SAN ANTONIO — Wound care products maker Kinetic Concepts Inc. announced July 13 it has agreed to a leveraged buyout valued at $6.3 billion, including the company's outstanding debt.
The 35-year old company, which reported 2010 revenues of $2 billion, will be acquired by a consortium including London-based private equity investor Apax Partners for $68.50 a share in cash.
"This consortium is a group of well-respected investors whose interest in KCI represents an endorsement of our market leadership, differentiated products and services and consistently strong performance," KCI President and CEO Catherine Burzik said in a release.
KCI's board of directors has unanimously approved the merger agreement, although the company has a 40-day "go-shop" period under which it can solicit other offers. A group of shareholders including Dr. James Leininger, KCI's founder and chairman emeritus, holds approximately 11 percent of the company's outstanding shares and will vote in favor of the transaction.
KCI makes products for the wound care, tissue regeneration and therapeutic support system markets, including its widely used VAC negative pressure wound therapy system. The company employs approximately 7,100 people and markets its products in more than 20 countries.
According to a statement from Apax, the consortium "plans to work actively in partnership with the management of KCI to further invest in the global medical products sector to expand the company's core business, develop innovative products and extend into new geographies where significant opportunities exist."
Apax investments total more than $40 billion around the world, including Tommy Hilfiger, Phillips-Van Heusen, Voyager HospiceCare and Apollo Hospitals, a leading hospital chain in India. The buyout group also includes affiliates of two Canadian pension funds, Canada Pension Plan Investment Board and the Public Sector Pension Investment Board.
The transaction is expected to close in the second half of the year.