Novo Holdings steps back from Convatec boardroom
Convatec Group, the Deeside-based medical products business, has agreed to end its relationship agreement with Danish investment company, Novo Holdings A/S.
This will lead to the departure from the board, from today (September 8), of Sten Scheibye.
Novo Holdings has had a seat on the board since 2017 when it announced a deal to acquire a 19.95% stake in Convatec, which included an arrangement for its CEO, Kasim Kutay, to join the board.
Novo Holdings acquired its stake from Nordic Capital and Avista for £1.012bn.
Novo Holdings said: “Given the increasing momentum in Convatec’s growth and margin trajectory and the high regard and confidence we have in management, we no longer feel a need to occupy a board position at the company.
“As shareholders, we are very excited by the opportunity we see for further value creation by the company.”
Convatec chairman, John McAdam, said: “Sten has been a valued member of the board over the last five years and on behalf of the group I would like to extend our thanks for his contribution and insights. Novo Holdings remains an important shareholder in Convatec and we look forward to continuing our relationship and dialogue.”
Sten Scheibye said: “I have very much enjoyed my time on Convatec’s board. The group has a clear strategy and strong management team. I have no doubt that the company will continue to make significant progress in the future.”
Last month Convatec announced better half year figures for the six months to June 30, 2023, and raised guidance on the back of the latest results.
Turnover of £1.055bn was up on the previous year’s £1.044bn level, while pre-tax profits of £76m compared with a pre-tax profit of £46.1m a year ago. The interim dividend was raised from 1.717p per share last year to 1.769p per share.
The group said it now expects organic revenue growth to be between 6-7.5% (previously 5-6.5%) and to achieve an adjusted operating profit margin of at least 20.5% on a constant currency basis (previously at least 19.7%).
