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Kinetic Concepts Says Rival Bidder Ends Talks

The wound care products maker expects to go ahead with its sale to a private consortium for $4.98 billion.

NEW YORK (AP) -- Wound care products maker Kinetic Concepts Inc. said Tuesday it expects to go ahead with its sale to a private consortium for $4.98 billion because talks with another potential buyer have ended.

Kinetic Concepts accepted an offer from Apax Partners, the Canada Pension Plan Investment Board and the Public Sector Pension Investment Board in July. The deal gave Kinetic Concepts 40 days to seek a superior offer. Kinetic Concepts had held talks with a third party, but said Wednesday that party no longer plans to make an offer.

The bid from Apax and the investment groups values Kinetic Concepts at $68.50 per share. That is a premium of 16.5 percent to the price of Kinetic Concepts on July 5, the day before speculation about a deal drove up the stock price. Kinetic Concepts said in July that the consortium was offering a premium of 52 percent to its stock price over the previous year.

The deal also includes $1.3 billion in debt.

Shares of Kinetic Concepts closed at $65.39 on Monday, up 56 percent so far this year.