Kinetic Concepts, Inc. (NYSE: KCI) To be Acquired by Apax Partners


On Wednesday, July 13, 2011, Rigrodsky & Long, P.A. announced that an investigation is under process regarding the potential claims against the board of directors of Kinetic Concepts, Inc. (NYSE:KCI) which relates to possible breaches of fiduciary duty and other acts of law violations which further associates to the Company’s entry into an agreement to be acquired and made private by a consortium consisting of funds advised by Apax Partners, along with controlled associates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board in a transaction valued at $6.3 billion. This consideration is so valued after including the Company’s outstanding debt.

As per the terms of the deal, KCI shareholders will be entitled to receive $68.50 for each share in cash for every share of the Company’s common stock possessed by them. Founder of KCI and chairman emeritus, James R. Leininger, along with few shareholder parties associated to him, holding nearly 11% of the Company’s outstanding shares, have consented and entered into a voting agreement with the Consortium voting in favor of the transaction.

The abovementioned investigation aims to check if KCI’s board of directors adequately shopped the Company to obtain the best price possible for its shareholders prior to consenting to the agreement with the Consortium. According to Yahoo! Finance, minimum one analyst has defined a target of $70.00 for each share for KCI stock.

Further very recently that is on April 26, 2011, the Company had issued a press release whereby its financial results for the first quarter of 2011 was announced. It has reported a rise in its aggregate revenue of 3% year-over-year and also a rise in its net earnings of 30% year-over-year.

The President and CEO of the Company, Catherine Burzik remarked that she is pleased with their first quarter performance, which reflected strength in biologics and in their core V.A.C.®Therapy franchise, particularly in the important U.S. and Japan regions. She added that they continue to execute on their strategic vision as they aggressively introduce new products and develop their business in new geographies.

Rigrodsky & Long, P.A., based in Wilmington, Delaware and Garden City, New York, is engaged in litigating securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, which includes claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

Kinetic Concepts, Inc. (KCI) is a global medical technology company, which is engaged in the discovery, development, manufacture and marketing of therapies and products.

At 1:15 PM EDT, on Wednesday, the shares of KCI were trading at $68.14 at a rise of 5.66% and ranging at $67.81 – $68.12, creating a 52-Week highest at such high. The market cap of the Company amounted $4.95 billion with price earning of 18.04. the shares are trading at stupendously unusual volume of 25.78 million, while its average daily volume amounts 1.10 million.

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