Novo A/S, the holding company for the Novo Group and fully owned subsidiary of the Novo Nordisk Foundation, has announced plans to acquire a 19.95 percent stake in UK medical products and technologies group ConvaTec for around for £1.01 billion.
Headquartered in Reading, ConvaTec - once a division of Bristol-Myers Squibb - has a strong foothold in the areas of advanced wound care, ostomy care, continence and critical care and infusion devices used in the treatment of diabetes and other chronic conditions.
Under the deal, Novo will also obtain the right to appoint one director to the ConvaTec Board, and is currently proposing to put forward its chief executive Kasim Kutay for this position.
“Novo A/S is an experienced long-term healthcare investor and we see their shareholding in ConvaTec as a validation of the quality and long-term potential of the Company,” said Sir Christopher Gent, chairman of ConvaTec, commenting on the move. “We are also pleased to welcome Kasim to the Board of ConvaTec – we look forward to benefiting from his long experience in the healthcare sector.”
"ConvaTec is a very attractive investment opportunity given the fundamentals of the medical products sector and the strength of the company's product portfolio,” said Kutay, explaining Novo’s interest in the deal.