Kinetic Concepts (KCI) Rips Higher on Potential 'Go Private' Talks
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Kinetic Concepts (NYSE: KCI) shareholders are giddy with excitement following reports that the Company may be in M&A talks.
According to Bloomberg, the wound-care product maker may be in discussions to go private in a leveraged buyout.
Excluding debt, the Company is being valued at about $5 billion by two private-equity firms. This would be just over a 16 percent premium to the market cap of $4.3 billion the Company had as yesterday's close.
No specific PE parties were named in reports so far.
Bloomberg also notes that their sources indicate that, due to stiffness in the debt market, the deal is becoming increasingly more difficult to close. There is no assurance that a deal would be reached, the sources said, as talks could still break down.
After triggering a circuit-breaker for price movement, shares are trading 9.3 percent stronger on the rumor.
According to Bloomberg, the wound-care product maker may be in discussions to go private in a leveraged buyout.
Excluding debt, the Company is being valued at about $5 billion by two private-equity firms. This would be just over a 16 percent premium to the market cap of $4.3 billion the Company had as yesterday's close.
No specific PE parties were named in reports so far.
Bloomberg also notes that their sources indicate that, due to stiffness in the debt market, the deal is becoming increasingly more difficult to close. There is no assurance that a deal would be reached, the sources said, as talks could still break down.
After triggering a circuit-breaker for price movement, shares are trading 9.3 percent stronger on the rumor.
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