Apax Funds, managed by private equity advisory firm Apax Partners, has signed a definitive agreement to acquire the minority stake held by Becton Dickinson (BD) in Vyaire Medical for $435m.
Subject to customary closing conditions, the transaction is scheduled to be completed this April. BD plans to utilise the proceeds obtained from this deal to support its capital allocation strategy.
Vyaire Medical was launched in October 2016 as a joint venture (JV) between BD and Apax Partners, when BD divested 50.1% shares from its Respiratory Solutions business to Apax Funds.
The transfer included all of BD’s respiratory business lines such as Ventilation, Respiratory Diagnostics, Vital Signs and AirLife, as well as locations in the US, Mexico, Brazil, Germany and China.
During that time, BD had decided to retain the remaining 49.9% interest in Vyaire, which was estimated to achieve annual revenue of more than $800m with 5,000 employees.
Apax partner Steven Dyson said: “Since the Apax Funds acquired a majority stake in Vyaire Medical in October 2016, strong progress has been made by the business.
“A new senior management team led by CEO Dave Mowry has established key functions, delivered operational improvements, upgraded commercial capabilities and made two accretive acquisitions.
“It was on the basis of this progress, and the promise that we continue to see for the business, that we sought to acquire BD’s minority stake.”
Vyaire Medical currently manufactures and distributes respiratory and anaesthesia / surgical consumables, along with medical devices for diagnosis of respiratory diseases.
The firm also offers equipment for ventilation or airway management during surgical procedures of patients suffering from acute and chronic respiratory conditions.