Avanos Medical, Inc. AVNS recently announced that it has entered into a definitive agreement to be acquired by private equity firm American Industrial Partners (“AIP”) in an all-cash transaction valued at approximately $1.27 billion. The deal offers shareholders a substantial premium to recent trading levels, signaling strong confidence in the company’s underlying business and growth potential.
From an investor standpoint, the acquisition provides immediate value realization while also highlighting Avanos’ progress in sharpening its focus as a medical technology player. Backed by AIP’s operational expertise and capital support, the company is expected to accelerate its innovation roadmap and strengthen its competitive positioning as it transitions into a privately held entity.
Likely Trend of AVNS Stock Following the News
Shares of AVNS have surged 69.5% since the announcement on Tuesday. In the year-to-date period, shares of the company gained 119.3% against the industry’s 12.9% decline. The S&P 500 increased 0.5% in the same time frame.
The acquisition by AIP positions Avanos Medical for a more flexible and execution-focused growth phase. As a private company, Avanos can invest more aggressively in innovation, streamline operations and pursue long-term strategic initiatives without the pressure of quarterly market expectations. Backed by AIP’s operational expertise and capital, the company is better equipped to expand its product portfolio, improve margins and strengthen its competitive position in key medical technology segments.
AVNS currently has a market capitalization of $675 million.
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More on the Buyout Deal
Under the terms of the agreement, Avanos will be acquired by affiliates of American Industrial Partners in an all-cash transaction with an enterprise value of approximately $1.27 billion. Shareholders will receive $25.00 per share in cash, representing a significant premium of about 72% to the company’s last closing price prior to the announcement and roughly 83% to its 30-day volume-weighted average price. The transaction has been unanimously approved by Avanos’ board of directors, reflecting confidence that the deal delivers compelling and immediate value to shareholders.
The acquisition is expected to close in the second half of 2026, subject to customary closing conditions, including shareholder approval and necessary regulatory clearances under antitrust laws. Notably, the deal is not subject to any financing condition, which reduces execution risk. Upon completion, Avanos will become a privately held company and will be delisted from the New York Stock Exchange, while continuing to operate from its headquarters in Alpharetta, GA.
Recent Developments by AVNS
In February 2026, Avanos Medical reported results for full-year 2025, wherein the company delivered better-than-expected performance. Both sales and earnings surpassed the Zacks Consensus Estimate. Organic growth in the company’s strategic segments reached 6% for the year, supported by improving trends in both core divisions.
SNS remained the primary growth engine, delivering more than 8% organic growth for the year. Short-term enteral feeding posted double-digit gains globally, driven by continued expansion of the U.S. CORTRAK standard-of-care program and strong uptake of the CORGRIP 2 retention system. Long-term feeding grew at a high-single-digit rate, supported by solid demand trends and the successful U.K. go-direct transition.
Neonatal solutions also outpaced the market, and the recently acquired Nexus Medical business performed better than expected, contributing roughly $5 million in 2025 revenue with expectations for double-digit growth in 2026. Despite tariff headwinds compressing margins modestly, SNS maintained a healthy 19% operating margin for the year.
AVNS’s Zacks Rank & Key Picks
Currently, AVNS carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Phibro Animal Health PAHC, GE HealthCare Technologies GEHC and Cardinal Health CAH.
Phibro Animal Health, currently sporting a Zacks Rank #1 (Strong Buy), reported second-quarter fiscal 2026 adjusted earnings per share (EPS) of 87 cents, which surpassed the Zacks Consensus Estimate by 27.1%. Revenues of $373.9 million beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12% rise. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 20.1%.
GE HealthCare Technologies, currently carrying a Zacks Rank #2 (Buy), reported fourth-quarter 2025 adjusted EPS of $1.44, which surpassed the Zacks Consensus Estimate by 0.7%. Revenues of $5.7 billion beat the Zacks Consensus Estimate by 1.9%.
GEHC has an estimated long-term earnings growth rate of 9.1% compared with the industry’s 12% rise. The company beat earnings estimates in the trailing four quarters, the average surprise being 7.5%.
Cardinal Health, currently carrying a Zacks Rank #2, reported a second-quarter fiscal 2026 adjusted EPS of $2.63, which surpassed the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion beat the Zacks Consensus Estimate by 0.9%.
CAH has an estimated long-term earnings growth rate of 15% compared with the industry’s 9.3% rise. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 9.3%.
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Cardinal Health, Inc. (CAH): Free Stock Analysis Report
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AVANOS MEDICAL, INC. (AVNS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).