28th January 2022
ConvaTec Strikes Landmark US Deal
Medical products and technologies business ConvaTec Group has agreed to acquire Triad Life Sciences, a US-focused medical device company. The deal, for an initial $125m, represents an entry into the large and rapidly growing wound biologics segment.
Triad Life Sciences develops biologically-derived products to address unmet clinical needs in surgical wounds, chronic wounds and burns.
ConvaTec said the wound biologics market is currently estimated to be worth about $1.8bn per annum globally with a projected growth of high single digit percentage per annum.
Founded in 2017, Triad Life Sciences is based in Memphis, Tennessee, and currently has more than 50 employees. The company develops, manufactures and commercialises its product portfolio.
These products were said to be highly complementary to ConvaTec’s existing portfolio and will enable the group to meet a wider range of needs of both patients and health care practitioners.
The initial consideration is $125m with two potential additional payments of $25m each relating to short-term milestones. There are also two earnout payments conditional on performance during year one and year two post completion, with the maximum earnout of $275m based on stretching financial performance over the period.
Karim Bitar, chief executive at ConvaTec Group, said: “Today’s announcement marks another successful step in our strategic intent of pivoting to sustainable and profitable growth. This transaction will strengthen our Wound Care business and enable ConvaTec to enter the rapidly growing wound biologics segment.
“Triad Life Sciences has innovative and differentiated products and an exciting pipeline which is consistent with our vision – Pioneering trusted medical solutions to improve the lives we touch. We are delighted that Russ and the team have decided to join ConvaTec.”
Russell Olsen, president and chief executive at Triad Life Sciences, said: “ConvaTec has an impressive reputation and unique capabilities in Advanced Wound Care, based on decades of innovation. We are excited to be joining ConvaTec and look forward to accelerating the growth of our innovative technology platform.”
The transaction, which is subject to regulatory approvals and other customary conditions, is expected to close during the first quarter of 2022.
The advisers who worked on the deal were not disclosed.
ConvaTec has global operations. In the UK, the business has sites in Reading, Deeside, Sunderland, Tredegar, Basingstoke, Lincoln, Stirling, Cheltenham and Croydon, South Shields and Greenhithe.