Medical devices maker ConvaTec outbids Apax for Kinetic Concepts: report
22 August 2011
ConvaTec Inc, a maker of medical devices has submitted a higher takeover offer for Kinetic Concepts Inc (KCI), rivalling an existing agreed $4.98 billion in cash bid from Apax Partners LLP.
ConvaTec, owned by private-equity firms Nordic Capital and Avista Capital Partners, has the financing muscle for its bid from Goldman Sachs and Jefferies Group, Bloomberg reported today, citing two people familiar with the offer.
Nordic and Avista had acquired ConvaTec from Bristol-Myers Squibb in 2008, for $4.1 billion.
In July, consortium comprising of Apax Partners, Canada Pension Plan Investment Board and the Public Sector Pension Investment Board, agreed to a deal to buy advanced healing technologies company KCI, for $4.98 billion in cash. (See: Consortium led by PE firm Apax to buy Kinetic Concepts for $4.98 bn)
Company founder Dr James Leininger, who is KCI's largest individual shareholder holding about 8.1 million shares, or an 11.2-per cent stake, had agreed to tender his shares to the deal.
Under the terms of the offer that was agreed by both parties, Kinetic could solicit competing offers for 40 days, until 21 August.