Wound care product maker Kinetic Concepts Inc. said Wednesday it agreed to be acquired by a private equity firm and two investment groups in a deal that values the company at $4.98 billion, or $68.50 per share.
The San Antonio company said it accepted the offer from Apax Partners, the Canada Pension Plan Investment Board and the Public Sector Pension Investment Board. The deal is worth $6.3 billion including debt. The company has 40 days to seek competing offers.
Kinetic Concepts' board approved the deal and recommended stockholders tender their shares in the offer. The company said founder and chairman emeritus James Leininger supports the deal and will vote his shares in favor. Including funds controlled by shareholders related or affiliated with Leininger, he has an 11-percent stake in the company.
Speculation over a buyout has driven up the company's stock in the past week, with shares rising 12.6 percent on July 6. The offer comes at a premium of 16.5 percent to the price of Kinetic Concepts on July 5, and the company said it is getting a premium of 52 percent based on its average closing price over the 12 months ended July 5.
Shares closed at $64.49 Tuesday, and the stock rose $3.35, or 5.2 percent, to $67.84 in premarket trading. In the last week, the stock has been trading at its highest prices in about four years.
Kinetic Concepts makes products that treat wounds using low pressure to speed healing and other tissue-repair products. The consortium said it plans to make investments to expand the company's core business.
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