Remember when Kinetic Concepts (KCI) said it would pursue "strategic alternatives" for its therapeutic support systems unit? Turns out, that means selling the business to Getinge AB for $275 million in cash.
The deal gives Sweden's Getinge KCI's line of hospital beds, patient-mobility devices and other clinical techs in exchange for cash, after the unit brought in $247 million for KCI last year. Getinge already markets heart-lung devices and anesthesia systems, and the acquisition is designed to further expand its clinical device offerings, CEO Johan Malmquist said in a statement.
For KCI, the divestment is just the next step in the company's refocusing of its efforts. Apax Partners bought the devicemaker in 2011 for $6.3 billion, and the San Antonio, TX-based firm has been in transition ever since. CEO Joe Woody took over in January, and the company announced it would look into selling its therapeutic support business and focus on developing and marketing its line of wound-healing techs.
So far, things are going according to plan, it would seem. KCI got 510(k) clearance in June for its vacuum-assisted closure system, indicating the device for patients healing from closed surgical incisions. And, now, with the Getinge deal, KCI can "focus even further on core growth, execution and realization of our vision--providing transformational healing solutions to caregivers and patients around the world," as Woody put it.
KCI expects the deal to close in the fourth quarter, and Getinge has agreed to offer employment to the workers affected by the deal, the company said.
- read KCI's statement
- get more from Reuters
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