Avanos Medical (NYSE:AVNS) announced today that it agreed to be acquired by affiliates of American Industrial Partners (AIP).
AIP is a private equity firm that invests in industrial businesses. It agreed to an all-cash transaction that carries an enterprise value of approximately $1.272 billion.
Under the terms of the agreement, Avanos stockholders receive $25 per share in cash for each owned share of common stock. The purchase price represents a premium of approximately 72.1% to the closing price of Avanos stock on April 13. It also marks an 82.8% premium to the company’s 30-day volume-weighted average share price.
Avanos develops a range of technologies, including solutions for pain management, chronic care, digestive care and more. Offerings include feeding tubes, medication dosing solutions, infusion technology and radiofrequency ablation technology, among other things.
The agreement marks the latest private equity play in medtech, right on the heels of Hologic’s acquisition by funds managed by private equity firms Blackstone and TPG last week.
Commentary from Avanos and AIP officials
Gary Blackford, Avanos board chair, said:
“Our agreement with AIP is a milestone for Avanos that reflects the strong momentum across the business. After careful consideration alongside our independent advisors, we are confident this agreement with AIP represents the right path forward for Avanos and its stockholders. The Board believes this transaction will maximize value for stockholders, create exciting new opportunities for employees, and best position Avanos for long‑term growth and success.”
David Pacitti, Avanos CEO, said:
“Over the past several years, we have taken deliberate steps to become a more focused medical technology organization, leaning into the categories where we can deliver the most clinical value. Partnering with AIP will better enable us to build on our progress, advance our innovation roadmap, and strengthen our competitive position with enhanced flexibility and resources. AIP recognizes the strength of our talented employees and the role they serve in addressing today’s most important healthcare needs. I look forward to working with AIP as the Avanos team begins a new chapter, marked by growth and compelling benefits for employees, patients, customers, and all our stakeholders.”
Joel Rotroff, partner at AIP, said:
“Avanos is a differentiated medical technology company with strong positions in attractive categories and a compelling platform for continued growth. We look forward to partnering with the Avanos team to build on the Company’s momentum and support the next phase of innovation and commercial execution.”
Sunny Li, partner at AIP, said:
“We have been impressed by the work the management team has done to position Avanos for growth, as well as by the strength of the Company’s people and products. We believe this partnership, together with AIP’s deep operational capabilities, will help advance management’s vision and position Avanos for long-term success.”
Another private equity play in medtech
In addition to the Hologic deal last week, private equity has made its mark across the industry in recent years. Medtech companies, including Medtronic, Johnson & Johnson and Baxter, previously looked to private equity for spinoff and separation opportunities.
Surmodics struck a deal to sell to private equity, and received clearance to go ahead with that acquisition in late 2025. Philips and Bioventus divested business units to private equity firms last year.
Firms also make significant investments, like one in Medline years ago and one in Henry Schein in 2025. Last fall, HistoSonics announced a management-led majority stake acquisition by a syndicate of private and public investors.
Highridge Medical, formerly part of ZimVie, recently sold its bone healing division to private equity as well. Another private equity play occurred in medtech last month, when Olympus partnered with investment firm Revival Healthcare Capital to drive advancements in endoluminal robotics.
(Leading medtech companies discussed the role of private equity in medtech M&A at AdvaMed’s The MedTech Conference in October 2025. Read more about that here.)
