Shares of Avanos Medical, Inc. (AVNS), are up in the pre-market by 68% after the announcement. The company has agreed to be acquired by affiliates of American Industrial Partners (AIP) in an all-cash transaction valuing the company at approximately $1.272 billion.
Under the terms of the agreement, Avanos stockholders will receive $25.00 per share in cash, representing a 72.1% premium to the company's closing stock price on April 13, 2026, and an 82.8% premium to its 30-day volume-weighted average price.
Gary Blackford, Chair of the Avanos Board, said, the agreement reflects strong momentum across the business and represents the best path to maximize value for stockholders. CEO David Pacitti added that partnering with AIP will help Avanos advance its innovation roadmap and strengthen its competitive position with enhanced flexibility and resources.
AIP partners Joel Rotroff and Sunny Li highlighted Avanos' strong market positions and the opportunity to support the company's next phase of growth.
The acquisition was unanimously approved by Avanos' Board of Directors and is expected to close in the second half of 2026, subject to stockholder approval, regulatory clearances, and customary closing conditions. The deal is not subject to a financing condition.
Upon closing, Avanos will become a private company, and its common stock will be delisted from the New York Stock Exchange. The company will continue to be headquartered in Alpharetta, Georgia. Due to the pending acquisition, Avanos has postponed its 2026 Annual Meeting of Stockholders, previously scheduled for April 21, 2026.
Avanos is being advised by J.P. Morgan Securities as lead financial advisor, UBS Investment Bank as financial advisor, Alston & Bird LLP as legal counsel, and Joele Frank as communications advisor.
AIP is being advised by Sidley Austin LLP as legal counsel and Baker Botts LLP as regulatory counsel.
AVNS has traded between $9.30 and $15.68 over the past year. The stock closed Monday's trading at $14.53, up 2.47%. In pre-market trading the stock is at $24.46, up 68.34%.
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