Foley & Lardner LLP acted as co-legal counsel to Covalon Technologies, an advanced medical technologies company, on the sale of its AquaGuard® product line to TIDI Products, LLC, for US$30 million or approximately CDN$38 million.
Covalon benefits from a net gain, prior to transaction expenses, of approximately CDN$20 million or CDN$0.77 per share on an after-tax basis over what it paid for AquaGuard three years ago. Covalon used the proceeds to satisfy its indebtedness to its senior lender, HSBC Bank Canada.
The transaction includes the sale of moisture barrier products sold under the AquaGuard brand, select trademarks and intellectual property, related customer contracts and manufacturing assets. Existing and future AquaGuard customers are slated to benefit from TIDI’s extensive market reach, bringing the product to a wider range of patients and hospitals.
The sale allows Covalon to focus on accelerating the growth of its core patented medical platforms of infection prevention products in the United States and globally.
The Foley team was led by partner Christopher Cain and senior counsel Frederick Von Bryant II and included partners Tricia Schulz, Jamie Class and Nicholas Lagerwall, and associate Jacob Adams.