Wound care and regenerative medicine company Acelity registered for an initial public offering today that could raise as much as $1 billion, confirming rumors that 1st surfaced in June that its private equity owners are looking look to pay down debt.
Acelity, formerly Kinetic Concepts Inc., was acquired for $6.1 billion by Apax Partners and a pair of Canadian pension funds in a leveraged buyout in November 2011. The company, which makes wound care products, later folded KCI sister company LifeCell and acquisition Systagenix into the Acelity brand.
The San Antonio-based company reported sales growth of 7.7%, to $1.866 billion, for 2014 and pared its losses by 58.7%, to -$230.4 million, compared with 2013. For the 6 months ended June 30, sales grew 4.3% to $353.2 million, with losses cut 88.9% to $22.2 million, compared with the 1st half of 2014.
Today Acelity said it plans to trade on the New York Stock Exchange, but did not reveal a stock symbol. The company also said it plans to use the IPO proceeds to redeem some of the $609.6 million it has in 12.5% senior notes, which come due in 2019. Acelity had more than $1.73 billion in 10.5% 2nd-lien senior secured notes, due 2018, and total debt of $4.84 billion as of June 30.
In October 2013, then-KCI paid $485 million to acquire Systagenix, the wound care business spun out of Johnson & Johnson (NYSE:JNJ) in 2008. The company united Systagenix, LifeCell and KCI under the Acelity brand in September 2013.