KKR is reportedly nearing an agreement to purchase Integer Holdings, a medical device outsourcing company, for over $4 billion. The proposed offer is estimated at $127 per share, which would value Integer at approximately $4.3 billion based on 33.95 million shares outstanding. This potential acquisition follows Integer's launch of a strategic review in April, after receiving interest from prospective buyers, and considering options such as a sale or merger.
Integer Holdings is a Plano, Texas-based contract developer and manufacturer of medical devices and components, serving various medical technology companies. The company has demonstrated consistent sales growth in recent quarters, driven by increasing demand for cardiovascular and vascular medical devices. KKR's interest in Integer aligns with a broader trend of private equity firms investing in healthcare companies, exemplified by recent deals like American Industrial Partners' $1.27 billion acquisition of Avanos Medical and Blackstone and TPG's agreement to acquire Hologic for over $18 billion.
The company's shares closed more than 20% higher following the news of the impending deal. Integer had previously added two directors to its board in March as part of an agreement with activist investor Irenic Capital Management, which holds a 3.72% stake in the company. While KKR declined to comment, Integer had not immediately responded to requests for comment regarding the potential takeover.
