CONMED Reported to be Considering a Sales Process (HealthPointCapital)
CONMED Corporation is reported to be exploring a sales process, and has been speculated to have already reached out to other medical device companies to assess buyout interest.
This decision to consider a sale comes as the company anticipates a strenuous proxy battle at its annual shareholder meeting, expected to take place in 3Q:14.
CONMED has been under pressure since 2H:13 from activist investors that are concerned with the company’s operational performance and corporate governance, and believe the company to be an attractive acquisition candidate for strategic buyers.
The company develops surgical devices and equipment for minimally invasive procedures and monitoring for applications in orthopedics, sports medicine, general surgery, gynecology, neurosurgery and gastroenterology. As of the 2013 year end, the company reported total revenue of $762.7 million, which represented an increase of 0.2% on a constant currency basis from $767.1 million in 2012.
The process is still thought to be in an early stage, with the company’s financial advisers, Bank of America Merrill Lynch and Greenhill & Co, believed to be only just beginning to reach out to potential suitors.