UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 
FORM 8-K

 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): August 1, 2008

 
BRISTOL-MYERS SQUIBB COMPANY
(Exact name of registrant as specified in its charter)

 
Delaware	1-1136	22-0790350	
(State or other jurisdiction
of incorporation)	(Commission File Number)	(IRS Employer
Identification No.)	

345 Park Avenue
New York, New York	10154	
	(Zip Code)	
(Addresses of principal executive offices)	 	

Registrant’s telephone number, including area code:
 
(212) 546-4000
 
Not Applicable
(Former name or former address, if changed since last report)
_____________
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 	 	
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 	 	
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 	 	
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

 

 

Item 2.01 Completion of Acquisition or Disposition of Assets.
 
On August 1, 2008, Bristol-Myers Squibb Company (the “Company”) completed the previously-announced divestiture of the Company’s ConvaTec business (the “Business”) to Cidron Healthcare Limited (the “Buyer”), an affiliate of Nordic Capital Fund VII (“Nordic Capital”) and Avista Capital Partners (“Avista”), for a gross purchase price of approximately $4.1 billion in cash.  The purchase price received by the Company included the estimated post-closing purchase price adjustment based on the Company’s estimate of the closing working capital of the Business.  Total proceeds receivable from the divestiture are subject to further adjustment based on the actual closing working capital of the Business, pursuant to the terms of the Stock and Asset Purchase Agreement, dated May 2, 2008, between the Company and the Buyer (the “Purchase Agreement”).
 
The sale of the Business was effected through the transfer to the Buyer of (i) all of the outstanding capital stock of certain of the Company’s indirect subsidiaries and (ii) certain specified assets and liabilities of the Company and certain of its subsidiaries.  In addition to the cash purchase price and as part of the divestiture, the Buyer assumed certain liabilities relating to the Business.
 
The foregoing descriptions of the Purchase Agreement and the divestiture do not purport to be complete and are qualified in their entirety by reference to the Purchase Agreement.  The Purchase Agreement was filed as Exhibit 10.1 to, and the terms of the divestiture are described in, the Company’s Form 8-K filed on May 7, 2008, the contents of which are incorporated herein by reference.
 
A copy of the press release announcing the completion of the divestiture is attached hereto as Exhibit 99.1.
 
Item 9.01 Financial Statements and Exhibits.
 
(b) Pro Forma Financial Information
 
The Company ’ s Unaudited Pro Forma Financial Information is attached hereto as Exhibit 99.2 and is incorporated herein by reference.  The amounts included in the “ Amounts Transferred to Discontinued Operations” column within the Company ’ s Unaudited Pro Forma Financial Information represent the Business’ operating results for the respective periods using the same basis the Company utilizes in its segment reporting.
 
(d) Exhibits
 
99.1           Press Release, dated August 1, 2008
 
99.2           The Company ’ s Unaudited Pro Forma Financial Information

 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DATED: August 7, 2008

 
BRISTOL-MYERS SQUIBB COMPANY,	
 	
by	
 	 /s/ Sandra Leung	
 	Name:  Sandra Leung                     	
 	Title:    Senior Vice President, General Counsel and Secretary	

 

 	EXHIBIT INDEX	

Exhibit Number	 	Description	
 	 	 	
99.1	 	Press release dated August 1, 2008	
 	 	 	
99.2	 	The Company ’ s Unaudited Pro Forma Financial Information	

 
Exhibit 99.1

BRISTOL-MYERS SQUIBB ANNOUNCES
COMPLETION OF CONVATEC DIVESTITURE

(NEW YORK, August 1, 2008) – Bristol-Myers Squibb Company (NYSE:BMY) announced today that Nordic Capital Fund VII and Avista Capital Partners have completed their acquisition of ConvaTec, a business unit of Bristol-Myers Squibb.
For nearly 30 years, ConvaTec has been a pioneer in developing and marketing innovative wound therapeutics and ostomy care products that have helped improve the lives of millions of people worldwide.  ConvaTec continues to be at the forefront of the movement to change the way health care professionals are managing chronic and acute wounds, emphasizing the principles of advanced wound healing and evidence-based medicine.  From its headquarters in Skillman, New Jersey, the company oversees more than 3,500 employees in 91 countries serving patients and their healthcare professionals on six continents.
Citigroup Global Markets, Inc. and Morgan Stanley & Company Inc. served as financial advisors for Bristol-Myers Squibb and Cravath, Swaine & Moore, LLP, served as legal counsel for the company.
Bear, Stearns International Limited acted as financial advisor for Nordic Capital and Avista Capital Partners, JPMorgan plc acted as global coordinator in connection with the debt financing, and White & Case LLP served as legal counsel to Nordic and Avista.
 
