Avanos will use net proceeds from the deal to improve its balance sheet and allocate capital for mergers and acquisitions (M&A) in its core categories and markets.
Avanos CEO Joe Woody said: “We expect that divesting the respiratory health business, along with our ongoing SKU rationalisation initiatives and future M&A opportunities, will allow us to meaningfully transform the financial profile of Avanos.”
Under the deal, SunMed will acquire Avanos’ Microcuff, Ballard and endOclear brands. These brands comprise closed suction catheters and endotracheal tubes, as well as oral care solutions.
The transaction also covers fixed assets, inventory and long-term leases for two manufacturing facilities situated in Magdalena and Nogales in Mexico.
SunMed CEO Hank Struik said: “Adding these complementary brands into our growing portfolio solidifies SunMed’s leadership as the premier manufacturer of the anaesthesia and respiratory consumables that define product excellence and serve patients across the continuum of care.
“These products are the standard bearers of closed suction and endotracheal consumables and we deeply admire the clinical results that these exceptional products provide for patients in critical care and the trust they have built with practitioners.”
Subject to customary closing conditions, the deal is anticipated to complete by the end of this year.
After the acquisition, Avanos will offer transition services while SunMed integrates its new RH business into its existing product portfolio.