ConvaTec has reportedly dropped its bid for Kinetic Concepts, a company that focuses on wound care, a source who declined to be named told Swedish daily Dagens Industri.
The source told the paper the bid had fallen through after a pharmaceutical firm that had agreed to buy one of KCI's units as part of the deal pulled out. "There was then a hole in the financing that they could not fill," the source said, as quoted by Reuters. ConvaTec is owned by private-equity firms Nordic Capital and Avista Capital Partners. A representative from Nordic Capital declined to comment on the news, according to Reuters.
Back in July, KCI agreed to go private in a deal with Apax Partners, the Canada Pension Plan Investment Board and the Public Sector Pension Investment Board. Under the deal, the three would buy KCI for $68.50 per share in cash in a transaction valued at $6.3 billion, including KCI's outstanding debt.
The following month, however, KCI received a higher takeover offer from ConvaTec, which reportedly had letters of support from Goldman Sachs Group and Jefferies Group.
KCI has gained 13% in New York trading since July 5, one day before reports of the talks with Apax and its partners surfaced, Bloomberg notes.
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