Bioventus Inc. has signed a definitive agreement to sell its Wound business, which includes TheraSkin and TheraGenesis skin substitutes, to LifeNet Health for $85 million. The deal includes $35 million in cash at close, a $5 million deferred cash payment, and potential earn-out payments of $45 million. The transaction will provide Bioventus with approximately $30 million in net proceeds after expenses, allowing the company to repay existing debt. The sale also grants LifeNet Health exclusive rights to sell SonicOne ultrasonic wound debridement products in the US and Canada. The transaction is expected to close in about a week.
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 Wound business, including the skin substitutes TheraSkin and TheraGenesis, to LifeNet Health. The transaction includes a total cash consideration of $85 million, including $35 million in cash at close, a $5 million cash payment deferred 18 months, and $45 million in potential earn-out payments. At the time of close the Company expects to net approximately $30 million after fees and expenses which will be used to repay existing debt.
Bioventus and LifeNet Health have also signed a Sales Agent Agreement under which LifeNet Health will have exclusive rights to sell SonicOne ultrasonic wound debridement products in the US and Canada.
“The sale of our Wound business will enhance our liquidity and enable a greater focus on execution,” said Tony Bihl, Bioventus’ interim chief executive officer.
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The divestiture of the Wound business reduces the Company’s annual revenue by approximately $40 million and annual Adjusted EBITDA by approximately $5 million.
The transaction is expected to close in approximately one week before the end of May.
Jefferies LLC is acting as financial advisor and Reed Smith is acting as legal advisor in connection with this transaction.
Source: BioSpace