Hydro Pronova has entered into an agreement with a financial consortium consisting of the equity investors HealthCap and Investor Growth Capital, concerning the divestment of its Swedish subsidiary, Carmeda AB.
The cash proceeds for Hydro from the sale will be around SEK 180 million, after deduction of sales costs and minority interests. In addition, Hydro will receive royalties on a certain share of Carmeda's future sales revenues. The divestment will result in an estimated gain of around NOK 120 million, which is expected to be included in the third quarter results for 2003.
Carmeda develops, produces and markets biologically active biocompatible surfaces for disposable medical devices and implants, mainly in the fields of cardiology, cardiac surgery and vascular surgery.
Carmeda is co-operating with world leading companies, such as Johnson & Johnson/Cordis for intravascular stents, Medtronic for coronary bypass circuits and W.L. Gore & Associates for vascular grafts. The company has 40 employees and is based in Stockholm.
Hydro Pronova AS is a fully owned subsidiary of Norsk Hydro ASA with the reponsibility for projects and business activities in the periphery of Hydro's core activities. This divestment is in line with Hydro's strategy of focusing on its core activities, and the purchasing consortium has a strategic focus on the field in which Carmeda operates. Hydro believes that Carmeda will be better positioned to realize its full potential under the new ownership, according to a press release.
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