Avanos Medical finalizes executive separation terms

Published 30/04/2025, 14:56
Avanos Medical finalizes executive separation terms

Avanos Medical (TASE:BLWV), Inc. (NYSE:AVNS), a medical devices company with annual revenue of $687.8 million and currently trading near its 52-week low of $12.50, has finalized the terms of separation with former executive Michael C. Greiner, according to a recent SEC filing. On April 28, 2025, the company and Greiner agreed on a Separation and Consulting Agreement following his departure announced earlier on April 18, 2025. According to InvestingPro analysis, the company appears undervalued at current levels.

Under this agreement, Greiner will receive a cash severance of $2.1 million in line with the company’s Severance Pay Plan, a prorated bonus for 2025 based on actual performance metrics, and six months of COBRA premium payments fully covered by the company. Additionally, 54,189 time-based restricted stock units (TRSUs) granted to Greiner in late 2024 will vest immediately. While the company reported losses in the last twelve months, InvestingPro data indicates analysts expect a return to profitability this year, with strong liquidity evidenced by a healthy current ratio of 2.37.

Greiner has also been engaged as an independent contractor until May 16, 2025, to provide professional consulting services as requested by Avanos Medical. For these services, he will be compensated with $50,000.

The benefits and payments are contingent upon Greiner not revoking the Full and Final Release of Claims and Covenant Not to Sue, which was also signed on April 28, 2025. This release absolves Avanos Medical of any claims related to Greiner’s employment and consulting period with the company, provided he adheres to the terms of his Confidentiality, Non-Solicitation, and Assignment of Business Ideas Agreement with Avanos.

The details of these agreements are referenced in Exhibits 10.1 and 10.2 of the 8-K filing, which provide a comprehensive overview of the terms.

This news comes as Avanos Medical continues its operations within the medical devices sector, specializing in orthopedic, prosthetic, and surgical appliances and supplies. The company, headquartered in Alpharetta, Georgia, remains transparent about its executive movements and compensatory arrangements as required by SEC regulations. The information is based on a press release statement. For deeper insights into Avanos Medical’s financial health, operational metrics, and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Avanos Medical reported better-than-expected financial results for the fourth quarter of 2024. The company achieved earnings per share of $0.43, surpassing the anticipated $0.40, and revenue reached $179.6 million, exceeding the forecasted $177.23 million. Additionally, Avanos has undergone significant executive changes, appointing David Pacitti as the new CEO and Jason M. Pickett as the Interim Chief Financial Officer. The company also announced the departure of former Interim CEO Michael C. Greiner, who will receive a severance package. At the recent annual meeting, Avanos Medical shareholders approved all proposed agenda items, including the election of board members and the ratification of Deloitte & Touche LLP as the independent auditor. The company has also amended its 2021 Long Term Incentive Plan, increasing the shares reserved for issuance. Analysts at Stifel have maintained a Hold rating on Avanos Medical, setting a price target of $17, as they await clearer strategic direction and consistent performance from the company.

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