch slowed the market in summer 2007.
“The Commission’s decision is conditional upon the commitment by Nordic Capital to divest its entire wound care business as well as its ophthalmic needles business,” the European Union executive said in a statement last week.
The commission also said that the divestiture solved a competition problem arising from the fact that both companies made advanced wound care products, especially alginates, which are moist-absorbing and made from seaweed.
ConvaTec has been a well-performing unit with global sales rising 14% to $290 million in the first quarter. Bristol-Myers has said its focus going forward would be on pharmaceuticals and developing biotechnology medicines, which have higher profit margins than businesses such as wound care.
This deal would be the second Bristol Meyers carve-out for Avista Capital. In December, the New York-based firm agreed to buy Bristol Meyers’ medical imaging division for $525 million. —Thomson Reuters