Kinetic Concepts, Inc. Completes Merger with Apax Consortium
November 04 2011 - 12:53PM
Business Wire
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.
The company employs approximately 7,100 people and markets its
products in more than 20 countries. For more information about KCI
and how its products are changing the practice of medicine, please
visit www.kci1.com.
About Apax Partners
Apax Partners is one of the world’s leading private equity
investment groups. It operates across the United States, Europe and
Asia and has more than 30 years of investing experience. Funds
under the advice of Apax Partners total over $40 billion around the
world. These funds provide long-term equity financing to build and
strengthen world-class companies. Apax Partners Funds invest in
companies across its global sectors of Tech & Telecom, Retail
& Consumer, Media, Healthcare and Financial & Business
Services. For more information about Apax Partners, please visit
www.apax.com.
About Canada Pension Plan Investment
Board
Canada Pension Plan Investment Board (CPPIB) is a professional
investment management organization that invests the funds not
needed by the Canada Pension Plan to pay current benefits on behalf
of 17 million Canadian contributors and beneficiaries. In order to
build a diversified portfolio of CPP assets, CPPIB invests in
public equities, private equities, real estate, inflation-linked
bonds, infrastructure and fixed income instruments. Headquartered
in Toronto, with offices in London and Hong Kong, CPPIB is governed
and managed independently of the Canada Pension Plan and at arm’s
length from governments. At June 30, 2011, the CPP Fund totaled
$153.2 billion. For more information about CPPIB, please visit
www.cppib.ca.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is
a Canadian Crown corporation established to manage investments for
the pension funds of the Public Service, the Canadian Forces, the
Royal Canadian Mounted Police and the Reserve Force. PSP
Investments’ mandate is to manage funds entrusted to it in the best
interests of the contributors and beneficiaries of the pension
plans and to maximize investment returns without undue risk of loss
having regard to the funding, policies and requirements of the
plans and their ability to meet their financial obligations. For
more information about PSP Investments, please visit
www.investpsp.ca.
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