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Kinetic to go private for US$5b
Source: Agencies |
July 14, 2011, Thursday
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MEDICAL device maker Kinetic Concepts Inc said it would go private in a nearly US$5 billion cash deal with a consortium of private equity firm Apax Partners and two Canadian pension firms.
At US$68.50 a share, the deal represents a premium of 6 percent to Kinetic's close on Tuesday.
Including assumption of debt, the deal is worth US$6.3 billion, the company said.
Kinetic, which makes devices and products for wound care and tissue regeneration, had 72.68 million shares outstanding as of April 29.
Last week, Kinetic shares had jumped 13 percent on media reports that the company was in talks to go private in a leveraged buyout.
Kinetic founder James Leininger and certain shareholder parties, who collectively hold about 11 percent of the company's shares, have agreed to vote in favor of the deal, it said.
According to terms of the agreement, Kinetic has a 40-day 'go-shop' period, during which it can encourage and solicit alternative proposals from third parties.
The consortium has secured committed debt financing from Morgan Stanley, BofA Merrill Lynch and Credit Suisse.
These funds, in addition to equity financing from funds advised by Apax Partners, CPPIB and PSP Investments, will finance the cash consideration to Kinetic shareholders.
This deal is the latest in a string of private equity backed deals, which have risen about 42 percent this year from a year ago.
Recent private equity deals in the health care sector include TPG Capital's US$2 billion purchase of the diagnostics firm Immucor.
At US$68.50 a share, the deal represents a premium of 6 percent to Kinetic's close on Tuesday.
Including assumption of debt, the deal is worth US$6.3 billion, the company said.
Kinetic, which makes devices and products for wound care and tissue regeneration, had 72.68 million shares outstanding as of April 29.
Last week, Kinetic shares had jumped 13 percent on media reports that the company was in talks to go private in a leveraged buyout.
Kinetic founder James Leininger and certain shareholder parties, who collectively hold about 11 percent of the company's shares, have agreed to vote in favor of the deal, it said.
According to terms of the agreement, Kinetic has a 40-day 'go-shop' period, during which it can encourage and solicit alternative proposals from third parties.
The consortium has secured committed debt financing from Morgan Stanley, BofA Merrill Lynch and Credit Suisse.
These funds, in addition to equity financing from funds advised by Apax Partners, CPPIB and PSP Investments, will finance the cash consideration to Kinetic shareholders.
This deal is the latest in a string of private equity backed deals, which have risen about 42 percent this year from a year ago.
Recent private equity deals in the health care sector include TPG Capital's US$2 billion purchase of the diagnostics firm Immucor.
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