3M Completes Acquisition of Acelity, Inc.
October 11 2019 - 4:15PM
Business Wire
Acquisition Expands Presence in Advanced and
Surgical Wound Care
3M (NYSE: MMM) today announced it has completed the acquisition
of Acelity, Inc. and its KCI subsidiaries worldwide from a
consortium comprised of funds advised by Apax Partners (the Apax
Funds), together with controlled affiliates of the Canada Pension
Plan Investment Board (CPPIB) and the Public Sector Pension
Investment Board (PSP Investments) for a total enterprise value of
approximately $6.7 billion, including assumption of debt and other
adjustments. Acelity is a leading global medical technology company
focused on advanced wound care and specialty surgical applications
marketed under the KCI brand.
“This is an exciting day as we bring together two premier and
innovative companies that are focused on delivering comprehensive
health care solutions to enable better outcomes for patients,” said
3M chairman and CEO Mike Roman. “We are excited to have the
tremendous people of Acelity join the 3M team, and are confident in
the value that this acquisition will deliver to our customers and
our shareholders. This addition further accelerates 3M as a leader
in advanced wound care, which is a significant and growing market
segment.”
3M’s Medical Solutions business is focused on applying 3M
technologies to deliver safe and effective solutions to improve
clinical outcomes and healthcare economics. The business offers a
range of integrated solutions that include advanced and acute wound
care dressings and products, medical tapes, sterilization products,
and patient prep and warming products. These solutions cross the
entire continuum of care, enabling better outcomes, improving the
patient experience, and delivering strong economic value in today’s
value-based care environment.
The Acelity business is well known for creating and growing new
segments based on the ability to identify and address unmet
clinical needs with KCI-branded products that advance the practice
of medicine, beginning with the introduction of V.A.C.® Therapy -
groundbreaking Negative Pressure Wound Therapy. Today, KCI product
offerings also include advanced wound dressings and negative
pressure surgical solutions. KCI’s solutions contribute to better
patient outcomes by enhancing wound healing. The business has
annual revenue of approximately $1.5 billion with year-to-date
organic growth of 5 percent through September 30, 2019.
3M will further discuss this transaction during its upcoming
third quarter earnings call on October 24, 2019.
Forward-Looking Statements This news release contains
forward-looking information about 3M’s financial results and
estimates and business prospects that involve substantial risks and
uncertainties. You can identify these statements by the use of
words such as “anticipate,” “estimate,” “expect,” “aim,” “project,”
“intend,” “plan,” “believe,” “will,” “should,” “could,” “target,”
“forecast” and other words and terms of similar meaning in
connection with any discussion of future operating or financial
performance or business plans or prospects. Among the factors that
could cause actual results to differ materially are the following:
risks associated with failure to retain key management and
employees of Acelity and its subsidiaries; issues or delays in the
successful integration of Acelity’s operations with those of 3M,
including incurring or experiencing unanticipated costs and/or
delays or difficulties, which could result in additional demands on
3M’s resources, systems, procedures and controls, disruption of its
ongoing business and diversion of management’s attention from other
business concerns; difficulties or delays in the successful
transition from the information technology systems of Acelity to
those of 3M as well as risks associated with other integration or
transition of the operations, systems and personnel of Acelity;
failure or inability to implement growth strategies in a timely
manner; unfavorable reactions to the transactions from customers,
competitors, suppliers and employees; the possibility that certain
assumptions with respect to Acelity’s business or the transactions
could prove to be inaccurate; worldwide economic, political,
regulatory, capital markets, and other external conditions and
other factors beyond 3M’s control, including natural and other
disasters or climate change affecting the operations of 3M or its
customers and suppliers; 3M’s credit ratings and its cost of
capital; changes in tax and other laws, regulations, rates and
policies; competitive conditions and customer preferences; foreign
currency exchange rates and fluctuations in those rates; the timing
and market acceptance of new product offerings; the availability
and cost of purchased components, compounds, raw materials and
energy (including oil and natural gas and their derivatives) due to
shortages, increased demand or supply interruptions (including
those caused by natural and other disasters and other events); the
impact of acquisitions, strategic alliances, divestitures, and
other unusual events resulting from portfolio management actions
and other evolving business strategies, and possible organizational
restructuring; operational execution, including scenarios where 3M
generates fewer productivity improvements than estimated;
unanticipated problems or delays with the phased implementation of
a global enterprise resource planning (ERP) system, or security
breaches and other disruptions to 3M’s information technology
infrastructure; financial market risks that may affect 3M’s funding
obligations under defined benefit pension and postretirement plans;
and legal proceedings, including significant developments that
could occur in the legal and regulatory proceedings described in
3M's Annual Report on Form 10-K for the year ended Dec. 31, 2018,
and any subsequent quarterly reports on Form 10-Q (the “Reports”).
Changes in such assumptions or factors could produce significantly
different results. A further description of these factors is
located in the Reports under “Cautionary Note Concerning Factors
That May Affect Future Results” and “Risk Factors” in Part I, Items
1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A
(Quarterly Reports). The information contained in this news release
is as of the date indicated. 3M assumes no obligation to update any
forward-looking statements contained in this news release as a
result of new information or future events or developments.
About 3M At 3M, we apply science in collaborative ways to
improve lives daily. With $33 billion in sales, our 93,000
employees connect with customers all around the world. Learn more
about 3M’s creative solutions to the world’s problems at www.3M.com
or on Twitter @3M or @3MNews.
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version on businesswire.com: https://www.businesswire.com/news/home/20191011005532/en/
3M Investor Contacts: Bruce Jermeland, 651-733-1807 or
Tony Riter, 651-733-1141
3M Media Contact: Jennifer Ehrlich, 651-592-0132
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