AIP agrees $1.27bn takeover of Avanos Medical in major medtech buyout

July 2026 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

July 2026 Issue

American Industrial Partners (AIP) has agreed to acquire medical technology company Avanos Medical in an all-cash transaction valued at approximately $1.272bn, marking another significant private equity (PE) move in the medtech sector.

Under the terms of the deal, Avanos shareholders will receive $25 per share in cash for each share of common stock. The transaction is not subject to a financing condition.

The offer represents a premium of approximately 72.1 percent to the company’s closing share price on 13 April 2026, the last full trading day before the announcement. The size of the premium suggests a strong incentive for shareholder approval and reflects growing investor interest in specialised medtech assets.

Upon completion, Avanos will become a privately held company and its common stock will be delisted from the New York Stock Exchange. The company will retain its headquarters in Alpharetta, Georgia.

Avanos focuses on the development, manufacture and global marketing of medical devices designed to improve patient outcomes. Its portfolio includes recognised brands such as ambIT, ANCORIS and NeoMed, and it holds established positions across several clinical categories.

“Over the past several years, we have taken deliberate steps to become a more focused medical technology organisation, leaning into the categories where we can deliver the most clinical value,” said David Pacitti, chief executive of Avanos. “Partnering with AIP will better enable us to build on our progress, advance our innovation roadmap, and strengthen our competitive position with enhanced flexibility and resources.”

AIP is an operationally focused industrial investor with approximately $17.5bn in assets under management. The firm has completed more than 145 platform and add-on acquisitions and typically targets established businesses with revenues above $500m. Its strategy includes corporate divestitures, management buyouts, recapitalisations and public-to-private transactions.

“Avanos is a differentiated medical technology company with strong positions in attractive categories and a compelling platform for continued growth,” said Joel Rotroff, partner at AIP. “We look forward to partnering with the Avanos team to build on the company’s momentum and support the next phase of innovation and commercial execution.”

In addition to its broader product portfolio, Avanos is known for its Coolief system, which uses minimally invasive radiofrequency technology to treat chronic pain by targeting specific nerves without the use of opioid medication. This positioning aligns with ongoing healthcare efforts to reduce reliance on opioids in pain management.

The transaction has been unanimously approved by Avanos’ board of directors and is expected to close in the second half of 2026, subject to customary conditions, including shareholder approval and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as well as other regulatory clearances.

As of the latest update, there has been no indication of regulatory opposition or competing bids, though the review process remains ongoing. Market observers will be monitoring shareholder sentiment and any developments that could affect the timeline or valuation.

JP Morgan Securities is acting as lead financial adviser to Avanos, with Alston & Bird serving as legal counsel. UBS Investment Bank is also advising on the transaction. Joele Frank, Wilkinson Brimmer Katcher is acting as strategic communications adviser. AIP is advised by Sidley Austin, with Baker Botts providing regulatory counsel.

“AIP recognises the strength of our talented employees and the role they serve in addressing today’s most important healthcare needs,” concluded Mr Pacitti. “I look forward to working with AIP as the Avanos team begins a new chapter, marked by growth and compelling benefits for employees, patients, customers and all our stakeholders.”

The acquisition points to continued PE confidence in medtech and positions Avanos for accelerated innovation, growth and long-term value creation.

Fraser Tennant