Bioventus (Nasdaq:BVS) announced today the successful completion of its sale of the Advanced Rehabilitation division. The Durham, North Carolina-based healthcare provider has transferred this segment to Accelmed Partners, a private equity firm known for acquiring and nurturing commercialization-stage healthtech companies.
Initially announced on October 1, 2024, this transaction is part of Bioventus’s strategy to concentrate efforts on its key business areas. The divestiture generates approximately $20 million in net closing proceeds, contributing to the company’s liquidity. The agreement amounts to a total cash consideration of $45 million, with an initial payment of $25 million at closing and the balance of $20 million hinging on potential post-closing earn-out agreements.
Bioventus’s product lineup includes solutions targeting pain management, restorative therapies, and surgical interventions. Among its innovative offerings are nerve stimulation technologies for alleviating pain and ultrasound-based bone healing solutions. Its surgical solutions include allograft, cell and marrow, and synthetic products. Additionally, Bioventus provides a range of minimally invasive ultrasonic technologies for hard and soft tissue removal.
This divestiture represents the second noteworthy business unit sale by Bioventus in its journey to hone its core product focus. Previously, in May 2023, the company finalized the divestment of its wound management business to LifeNet Health.
Bioventus is advancing under relatively new leadership, led by Robert Claypoole, who assumed the role of president and CEO at the start of 2024.
“This transaction signifies our esteem for the Advanced Rehabilitation division and its invaluable impact on patients’ lives through transformational technology. Now this business can thrive in an environment more conducive to its singular focus,” stated Claypoole in October. “At the same time, this divestiture enables Bioventus to streamline our core focus while bolstering our liquidity position.”