KKR to Acquire Medical Device Firm Integer Holdings in $5.7 Billion Take-Private Deal

Private equity firm KKR & Co. announced on Monday it will acquire Integer Holdings Corp., a major medical device outsourcing manufacturer, in an all-cash transaction valued at approximately $5.7 billion, including the assumption of debt. The deal will take the Plano, Texas-based company private, marking a significant move in the healthcare M&A landscape.

Deal Details and Market Reaction

Under the terms of the agreement, KKR will pay $127 per share for Integer (NYSE: ITGR). The offer represents a 4.78% premium to the company's closing stock price on Friday, Integer Holdings said in its statement. In response to the news, shares of Integer rose 2.4% in premarket trading.

The acquisition is expected to be finalized by the end of the year, pending customary closing conditions and regulatory approvals.

Strategic Rationale and Sector Context

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This acquisition significantly expands KKR's portfolio in the healthcare sector, giving it control of a critical supplier to many of the world's leading medical device companies. Integer manufactures essential components and devices for technologies used in cardiac treatments, pain management, and other advanced therapies.

The deal underscores a broader trend of private equity firms deploying substantial capital into healthcare. It ranks among KKR's largest takeovers in the sector since its $9.9 billion buyout of Envision Healthcare in 2018. Other notable recent private equity buyouts in the space include Blackstone and TPG's $18.3 billion deal for Hologic and American Industrial Partners' $1.27 billion acquisition of Avanos Medical.

Background on Integer Holdings

The move to go private comes after Integer faced pressure from an activist investor. In March, the company reached an agreement with Irenic Capital Management, which holds a stake of more than 3% according to LSEG data, to appoint two new directors to its board.