Healthcare Deal Sizes Double

A consortium, including Apax Partners, Canada Pension Plan Investment Board and the Public Sector Pension Investment Board, has agreed to take Kinetic Concepts (NYSE: KCI) private in a transaction valued at $6.3 billion, including the company's outstanding debt. The investors intend to pay Kinetic stockholders $68.50 per common share, which represents a premium of 21%. Debt financing commitments have been obtained from Morgan Stanley, BofA Merrill Lynch and Credit Suisse. Kinetic provides therapies and products for the wound care, tissue regeneration and therapeutic support system markets.

Since the beginning of 2010, 183 PE investors have invested in 283 companies primarily engaged in the Healthcare industry, according to the PitchBook Platform. 90 Healthcare deals have been completed so far this year. During all of 2010, there were 196 completed deals. Although the deal pace has been similar from 2010 to 2011 to date, the median price PE investors are paying for Healthcare companies has more than doubled from $55 million to $114 million. In 2011 alone, 75 PE investors have been active in the industry, the most so being Water Street Healthcare Partners and Waud Capital Partners, each 4 deals apiece.