Medical products firm to raise £1.4bn in IPO
A GLOBAL medical products company, headquatered in Deeside, plans to raise £1.4bn when it floats on the London Stock Exchange later this month.
ConvaTec, which employs 9,000 staff across eight manufacturing sites, specialises in making products for incontinence, wound therapeutics and critical care.
The company is owned by Avista Capital Partners and Nordic Capital, for whom the listing will mark a partial exit, having been sold by Bristol-Myers Squibb in 2008.
ConvaTec focusses on therapies for the management of chronic conditions across four areas: advanced chronic and acute wound care, ostomy care, continence and critical care, and infusion devices used in the treatment of diabetes and other conditions.
Turnover for 2015 stood at £1.27bn with adjusted EBITDA of £366.8m – more than 75% of its revenue came from products used by patients with chronic care conditions.
The company said its markets are expected to grow 4-6% a year, driven by an ageing global population, increase in the prevalence of chronic conditions and increased life expectancy of patients suffering from these conditions.
The company will use the funds raised to pay down debt and offer a partial exit to its existing shareholders and management.
Paul Moraviec, chief executive of ConvaTec, said: “Over the last 35 years, ConvaTec has developed a portfolio of trusted and innovative products and built a leading position across the globe. Our markets are large and have strong growth fundamentals, as an ageing population suffers from more and prolonged chronic health conditions. This creates high levels of recurring revenues, with many chronic care patients using our products for life.
“Our competitive position is strong and to drive additional growth we are actively investing in the evolution of our product portfolio to deliver further benefits to patients and healthcare providers, and in pursuing opportunities to enter new markets. We have an attractive financial profile, with a high cash conversion rate and are well advanced in a margin expansion programme.”
Former GlaxoSmithKline chairman Christopher Gent will be appointed as chairman of ConvaTec after the admission while Raj Shah and Thomas Vetander of Nordic Capital and Kunal Pandit of Avista Capital Partners will continue to serve on the ConvaTec board.
