Avanos Medical, Inc.

Company overview

• Medical technology company delivering medical device solutions for patients from hospital to home.
• Headquarters: Alpharetta, Georgia.
• Reportable segments: Specialty Nutrition Systems (SNS) and Pain Management and Recovery (PM&R).
• Global manufacturing footprint: facilities in the United States, Mexico and Canada.

Segments and product families

• Specialty Nutrition Systems (SNS)
  • Enteral feeding products: MIC-KEY enteral feeding tubes; Corpak feeding solutions.
  • Neonate solutions: NeoMed neonatal and pediatric feeding solutions; Nexus TKO anti-reflux needleless connectors.
• Pain Management and Recovery (PM&R)
  • Surgical pain and recovery: ON-Q and ambIT pain pumps; Game Ready cold and compression therapy systems.
  • Radiofrequency ablation (RFA): COOLIEF pain therapy products; Trident; ESENTEC RFA products.
• Product contribution notes (2025)
  • MIC-KEY enteral feeding tubes and Corpak feeding solutions each accounted for more than 10% of consolidated net sales.
  • NeoMed neonatal/pediatric feeding solutions accounted for more than 10% of consolidated net sales.
  • No PM&R product line individually accounted for more than 10% of consolidated net sales in 2025 (ON-Q accounted for >10% in 2023).

Acquisitions, divestitures and asset sales

• Nexus Acquisition (private medical device company)
  • Closed: September 11, 2025.
  • Purchase price: $27.0 million, with up to $20.0 million contingent cash consideration based on net sales of certain Nexus products over three years.
  • Financing: funded with available cash.
• Diros Technology Inc. (RFA-focused)
  • Closed: July 24, 2023.
  • Purchase price: approximately $53.0 million (cash at closing plus adjustments; $2.5 million paid on entry; $50.5 million at closing less working capital adjustments; up to $7.0 million contingent cash).
  • Financing: funded with available cash on hand and Revolving Credit Facility proceeds.
• Respiratory Health (RH) Divestiture
  • Closed: October 2, 2023.
  • Purchase price: $110.0 million in cash, subject to adjustments.
  • Transition services agreements with Buyer; remaining services to terminate within approximately three years.
• Asset sales aligned with Transformation Plan
  • July 31, 2025: Sold substantially all assets of the HA product line to CMM.
  • Q4 2025: Sold assets associated with the Game Ready rental business.

Transformation program

• Objective: combine Chronic Care and PM&R into SNS/PM&R; rationalize the portfolio; implement cost management; pursue acquisitions that meet strategic and financial criteria.
• Timeline and progress: Transformation Process began January 2023. Initial efforts were substantially complete by the end of 2024. The program expanded in 2025 to include additional manufacturing and operational initiatives and remains active through 2026.

Customers and distribution

• North America: approximately 49% of net sales in 2025 were through distributors.
• Major customer relationships: sales to Medline Industries accounted for about 12% of consolidated net sales in 2025.
• Outside North America: about 67% of net sales outside North America were through wholesalers or distributors.
• Global channel: distribution centers in North America, Europe, Australia and Japan.
• GPOs: approximately 29% of global net sales in 2025 were contracted through Group Purchasing Organizations.

Operations and facilities

• Global manufacturing locations (owned/leased):
  • Nogales, Mexico — Owned
  • Tucson, Arizona, USA — Leased
  • Tijuana, Mexico — Leased
  • Markham, Canada — Leased
  • Lenexa, Kansas, USA — Leased
• Two manufacturing facilities are concentrated in Mexico; operations also include U.S. and Canada facilities.

Employees

• Total employees: 2,287 as of December 31, 2025.
• Regional distribution (2025):
  • United States and Canada: 754 (32.9%)
  • Mexico: 1,324 (57.9%)
  • Latin America: 10 (0.4%)
  • Europe, Middle East and Africa: 108 (4.7%)
  • Asia Pacific: 91 (4.0%)

Financial snapshot

• Impairments and related charges:
  • 2025: Goodwill impairment of $77.0 million (recorded in PM&R).
  • 2024: Asset group impairment of $100.2 million and goodwill impairment of $336.5 million.
• Nexus acquisition consideration structure: cash at closing plus contingent payments tied to product net sales.

Intellectual property and regulatory

• Intellectual property: numerous patents and pending applications; patent expirations generally range from 2026 to 2047.
• Regulatory environment: products require regulatory clearances and approvals (e.g., FDA 510(k) in the U.S.; CE mark in the EU); the company has incurred EU MDR transition spending. Products and facilities are subject to regulatory inspections and post-market surveillance and remain subject to healthcare laws (anti-kickback, false claims, etc.).

Other notes

• The company is focused on its two segments, SNS and PM&R, and on aligning its product portfolio through acquisitions and divestitures.
• Avanos emphasizes advancing non-opioid pain solutions and enteral feeding solutions.