AcquisitionsMay 5, 2026, 07:08 AM
Avanos Medical to be Acquired for $1.272B; Q1 Sales Up 8.8%
AI Summary
Avanos Medical, Inc. announced it has entered into a definitive agreement to be acquired by affiliates of American Industrial Partners for an enterprise value of $1.272 billion in an all-cash offer. Concurrently, the company reported its first quarter 2026 financial results, with total net sales increasing by 8.8% to $182.2 million. Despite revenue growth, net income and diluted EPS decreased compared to the prior year, while adjusted EBITDA saw a slight increase.
Key Highlights
- Avanos Medical to be acquired by American Industrial Partners for $1.272 billion enterprise value.
- Total net sales increased 8.8% to $182.2 million for Q1 2026.
- Diluted earnings per share was $0.11, down from $0.14 in Q1 2025.
- Adjusted diluted earnings per share was $0.22, down from $0.26 in Q1 2025.
- Specialty Nutrition Systems segment net sales grew 22.7% to $124.0 million.
- Pain Management & Recovery segment net sales were flat at $56.3 million.
- Adjusted EBITDA increased to $21.8 million from $21.6 million year-over-year.
- Cash used in operations was $12.3 million, compared to $25.7 million provided in Q1 2025.