FLASH: Apax closes $6.3B KCI buyout

November 4, 2011 by MassDevice staff

Apax Partners closes its $6.1 billion leveraged buyout of Kinetic Concepts Inc., taking the wound care giant private for $68.50 per share.

Apax Partners

Get 'em while they're hot: Apax Partners and a pair of Canadian pension funds closed their $6.1 billion leveraged buyout of Kinetic Concepts Inc. (NYSE:KCI) today.

That means KCI shares will cease trading publicly before the markets open next Monday, Nov. 7.

The $68.50-per-share deal was approved by KCI's shareholders earlier this week. Yesterday, KCI president & CEO Catherine Burzik agreed to stay on until next summer, with the rest of senior management eligible to buy into the new private company.

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To fund the LBO, first broached in July, the consortium drummed up about $2.5 billion worth of senior secured debt financing, issued another $17.75 billion in second-lien senior secured notes and $750 million of senior notes due in 2019.

It's one of the largest leveraged buyouts since before the global recession of 2008.

KCI, founded in 1976, makes products for the wound care, bariatric and critical care markets. It pulled in just over $256 million in profit on $2.02 billion in sales in 2010.