Smith & Nephew deal
Smith & Nephew and Essex Woodlands Health Ventures formed a JV called Bioventus LLC (Durham, N.C.) to market products from Smith & Nephew's biologics and clinical therapies division in the U.S. Bioventus will market the division's current products and will consider acquisitions, development of clinical products and partnerships. The deal is expected to close this half and be modestly dilutive to Smith & Nephew's earnings.
Smith & Nephew will own 49% of the JV. Smith & Nephew will receive about $98 million in cash, which it plans to use to pay down its debt, and a five-year $160 million note from Bioventus. The remaining 51% stake will comprise a $118 million equity investment, of which Essex will invest at least $60 million. Pantheon Ventures and Spindletop Healthcare Capital may participate with Essex in the remainder. Essex said the JV allows for expansion and provides dedicated resources to Smith & Nephew's products, and that the partnership with Essex provides Bioventus with capital and expertise in orthobiologics. ...