KCI to be bought for $5 billion
Kinetic Concepts Inc. has agreed to a $5 billion cash buyout from a consortium that includes Apax Partners and two leading Canadian pension funds. KCI makes medical devices and other wound care products. KCI was a particularly attractive target for private equity, according to analysts, because it commands a stable cash flow but it has had growth challenges. The transaction is the biggest leveraged buyout since the collapse of Lehman Brothers Holdings Inc.