Aug 3 (Reuters) – Private equity giant KKR will take Integer Holdings private in an all-cash deal valued at about $5.7 billion, the medical-device outsourcing firm said on Monday.
Shares of Plano, Texas-based Integer Holdings rose 2.4% in premarket trading.
KKR’s takeover of Integer comes amid continued private equity interest in healthcare, with buyout firms deploying significant reserves of untapped capital to pursue acquisitions and expand their portfolios.
Some notable private equity buyouts over the past year include American Industrial Partners’ $1.27 billion acquisition of Avanos Medical and Blackstone and TPG’s deal for women’s-health-focused diagnostics firm Hologic for $18.3 billion.
KKR is gaining a company that makes critical components and devices used in heart treatments, pain management therapies and other medical technologies for many of the world’s leading medical device manufacturers.
For KKR, which had $796 billion in assets under management at the end of the second quarter, the acquisition will deepen its healthcare exposure and rank among its largest deals in the sector since the firm’s $9.9 billion take-private of Envision Healthcare in 2018.
Under the terms of the agreement, KKR is paying $127 per share in cash, representing a 4.78% premium to Integer’s closing price on Friday. The transaction includes the assumption of Integer’s outstanding debt.
Integer has faced activist investor pressure in the past. In March, the company reached an agreement with Irenic Capital Management, one of its largest shareholders, to appoint two directors to its board. Irenic owns a stake of more than 3% in Integer, according to LSEG data.
The deal with KKR is expected to close by the end of the year, Integer Holdings said.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Pooja Desai)
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