3M Completes $6.7 Billion Acquisition of Acelity and Subsidiary KCI to Expand Advanced Surgical Wound Care Portfolio

VCBeat (WeChat Official Account: vcbeat) has learned that medical technology company 3M recently announced it had signed a definitive agreement with Apax Partners, the Canada Pension Plan Investment Board (CPPIB), and PSP Investments to acquire Acelity, a global leader in post-operative care, and its subsidiary KCL, for approximately $6.7 billion. In this acquisition, Credit Suisse served as 3M’s financial advisor, and Cleary Gottlieb Steen & Hamilton acted as 3M’s legal counsel.

Since 2011, a consortium comprising Apax Partners, CPPIB, and PSP Investments has worked closely with Acelity’s and KCI’s senior leadership teams to formulate a series of strategic initiatives aimed at transforming Acelity into a company focused on advanced wound care and specialized surgical solutions.

In terms of acquisitions, Acelity strategically acquired Systagenix in 2013 and Crawford Healthcare in 2018. On the divestiture front, Acelity sold its LifeCell business unit for $2.9 billion in 2012 and disposed of its Therapeutic Support Systems (TSS) division in 2017. The company also pursued a series of organic growth initiatives, including increased R&D investment and expansion of its sales force.

Acelity is a global leader in advanced wound care, dedicated to developing innovative therapeutic solutions for customers and patients throughout the entire care continuum. Its subsidiary, KCI, is the most trusted brand in advanced wound care and a pioneer in negative pressure wound therapy (NPWT), offering solutions that address both wound healing and surgical applications. Headquartered in San Antonio, Texas, KCI employs approximately 4,500 people worldwide.

Acelity’s business is renowned for creating and developing new market segments by identifying and addressing unmet clinical needs for KCI-branded products. VAC® negative pressure wound therapy, advanced wound dressings, and negative pressure surgical incision management systems are all flagship products of KCI.

3M CEO Mike Roman stated, “Acelity is a recognized leader in wound care technology. This acquisition perfectly complements our healthcare business and will support our strategic development. Acelity provides comprehensive and advanced surgical wound care solutions that will enhance our medical service capabilities.”

Roman added, “We are delighted to have Acelity’s technology and talent join our team. Together, we will leverage 3M science to deliver differentiated products for critical wound and surgical care solutions worldwide.”

Apax Partners is a leading global private equity firm. With a history spanning over 40 years, Apax Partners has raised more than $50 billion in capital. Apax funds invest in companies across the globe in sectors such as healthcare, technology and telecommunications, services, and consumer goods. These funds provide long-term equity financing to build and support world-class companies.

CPPIB is a professional investment management organization that primarily invests in public equities, private equity, real estate, infrastructure, and fixed-income instruments. Headquartered in Toronto, CPPIB maintains offices in Hong Kong, London, Luxembourg, Mumbai, New York, São Paulo, and Sydney.

PSP Investments was established in Ottawa in 1999, with offices in Montreal, New York, London, and Hong Kong. PSP Investments is one of Canada’s largest pension investment management firms. The company manages a diversified global portfolio comprising public financial markets.

(Compiled by Li Chengping)