Avanos Medical Agrees to $1.272B Buyout, Q1 Sales Rise 8.8%
Avanos agreed to be acquired by affiliates of American Industrial Partners in an all-cash deal valued at $1.272 billion and delivered first-quarter net sales of $182.2 million, up 8.8% year-over-year. Specialty Nutrition Systems net sales increased $22.9 million to $124 million with segment operating margin of 18.6%.
1. Definitive Acquisition Agreement
On April 14, 2026, Avanos Medical entered a definitive agreement to be acquired by affiliates of American Industrial Partners for an all-cash enterprise value of $1.272 billion. The transaction provides a full-cash exit for shareholders and is expected to close later in the year pending customary approvals.
2. First-Quarter 2026 Financial Results
In the first quarter of 2026, Avanos reported net sales of $182.2 million, an 8.8% increase year-over-year, with net income of $5.1 million and adjusted diluted earnings per share of $0.22. Adjusted EBITDA totalled $21.8 million, broadly flat versus the prior-year period.
3. Segment Performance and Cash Flow
The Specialty Nutrition Systems segment generated $124.0 million in net sales, up $22.9 million, with an 18.6% operating margin, while the Pain Management & Recovery segment remained flat at $56.3 million and recorded a $1.8 million operating loss. Operating cash flow swung to a $12.3 million outflow and free cash flow was negative $16.6 million, with a cash balance of $65.6 million and total debt of $98.2 million at quarter-end.