KCI sells to 3M

SAN ANTONIO and NEW YORK - A consortium of funds led by Apax Partners has entered into a definitive agreement to sell Acelity and its KCI subsidiaries worldwide to 3M for about $6.725 billion.

KCI markets a broad range of negative pressure wound therapy, specialty surgical and advanced wound care dress products in about 90 countries.

“Today, KCI embarks upon a new era,” said R. Andrew Eckert, CEO of Acelity. “Backed by the resources and expertise of 3M, KCI will be able to offer clinicians and patients even more compelling solutions designed to speed health and improve outcomes.”

3M, a company once best known for its office supplies like Post-it notes, has expanded into healthcare products like adhesives and tapes, hand hygiene, patient monitoring and surgical solutions.

Apax, which led the $6 billion acquisition of KCI in 2011, says it has worked with the company's leadership to transform the business by, among other things, executing a number of strategic mergers and acquisitions, including buying Crawford Healthcare in 2018 and selling non-core businesses like Therapeutic Support Systems in 2012.

It hasn't been all smooth sailing, however: KCI closed a service center in North Carolina earlier this year, laid off employees in May of last year and has fought Medicare over competitive bidding contracts for NPWT pumps.

Additionally, Medicare paid KCI $24.4 million for E2402 in 2017, down significantly from $48.2 million in 2016 and $77.2 million in 2015, according to the HME Databank.

The deal is expected to close in the second half of 2019, subject to customary closing conditions and regulatory approvals.