In April 1994, Warburg Pincus acquired the company from Bristol-Myers Squibb for approximately $82 million and merged it with Merocel Corporation, a Warburg Pincus investment since December, 1990. At the time Xomed was one of two leading manufacturers of surgical products used by ear, nose, and throat “ENT” specialists. Under Bristol-Myers’ ownership the company had not been growing and had essentially stopped investing in new products and technology. After restructuring the company, in early 1996 Warburg recruited James Treace and Barry Bays to become chief executive officer and chief operating officer, respectively. They focused on an emerging subspecialty within ENT, least invasive sinus surgery. With this new leadership team and strategy in place Warburg, was able to facilitate the company’s initial public offering in October 1996. Post IPO the company’s revenues doubled to $125 million over a three-year period and earnings beat analyst estimates for eleven consecutive quarters, compounding at a 45% annual rate. Medtronic Inc. acquired the company in November 1999 in a stock-for-stock transaction valued at over $850 million.

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