The acquisition brings a major medical device contract development and manufacturing organization under private ownership.
Private equity firm KKR has agreed to acquire Integar Holdings Corporation in an all-cash transaction valued at approximately $5.7 billion, including debt.
The deal will take the medical device contract development and manufacturing organization (CDMO) private and adds another significant healthcare asset to KKR’s portfolio.
Role of Integer in the medical device industry.
Integer is a major supplier to medical technology companies, based in Plano, Texas. Its operations include the development and manufacture of components and finished products for cardiovascular and neuromodulation therapies.Integer has described itself as one of the largest medical device CDMOs globally.
Its position in the industry makes the acquisition notable beyond the transaction’s financial value. The deal gives KKR ownership of a company that specializes in medical device development and manufacturing.
KKR offers $127 per share.
Under the agreement, KKR will pay $127 per share in cash for Integer. The offer represents a premium of roughly 4.8% over Integer’s closing share price of $121.21 before the deal’s announcement. It is also significantly higher than the company’s share price in late April, when Integer began considering strategic alternatives.
The transaction is expected to be completed by the end of 2026, subject to customary closing conditions and regulatory approvals. KKR plans to finance the acquisition through a combination of equity from its investment funds and committed debt financing.
Integer’s decision to explore a potential sale followed a period of pressure on the company, including changes to its sales and earnings outlook. The company also faced pressure from activist investor Irenic Capital Management, which had acquired a stake and pushed for changes at the business. Integer launched a formal strategic review in April, considering options that included a potential sale or merger. The eventual agreement with KKR now concludes that process.
With the acquisition expected to close later this year, attention will now turn to how Integer will operate under private ownership and how the transaction will affect its position in the increasingly competitive medical device manufacturing market.
