Kinetic Concepts (KCI), a US-based medical technology provider, has signed a definitive agreement to acquire Systagenix, a UK-based advanced wound care (AWC) products maker, for $485m as part of its strategy to boost revenues and expand its geographic presence.
The deal is also expected to improve KCI’s position in the international market. With a wide portfolio of AWC products and presence in categories of foam and contact layers, Systagenix distributes more than 20 million advanced wound care dressings each month to more than 100 countries worldwide.
Several of Systagenix’s products are used before, during and after use of KCI’s core negative pressure wound therapy products.
Systagenix’s product portfolio includes Promogran Prisma, Tielle and Adaptic, Woundchek.
Formerly a part of Johnson & Johnson, Systagenix has 800 employees.
Systagenix CEO Ernest Waaser said: “The strong clinical capabilities, geographic presence, complementary products and established infrastructure of KCI will further expand the long-term growth potential for Systagenix.”
After the acquisition, One Equity Partners LLC (OEP) will spin off Systagenix’s early-stage diagnostics business, which will distribute Woundchek Protease Status product as part of a long-term relationship with KCI.
Woundchek is the flagship product of the Systagenix diagnostics business, which helps doctos in quickly assessing and providing advanced wound care therapies effectively.
Goldman, Sachs, BofA Merrill Lynch and Morgan Stanley advised KCI on the transaction, while Jones Day acted as legal advisor to Systagenix.
The transaction is expected to complete in the fourth quarter of 2013 following regulatory approvals.