LivaNova is one step closer to putting more of its focus on its neuromodulation and cardiovascular businesses. The London-based company completed the initial close of the divestiture of its heart valve business to Gyrus Capital, an investment firm, for $73 million.
CORCYM, an independent company recently launched and owned by entities funded and controlled by Gyrus, will manage the heart valve business.
The heart valve business consists of a comprehensive portfolio of products, featuring Perceval, a sutureless aortic valve, and Memo 4D, a semi-rigid mitral annuloplasty ring. Together with mechanical valves, this portfolio fits the differing needs of cardiac surgeons and patients worldwide.
About 850 employees will transition to CORCYM as part of the global heart valve business, which has major operations in Saluggia, Italy and Vancouver, Canada.
In the initial closing, CORCYM acquired LivaNova manufacturing facilities in Saluggia and Vancouver and related assets in other geographies, representing most of the heart valve business. During the course of 2021, the parties expect to complete the transfer of the commercial operations in various local jurisdictions.
LivaNova said it expected the heart valve business to generate net revenues of about $70 million during the period of June 1 through Dec. 31, 2021.
“The completion of the heart valve sale to Gyrus Capital allows LivaNova to optimize its portfolio and sharpen its focus on cardiovascular and neuromodulation, our two areas of excellence,” Damien McDonald, CEO of LivaNova, said in a release. “We are now better positioned to accelerate growth in our core, dedicate resources toward executing promising pipeline opportunities, and enhance our operational excellence to best serve our patients and deliver maximum value to shareholders.”
LivaNova began moving away from its heart valve business after it received an October 2020 letter from active investor PrimeStone Capital. The letter urged LivaNova to refocus its capital on the neuromodulation business, divest its cardiopulmonary business, and either sell or close its heart valves business.