KCI agrees to buyout

Thursday, July 14, 2011

SAN ANTONIO - Wound care giant Kinetic Concepts announced July 13 that it has agreed to be acquired by a private equity firm.

Apax Partners, together with two Canadian pension funds, will pay $5 billion in cash. Along with assumed debt, the total deal is worth $6.3 billion, according to a press release from KCI.

KCI has 40 days to solicit other bids. However, the company's board of directors unanimously approved the deal with Apax Partners and recommended its shareholders do the same. Shareholders will get $68.50 per share.

"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," stated Cathy Burzik, KCI president and CEO, in the release.

KCI makes the popular V.A.C. Via Negative Pressure Wound Therapy System, among other medical devices. In 2010, KCI reported revenues of $2 billion, according to market reports. It employs 7,100 people and markets its products in 20 countries.

Apax Partners manages more than $40 million around the world.

The deal is expected to close by the end of the year.