AIP agrees $1.27bn take-private of Avanos Medical

American Industrial Partners (AIP) has struck a deal to acquire Avanos Medical in a take-private transaction valued at roughly $1.27bn, reflecting the firm’s focus on scaling healthcare platforms with differentiated product portfolios, according to a report by Reuters.

The agreement, announced on Tuesday, prompted a sharp rally in Avanos shares in premarket trading, with the stock climbing by close to 68%.

Headquartered in Alpharetta, Georgia, Avanos specialises in medical devices targeting chronic pain treatment without opioids, alongside clinical nutrition solutions including enteral feeding systems for patients unable to eat independently.

Central to AIP’s investment thesis is Coolief, Avanos’ lead product, which applies minimally invasive radiofrequency technology to interrupt pain signals by targeting specific nerves. The technology positions the company within the growing non-opioid pain management segment.

Avanos operates in a competitive landscape, facing established medtech players such as Stryker, Medtronic and Boston Scientific, all of which offer competing ablation-based solutions within broader device portfolios.

Under the terms of the deal, shareholders will receive $25 per share in cash, representing a premium of approximately 72% to the company’s last closing price.

The transaction is expected to close in the second half of 2026, subject to customary approvals and conditions.