April 14 (Reuters) – American Industrial Partners on Tuesday agreed to acquire Avanos Medical in an all-cash deal for an enterprise value of about $1.27 billion, as it bets on the medical tech company’s nutrition and pain management offerings.
Shares of the Alpharetta, Georgia-based company were up 68% in premarket trading.
Avanos makes medical devices focused on non-opioid treatment of chronic pain and on nutrition, including feeding tubes and related systems for patients who are unable to eat on their own.
The private equity firm will gain access to Avanos’ flagship product Coolief, a device that uses minimally invasive radiofrequency technology to treat chronic pain by disabling pain-causing nerves without administering opioid medications.
Coolief competes in a crowded pain-management landscape with similar devices offered by larger players including Stryker, Medtronic and Boston Scientific, which sell their own ablation systems as a part of their broader portfolio.
Under the terms of the agreement, Avanos shareholders will receive $25 per share in cash, which implies a premium of about 72.1% to the stock’s last close.
The deal is expected to close in the second half of 2026.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shailesh Kuber)
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