Apax Partners/Kinetic Concepts - Top 10 medical device deals of 2011

Companies: Apax Partners/KCI
Value: $6.3 billion

Scoop: 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. The value of the transaction is roughly $6.3 billion, including outstanding debt. The deal values the company at $4.98 billion, or $68.50 per share.

Apax asked the pensions, which are limited partners in the firm, to join in the deal, as they had previously expressed interest in co-investing, Buddy Gumina, co-head of the company's healthcare practice, told Fortune.

Apax and its partners were almost outbid by ConvaTec, which reportedly had letters supporting the bid from Goldman Sachs Group and Jefferies Group. But ConvaTec dropped its bid early in the fall.

As The New York Times DealBook notes, a potential buyout for KCI has been rumored for a while. Although it is a leader in negative-pressure therapy, it's been hit by lower-priced competitors that have cut into its market share.

"The cash flow is the attraction for private equity, and the questionable growth outlook means there's a limit to how much public investors and strategic buyers are willing to pay," said Jason Wittes, an analyst for Caris & Co., according to a Bloomberg report in July. "$5 billion is about the range I was expecting," he said.

Initially, KCI's Catherine Burzik said she'd continue to serve as president, CEO and director through June 30. However, right before the start of the new year, the company announced she would step down as of Jan. 4.

Apax Partners/Kinetic Concepts - Top 10 medical device deals of 2011
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