3M to acquire medtech company Acelity for $6.7 billion
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The acquisition is intended to bolster its 3M's medical solutions business.
In a bid to expand its business in medical dressings and related products, U.S. industrial conglomerate 3M Co. is acquiring privately held medical device maker Acelity Inc. in a deal valued at $6.7 billion, including debt.
Headquartered in St. Paul, Minn., 3M is the maker of Post-it notes and Scotch tape, and is buying Acelity and some of its units from a consortium of funds advised by Apax Partners, affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board.
Acelity, under its KCI brand, makes advanced wound dressings and specialized systems that use a vacuum to seal off acute or chronic wounds, promoting faster healing.
Headquartered in San Antonio, Tex., Acelity reported revenue of US$1.5 billion in 2018, nearly 80 per cent of which came from sales of such specialized systems that provide “negative pressure wound therapy,” 3M said in a statement.
3M said the acquisition would boost its presence in the advanced wound care market, which is valued at more than US$8 billion and is growing at a rate of four per cent to six per cent annually.
The transaction is expected to close in the second half of 2019.