Gabelli Downgrades Kinetic Concepts (KCI) to Hold; Going Private for $68.50 Per Share

Gabelli downgraded Kinetic Concepts (NYSE: KCI) from Buy to Hold.

Gabelli analyst says, "Apax Partners, the Canada Pension Plan Investment Board, and the Public Sector Pension Investment board have teamed up to make the bid...The $68.50 per share price represents approximately 8.5x 2011 EBITDA and 15x GAAP EPS (13.6x Cash EPS), which we believe to be a fair price...KCI’s stable business and strong free cash flow (we estimate $415 million this year) can easily support the LBO transaction."

For more ratings news on Kinetic Concepts click here and for the rating history of Kinetic Concepts click here.

Shares of Kinetic Concepts closed at $68.23 yesterday.

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