London-based LivaNova’s board of directors unanimously approved the divestiture of the heart valve business in an effort to enable the company to “sharpen its focus” within its primary platforms, such as neuromodulation and cardiovascular, according to a news release.
LivaNova also wants to use the divestiture to dedicate increased resources toward executing its pipeline opportunities in other spaces.
Analysis from Needham said the deal is estimated to be approximately 10¢ to 15¢ dilutive to LivaNova’s 2021 adjusted earnings per share, while the deal is expected to be accretive to the company’s revenue growth and margin profile over the long term.
Once the transaction is complete, Geneva, Switzerland-based Gyrus plans to position the heart valve (HV) business to become a leading player in the surgical heart valve market around the world. The investment firm focuses on healthcare and sustainability.
“The LivaNova HV business is a global player in surgical heart valves with world-class products and compelling growth opportunities,” Gyrus Capital managing partner Guy Semmens said in the release. “This business fits squarely within our strategy to invest in transformational projects in the healthcare and sustainability sectors. We believe that, with a focus on the core products, this new independent company can maximize its potential through our investment in its products and people.”
“We believe that LivaNova and Gyrus will benefit from this transaction and, that under Gyrus ownership, the HV business will thrive and grow,” added LivaNova CEO Damien McDonald. “For LivaNova, the divestiture of our HV business is an important milestone in the execution of our strategy to optimize our portfolio so that we are best positioned to serve our patients and deliver value to our shareholders. In particular, we intend to focus more directly on our key growth drivers and continuously improve our operational excellence.”