Bristol-Myers Squibb is selling its therapy and surgical care unit, ConvaTec, to two private equity firms, Nordic Capital and Avista Capital Partners for $4.1 billion. The sale, expected to close in the third quarter, is part of the company's strategy to shift its focus to biopharmaceuticals. This strategy also includes the sale of the company's medical imaging unit for $525 million, as well as plans to sell between 10% and 20% of its Mead Johnson Nutritional unit.
"These decisions support our next-generation biopharma strategy," said chairman and chief executive officer, James M. Cornelius. "We will now have additional financial Resources to expedite that strategy as we continue to work to help patients prevail over serious diseases."
In December, the company announced plans to lay off about 4,300 employees (10% of its work force) and close more than half of its manufacturing plants as part of its goal to save $1.5 billion annually by 2010.