Kinetic Concepts, Inc. Completes Merger With Apax Consortium
Kinetic Concepts, Inc. (NYSE: KCI) today announced the completion of its acquisition by an affiliate of a consortium comprised of investment funds advised by Apax Partners and controlled affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board pursuant to a merger agreement dated July 12, 2011.
Under the terms of the agreement, shareholders of KCI will receive $68.50 per share in cash. The transaction is valued at approximately $6.1 billion, including outstanding debt. The transaction was approved by KCI’s shareholders at a special meeting held on October 28, 2011.
In connection with the consummation of the acquisition, KCI and KCI USA obtained approximately $2,500 million of senior secured financing under new credit facilities and issued $1,750 million aggregate principal amount of second lien senior secured notes due 2018 and $750 million aggregate principal amount of senior notes due 2019. The new credit facilities and the second lien senior secured notes will be guaranteed by certain of KCI’s and KCI USA’s parents and subsidiaries and will be secured by substantially all of the assets of KCI, KCI USA and certain of their parents and subsidiaries. The senior notes will be senior obligations of KCI and KCI USA and will be guaranteed on a senior basis by certain of their parents and subsidiaries. KCI used the net proceeds from the new credit facilities and the notes offerings to pay the consideration under the merger agreement and related transactions, to refinance existing debt and to pay certain costs and expenses of the transactions.
KCI’s common stock will be delisted and cease trading on the New York Stock Exchange before the opening of the market on November 7, 2011.About KCI Kinetic Concepts, Inc. (NYSE: KCI) is a leading global medical technology company devoted to the discovery, development, manufacture and marketing of innovative, high-technology therapies and products for the wound care, tissue regeneration and therapeutic support system markets. Headquartered in San Antonio, Texas, KCI’s success spans more than three decades and can be traced to a history deeply rooted in innovation and a passion for significantly improving the healing and the lives of patients around the world.
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