US-based conglomerate 3M has signed a definitive agreement to buy medical technology company Acelity and its KCI subsidiaries for a consideration of around $6.72bn.
3M will make the acquisition from a consortium of funds advised by Apax Partners (Apax Funds), along with Canada Pension Plan Investment Board (CPPIB) and the Public Sector Pension Investment Board (PSP Investments).
Acelity markets advanced wound care and speciality surgical products under the KCI brand, which is available across nearly 90 countries.
The product portfolio comprises negative pressure wound therapy, advanced wound dressings and negative pressure surgical incision management systems.
Major brands of the company include V.A.C. Therapy, Prevena Therapy, Promogran Prisma Matrix and iOn Digital Health platforms. Last year, Acelity reported revenues of $1.5bn.
The deal is expected to complement 3M’s strategy for advanced wound care solutions.
3M CEO Mike Roman said: “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.
“Together, we will apply 3M science to bring differentiated offerings to key wound and operative care solutions worldwide.”
3M’s Medical Solutions business involves a variety of products, including medical tapes, advanced and acute wound care dressings and products, sterilisation products and patient warming products.
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.”
Subject to customary closing conditions and regulatory approvals, the acquisition is expected to be completed in the second half of this year.
Upon closing of the transaction, KCI will be integrated into 3M’s Medical Solutions business.