ConvaTec Group Plc (LSE:CTEC) agreed to acquire Triad Life Sciences, Inc. for $450 million on January 28, 2022. The initial consideration is $125 million with two potential additional payments of $25 million each relating to short-term milestones. There are also two earnout payments conditional on performance during year 1 and year 2 post completion, with the maximum earnout of $275 million based on stretching financial performance over the period. The consideration will be satisfied from existing cash balances and debt facilities.

The gross assets of Triad Life Sciences were $23 million at 30 June 2021. Russell Olsen, the Founder and Chief Executive Officer of Triad Life Sciences, will be the General Manager of the business, reporting directly into David Shepherd, President and Chief Operating Officer of Global Advanced Wound Care. The transaction, which is subject to regulatory approvals and other customary conditions, is expected to close during Q1 2022. The transaction is expected to be immediately accretive to sales growth and the return on invested capital is expected to exceed the Group's cost of capital in year three.

The Triad team, current portfolio and product pipeline will now transition to ConvaTec's Advanced Wound Care (AWC) business and be known as ConvaTec Advanced Tissue Technologies. Moelis & Company acted as exclusive financial advisor to Triad Life Sciences, Inc. Timothy Castelli, Melissa Rones, Christina Bergeron, Matt Jones, Kellie Combs, Amanda Austin, Jane Willis and Benjamin Rogers of Ropes & Gray LLP.