ConvaTec expanding US business through Woodbury acquisition

Medical products and technologies company ConvaTec has agreed to acquire independent US-based national distributor of incontinence and catheter-related supplies Woodbury Holdings from MTS Health Investors, for an enterprise value of $120.5m, it announced on Thursday.

The FTSE 100 firm said Woodbury provided an “extensive array” of incontinence and catheter products, as well as nutritional, enteral feeding and vascular compression supplies.

“The addition of Woodbury contributes to our growth strategy for the continence and critical care franchise and builds on the success of our 180 Medical business, which we acquired in 2012,” said ConvaTec chief executive Paul Moraviec.

“180 Medical is the largest retailer of intermittent catheters in the US.

“It has a differentiated, proven business model with strong customer focus and satisfaction.”

The board of ConvaTec said the company had national distribution across the US, delivering directly to customers in the home environment.

It explained that through the acquisition, it would create a new home distribution business unit for catheter and incontinence-related products, consisting of distribution companies 180 Medical, Symbius Medical, South Shore Medical Supply, Wilmington Medical Supply and Woodbury Health Products.

“The addition of Woodbury will provide further breadth and reach to our new home distribution group, and further consolidate our leading position in this market, expand customer relationships and provide greater choice direct to US consumers,” Moraviec explained.

“ConvaTec, 180 Medical and Woodbury share a common commitment to improving the lives of people with continence issues and a dedication to providing quality products, together with distinctive service and personal support.

“We look forward to working with our Woodbury colleagues to bring our comprehensive end-to-end suite of services to even more customers.”

ConvaTec confirmed Woodbury's senior management team would remain with the company.

Upon completion of the transaction, earnings from Woodbury Holdings would be immediately accretive to the financial accounts of ConvaTec Group, the board added.