Bristol-Myers Squibb has signed an agreement with
Avista Capital Partners, a private equity firm, to sell BMS Medical Imaging for $525 million. BMS MI is a leading supplier of medical imaging products for nuclear and ultrasound cardiovascular diagnostic imaging procedures.
"As Bristol-Myers Squibb continues to focus on evolving into a next- generation BioPharma company, we determined the best way to maximize the value of Medical Imaging for shareholders was to sell this business and reinvest the proceeds into our pharmaceutical research, development and commercialization efforts," said James M. Cornelius, chief executive officer, BMS. "At the same time, we believe that Medical Imaging can maximize its potential under new ownership, and Avista has a proven track record of success in the healthcare field."
David Burgstahler, a partner at Avista Capital Partners, said, "BMS MI is widely recognized as a pioneer in cardiovascular imaging agents, and for its strong technical manufacturing expertise. BMS MI is a great fit for our healthcare portfolio, as it addresses the healthcare industry's increasing need for improved diagnostic tools. We believe it is well-positioned for continued success."
The transaction is expected to be completed by the end of January 2008, subject to customary regulatory approvals, at which time BMS MI will operate as an independent company under a new name. Don Kiepert, the founder and former chairman, chief executive officer, and president of Point Therapeutics, will become the chief executive officer of the company upon completion of the transaction. "I am thrilled to be partnering with the existing management team of BMS MI and Avista Capital as we transition BMS MI to an independent company," said Kiepert.
BMS MI will be Avista's sixth investment in the healthcare industry. On December 13, 2007, Avista agreed to acquire from Boston Scientific its Fluid Management and Venous Access businesses. Also in 2007, Avista made healthcare investments in
BioReliance and
VWR International, and in 2006 Avista announced investments in
Nycomed and
MedServe.
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