Bioventus (Nasdaq:BVS) announced today that it successfully completed the divestiture of its wound business to LifeNet Health.
Earlier this month, the Durham, North Carolina-based company announced an agreement to divest the business to LifeNet.
The sale includes Bioventus’ skin substitutes, TheraSkin and TheraGenesis. The transaction includes a total cash consideration of $85 million. That features $35 million at close, $5 million deferred 18 months and $45 million in potential earn-out payments.
Bioventus continues to offer pain treatments, restorative therapies and surgical solutions.
At the time of closing, Bioventus expects to net approximately $30 million after fees and expenses. It intends to use that cash to repay existing debt. Bioventus said the transaction enables its “improved focus on execution.” The company prevously said its divestiture reduces its annual revenue by approximately $40 million and its adjusted EBITDA by about $5 million.
In connection with the closing, the two companies entered into a sales agent agreement. Under this, LifeNet holds exclusive rights to sell SonicOne ultrasonic wound debridement products in the U.S. and Canada.
“The sale of our wound business will enhance our liquidity and enable a greater focus on execution,” said Tony Bihl, Bioventus’ interim chief executive officer. Bihl took over last month after CEO Ken Reali stepped down.
