Integer to Go Private in $5.7B KKR Deal

Integer Holdings Corp., a medical device contract and development organization (CDMO), and investment firm KKR began a deal under which an affiliate of investment funds managed by KKR will acquire all outstanding Integer shares in an all-cash transaction valued at about $5.7 billion.

Integer stockholders will receive $127 per share, which is a premium of about 51.8% to Integer’s closing share price on April 29 (the date prior to the company’s strategic review announcement), and 28.8% to the 30-day VWAP as of July 31.

As a KKR portfolio company, Integer will gain long-term capital and flexibility to invest in capacity, technology, innovation, and talent. KKR also plans to establish a broad-based employee ownership and engagement program following the transaction’s close.

The agreement follows Integer’s strategic review announced April 30. After evaluating several alternatives with management and advisors, the board determined that the KKR transaction offered the best path forward and provides immediate, certain value to stockholders.

The deal is expected to close at the end of the year, subject to approval by Integer stockholders and receipt of required regulatory approvals. Once completed, Integer will become a privately-held company and no longer listed on the NYSE.

Comments from Integer and KKR

Payman Khales, Integer’s president and CEO: “This is an exciting milestone for Integer and a testament to the dedication and commitment of our talented team and the exceptional business we have built together. We believe this transaction recognizes the strength of Integer’s business, which includes our dedicated associates, our differentiated engineering and manufacturing capabilities, and our long-term growth opportunities, while providing stockholders with immediate and certain value. KKR’s deep healthcare expertise, long-term vision, and strategic growth orientation make them the right strategic partner to bring our business into its next chapter. Together, we look forward to continuing to invest in our associates and capabilities to deliver excellence for our customers and advance our vision of improving patients’ lives.” (Khales was promoted to the chief executive position in October.)

Max Lin, partner at KKR: “Integer is an exceptional platform with highly differentiated capabilities across a global manufacturing footprint, a track record for quality and reliability, and a talented team operating in attractive, durable end-markets. We are excited by the opportunity to deploy capital and resources to further advance Integer’s next chapter of growth and innovation. We look forward to partnering with the management team and the 11,000 associates to build on Integer’s position as a trusted strategic partner to leading medical device companies and emerging innovators, helping bring life-saving and life-enhancing technologies to patients around the globe.”