Apax Partners, CPPIB and PSP Investments complete acquisition of Kinetic Concepts, Inc.
4 November 2011
New York, 4 November 2011
A consortium comprised of funds advised by Apax Partners
("Apax"), together with controlled affiliates of Canada Pension
Plan Investment Board ("CPPIB") and the Public Sector Pension
Investment Board ("PSP Investments"), today announced the
completion of its acquisition of Kinetic Concepts, Inc. (NYSE: KCI)
for $68.50 per common share in cash. KCI shareholders voted
in favour of the acquisition on 28 October.
KCI is a U.S.-based medical device company focused on the
design, manufacture, marketing and service of therapies and
products for the wound care, tissue regeneration and therapeutic
support system markets. The transaction is valued at
approximately $6.3 billion, including KCI's outstanding debt.
The consortium plans to work actively in partnership with the
management of KCI to further invest in the global medical products
sector to expand the company's core businesses, develop innovative
products and extend into new geographies where significant
opportunities exist.
Morgan Stanley & Co. LLC acted as financial advisor to the
consortium. Debt financing was secured from Morgan Stanley
& Co. LLC, BofA Merrill Lynch and Credit Suisse AG.
Simpson Thacher & Bartlett LLP acted as legal advisor to the
consortium. Kirkland & Ellis LLP acted as legal advisor
on the financing to the consortium. Epstein Becker Green
acted as healthcare regulatory counsel to the consortium.
CPPIB was also separately advised by Torys LLP. PSP
Investments was also separately advised by Weil, Gotshal &
Manges LLP.
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.
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 manages a diversified global portfolio including
stocks, bonds and other fixed-income securities, and investments in
Private Equity, Real Estate, Infrastructure and Renewable
Resources. As at March 31, 2011, assets under management totalled
over $58 billion. For more information about PSP Investments, visit
www.investpsp.ca.
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, visit
www.KCI1.com.
Contacts:
Apax Partners
Ben Harding
Tel: +44 (0) 20 7872 6401
Email: communications@apax.com
Georgiana Brunner
Tel: +44 (0) 20 7872 6429
Email: communications@apax.com
Todd Fogarty (US)
Tel: +1 212 521 4854
Email: todd-fogarty@kekst.com
Canada Pension Plan Investment Board
Linda Sims
Tel: +1 416 868 8695
Email: lsims@cppib.ca
PSP Investments
Mark Boutet
Tel: +1 514 925 5431
Email: mboutet@investpsp.ca