SNN spins out biologics unit in JV with Essex Woodlands (Mass Device)
Orthopedics giant Smith & Nephew shuffles its divisions again with the spinout of its biologics and clinical therapies division in a joint venture with Houston's Essex Woodlands venture capital shop.
British orthopedic titan Smith & Nephew (NYSE:SNN) shuffled its business deck yet again with the spinout of its biologics and clinical therapies division in a joint venture with venture capital firm Essex Woodlands.
Essex will own 51% of the new business, named Bioventus LLC, with Smith & Nephew holding the remainder.
SNN will also get $98 million in cash, which it plans to use to pay down debt, and a $160 million, 5-year note from Bioventus, according to a press release.
The SNN division generated $44 million in profit on $223 million in sales in 2010, $33 million of which came from sales outside the U.S., according to the release.
"In a single act we have given our existing biologics business the resources to address longer-term development projects, retained access to the exciting area of orthobiologics, realized value for reinvestment in nearer-term opportunities, and freed up management...
