KCI shareholders approve acquisition by Apax Partners, CPPIB and PSP Investments
28 October 2011
New York, 28 October 2011
A consortium comprised of investment 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 that
shareholders of Kinetic Concepts, Inc. (NYSE: KCI) have approved
the consortium's acquisition of KCI for $68.50 per common share in
cash, or a total value of approximately $6.3 billion, including
KCI's outstanding debt. It is expected that the acquisition
will close in early November.
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.
In 2010, KCI reported revenues of $2.0 billion. The
company's products address a broad range of patient needs and are
used by healthcare professionals around the world in a wide range
of diverse care settings, such as acute care hospitals, long-term
care and skilled nursing facilities, home health agencies and wound
care clinics.
The consortium plans to work actively in partnership with the
management of KCI to help expand the company's core businesses,
invest in innovative new products and extend into new geographies
where significant opportunities exist.
Buddy Gumina, Partner and co-head of the Apax Healthcare team,
commented: "We are pleased to achieve this important milestone and
look forward to closing the acquisition. KCI is an excellent
business and we believe it has great potential for further
growth. We look forward to working with management and our
co-sponsors to drive the business forward."
André Bourbonnais, Senior Vice-President, Private Investments
for CPPIB, said, "The outcome of today's vote is a significant step
towards the closing of this transaction. Together with KCI's
management, Apax and PSP Investments, we look forward to building
upon KCI's leading market shares and positioning the company for
continued growth and long-term success."
Derek Murphy, First Vice President, Private Equity at PSP
Investments, said: "We see a number of opportunities to grow the
business and look forward to building on the company's outstanding
reputation with our partners and the management and employees of
KCI. We are proud to be associated with such an innovative company
that has truly improved the lives of patients around the
world."
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