Acelity Reported to Plan $1 Billion IPO
San Antonio, Texas based medical device company Acelity LP Inc. is reported to be considering an initial public offering that could raise up to $1 billion, according to the Wall Street Journal.
Acelity has reportedly tasked J.P. Morgan Chase & Co., Goldman Sachs, and Bank of America Merrill Lynch with underwriting the deal. The Wall Street Journal noted that proceeds from the IPO may be used to pay down some of the company’s long term debt.
According to news sources, Acelity, formerly known as Kinetic Concepts, Inc., was founded in 1976 and specializes in developing and commercializing wound-care and regenerative medicine products. Apax Partners and two Canadian pension funds acquired Acelity in a $6.1 billion leveraged buyout in November, 2011. Acelity has since made several acquisitions, the most notable being the nearly $500 million purchase of Systagenix, a wound care company spun out of Johnson & Johnson, in October 2013.
According to filings with the Securities and Exchange Commission (SEC), Acelity maintains a patent portfolio of over 2,000 patents and over 1,000 pending patent applications in the areas of wound-care and regenerative medicine, among others.
In November, 2014 Acelity was ordered to pay $34.7 million in damages to nonprofit LifeNet Health after a jury found that Acelity subsidiary LifeCell Corp. infringed a LifeNet patent.
LifeCell acquires Adipose Grafting technology from TauTona
On January 27, 2014, according to a press release, LifeCell Corporation acquired adipose Tissue Injector (aTI) technology for improved fat grafting procedures from the TauTona Group, a medical device incubator based in Menlo Park, California. The press release notes that LifeCell is a sister company of Kinetic Concepts, Inc. (KCI)
The press release also states that aTI is a single-use tool utilized in fat grafting procedures. aTI allows for the controlled delivery of fat, by allowing management of the pressure and flow rates during injection. According to the press release, the controlled rate can minimize damage of the injected fat and reduce the complexity of performing injections.
Furthermore, the press release notes that LifeCell’s fat grafting device, REVOLVE™ Fat Processing System, can “facilitate more efficient processing, filtering, and transferring of a patient’s own fat tissue. It enables high-volume fat processing (up to 800ml lipoaspirate) in less than 15 minutes, offering the potential to reduce operating room procedure time.” According to the press release, the Senior Vice President of LifeCell, Philip Croxford, states that LifeCell believes “the [aTI], in addition to LifeCell’s existing REVOLVE™ Fat Processing System, will offer clinicians valuable solutions from fat grafting processing through reinjection.”
President and CEO of KCI, Joe Woody, describes the effects of the purchase saying:
“With this acquisition, we will leverage the LifeCell sales channel in the reconstructive and plastic surgery fields to commercialize this exciting new technology, . . . We continue to be focused on innovation and acquisitions of technologies and platforms that both complement and further diversify our combined product portfolio.”
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