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Acelity, L.P. Inc.
Company typeSubsidiary of 3M
IndustryMedical equipment
Founded1976
FateSubsidiary
Headquarters
San Antonio, Texas
Websiteacelity.com

Acelity L.P. Inc., was a privately held medical device company. It was a non-operating holding company whose wholly owned subsidiaries developed advanced wound therapeutics products. The advanced wound therapeutics business was conducted by Kinetic Concepts, Inc. (KCI) and its subsidiaries, including Systagenix.[1]

The company reported $1.87 billion in annual revenue globally in 2015.[2]

In October 2019 Acelity Inc. and its KCI subsidiaries worldwide were acquired by 3M.[3]

History

Acelity began as Kinetic Concepts Inc., a medical technology company founded in 1976 by Dr. Jim Leininger, an emergency room physician in San Antonio, Texas.[4] Over time, the company developed or acquired a line of therapeutic specialty beds, introducing a specialty bed for acute care patients with pulmonary complications.[5] Initially KCI's product development focused on therapeutic beds and surfaces then expanded to introduce V.A.C. Therapy, the first commercial negative pressure wound therapy products in the mid-1990s. In 2016, more than 10 million wounds were treated with V.A.C. Therapy worldwide since its introduction.[6][7][8] In 2008, KCI acquired LifeCell, a company specializing in regenerative medicine, in a non-hostile transaction for US$1.7 billion.[9][10][11] In October 2013, KCI acquired Systagenix Wound Management, originally Johnson & Johnson's professional wound care business for $485 million.[12] In September 2014, KCI's parent company announced that KCI, LifeCell and Systagenix would operate under one global medical technology brand known as Acelity.[13] On December 21, 2016, pharmaceutical company Allergan announced it would acquire LifeCell Corp. for US$2.9 billion.[14] The sale completed on February 1, 2017.[15]

In April 2017, Acelity announced R. Andrew Eckert would replace Joseph Woody as chief executive and president.[16]

Financial information

From the founding of KCI in 1976 to 1988, the revenue of KCI grew to US$153.2 million. The growth in revenue allowed KCI to go public and trade on the New York Stock Exchange (NYSE) for the first time in 1988.[17] KCI stock was traded on the NYSE until 1997, when the company went private. In February 2004, KCI became a publicly listed company for the second time and was listed on the NYSE under the ticker symbol KCI.[18][19] By the late 2000s, the company's revenue was over $1 billion and reported an increase of 17 percent in 2007 to $1.61 billion.[20] Revenue for 2008 was $1.88 billion, increasing to $1.99 billion in 2009[21] and in 2010 increased to $2.02 billion.[22] In 2011, the company went private again at a price of $68.50 per share. In August 2015, Acelity filed a registration statement on Form S-1 with the US Securities and Exchange Commission relating to a proposed initial offering of its common stock.[23] On December 7, 2016, the company withdrew its IPO registration statement with the SEC, citing a challenging IPO market.[24]

Mergers and acquisitions

Early 1990s: KCI detailed its operations into four divisions:[25] KCI New Technologies, Inc. (Nutech—organized in 1992 focused on lower-cost technologies), KCI Home Care (organized in 1995 focused on selling wholesale to home medical equipment providers), KCI Therapeutic Services, Inc. (KCTS—rented specialty beds to patients or to hospitals), and KCI International (KCII—organized in 1991 focused on providing the services and products of KCI to foreign countries, including most of Western Europe, Scandinavia, and Australia).

1990: KCI purchased Medirec[26] for $26 million in cash and $10 million in KCI securities, forming KCI's Medical Services Division. KCI later sold KCI Medical Services[25] in September 1994 for $65.3 million in cash and $18.8 million in promissory notes.

1991: KCI purchased Mediscus International, a British competitor in the specialty bed business. The transaction brought KCI products into 10 countries and formed the KCI International subsidiary.[citation needed]

1996: KCI purchased U.K.-based Astec Medical Ltd.[27] The acquisition added four new products to KCI International's product line and allowed KCI to expand its market share in the U.K. community segment.

1997: KCI acquired the Ethos Medical Group.[28] Later that year, Equitron Manufacturing was acquired, adding bariatric products to the Home Care offerings at KCI.[citation needed]

1998: KCI USA was formed as a result of the merger between KCI's New Technologies (NuTech) with KCI Therapeutic Services. The merger united the sales and marketing operations of the two divisions.[citation needed]

2008: KCI acquired LifeCell, a company specializing in regenerative medicine, in a non-hostile transaction for US$1.7 billion.[29]

2013: KCI acquired Systagenix Wound Management, formerly Johnson & Johnson's professional wound care business, for $485 million.[30]

2014: KCI's parent company announced that KCI, LifeCell and Systagenix would operate under one global medical technology brand known as Acelity.[31] That same year, Acelity acquired exclusive worldwide rights from the GID Group, Inc. to develop, manufacture and commercialize the REVOLVE System,[32] a fat processing technology used in both reconstructive and cosmetic procedures to facilitate high-volume, autologous fat grafting. LifeCell previously held exclusive rights to distribute the REVOLVE System in the US and Canada since 2013.

