NEW YORK, Oct. 28, 2011
/PRNewswire/ -- 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."
Andre 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. For further information about Apax,
please visit www.apax.com.
Apax Partners
Ben Harding / Georgiana Brunner
Tel: +44 (0)20 7872 6401 / 6429
Email: communications@apax.com
Todd Fogarty
Tel: +1 212 521 4854
Email: todd-fogarty@kekst.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.
CPPIB
Linda Sims
Tel: +1 416 868 8695
Email: lsims@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.
PSP Investments
Mark Boutet
Tel: +1 514 925 5431
Email: mboutet@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.
SOURCE Apax Partners; PSP Investments; Canada Pension Plan
Investment Board (CPPIB)