Avanos Medical Divests Respiratory Health Business To SunMed

Avanos Medical, Inc. AVNS plans to divest its respiratory health business to SunMed, a North American manufacturer and distributor of consumable medical devices. The financial terms were not disclosed. The deal includes Avanos' BALLARD, MICROCUFF, and endOclear product lines. 

These product lines include closed suction catheters, endotracheal tubes, and oral care solutions, which boast solid recognition and respect among healthcare providers worldwide.

"Divesting our Respiratory Health business is a key element of Avanos' ongoing three-year transformation process," said Joe Woody, Avanos CEO. "We're confident that SunMed is an excellent fit for our RH brands."

Under the deal, SunMed is also acquiring two Avanos manufacturing facilities in Mexico and R&D expertise.

The proposed transaction, which is subject to customary closing conditions, is expected to be completed by late 2023.

In April, Avanos recalled the Avanos BALLARD ACCESS Closed Suction System for Neonates/Pediatrics with Y-Manifold or Elbow Manifold (labeled 72-hour-use). The move came after receiving complaints from customers about cracked manifolds during use. 

Price Action: AVNS shares are trading lower by 0.61% to $25.42 on the last check Thursday.