BVS - Bioventus stock rises ~10% on signing deal to sell Wound business
2023-05-10 09:27:43 ET
- Bioventus ( NASDAQ: BVS ) is selling its Wound business, including skin substitutes TheraSkin and TheraGenesis, to LifeNet Health for $85M.
- The total cash consideration of $85M, include $35M at close, a $5M payment deferred 18 months, and $45M in potential earn-out payments.
- At closing, Bioventus expects to net about $30M after fees and expenses which will be used to repay debt, according to the company.
- Bioventus noted that the divestiture reduces its annual revenue by ~$40M and annual Adjusted EBITDA by ~$5M.
- "The sale of our Wound business will enhance our liquidity and enable a greater focus on execution," said Bioventus' Interim CEO Tony Bihl.
- Bioventus and LifeNet have also signed a sales agent agreement under which LifeNet will have exclusive rights to sell SonicOne ultrasonic wound debridement products in the U.S. and Canada.
- The transaction is expected to close in about one week before the end of May.
- BVS +11.10% to $1.07 premarket May 10
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Bioventus stock rises ~10% on signing deal to sell Wound business