KCI sells bed business
By HME News Staff
Updated Fri August 17, 2012
SAN ANTONIO - Kinetic Concepts, Inc. (KCI) announced Aug. 15 that it has made good on its plan to offload its hospital bed business, selling it for $275 million to Swedish company Getinge AB.
As part of the deal, Getinge, a player in the ulcer prevention market in Europe, will offer jobs to employees of KCI's Therapeutic Support Systems (TSS) business, according to a press release. TSS provides hospital beds, mattress replacement systems and other support surfaces, and generated revenues of $247 million in 2011.
"Strategically, the sales of the TSS business is important for KCI as it will enable us to focus even further on core growth, execution and realization of our vision," stated Joe Woody, who joined KCI in November as president of its Active Healing Solutions business and was promoted to president and CEO in January.
Although KCI got its start in the support surfaces market, it has increasingly turned its focus to other markets, in particular negative pressure wound therapy.
KCI was acquired in November 2011 by London-based private equity firm Apax Partners for $6.1 billion. It announced in January a new management structure and plans to seek a buyer for TSS.
Getinge will use the acquisition of TSS to expand its extended care business under its ArjoHuntleigh brand, according to the release. The Addison, Ill.-based ArjoHuntleigh, which manufactures patient lifts, launched a homecare division in 2011.
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