American Industrial Partners (AIP) has agreed to acquire Avanos Medical in an all‑cash transaction valued at approximately $1.272 billion, taking Avanos private. The deal, announced on April 14, 2026, will be completed through AIP affiliates.
The transaction offers Avanos shareholders $25.00 per share in cash, a premium of about 72.1 % over Avanos’s closing price on April 13 and 82.8 % over its 30‑day volume‑weighted average. The premium reflects AIP’s confidence in Avanos’s core product lines and growth prospects.
Avanos operates through two main segments: Specialty Nutrition Systems (SNS) and Pain Management and Recovery (PM&R). In 2025, the SNS segment generated $432.9 million in net sales, up 9.2 % from $395.8 million in 2024, driven by strong demand for enteral feeding products such as MIC‑KEY and NEOMED. The PM&R segment delivered $260.5 million in net sales, supported by the continued adoption of the Coolief radiofrequency device.
The company’s 2025 financials show a net loss of $72.9 million, a significant improvement from the $386.3 million loss reported in 2024. Adjusted EBITDA fell to $86.8 million from $107.6 million, reflecting higher operating costs amid a restructuring that included divestitures of the HA product line and U.S. orthopedic rental business. Free cash flow declined to $43.1 million from $82.9 million, as the company invested in product development and supply‑chain optimization.
Management highlighted that the acquisition will allow Avanos to accelerate its innovation roadmap and strengthen its competitive position. CEO David Pacitti said the partnership “will better enable us to build on our progress, advance our innovation roadmap, and strengthen our competitive position with enhanced flexibility and resources.” Board chair Gary Blackford added that the deal represents a milestone for Avanos and its shareholders.
AIP, known for operational improvements in industrial and engineered products businesses, sees Avanos as a differentiated medical‑technology company with strong market positions in attractive categories. Partner Joel Rotroff noted that the collaboration will “build on the company’s momentum and support the next phase of innovation and commercial execution.”
The deal aligns with a broader trend of go‑private transactions in the medtech sector, as investors seek to capitalize on evolving technologies and favorable market conditions. Avanos’s focus on streamlining its portfolio—divesting non‑core assets and concentrating on SNS and PM&R—positions it to benefit from AIP’s expertise and resources.
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