July 31 (Reuters) – Private equity firm KKR is nearing a takeover of medical device outsourcing company Integer Holdings, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Shares of the Plano, Texas-based firm closed more than 20% higher.
The offer of $127 per share could come as soon as next week, the report said, valuing Integer at about $4.3 billion per Reuters calculations based on 33.95 million shares outstanding. The company has a market value of $3.42 billion, as per LSEG data.
The potential takeover comes amid private equity interest in healthcare companies, following American Industrial Partners’ $1.27 billion acquisition of Avanos Medical and Blackstone and TPG’s agreement to acquire women’s health-focused diagnostic company Hologic for over $18 billion.
Integer Holdings is a contract developer and maker of medical devices and components, serving medical technology companies.
KKR declined to comment and Integer did not immediately respond to a Reuters request for comment.
Integer launched a strategic review in April after receiving interest from potential buyers and said it would consider options including a sale or merger.
Activist investor Irenic Capital Management owns a 3.72% stake in the company, according to LSEG data. Integer added two directors to its board in March as part of a deal with Irenic.
The company has reported steady sales growth in recent quarters, driven by demand for cardiovascular and vascular medical devices.
KKR’s healthcare investments include dental services provider 123Dentist, Henry Schein, drugmaker BridgeBio Pharma and healthcare analytics company Cotiviti.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shailesh Kuber and Sahal Muhammed)
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