Kinetic Concepts said it’s closed the sale of its Therapeutic Support Systems business to Swedish medical device company Getinge (PINK:GETI B) for $275 million.
The deal for the 1,300-worker KCI unit, which makes specialty therapeutic beds, calls for the San Antonio, Texas-based wound care giant to provide "certain transition services to Getinge for a period of time," according to a press release. The TSS business pulled in $247 million in sales last year, according to a separate release.
Getinge said the deal will augment its extended care business, better balancing equipment sales and recurring revenues. About 60% of TSS’s business comes from the U.S., the company said.
For its part, KCI said it plans to use the proceeds to "to reinvest in its core business and look for new growth opportunities."
"To the extent KCI has not reinvested proceeds from the TSS sale within 12 months, it will use any remaining funds to repay long-term debt obligations," according to the release.
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