Private Equity News & Analysis

Avista to pay $525m for healthcare division

The private equity firm will acquire the medical imaging business of Bristol-Myers Squibb, adding a sixth company to its healthcare portfolio.

-

Avista Capital Partners has agreed to acquire Bristol-Myers Squibb’s medical imaging business for $525 million (€365 million). The division supplies products for nuclear and ultrasound cardiovascular diagnostic imaging procedures.

“BMS MI is a great fit for our healthcare portfolio, as it addresses the healthcare industry’s increasing need for improved diagnostic tools,” Avista partner David Burgstahler said in a statement.

JP Morgan Securities and Cravath, Swaine & Moore advised Bristol-Myers Squibb on the deal, and Weil, Gotshal & Manges advised Avista.

The acquisition will be Avista’s sixth in the healthcare industry. Last week, Avista agreed to pay $425 million for another corporate orphan in the medical device sector: Boston Scientific Corporation’s fluid management and venous access businesses.

This year the firm made a $210 million investment in safety testing company BioReliance, and also participated in the $3.5 billion, Madison Dearborn Partners-led buyout of lab equipment supplier VWR International.

In 2006, the firm invested €125 million in Denmark-based pharmaceutical company Nycomed and $50 million in medical waste removal company MedServe.

Avista spun out from DLJ, the private equity arm of Credit Suisse First Boston, in 2005. The firm raised $2 billion for its debut fund, which closed this July.