LivaNova (NSDQ:LIVN) announced today that it completed the initial closing of the sale of its heart valve business to Gyrus Capital.
In December, LivaNova announced its board’s unanimous approval of the divestiture of the heart valve business to enable the company to “sharpen its focus” within its primary platforms, such as neuromodulation and cardiovascular.
According to a news release, the divestiture of the heart valve business includes an enterprise value of $73 million, with Corcym —an independent company recently launched and owned by entities funded and controlled by Gyrus — set to manage the business.
The company said approximately 850 employees will transition to Corcym, which has major operations in Saluggia, Italy, and Vancouver, Canada. The initial closing includes Corcym acquiring LivaNova’s manufacturing facilities in Saluggia and Italy and related assets in other geographies. Over the course of the year, the companies expect to complete the transfer of commercial operations in various local jurisdictions.
London-based LivaNova’s former heart valve business includes the Perceval sutureless aortic valve and the Memo 4D semi-rigid mitral annuloplasty ring. The company expected the heart valve business to produce net sales totaling approximately $70 million from June 1, 2021, to Dec. 31, 2021.
Excluding the heart valve business revenues, LivaNova projects full-year 2021 worldwide sales growth of between 0% and 5%, with estimated adjusted earnings per share dilution of approximately 9¢ related to the divestiture. As a result, LivaNova expects full-year adjusted EPS to range between $1.31 and $1.81.
“The completion of the HV sale to Gyrus Capital allows LivaNova to optimize its portfolio and sharpen its focus on cardiovascular and neuromodulation, our two areas of excellence,” LivaNova CEO Damien McDonald said in the release. “We are now better positioned to accelerate growth in our core, dedicate resources toward executing promising pipeline opportunities, and enhance our operational excellence to best serve our patients and deliver maximum value to shareholders.”