Investment firm Gyrus Capital has signed an agreement to acquire the LivaNova heart valve (HV) business, through entities funded and controlled by the company.
The divestiture of the HV business is for an enterprise value of €60m ($73m) and likely to be completed in the first half of next year.
Approximately €10m of this will be paid at the end of 2022.
The transaction excludes the French HV business for which a Gyrus affiliate has granted LivaNova a binding offer. The decision on this is yet to be made.
The HV business has products such as a unique sutureless aortic valve, Perceval, along with tissue and mechanical valves that cater to different needs of cardiac surgeons and patients worldwide.
It globally employs around 900 staff with major operations in Saluggia, Italy; and Vancouver, Canada.
On closing of the deal, Gyrus will acquire these plants and HV assets, as well as inherit or make offers to HV staff.
Gyrus Capital managing partner Guy Semmens said: “The LivaNova HV business is a global player in surgical heart valves with world-class products and compelling growth opportunities.
“This business fits squarely within our strategy to invest in transformational projects in the healthcare and sustainability sectors.”
The deal also includes customary warranties and limitations on a liability totalling up to €37.5m.
LivaNova will operate HV in the normal course of business until the closing of the deal and the HV business and Gyrus remain separate entities.
In April, the US Food and Drug Administration (FDA) permitted LivaNova to modify several of its cardiopulmonary products for extended use in extracorporeal membrane oxygenation therapy longer than six hours to address Covid-19.
