ConvaTec Group

exited

Healthcare / Medical Devices — Nordic Capital / Avista Capital

Deal Terms

Entry Year2008

Entry EV$4.1B

Entry Multiple10x

Leverage5x

Debt Amount$2.05B

Outcome

Exit Year2016

Risk Metrics

LTV (est.)50%

Debt / EV0.50x

Notes

Nordic Capital/Avista bought wound care/ostomy company from Bristol-Myers Squibb for $4.1B (2008). IPO'd London Stock Exchange 2016 at $4.7B — stock immediately crashed 25% on profit warnings. Manufacturing quality problems. PE cost-cutting in medical device manufacturing: when you cut quality control budgets, patients literally suffer. Wound care products failed inspections.

Sponsor

Vista Equity Partners$100B AUM