Avanos to Sell Respiratory Health Biz to SunMed

Avanos Medical has begun an agreement to sell its Respiratory Health (RH) business to SunMed Group Holdings.
 
SunMed is headquartered in Grand Rapids, Mich. and is a manufacturer and distributor of consumable medical devices for anesthesia and respiratory care with a portfolio that spans the care continuum from first responders to hospitals and home care.
 
Divesting its RH business, according to the company, is a critical component of Avanos’ ongoing three-year transformation process.
 
“Earlier this year, we shared our strategy and intent to optimize our portfolio by focusing on higher-margin and higher-growth markets—particularly in our Digestive Health and Pain Management & Recovery product categories,” Joe Woody, Avanos’ CEO told the press. “We expect that divesting the Respiratory Health business—along with our ongoing SKU rationalization initiatives and future M&A opportunities—will allow us to meaningfully transform the financial profile of Avanos.”
 
“SunMed has deep experience and strong expertise in the global respiratory health consumables market, making it an ideal home for Avanos’ RH business,” added Hank Struik, SunMed’s CEO. “We believe Avanos’ BALLARD* closed-suction technology will be a powerful addition to SunMed’s broad and growing portfolio.”
 
The transaction includes substantially all of Avanos’ RH business assets, including the BALLARD*, MICROCUFF* and endOclear* brands and long-term leases for two manufacturing facilities located in Mexico. The transaction is expected to close in late 2023.