Acelity is reportedly considering an initial public offering that could fetch up to $1 billion as its private equity owners 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 makes wound care products.
The IPO proceeds would be used to pay down the $4.8 million in long-term debt Acelity is carrying, unnamed sources told the Wall Street Journal yesterday.
Acelity’s owners tapped J.P. Morgan Chase & Co., Goldman Sachs and Bank of America Merrill Lynch to lead the deal, the sources told the newspaper.
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.