KKR to Acquire Integer Holdings in $5.7 Bn All-Cash Deal

The acquisition comes amid continued private equity interest in the healthcare sector, with buyout firms deploying capital to pursue acquisitions and expand their portfolios.

Private equity firm KKR will acquire medical device outsourcing company Integer Holdings in an all-cash transaction valued at approximately $5.7 billion, the company announced on Monday.

Following the announcement, shares of Plano, Texas-based Integer Holdings rose 2.4% in premarket trading.

The acquisition comes amid continued private equity interest in the healthcare sector, with buyout firms deploying capital to pursue acquisitions and expand their portfolios. Recent transactions in the sector include American Industrial Partners’ $1.27 billion acquisition of Avanos Medical and Blackstone and TPG’s $18.3 billion deal for women’s health diagnostics company Hologic.

Integer manufactures critical components and devices used in heart treatments, pain management therapies, and other medical technologies for many of the world’s leading medical device manufacturers.

For KKR, which had $796 billion in assets under management at the end of the second quarter, the acquisition expands its healthcare portfolio and ranks among its largest healthcare transactions since its $9.9 billion take-private acquisition of Envision Healthcare in 2018.

Under the terms of the agreement, KKR will pay $127 per share in cash, representing a 4.78% premium to Integer’s closing price on Friday. The transaction also includes the assumption of Integer’s outstanding debt.

Integer has also faced activist investor pressure in recent months. In March, the company reached an agreement with Irenic Capital Management, one of its largest shareholders, to appoint two directors to its board. According to LSEG data, Irenic holds a stake of more than 3% in Integer Holdings.

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