American Industrial Partners said on Tuesday it has agreed to acquire Avanos Medical (AVNS.N) in an all-cash transaction valued at approximately $1.27 billion, as it invests in the company’s nutrition and pain management businesses.
Avanos produces medical devices that focus on non-opioid treatments for chronic pain, as well as nutrition support products, including feeding tubes and related systems for patients who are unable to eat independently.
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The private equity firm will gain access to Avanos’ flagship product, Coolief, a minimally invasive radiofrequency device used to treat chronic pain by disabling pain-causing nerves without the use of opioid medications.
Coolief operates in a competitive pain management market alongside similar technologies from major companies such as Stryker, Medtronic (MDT.N), and Boston Scientific, which offer ablation systems as part of their broader medical device portfolios.
Under the terms of the agreement, Avanos shareholders will receive $25 per share in cash, representing a premium of approximately 72.1% over the company’s last closing price.