2015: Acelity acquired the SNAP business from Spiracur, Inc.[33]

2016: On December 20, Acelity announced a definitive agreement with Allergan for the acquisition of the company's LifeCell business unit for $2.9 billion in cash.[34]

2017: Acelity completed the sale of LifeCell to Allergan for $2.9 billion in cash on February 1.[35]

2019: Acelity and its KCI subsidiaries worldwide were acquired by 3M for $6.7 billion, including assumption of debt and other adjustments.[36]

References

  1. ^ "2014 Q3 10Q". www.sec.gov. Retrieved 2020-09-11.
  2. ^ Bailey, W. Scott (January 27, 2016). "San Antonio's Acelity showing signs of progress". San Antonio Business Journal.
  3. ^ "3M Completes Acquisition of Acelity, Inc". 3M News | United States. Archived from the original on 2019-10-19. Retrieved 2019-10-19.
  4. ^ Kinetic Concepts Inc. Implements SolidWorks Software as Company-Wide Engineering Standard.” Business Wire. 6 March 2000
  5. ^ Kinetic Concepts introduces TriaDyne, latest addition to line of therapeutic beds and surfaces". Business Wire. 23 May 1995.
  6. ^ Talaat, Sarah (August 9, 2016). "Homegrown Biotech Company Aims to Disrupt Wound Care Market". therivardreport.com. Retrieved 2017-11-14.
  7. ^ Benesh, Peter (14 June 2004). "Second IPO Helps Heal Old Wounds; Kinetic Concepts Inc.; San Antonio, Texas". Investor's Business Daily. p. A09.
  8. ^ KCI Honors Dr. Louis Argenta With Research-Based Fellowship and Scholarship". Business Wire. 12 October 2009.
  9. ^ "KCI earnings up during second quarter". San Antonio Business Journal. July 21, 2009. Archived from the original on 2012-11-02. Retrieved 2017-11-14.
  10. ^ KCI to Acquire LifeCell for $1.7 Billion in Cash Creating a Global Medical Technology Leader". Business Wire. 7 April 2008.
  11. ^ Analyst questions Kinetic Concepts' purchase of LifeCell due to high price and low revenue". The Associated Press. 8 April 2008.
  12. ^ Danner, Patrick (July 30, 2013). "KCI buying Systagenix for $485M". San Antonio Express-News. Retrieved 2017-11-14.
  13. ^ Bailey, W. Scott (September 3, 2014). "KCI parent company remaking itself as Acelity". San Antonio Business Journal. Archived from the original on 2014-09-05. Retrieved 2017-11-14.
  14. ^ Helfand, Carly (21 December 2016). "Acquisitive Allergan gets top-line help, cost-savings potential with $2.9B LifeCell buy - FiercePharma". Archived from the original on 2016-12-22.
  15. ^ Danner, Patrick (2017-02-01). "S.A.-based Acelity completes $2.9B sale to pharma giant Allergan". Express News. Archived from the original on 2017-02-08. Retrieved 2020-09-11.
  16. ^ "San Antonio's Acelity names new CEO". San Antonio Express-News. Retrieved 2017-04-05.
  17. ^ Blaker, Ashley (24 December 1990). "Kinetic Expands Foreign Presence With Acquisitions". San Antonio Business Journal 4 (49): 1.
  18. ^ Benesh, Peter (14 June 2004). "Second IPO Helps Heal Old Wounds; Kinetic Concepts Inc.; San Antonio, Texas". Investor's Business Daily. p. A09.
  19. ^ Berko, Malcolm (3 August 2007). "Wound-care developer is a healthy company". Copley News Service.
  20. ^ KCI concludes 2007 on strong note. San Antonio Business Journal. 29 January 2008.
  21. ^ Highlights KCI. MSN Money. MSN. January 2011. Retrieved 25 January 2011.
  22. ^ Kinetic Concepts 4Q profit grows 12 percent. Bloomberg Business News. Associated Press. 1 February 2011. Retrieved 4 February 2011.
  23. ^ "Acelity Aims for Massive IPO – 24/7 Wall St". Retrieved 2020-09-11.
  24. ^ Bailey, W. Scott (8 December 2016). "SA-based global biotech company halts plans to launch IPO". San Antonio Business Journal. Archived from the original on 2016-12-15.
  25. ^ a b Poling, Travis (23 June 1996). "KCI shopping the market for the right acquisition opportunity". San Antonio Business Journal. Archived from the original on 2017-01-05.
  26. ^ "TEXAS FIRM ACQUIRES MEDIREC". Deseret News. 1990-08-05. Retrieved 2020-09-11.
  27. ^ "SEC Info - Kinetic Concepts Inc - '10-K' for 12/31/96 - EX-13". SEC Info. Archived from the original on 2017-01-05. Retrieved 2020-09-11.
  28. ^ "KCI Subsidiaries". www.sec.gov. Retrieved 2023-10-31.
  29. ^ KCI to Acquire LifeCell for $1.7 Billion in Cash Creating a Global Medical Technology Leader. Business Wire. 7 April 2008
  30. ^ Danner, Patrick (2013-07-30). "KCI buying Systagenix for $485M". San Antonio Express-News. Retrieved 2020-09-11.
  31. ^ Bailey, W. Scott (3 September 2014). "KCI parent company remaking itself as Acelity". San Antonio Business Journal. Archived from the original on 2014-09-05.
  32. ^ Mann, Denise (2014-11-20). "Acelity Scoops Up Worldwide Rights for REVOLVE Fat Grafting System". Plastic Surgery Practice. Retrieved 2020-09-11.
  33. ^ Bailey, W. Scott (1 December 2015). "Acelity acquires wound-care technology from California company". San Antonio Business Journal. Archived from the original on 2017-01-05.
  34. ^ "Allergan to buy Acelity's tissue unit LifeCell for $2.9 billion". Reuters. 2016-12-20. Retrieved 2020-09-11.
  35. ^ "Allergan closes $3B Acelity LifeCell buy". MassDevice. 2017-02-01. Retrieved 2020-09-11.
  36. ^ "3M Completes Acquisition of Acelity, Inc". 3M News | United States. Archived from the original on 2019-10-19. Retrieved 2019-10-19.
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