Unique tined-probe technology further
differentiates Avanos portfolio
ALPHARETTA, Ga., June 19,
2023 /PRNewswire/ -- Avanos Medical, Inc. (NYSE:
AVNS) today announced it has entered into a definitive agreement to
acquire Diros Technology Inc., a leading manufacturer of innovative
radiofrequency (RF) products used to treat chronic pain
conditions.
Based in Toronto, Canada, Diros
Technology has been at the forefront of radiofrequency ablation
(RFA) technology since its founding. In the global market, over one
million RFA procedures are performed annually in the treatment of
chronic musculoskeletal pain. For chronic pain management, Diros
Technology's products deliver RF energy through precisely placed,
minimally invasive probes that heat nervous tissue near the probe's
tip, deactivating the nerve's ability to transmit pain signals.
The addition of Diros' unique RF Trident™ technology is
expected to further enhance Avanos' pain management treatment
options and complement its premium COOLIEF* Cooled Radiofrequency
product offering.
"The acquisition of Diros Technology strengthens Avanos'
leadership position in RF technology by providing a full range of
high-quality, differentiated pain management products," said Avanos
Chief Executive Officer, Joe Woody.
"We expect our enhanced portfolio will offer significant
opportunities to deliver non-opioid-based, minimally invasive
treatments to patients throughout the world. With this
comprehensive suite of RF offerings, we believe Avanos is poised
for future growth across all major sites of patient care:
hospitals, ambulatory surgery centers and physician's offices."
The transaction is expected to close in the third quarter of
2023, subject to customary closing conditions. Avanos will finance
the acquisition through a combination of funds from its existing
credit facility and available cash. The company estimates that the
new business will be immediately accretive to revenue growth, gross
margins, operating margins and EPS.
The Company plans to share additional details about the
transaction during its Investor Day event on June 20, 2023.
About Avanos Medical:
Avanos Medical, Inc. (NYSE: AVNS) is a medical technology company
focused on delivering clinically superior medical device solutions
that will help patients get back to the things that matter.
Headquartered in Alpharetta, Georgia, Avanos is committed to addressing
some of today's most important healthcare needs, such as reducing
the use of opioids while helping patients move from surgery to
recovery. Avanos develops, manufactures and markets its recognized
brands worldwide. For more information, visit
www.avanos.com and follow Avanos Medical on Twitter
(@AvanosMedical), LinkedIn and Facebook.
About Diros Technology:
Diros Technology
Inc. is a leading manufacturer of innovative radiofrequency
products for neurosurgery and chronic pain management. Based in
Toronto, Canada, Diros develops
and markets a portfolio of products including RF generators,
cannulae and unique tined probe technology marketed under the
Trident™ brand. Diros strives to provide new and innovative RF
products so patients can get back to a life without chronic
musculoskeletal pain. Learn more at www.dirostech.com.
Note Regarding Forward-Looking Statements
This press
release contains information that includes, or is based on,
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include all statements that do not relate solely to
historical or current facts, and can generally be identified by the
use of words such as "may," "believe," "will," "expect," "project,"
"estimate," "anticipate," "plan," or "continue" and similar
expressions, among others. The "forward-looking statements"
include, without limitation, statements regarding the acquisition's
impact on the Company's chronic pain portfolio and on the Company's
revenues and gross and operating margins, the expected timing of
the closing, and the Company's source of funds for the acquisition.
Forward-looking statements are based on the current plans and
expectations of management and are subject to various risks and
uncertainties that could cause our actual results to differ
materially from those expressed or implied in such statements.
Actual results could differ materially from those expected as a
result of a variety of factors, including the Company's ability to
successfully achieve the expected benefits of the acquisition of
Diros Technology. The information contained herein speaks only as
of the date of this press release, and the Company undertakes no
obligation to update forward-looking statements, except as may be
required by the securities laws. Additional information
concerning these and other factors that may impact future results
is contained in the Company's filings with the U.S. Securities and
Exchange Commission, including its most recent Form 10-K and
Quarterly Reports on Form 10-Q.
Registered Trademark or Trademark of Avanos Medical, Inc., or
its affiliates. © 2018 AVNS. All rights reserved.
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SOURCE Avanos Medical, Inc.