US-based 3M has agreed to acquire medical technology firm Acelity and its KCI subsidiaries for a total enterprise value of around $6.7bn.
3M has signed an agreement to acquire Acelity and its units from a consortium comprised of funds advised by Apax Partners (Apax Funds), as well as controlled affiliates of Canada Pension Plan Investment Board (CPPIB) and the Public Sector Pension Investment Board (PSP Investments).
Acelity is involved in the development of advanced wound care and specialty surgical products, which are marketed under the KCI brand. Based in San Antonio of Texas, KCI employs around 4,500 people across the globe.
The product portfolio is comprised of KCI-branded negative pressure wound therapy, advanced wound dressings and negative pressure surgical incision management systems. These products are available in around 90 countries.
The firm’s major brands include V.A.C. therapy, Prevena therapy, Promogran Prisma Matrix and iOn digital health platforms.
3M CEO Mike Roman said: “Acelity is a recognized leading provider of advanced wound care technologies and solutions and an excellent complement to our Health Care business.
“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.
Subject to customary closing conditions and regulatory approvals, the deal is expected to be completed in the second half of this year.
3M will include the KCI in its medical solutions business unit, upon completion of the deal. 3M intends to finance the transaction with a combination of available cash and proceeds from the issuance of new debt.
Acelity CEO Andrew Eckert said: “The combination of KCI with 3M will accelerate the reach of a business that is a leader in innovation, customer experience and clinical and economic evidence.
“Backed by the resources and expertise of 3M, KCI will be able to offer clinicians and patients even more compelling solutions designed to speed healing and improve outcomes.”
3M Medical Solutions produces a range of integrated products, including medical tapes, advanced and acute wound care dressings and products, sterilization products, and patient warming products.