Since ConvaTec was acquired from Bristol Myers Squibb in August 2008, it has grown to become one of the leading medical products and technology companies in the world. It focuses on therapies for the management of chronic conditions across four strong franchises: Advanced Wound Care; Ostomy Care; Continence and Critical Care; and Infusion Devices.  It sells its products to patients and healthcare professionals in more than 100 countries.

ConvaTec Group Plc was listed on the London Stock Exchange in October 2016. Nordic Capital Funds VI and VII, remain some of the largest shareholders in the Company post listing.

Sourcing

Nordic Capital was well educated about ConvaTec and its underlying markets ahead of acquisition on account of its previous investment in healthcare business Mölnlycke and numerous prior interactions with key competitors.  This provided deep insight into the Advanced Wound Care and Ostomy Care markets and allowed Nordic Capital to get well ahead of the field before the formal sale process started in 2008.

Investment rationale

  • ConvaTec’s status as an orphaned division of Bristol Myers Squibb offered an attractive value creation opportunity.
  • The investment was underpinned by strong sector trends supporting sustained growth in several chronic care end-markets.
  • Strong rationale to refocus ConvaTec on attractive chronic care segments, to invest in technology and innovation, and to accelerate new product development in Advanced Wound Care and Ostomy Care.
  • M&A opportunity in chronic care markets.

Building the business

  • During Nordic Capital's ownership, ConvaTec has benefited from operational improvement, organic growth and complementary acquisitions.
  • Nordic Capital helped the company to create an independent structure following its separation from Bristol Myers Squibb and recruited a strong management team.
  • This was reinforced by the strategic acquisitions of Unomedical, a leading manufacturer of single-use medical devices based in Copenhagen, which was also backed by Nordic Capital; and 180 Medical, enabling the company to penetrate the US urinary catheter market.
  • Nordic Capital has supported ongoing technology and innovation in high growth areas such as foam dressings.
  • Sales growth was accelerated by improving the efficiency of the company’s global manufacturing platform through increased automation, enhanced sourcing and site optimisation.
  • Since Nordic Capital's initial investment in 2008, ConvaTec's number of employees has almost trebled.

As a result of rigorous and early preparation, ConvaTec Group Plc was successfully listed on the London Stock Exchange in October 2016, making it the largest European Healthcare IPO in more than 20 years and the largest Medtech IPO globally in more than 10 years.

The ConvaTec share price has developed positively following the IPO. A landmark sell-down of shares was completed in late March 2017, with Nordic Capital Funds VI and VII selling more than 60% of their pre-transaction indirect shareholding.