About Bristol-Myers Squibb
Bristol-Myers Squibb Company is a global biopharmaceutical whose mission is to extend and enhance human life.   For more information visit www.bms.com
 
About Nordic Capital
Nordic Capital is a group of private equity funds focusing primarily on investments in the Nordic region. Nordic Capital creates value in its investments through committed ownership and by targeting strategic development and operational improvements. Founded in 1989, Nordic Capital was one of the private equity pioneers in northern Europe and has invested in a large number of Nordic-based companies operating in different sectors.  For more information, please visit www.nordiccapital.com

 

About Avista Capital Partners
Founded in 2005, Avista Capital Partners is a leading private equity firm with offices in New York, NY and Houston, TX.  Avista's strategy is to make controlling or influential minority investments primarily in growth-oriented energy, healthcare and media companies. Through its team of seasoned investment professionals and industry experts, Avista seeks to partner with exceptional management teams to invest in and add value to well-positioned businesses. For more information, visit www.avistacap.com .

# # #

Contacts:

Media: Brian Henry, Bristol-Myers Squibb, 609-252-3337, brian.henry@bms.com
Investors: John Elicker, Bristol-Myers Squibb, 212-546-3775, john.elicker@bms.com

Exhibit 99.2

 
BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENT OF EARNINGS
ADJUSTED FOR CONVATEC DISCONTINUED OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2008
(Unaudited, amounts in millions except per share data)	 	

 	 	As reported	 	
 	 	 	 	
Net Sales	 	$	10,094	 	
Cost of products sold	 	 	3,240	 	
Marketing, selling and administrative	 	 	2,299	 	
Advertising and product promotion	 	 	739	 	
Research and development	 	 	1,608	 	
Acquired in-process research and development	 	 	32	 	
Provision for restructuring, net	 	 	41	 	
Litigation expense, net	 	 	2	 	
Equity in net income of affiliates	 	 	(314	)	
Other expense, net	 	 	19	 	
Total expenses, net	 	 	7,666	 	
 	 	 	 	 	
Earnings from Continuing Operations Before Minority Interest & Taxes	 	 	2,428	 	
Provision for income taxes	 	 	588	 	
Minority Interest, net of taxes	 	 	471	 	
Net Earnings - Continuing Operations	 	 	1,369	 	

Discontinued Operations:	 	 	 	 	
     Earnings, net of taxes (1)	 	 	99	 	
     Loss on Disposal, net of taxes	 	 	(43	)	
 	 	 	56	 	
Net Earnings	 	$	1,425	 	

Earnings per Common Share	 	 	 	 	
Basic:	 	 	 	 	
     Net Earnings from Continuing Operations	 	$	0.69	 	
     Discontinued Operations:	 	 	 	 	
          Earnings, net of taxes (2)	 	 	0.05	 	
          Loss on Disposal, net of taxes	 	 	(0.02	)	
     Net Earnings per Common Share	 	$	0.72	 	
 	 	 	 	 	
Diluted:	 	 	 	 	
     Net Earnings from Continuing Operations	 	$	0.69	 	
     Discontinued Operations:	 	 	 	 	
          Earnings, net of taxes (2)	 	 	0.05	 	
          Loss on Disposal, net of taxes	 	 	(0.02	)	
     Net Earnings per Common Share	 	$	0.72	 	
 	 	 	 	 	
Average Common Shares Outstanding:	 	 	 	 	
     Basic	 	 	1,976	 	
     Diluted	 	 	2,007	 	
 	 	 	 	 	
(1) The Business' net earnings of $95 million is included within  Discontinued Operations Earnings, net of taxes.	 	
(2) Basic and Diluted Earnings, net of taxes relating to the Business amounted to $0.05 and $0.05, respectively.	 	

 

 

BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENT OF EARNINGS
ADJUSTED FOR CONVATEC DISCONTINUED OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2007
(Unaudited, amounts in millions except per share data)	 	

 	 	As reported	 	 	Amounts Transferred to  
Discontinued Operations	 	 	As Adjusted	 	
 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	19,348	 	 	$	1,155	 	 	$	18,193	 	
Cost of products sold	 	 	6,218	 	 	 	350	 	 	 	5,868	 	
Marketing, selling and administrative	 	 	4,855	 	 	 	339	 	 	 	4,516	 	
Advertising and product promotion	 	 	1,465	 	 	 	50	 	 	 	1,415	 	
Research and development	 	 	3,282	 	 	 	55	 	 	 	3,227	 	
Acquired in-process research and development	 	 	230	 	 	 	–	 	 	 	230	 	
Provision for restructuring, net	 	 	183	 	 	 	–	 	 	 	183	 	
Litigation expense, net	 	 	14	 	 	 	–	 	 	 	14	 	
Gain on sale of product assets and businesses	 	 	(273	)	 	 	–	 	 	 	(273	)	
Equity in net income of affiliates	 	 	(524	)	 	 	–	 	 	 	(524	)	
Other expense, net	 	 	364	 	 	 	13	 	 	 	351	 	
Total expenses, net	 	 	15,814	 	 	 	807	 	 	 	15,007	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings from Continuing Operations Before Minority
   Interest & Taxes	 	 	3,534	 	 	 	348	 	 	 	3,186	 	
Provision for income taxes	 	 	803	 	 	 	121	 	 	 	682	 	
Minority Interest, net of taxes	 	 	763	 	 	 	–	 	 	 	763	 	
Net Earnings - Continuing Operations	 	 	1,968	 	 	 	227	 	 	 	1,741	 	

