KKR Acquires Integer Holdings for $5.7 Billion

KKR has announced it will acquire Integer Holdings Corp., a major player in the medical device sector, for approximately $5.7 billion. This all-cash transaction follows a strategic review by Integer's board to explore ways to increase shareholder value. The deal offers Integer shareholders $127 per share in cash, a premium to the company's stock prices recorded during the strategic review period.

Integer, a leading contract development and manufacturing organization (CDMO) in the medical device industry, decided after consulting with financial and legal advisers, that KKR's proposal provided the best combination of immediate shareholder returns and future business support. The acquisition is poised to accelerate Integer's growth by leveraging KKR's healthcare expertise and extensive investment resources. Integer President and CEO highlighted the deal's recognition of the company's core strengths and its partnership with KKR as a pathway to its next growth phase.

The acquisition positions KKR within the expanding medical technology outsourcing sector, marked by a growing reliance on CDMOs due to increased product complexity and regulatory demands. Integer, with its substantial global footprint and skilled workforce of around 11,000 employees, provides engineering and manufacturing services to top medical device companies in key areas such as cardiovascular and neuromodulation. KKR aims to enhance Integer's current capabilities by investing in manufacturing scale, technology innovation, and employee development, echoing its strategy across other portfolio firms.

The move comes amid a market trend where medical device firms increasingly favor strategic partnerships with CDMOs to meet the demands of innovation and regulatory compliance. The acquisition allows Integer to double down on capital investments to secure its status as a preferred supplier for both established device makers and emerging healthcare innovators. KKR's planned implementation of an employee ownership program is aligned with its historical approaches to boost engagement and innovation.

Subject to regulatory approvals and Integer shareholder consent, the deal is anticipated to conclude by the end of 2026. KKR will use a mix of equity and secured debt financing to fund the acquisition, with no financing contingency involved, diminishing potential execution risks. Upon completion, Integer will transition to a private entity, delisting its shares, as it seeks to refine its market position under new ownership.