The two firms are working with bankers at Bank of America Merrill Lynch, Goldman Sachs and UBS.
An initial public offering is the most likely avenue for exit for the Luxembourg-based maker of medical devices, with the three banks as joint global coordinators on the potential IPO, a person added.
Nordic Capital and Avista have previously attempted to divest the asset, according to previous reports. In 2014, Reuters reported that the firms had appointed Morgan Stanley and Goldman Sachs to explore a sale of the medical company which could be worth up to $ 10 billion.
The buyout firms weren’t immediately available for comment.
Avista Capital Partners and Nordic Capital acquired ConvaTec for $ 4.1 billion from Bristol-Myers Squibb in what was the largest buyout of 2008.
The company develops technology focused on wound and skin-care and incontinence, providing products that support healthcare workers across 90 countries.
Since Nordic acquired the company, it has completed a number of add-on acquisitions including the purchases of Unomedical, a company that manufactures medical devices as well as UK healthcare supplier Farnhurst Medical.
ConvaTec generated revenues of €1.49 billion in 2015 and currently employs more than 9,000 people.
The decision to sell the asset comes as private equity exits across Europe fell to a seven year low in July. The value of companies sold fell from $ 18.04 billion in July 2015 to just $ 3.41 billion in the same period in 2016.
However, an uptick in deal flow is expected in the fourth quarter with Cinven’s $ 1 billion-plus sale of web hosting company Host Europe expected to relaunch having been put on ice following the UK’s decision to leave Europe.