KKR to Acquire Integer in $5.7 Billion All-Cash Transaction
Integer Holdings Corporation, a Texas-based global medical device contract development and manufacturing organization (CDMO), and KKR, a leading global investment firm, have entered into a definitive agreement under which an affiliate of investment funds managed by KKR will acquire all outstanding shares of Integer in an all-cash transaction valued at an enterprise value of approximately $5.7 billion.
The transaction is expected to close by the end of the year, subject to stockholder approval, regulatory clearances, and other customary closing conditions. The Integer Board has unanimously approved the agreement and recommends that stockholders vote in favor of the transaction. Upon completion, Integer will become a privately held company, and its common stock will no longer be listed on the New York Stock Exchange. KKR intends to establish a broad-based employee ownership program at Integer following the close, consistent with its approach of fostering an ownership culture across its portfolio.
Integer also reported second-quarter results, with sales of $464 million, down 2.6% year-over-year, and organic sales down 1.5%. Cardio & Vascular sales decreased 2% to $280 million, reflecting the impact from two new Electrophysiology products, while Cardiac Rhythm Management & Neuromodulation sales increased 1% to $174 million.
Payman Khales, Integer’s President and CEO, said the transaction is an exciting milestone for Integer and a testament to the dedication and commitment of the talented team and the exceptional business built together. Khales noted that the transaction recognizes the strength of Integer’s business, including dedicated associates, differentiated engineering and manufacturing capabilities, and long-term growth opportunities, while providing stockholders with immediate and certain value. Khales added that KKR’s deep healthcare expertise, long-term vision, and strategic growth orientation make them the right strategic partner to bring the business into its next chapter, and that together, the companies look forward to continuing to invest in associates and capabilities to deliver excellence for customers and advance the vision of improving patients’ lives.
Max Lin, Partner at KKR, said Integer is an exceptional platform with highly differentiated capabilities across a global manufacturing footprint, a track record for quality and reliability, and a talented team operating in attractive, durable end-markets. Lin noted that KKR is excited by the opportunity to deploy capital and resources to further advance Integer’s next chapter of growth and innovation, and looks forward to partnering with the management team and 11,000 associates to build on Integer’s position as a trusted strategic partner to leading medical device companies and emerging innovators.
