KKR to Acquire Integer Holdings in $5.7 Billion Deal
KKR to acquire Integer Holdings, a key medical device supplier, in a $5.7B deal, deepening its healthcare investments.
Global investment firm KKR announced plans to acquire Integer Holdings, a prominent medical equipment manufacturer, in an all-cash transaction valued at approximately $5.7 billion. This strategic move aims to bolster KKR's portfolio within the healthcare sector.
Integer Holdings: A Key Player in Medical Devices
Integer Holdings, headquartered in Plano, Texas, is renowned for producing essential components and devices used in heart treatments, pain management therapies, and various other medical technologies. These products are integral to many leading medical device manufacturers worldwide.
The company's shares saw a nearly 3% rise in premarket trading following the announcement, highlighting investor confidence in the acquisition. KKR's offer stands at $127 per share, a 4.78% premium over Integer's closing price on the previous trading day. The deal also includes the assumption of Integer's outstanding debt.
KKR's Ongoing Healthcare Investment Strategy
This acquisition is part of a broader trend of private equity interest in the healthcare sector. KKR, which managed $796 billion in assets as of the end of the second quarter, continues to expand its healthcare investments. This purchase ranks among KKR's largest healthcare deals since its $9.9 billion acquisition of Envision Healthcare in 2018.
Recent significant transactions in the sector also include American Industrial Partners' $1.27 billion purchase of Avanos Medical and the $18.3 billion acquisition of Hologic by Blackstone and TPG, focusing on women's health diagnostics.
Activist Influence and Future Prospects
In recent months, Integer Holdings has faced pressure from activist investors. In March, the company reached an agreement with Irenic Capital Management, a major shareholder, to appoint two directors to its board. Irenic Capital holds over 3% of Integer's shares, according to LSEG data.
The transaction with KKR is expected to conclude by the end of the year, pending customary closing conditions. This acquisition underscores the ongoing consolidation within the healthcare sector and KKR's commitment to expanding its footprint in this critical industry.