Bioventus Inc. (NASDAQ: BVS) has announced the divestiture of its advanced rehabilitation business of its subsidiary, Bioness, to Accelmed Partners for a total cash consideration of $45 million. This includes $25 million in cash at close and up to $20 million in potential post-closing earn-out payments.
The company expects to net approximately $20 million after fees and expenses at the time of closing, which will be used to repay existing debt.
This divestiture will reduce Bioventus' annual revenue by approximately $50 million and annual adjusted EBITDA by approximately $6 million.
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2024.
Bioventus is being advised by Moelis & Company LLC as its financial advisor and Reed Smith LLP as its legal advisor in connection with the sale of its advanced rehabilitation business. Jones Day and Stevens & Lee are acting as legal advisors to Accelmed.
Dr. Uri Geiger, managing partner of Accelmed, expressed excitement in welcoming the advanced rehabilitation business of Bioness to their investment portfolio. He believes that Bioness' advanced rehabilitation products are critical for helping patients with stroke and other neuromuscular conditions in their rehabilitation journey and sees a significant opportunity for growth.
The divestiture of the advanced rehabilitation business will enable Bioventus to focus on execution within its core, while also enhancing its liquidity.
Bioventus Inc. delivers clinically proven, cost-effective products that help people heal quickly and safely, with a mission to help patients resume and enjoy active lives. Following these announcements, the company's shares moved 1.2%, and are now trading at a price of $11.81. For the full picture, make sure to review Bioventus's 8-K report.
