No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - American investment firm KKR has agreed to acquire listed medical device manufacturer Integer Holdings in an all-cash transaction valued at around $5.7bn, the companies announced on Monday.
Under the terms of the deal, Integer shareholders will receive $127 per share, representing a 51.8% premium to the company's closing price on 29 April, the day before it announced a strategic review.
The offer also represents a 28.8% premium to Integer's 30-day volume-weighted average share price as of 31 July.
Integer is one of the world's largest medical device contract development and manufacturing organisations, supplying products and services to the cardio and vascular, neuromodulation and cardiac rhythm management markets.
KKR partner Max Lin said 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".
KKR said it would provide Integer with long-term capital to invest in manufacturing capacity, technology, innovation and talent. It also plans to introduce a broad-based employee ownership and engagement programme following completion.
The agreement followed a strategic review led by Integer's board, which unanimously approved the transaction and recommended that shareholders vote in favour.
KKR will finance the acquisition through a combination of equity from its managed funds and committed debt financing. The deal is not subject to a financing condition.
Completion is expected by the end of 2026, subject to shareholder and regulatory approvals, after which Integer shares will be delisted from the New York Stock Exchange.
Integer shares were up 2.7% at $124.48 by 1634 BST, after having surged 20% on Friday, while KKR gained 1.5% to $102.91.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.