Nordic Capital and Avista Capital Partners Announce Intention to Combine Unomedical with Convatec

Stockholm, Sweden — Nordic Capital and Avista Capital Partners announce today that following the closing of their acquisition of ConvaTec, a world leader in the development and marketing of innovative wound therapeutics and ostomy care products based in Skillman, N.J., which is anticipated to occur in the third quarter, they intend to combine it with Unomedical, a leading manufacturer of single-use medical devices based in Copenhagen, Denmark. Nordic Capital Fund VII and Avista Capital Partners announced on May 2 a definitive agreement to acquire ConvaTec from Bristol-Myers Squibb Co. Unomedical is currently owned by Nordic Capital Fund IV.

The combination of the two companies will create a global healthcare company with an expanded offering of products and product-related services for customers. The combined company will continue to be known as ConvaTec and be led by current ConvaTec CEO David Johnson. The transaction will be subject to customary regulatory approvals, including merger control.

"As a stand-alone company, ConvaTec will embark on a plan of accelerated growth and innovation, and today's announcement of intent is the first step in that direction. The future integration of Unomedical with ConvaTec will provide specific opportunities, particularly in specialty hospital devices, that we intend to maximize across our global markets," said David Johnson, CEO of ConvaTec.

"By combining with ConvaTec, Unomedical will gain new potential as part of a world-leading business in offering single-use devices to hospitals and home healthcare sectors. Through ConvaTec's broad global presence and size, Unomedical gains a scale of operations that creates growth opportunities that will benefit both our customers and employees. Personally, I am committed to supporting the ConvaTec management team until year end to ensure a smooth integration process," said Henrik Brandt, CEO of Unomedical.

"This transaction will unite two established healthcare companies uniquely positioned to build upon each other's strengths in medical technologies, product offerings and call points in acute and chronic care sectors. Together, the two companies will be able to realize significant growth from combining Unomedical's assets with ConvaTec's extensive global operations," said Kristoffer Melinder of Nordic Capital. "These are two strong franchises which, as a combined enterprise under the leadership of David Johnson, will be better-positioned to realize their potential within the medical device industry. We look forward to working with the Unomedical and ConvaTec teams to grow this exciting business," said David Burgstahler, of Avista Capital Partners.

ConvaTec had net sales of $ 1.155 million in 2007 and has approximately 3,500 employees. The company is a world leader within ostomy care and wound therapeutics.

Unomedical's revenues in 2007 were approximately 265 million euros and the company employs some 4,500 employees. The company has gone through a period of major restructurings that together with innovation have led to significantly stronger market positions. The Unomedical Infusion Devices division has developed into a world leading supplier of infusion sets to insulin pump companies. Within the Unomedical Hospital Care division the significantly strengthened sales organizations and increased cost competitiveness together with innovation have led to higher growth and a strong competitive position, especially in Europe.

Source: Nordic Capital and Avista Capital Partners