Dive Brief:
- Global investment firm KKR said Monday it has agreed to buy device manufacturer Integer Holdings for about $5.7 billion.
- The companies expect to close the deal before the end of the year, at which point Integer would become a private company. Shares of Integer rose by nearly 20% to $121.21 Friday afternoon following a Wall Street Journal report that the two companies were nearing a deal.
- Integer, which bills itself as one of the largest global medical device contract development and manufacturing organizations, expects the acquisition would provide flexibility and long-term capital to invest in its capacity, technology and innovation.
Dive Insight:
KKR’s offer follows Integer’s launch of a strategic review in April, due to “strong interest” in the company. Under the terms of the deal, an affiliate of investment funds managed by KKR will acquire all of Integer’s outstanding shares in an all-cash transaction. Integer stockholders would receive about $127 per share, a more than 51% premium to the company’s closing price on April 29, before the strategic review was announced.
Integer makes finished medical devices and components such as electrophysiology catheters, cardiac leads and batteries. The company serves medtech firms including Abbott, Boston Scientific and Medtronic.
In earnings results shared Monday, Integer reported $464 million in sales for the second quarter, a 2.6% decrease.
The KKR acquisition is expected to close by the end of the year, but is subject to closing conditions including regulatory approvals and the support of Integer’s shareholders.
