Kinetic Concepts, Inc. to Acquire LifeCell for $1.7 billion
BY LAUREN UZDIENSKI, APRIL 7, 2008
Kinetic Concepts, Inc. announced this morning its plans to acquire LifeCell for $1.7 billion, or $51.00 per share, which represents an 18% premium over LifeCell's closing price on Friday and a 26% premium over the 90-day volume weighted average trading price. KCI will finance the deal using cash and proceeds from a fully underwritten debt financing from Bank of America and JPMorgan Chase.
KCI, a wound-care company that pioneered negative pressure wound therapy, said the transaction would diversify the company's revenue stream, increase their presence in the operating room and acute-care settings and allow them to capitalize on R&D synergies. LifeCell will operate as a division of KCI, and LifeCell CEO Paul Thomas will serve as its president.
The press release stated that boards of both companies had unanimously approved the transaction, though no closing date was given, and the deal is subject to the completion of the tender offer.