Discontinued Operations:	 	 	 	 	 	 	 	 	 	 	 	 	
     Earnings, net of taxes	 	 	197	 	 	 	227	 	 	 	424	 	
     Gain on Disposal, net of taxes	 	 	–	 	 	 	–	 	 	 	–	 	
 	 	 	197	 	 	 	227	 	 	 	424	 	
Net Earnings	 	$	2,165	 	 	$	–	 	 	$	2,165	 	

Earnings per Common Share	 	 	 	 	 	 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	 	 	 	 	 	
     Net Earnings from Continuing Operations	 	$	1.00	 	 	$	(0.12	)	 	$	0.88	 	
     Discontinued Operations:	 	 	 	 	 	 	 	 	 	 	 	 	
          Earnings, net of taxes	 	 	0.10	 	 	 	0.12	 	 	 	0.22	 	
          Gain on Disposal, net of taxes	 	 	–	 	 	 	–	 	 	 	–	 	
     Net Earnings per Common Share	 	$	1.10	 	 	$	–	 	 	$	1.10	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted:	 	 	 	 	 	 	 	 	 	 	 	 	
     Net Earnings from Continuing Operations	 	$	0.99	 	 	$	(0.11	)	 	$	0.88	 	
     Discontinued Operations:	 	 	 	 	 	 	 	 	 	 	 	 	
          Earnings, net of taxes	 	 	0.10	 	 	 	0.11	 	 	 	0.21	 	
          Gain on Disposal, net of taxes	 	 	–	 	 	 	–	 	 	 	–	 	
     Net Earnings per Common Share	 	$	1.09	 	 	$	–	 	 	$	1.09	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Common Shares Outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	
     Basic	 	 	1,970	 	 	 	 	 	 	 	1,970	 	
     Diluted	 	 	1,980	 	 	 	 	 	 	 	1,980	 	

 

 

BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENT OF EARNINGS
ADJUSTED FOR CONVATEC DISCONTINUED OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2006
(Unaudited, amounts in millions except per share data)	 	

 	 	As reported	 	 	Amounts Transferred to Discontinued Operations	 	 	As Adjusted	 	
 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	17,256	 	 	$	1,048	 	 	$	16,208	 	
Cost of products sold	 	 	5,739	 	 	 	319	 	 	 	5,420	 	
Marketing, selling and administrative	 	 	4,800	 	 	 	331	 	 	 	4,469	 	
Advertising and product promotion	 	 	1,340	 	 	 	36	 	 	 	1,304	 	
Research and development	 	 	2,991	 	 	 	40	 	 	 	2,951	 	
Provision for restructuring, net	 	 	59	 	 	 	–	 	 	 	59	 	
Litigation expense, net	 	 	302	 	 	 	–	 	 	 	302	 	
Gain on sale of product assets and businesses	 	 	(200	)	 	 	–	 	 	 	(200	)	
Equity in net income of affiliates	 	 	(474	)	 	 	–	 	 	 	(474	)	
Other expense, net	 	 	299	 	 	 	7	 	 	 	292	 	
Total expenses, net	 	 	14,856	 	 	 	733	 	 	 	14,123	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings from Continuing Operations Before Minority Interest &
    Taxes	 	 	2,400	 	 	 	315	 	 	 	2,085	 	
Provision for income taxes	 	 	538	 	 	 	107	 	 	 	431	 	
Minority Interest, net of taxes	 	 	440	 	 	 	–	 	 	 	440	 	
Net Earnings - Continuing Operations	 	 	1,422	 	 	 	208	 	 	 	1,214	 	

Discontinued Operations:	 	 	 	 	 	 	 	 	 	 	 	 	
     Earnings, net of taxes	 	 	163	 	 	 	208	 	 	 	371	 	
     Gain on Disposal, net of taxes	 	 	–	 	 	 	–	 	 	 	–	 	
 	 	 	163	 	 	 	208	 	 	 	371	 	
Net Earnings	 	$	1,585	 	 	$	–	 	 	$	1,585	 	

