Novo Holdings, the investment arm of the Novo Nordisk Foundation, announced that it will sell 155 million shares of the UK‑based medical‑products company Convatec Group, representing a 7.8 % reduction in its stake. The transaction marks a complete exit from the company, leaving Novo Holdings with a remaining 17.8 % holding after the sale.
The shares will be placed to eligible institutional investors through an accelerated bookbuilding process coordinated jointly by Goldman Sachs International and Morgan Stanley & Co. International Plc. Convatec will not receive any proceeds from the offering, and the sale is structured as a private placement rather than a public offering.
Novo Holdings has historically focused on generating long‑term returns for the Novo Group, primarily through its ownership of Novo Nordisk and related life‑science investments. The divestiture aligns with a broader portfolio rebalancing strategy that followed the 2024 acquisition of Catalent and aims to free capital for reinvestment in Novo Nordisk’s high‑growth diabetes and obesity businesses.
Convatec reported 2024 revenue of €1.96 billion, up 6.9 % from €1.84 billion in 2023, and a 46.2 % year‑over‑year increase in net income. The company’s core segments—wound care, ostomy care, continence, critical care, and infusion—continue to drive growth, and Convatec has reaffirmed expectations for double‑digit adjusted earnings growth in 2025 and 2026.
The sale reduces Novo Holdings’ exposure to the medical‑device sector and streamlines its focus on core life‑science assets. For Convatec, the exit of a significant shareholder may alter its shareholder composition but is unlikely to impact its ongoing growth trajectory, given the company’s strong financial performance and strategic outlook.
No market reaction data has been reported following the announcement, and analysts have not issued commentary on the transaction at this time.
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