Avanos Medical Inc. (NYSE: AVNS) entered into a definitive agreement to be acquired by affiliates of American Industrial Partners (AIP) in an all‑cash transaction valuing the company at an enterprise value of approximately $1.272 billion. Shareholders will receive $25.00 per share, a premium of 72.1% to the April 13, 2026 closing price and 82.8% to the 30‑day volume‑weighted average price for the period ending April 13.
The transaction is expected to close in the second half of 2026, subject to customary conditions including shareholder approval and regulatory approvals. Upon completion, Avanos will become a private company and its shares will no longer be listed on the New York Stock Exchange. The agreement was unanimously approved by Avanos’ Board of Directors and contains no financing condition. J.P. Morgan Securities LLC is the lead financial advisor to Avanos, with Alston & Bird, LLP as legal counsel; UBS Investment Bank also served as a financial advisor, and Sidley Austin LLP is legal counsel to AIP.
AIP’s investment strategy focuses on acquiring industrial businesses that can benefit from operational improvements and capital resources. The partnership is intended to allow Avanos to accelerate its specialty nutrition and pain‑management platform, build on recent acquisitions such as OrthogenRx, and deepen its innovation and commercial execution capabilities. The deal positions Avanos to leverage AIP’s expertise in scaling operations and deploying capital to enhance long‑term growth.
Avanos reported strong Q4 2025 results, with adjusted earnings of $0.29 per share versus a consensus estimate of $0.25, and revenue of $180.9 million versus $174.7 million expected. The beat was driven by robust demand in its core specialty nutrition and pain‑management segments and disciplined cost management, which helped maintain margins despite a modest increase in operating expenses. The company’s focus on high‑margin medical‑device solutions and its recent acquisition activity support a trajectory of continued revenue growth and profitability.
"Our agreement with AIP is a milestone for Avanos that reflects the strong momentum across the business," said Gary Blackford, Avanos Board chair. "After careful consideration alongside our independent advisors, we are confident this agreement with AIP represents the right path forward for Avanos and its stockholders." Sunny Li, partner at AIP, added, "We look forward to partnering with the Avanos team to build on the Company’s momentum and support the next phase of innovation and commercial execution." Joel Rotroff, partner at AIP, said, "Avanos is a differentiated medical technology company with strong positions in attractive categories and a compelling platform for continued growth. We look forward to partnering with the Avanos team to build on the company’s momentum and support the next phase of innovation and commercial execution." David Pacitti, Avanos CEO, stated, "Over the past several years, we have taken deliberate steps to become a more focused medical technology organization, leaning into the categories where we can deliver the most clinical value. Partnering with AIP will better enable us to build on our progress, advance our innovation roadmap, and strengthen our competitive position with enhanced flexibility and resources."
Investors reacted strongly to the premium offered and the strategic fit between Avanos and AIP, underscoring confidence in the value creation potential of the transaction.
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