UPDATE: Oct. 11, 2019: 3M finalized its acquisition of advanced wound care and specialty surgical medtech Acelity, the Minnesota corporation said Friday, about five months after announcing the $6.7 billion transaction, which includes debt assumption.
Acelity has approximately 5% organic year-to-date growth as of Sept. 30, 3M said. The conglomerate will report third quarter earnings Oct. 24.
- Minnesota corporation 3M announced Thursday morning it plans to acquire global medtech manufacturer Acelity and its KCI brand for a total enterprise value of approximately $6.7 billion.
- Acelity markets advanced wound dressings and negative pressure surgical incision management systems, 3M said, and the company had revenues of $1.5 billion in 2018.
- 3M said it expects the deal to close in the second half of 2019 and now anticipates share repurchases for the year to be in the range of $1.0 billion to $1.5 billion versus the $2.0 billion to $4.0 billion previously estimated.
The massive investment in the medtech division, which supplies everything from medical tapes, wound closure products and orthopaedic casting materials to stethoscopes, electrodes and sterilization assurance equipment, comes as 3M's overall healthcare business grew 2.4% last quarter, largely driven by health informatics and medical solutions. Sales in its electronics and energy sector declined 4.5%.
"Acelity is a recognized leading provider of advanced wound care technologies and solutions and an excellent complement to our Health Care business," CEO Mike Roman said. "This acquisition bolsters our Medical Solutions business and supports our growth strategy to offer comprehensive advanced and surgical wound care solutions to improve outcomes and enhance the patient and provider experience."
KCI received a De Novo clearance last month for its Prevena negative pressure wound therapy devices. The medtech's other offerings include the ActiV.A.C. device, a portable negative pressure wound therapy product intended for patients at home or in the process of being discharged from a clinical environment, and its V.A.C. GranuFoam antibacterial dressings.
The Acelity takeout dwarfs the healthcare unit's $1 billion acquisition of speech technology maker MModal, which develops AI-powered clinical documentation tools. It also surpasses Boston Scientific's wave-making $4.2 billion buyout of BTG, which is yet to close.