
AirLife Completes Acquisition of Avanos Medical’s Respiratory Health Business
AirLife, a prominent manufacturer and distributor of consumable medical devices for anesthesia and respiratory care, has successfully finalized its acquisition of Avanos Medical, Inc.’s (NYSE: AVNS) respiratory health business. AirLife aims to become a one-stop source for healthcare practitioners seeking breathing consumables. The companies had previously announced the acquisition on June 8, 2023.
The divested products from Avanos include the BALLARD closed suction system designed to remove secretions from airways, MICROCUFF pediatric endotracheal tubes for pediatric anesthesia procedures, and the endOclear endotracheal tube clearing system. These products are strong compliments to AirLife’s existing respiratory health portfolio.
Avanos stated on its second quarter conference call that the discontinued assets associated with respiratory health business unit’s products generated revenue of $62.8 million in the first half of 2023. Revenue in the first half of 2023 declined 11% year-over-year. The company took a $72.3 million impairment charge in association with the divestiture. Commenting on the divestiture when it was announced, Joe Woody, Avanos chief executive officer stated, “Earlier this year, we shared our strategy and intent to optimize our portfolio by focusing on higher-margin and higher-growth markets – particularly in our Digestive Health and Pain Management & Recovery product categories.” The company did not disclose the deal compensation received from AirLife.
Hank Struik, CEO of AirLife, expressed his excitement about this transformative development, saying, “We’re thrilled to complete this exciting milestone in AirLife’s evolution as we strengthen our leadership as a premier, completely dedicated consumable breathing products company. We are especially pleased to welcome the exceptional team that has driven the success of these market-leading brands to our company. As some of the most trusted closed suction and endotracheal consumables used to treat patients in critical care, this addition to AirLife unlocks new opportunities to accelerate our growth, serve more healthcare practitioners, and drive innovation across our comprehensive portfolio of leading brands.”