NEW YORK, Dec. 17 /PRNewswire-FirstCall/ -- Bristol-Myers Squibb Company (NYSE: BMY) and Avista Capital Partners, a leading private equity firm, announced today the parties have signed a definitive agreement for Avista to acquire Bristol-Myers Squibb Medical Imaging ("BMS MI"), a business unit of Bristol-Myers Squibb, for approximately $525 million of cash proceeds. BMS MI is a leading supplier of medical imaging products for nuclear and ultrasound cardiovascular diagnostic imaging procedures.
"As Bristol-Myers Squibb continues to focus on evolving into a next- generation BioPharma company, we determined the best way to maximize the value of Medical Imaging for shareholders was to sell this business and reinvest the proceeds into our pharmaceutical research, development and commercialization efforts," said James M. Cornelius, chief executive officer, Bristol-Myers Squibb. "At the same time, we believe that Medical Imaging can maximize its potential under new ownership, and Avista has a proven track record of success in the healthcare field."
David Burgstahler, a partner at Avista Capital Partners, said, "Bristol- Myers Squibb Medical Imaging is widely recognized as a pioneer in cardiovascular imaging agents, and for its strong technical manufacturing expertise. BMS MI is a great fit for our healthcare portfolio, as it addresses the healthcare industry's increasing need for improved diagnostic tools. We believe it is well-positioned for continued success."
The transaction is expected to be completed by the end of January 2008, subject to customary regulatory approvals, at which time BMS MI will operate as an independent company under a new name. Don Kiepert, the founder and former Chairman, CEO, and President of Point Therapeutics, will become the chief executive officer of the company upon completion of the transaction. "I am thrilled to be partnering with the existing management team of BMS MI and Avista Capital as we transition BMS MI to an independent company," said Kiepert.
"BMS MI has exceptional brands, a cutting-edge research and development facility, and a knowledgeable sales force. It is a great fit for our healthcare portfolio, as it addresses the healthcare industry's increasing need for improved diagnostic tools," said Larry Pickering, Avista Capital Partners' healthcare industry partner. "We believe that BMS MI is well- positioned for continued success and Don Kiepert is the right leader to optimize the growth opportunities within BMS MI's pipeline."
Tim Ravenscroft, president of BMS MI said, "The Avista team is committed to long-term growth, and as the new owner of the business, will renew our focus on developing and expanding our business."
"As Bristol-Myers Squibb continues to focus on evolving into a next- generation BioPharma company, we determined the best way to maximize the value of Medical Imaging for shareholders was to sell this business and reinvest the proceeds into our pharmaceutical research, development and commercialization efforts," said James M. Cornelius, chief executive officer, Bristol-Myers Squibb. "At the same time, we believe that Medical Imaging can maximize its potential under new ownership, and Avista has a proven track record of success in the healthcare field."
David Burgstahler, a partner at Avista Capital Partners, said, "Bristol- Myers Squibb Medical Imaging is widely recognized as a pioneer in cardiovascular imaging agents, and for its strong technical manufacturing expertise. BMS MI is a great fit for our healthcare portfolio, as it addresses the healthcare industry's increasing need for improved diagnostic tools. We believe it is well-positioned for continued success."
The transaction is expected to be completed by the end of January 2008, subject to customary regulatory approvals, at which time BMS MI will operate as an independent company under a new name. Don Kiepert, the founder and former Chairman, CEO, and President of Point Therapeutics, will become the chief executive officer of the company upon completion of the transaction. "I am thrilled to be partnering with the existing management team of BMS MI and Avista Capital as we transition BMS MI to an independent company," said Kiepert.
"BMS MI has exceptional brands, a cutting-edge research and development facility, and a knowledgeable sales force. It is a great fit for our healthcare portfolio, as it addresses the healthcare industry's increasing need for improved diagnostic tools," said Larry Pickering, Avista Capital Partners' healthcare industry partner. "We believe that BMS MI is well- positioned for continued success and Don Kiepert is the right leader to optimize the growth opportunities within BMS MI's pipeline."
Tim Ravenscroft, president of BMS MI said, "The Avista team is committed to long-term growth, and as the new owner of the business, will renew our focus on developing and expanding our business."
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