Kinetic Concepts Inc. said it agreed to acquire 1 of its private wound-care peers, Systagenix, for $485 million.
San Antonio, Texas-based KCI said the deal brings a large suite of complementary advanced wound care products into its portfolio.
Many of Systagenix’ products are used around KCI’s core negative-pressure wound therapy devices, according to a press release.
"The acquisition of Systagenix advances our strategy and vision as the global leader in transformational healing solutions. This major strategic investment will diversify KCI’s global portfolio of wound care products and reinforces our competitive advantage as the trusted gold standard in wound healing," KCI president & CEO Joe Woody said in prepared remarks. "The combination of KCI and Systagenix creates a winning platform across the entire wound care continuum. It increases our ability to address the complete wound healing needs of clinicians and their patients with best-in-class outcomes that help to reduce the overall cost of patient care."
The deal will see One Equity Partners, the private equity shop that bought the J&J wound care operation, keep hold of "an early-stage diagnostics business," according to the release. KCI also agreed to a distribution deal with that business for the WoundChek protease status test, KCI said.
Systagenix, which is based in Gatwick, England, has its U.S. base in Quincy, Mass. The company employs about 800 workers globally.
"The strong clinical capabilities, geographic presence, complementary products and established infrastructure of KCI will further expand the long-term growth potential for Systagenix. We are delighted to join KCI and believe this combination will provide significant benefits to employees, customers and most importantly, the patients we serve around the world," said CEO Ernest Waaser, tapped in 2011 to lead the Johnson & Johnson (NYSE:JNJ) carveout.
The deal is slated to close during the 4th quarter, KCI said.
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