3M’s $6.725 Billion Acquisition Of Acelity And Its KCI Subsidiaries

Simpson Thacher represented a consortium comprised of funds advised by Apax Partners (the “Apax Funds”), together with Canada Pension Plan Investment Board (“CPPIB”) and the Public Sector Pension Investment Board (“PSP Investments”) in its definitive agreement to sell Acelity, Inc. and its KCI subsidiaries worldwide to 3M for approximately $6.725 billion.

The transaction will be effected through the sale of Acelity, Inc., a direct wholly-owned subsidiary of Acelity L.P. Inc., and is expected to close in the second half of 2019, subject to customary closing conditions and regulatory approvals.

Acelity is a global medical technology company focused on advanced wound care and specialty surgical applications marketed under the KCI brand. The KCI product portfolio is available in more than 90 countries and delivers value through solutions that speed healing and lead the industry in quality, safety and customer experience. Committed to advancing the science of healing, KCI focuses on innovation. Headquartered in San Antonio, Texas, Acelity employs nearly 5,000 people around the world.

The Simpson Thacher team for this transaction included Ryerson Symons (Picture), Sebastian Tiller, Jihyun Chung and Malik Ladhani (M&A); Gary Mandel, Sophie Staples and Brian Mendick (Tax); Brian Robbins, Jeannine McSweeney, Joo Hyun Lee and Caitlin Fitzgerald (ECEB); Sara Razi, Ellen Frye, Kelly Karapetyan, William Kearney and Andrew Hasty (Regulatory); Lori Lesser and Elizabeth Gladstone (IP); Adam Shapiro (Credit); Michael Isby (Environmental); Kenneth Wallach and Sunny Cheong (Capital Markets); and Steven DeLott (Insurance). Sung Jin also provided valuable assistance.

Involved fees earner: Sunny Cheong – Simpson Thacher & Bartlett; Jihyun Chung – Simpson Thacher & Bartlett; Steven DeLott – Simpson Thacher & Bartlett; Caitlin Fitzgerald – Simpson Thacher & Bartlett; Ellen Frye – Simpson Thacher & Bartlett; Elizabeth Gladstone – Simpson Thacher & Bartlett; Andrew Hasty – Simpson Thacher & Bartlett; Michael Isby – Simpson Thacher & Bartlett; Sung Jin – Simpson Thacher & Bartlett; Kelly Karapetyan – Simpson Thacher & Bartlett; William Kearney – Simpson Thacher & Bartlett; Malik Ladhani – Simpson Thacher & Bartlett; Joo Hyun Lee – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Gary Mandel – Simpson Thacher & Bartlett; Jeannine McSweeney – Simpson Thacher & Bartlett; Brian Mendick – Simpson Thacher & Bartlett; Sara Razi – Simpson Thacher & Bartlett; Brian Robbins – Simpson Thacher & Bartlett; Adam Shapiro – Simpson Thacher & Bartlett; Sophie Staples – Simpson Thacher & Bartlett; Ryerson Symons – Simpson Thacher & Bartlett; Sebastian Tiller – Simpson Thacher & Bartlett; Kenneth Wallach – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Apax Partners; Canada Pension Plan Investment Board; Public Sector Pension Investment Board;

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Author: Ambrogio Visconti