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.
- 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.
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. The remaining shareholding in ConvaTec was sold in May 2018.