Private equities Avista Capital Partners and Nordic Capital announced their acquisition of ConvaTec, a business unit of Bristol-Myers Squibb Company that is headquartered in Skillman, New Jersey. ConvaTec is a worldwide leader in innovative wound therapeutics marketing and development. It also offers critical care and ostomy care products.

After the acquisition, ConvaTec’s chief executive officer David Johnson admitted that being acquired by Nordic and Avista was good for the company’s road to progress and growth. Both businesses, said Johnson, are continuously working for the growth and development of ConvaTec, which will help them better serve their international consumers and patients.

At the time of the acquisition, Kristoffer Melinder, a partner at Nordic Capital, expressed his observations that ConvaTec and its team have been successful in building their company into one of the best in critical care, therapeutics and ostomy care products. He was one of those who believed that working together with them will make the business even more exciting while also opening up more exceptional opportunities for ConvaTec.

As announced previously, Nordic Capital and Avista Capital Partners integrated Unomedical, a Copenhagen-based leading producer of single-use medical equipment, into ConvaTec. As required by the European Competition Commission, the incorporation did not consider the company’s wound care division, which was later on divested by Nordic Capital.

David Burgstahler, an associate of Avista Capital Partners, also shared his thoughts about the acquisition when he said that with the collaboration of Unomedical and ConvaTec, their newly integrated company will continuously grow.

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So it is clear that socially dependable initiatives are going to be a more prominent brand tool in future, but it is tough for companies to acquire revenue with just cause related marketing. Many brands genuinely desire to do business in nearly honourable way and the customers also look for the same. Therefore this is where the customer loyalty marketing has a major role. At Present loyalty marketers have vast amounts of data about their customers. Now they are turning these insights to more honourable purchasing behaviour.

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So what should the firms do now? Pursueing a new loyalty program and a cause marketing might danger them. But blending the emotional attachment of the clients with loyalty plan and cause plan is becoming to be the suited strategy. This is the reason why marketing is largely about promoting the brand and accumulative attachment and empathy to it. Having just a loyalty program may not run hereafter or might crumble in the middle.

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