Tags: bain | avista | kinetic | apax

Bain Said to Pull Out of Talks for Kinetic Concepts

Tuesday, 16 Aug 2011 06:19 PM

Bain Capital LLC pulled out of talks with Avista Capital Partners LLC to make a bid for Kinetic Concepts Inc., said two people with knowledge of the matter.

Some of Bain’s advisers were informed of the decision Tuesday, according to the people, who declined to be identified because the negotiations were private. It cited difficulties raising financing, said one person. Disagreement over the price was also an issue, another person said. Bain and Avista had been seeking to raise financing for an offer to top Apax Partners LLP’s $5 billion bid, the people said earlier.

The firms had been working with Goldman Sachs Group Inc., Deutsche Bank AG, Citigroup Inc. and Jefferies Group Inc. on the financing, said these people. The companies were only prepared to proceed with an offer if they could obtain funding at terms that were economically viable, the people said.

Avista, which owns wound-care maker ConvaTec Inc. with Nordic Capital, may seek other partners for a bid, according to one person. The go-shop period, in which San Antonio-based Kinetic can seek other offers for 40 days, expires next week. London-based Apax and its partners offered $68.50 a share for Kinetic on July 13.

Spokesmen for Bain and Kinetic Concepts declined to comment. A spokesman for Avista couldn’t immediately be reached.

Kinetic, led by Chief Executive Officer Catherine Burzik, got about 70 percent of its $2 billion in revenue from the wound-treatment business last year. The company, founded more than 30 years ago, also makes hospital beds and tissue- regeneration products used in surgeries.

Buyout firms rarely attempt to poach targets from their rivals. If Apax’s deal for Kinetic goes through, the transaction would be the largest buyout since New York-based Lehman Brother Holdings Inc. filed for bankruptcy protection in September 2008.

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Bain Capital LLC pulled out of talks with Avista Capital Partners LLC to make a bid for Kinetic Concepts Inc., said two people with knowledge of the matter.Some of Bain s advisers were informed of the decision Tuesday, according to the people, who declined to be identified...
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2011-19-16
Tuesday, 16 Aug 2011 06:19 PM
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