Bristol-Myers Squibb (BMS; New York) reported in mid-December that it would sell its Medical Imaging (BMS-MI) unit in Billerica, Massachusetts, to private equity firm Avista Partners (New York) for $525 million in cash.

BMS MI is a supplier of medical imaging products for nuclear and ultrasound cardiovascular diagnostic imaging procedures.

The news came just two weeks after the pharma giant presented a massive restructuring plan that would cut nearly 4,300 jobs worldwide, one-10th of its workforce; close more than half its manufacturing plants by 2010; and explore selling two other divisions, ConvaTec (Skillman, New Jersey), a wound-care products supplier, and its Mead Johnson Nutritionals (Evansville, Indiana) business.

“As Bristol-Myers Squibb continues to focus on evolving into a next-generation bio-pharma company, we determined the best way to maximize the value of Medical Imaging for shareholders was to sell this business and reinvest the proceeds into our pharmaceutical research, development and commercialization efforts,” said CEO James Cornelius. “At the same time, we believe that Medical Imaging can maximize its potential under new ownership, and Avista has a proven track record of success in the healthcare field.”

The transaction is expected to be complete by the end of this month, subject to customary regulatory approvals, at which time BMS MI will operate as an independent company under a new name.

Don Kiepert, founder and former president/CEO and chairman of Point Therapeutics (Wellesley Hills, Massachuestts), will become the CEO of the company. “I am thrilled to be partnering with the existing management team of BMS MI and Avista Capital as we transition BMS MI to an independent company,” said Kiepert.

This purchase marks Avista’s sixth investment in the healthcare industry. The private equity firm recently purchased the fluid management and access businesses of Boston Scientific for $425 million.

Also in 2007, Avista made healthcare investments in BioReliance (Rockville, Maryland) and VWR International (West Chester, Pennsylvania) and in 2006 it reported investments in Nycomed (Zurich, Switzerland) and MedServe (Bellaire, Texas).