Earnings per Common Share	 	 	 	 	 	 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	 	 	 	 	 	
     Net Earnings from Continuing Operations	 	$	0.73	 	 	$	(0.11	)	 	$	0.62	 	
     Discontinued Operations:	 	 	 	 	 	 	 	 	 	 	 	 	
          Earnings, net of taxes	 	 	0.08	 	 	 	0.11	 	 	 	0.19	 	
          Gain on Disposal, net of taxes	 	 	–	 	 	 	–	 	 	 	–	 	
     Net Earnings per Common Share	 	$	0.81	 	 	$	–	 	 	$	0.81	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted:	 	 	 	 	 	 	 	 	 	 	 	 	
     Net Earnings from Continuing Operations	 	$	0.73	 	 	$	(0.11	)	 	$	0.62	 	
     Discontinued Operations:	 	 	 	 	 	 	 	 	 	 	 	 	
          Earnings, net of taxes	 	 	0.08	 	 	 	0.11	 	 	 	0.19	 	
          Gain on Disposal, net of taxes	 	 	–	 	 	 	–	 	 	 	–	 	
     Net Earnings per Common Share	 	$	0.81	 	 	$	–	 	 	$	0.81	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Common Shares Outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	
     Basic	 	 	1,960	 	 	 	 	 	 	 	1,960	 	
     Diluted	 	 	1,963	 	 	 	 	 	 	 	1,963	 	

 

 

BRISTOL-MYERS SQUIBB COMPANY
CONSOLIDATED STATEMENT OF EARNINGS
ADJUSTED FOR CONVATEC DISCONTINUED OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2005
( Unaudited, amounts in millions except per share data)	 	

 	 	As reported	 	 	Amounts Transferred to
Discontinued Operations	 	 	As Adjusted	 	
 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	18,605	 	 	$	992	 	 	$	17,613	 	
Cost of products sold	 	 	5,737	 	 	 	291	 	 	 	5,446	 	
Marketing, selling and administrative	 	 	4,989	 	 	 	315	 	 	 	4,674	 	
Advertising and product promotion	 	 	1,464	 	 	 	40	 	 	 	1,424	 	
Research and development	 	 	2,678	 	 	 	40	 	 	 	2,638	 	
Provision for restructuring, net	 	 	32	 	 	 	–	 	 	 	32	 	
Litigation expense, net	 	 	269	 	 	 	–	 	 	 	269	 	
Gain on sale of product assets and businesses	 	 	(569	)	 	 	–	 	 	 	(569	)	
Equity in net income of affiliates	 	 	(334	)	 	 	–	 	 	 	(334	)	
Other expense, net	 	 	35	 	 	 	18	 	 	 	17	 	
Total expenses, net	 	 	14,301	 	 	 	704	 	 	 	13,597	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings from Continuing Operations Before Minority Interest &
    Taxes	 	 	4,304	 	 	 	288	 	 	 	4,016	 	
Provision for income taxes	 	 	870	 	 	 	98	 	 	 	772	 	
Minority Interest, net of taxes	 	 	592	 	 	 	–	 	 	 	592	 	
Net Earnings - Continuing Operations	 	 	2,842	 	 	 	190	 	 	 	2,652	 	

Discontinued Operations:	 	 	 	 	 	 	 	 	 	 	 	 	
     Earnings, net of taxes	 	 	145	 	 	 	190	 	 	 	335	 	
     Gain on Disposal, net of taxes	 	 	13	 	 	 	–	 	 	 	13	 	
 	 	 	158	 	 	 	190	 	 	 	348	 	
Net Earnings	 	$	3,000	 	 	$	–	 	 	$	3,000	 	

Earnings per Common Share	 	 	 	 	 	 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	 	 	 	 	 	
     Net Earnings from Continuing Operations	 	$	1.45	 	 	$	(0.09	)	 	$	1.36	 	
     Discontinued Operations:	 	 	 	 	 	 	 	 	 	 	 	 	
          Earnings, net of taxes	 	 	0.07	 	 	 	0.09	 	 	 	0.16	 	
          Gain on Disposal, net of taxes	 	 	0.01	 	 	 	–	 	 	 	0.01	 	
     Net Earnings per Common Share	 	$	1.53	 	 	$	–	 	 	$	1.53	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted:	 	 	 	 	 	 	 	 	 	 	 	 	
     Net Earnings from Continuing Operations	 	$	1.44	 	 	$	(0.09	)	 	$	1.35	 	
     Discontinued Operations:	 	 	 	 	 	 	 	 	 	 	 	 	
          Earnings, net of taxes	 	 	0.07	 	 	 	0.09	 	 	 	0.16	 	
          Gain on Disposal, net of taxes	 	 	0.01	 	 	 	–	 	 	 	0.01	 	
     Net Earnings per Common Share	 	$	1.52	 	 	$	–	 	 	$	1.52	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Common Shares Outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	
     Basic	 	 	1,952	 	 	 	 	 	 	 	1,952	 	
     Diluted	 	 	1,983	 	 	 	 	 	 	 	1,983