Kinetic Concepts Deal Falls Apart

An attempt by private equity-backed ConvaTec to buy U.S. wound-care firm Kinetic Concepts has collapsed, Reuters reported Friday, citing a report in Dagens Industri. The deal reportedly fell apart when a pharmaceutical firm that had agreed to buy one of Kinetic’s daughter companies as part of the deal pulled out. In August, sources told Reuters that Kinetic Concepts had received a takeover bid from ConvaTec, which is owned by Nordic Capital and Avista Capital Partners LLC.

(Reuters) – A bid by Swedish private equity firm Nordic Capital and another partner for U.S. wound-care firm Kinetic Concepts has fallen apart, business daily Dagens Industri reported on Friday.

Citing a source with insight into the process, the paper said financing arrangements had collapsed when a pharmaceutical firm that had agreed to buy one of Kinetic’s daughter companies as part of the deal pulled out.

“There was then a hole in the financing that they could not fill,” the source said.

In August, sources told Reuters that Kinetic Concepts had received a takeover bid from ConvaTec, owned by Nordic Capital and Avista Capital Partners LLC.

That offer topped a prior $5 billion bid from Apax Partners LLP, but did not have guaranteed financing, one source told Reuters at the time.

Nordic Capital declined to comment.

(Reporting by Simon Johnson; Editing by Dan Lalor)