Industrials

3M to buy medical technology firm Acelity in a $6.7 billion deal

Michael Roman, CEO, 3M
Scott Mlyn | CNBC

U.S. industrial conglomerate 3M said on Thursday it would buy privately held medical device maker Acelity in a deal valued at $6.7 billion, including debt, as the U.S. industrial conglomerate looks to expand its business in medical dressings and related products.

Acelity, under its KCI brand, makes advanced wound dressings and specialized systems that seal off wounds that continue to leak blood after suturing. It had revenue of $1.5 billion in 2018.

3M said Acelity will become part of its medical solutions business that makes medical tapes, sterilization products and acute wound care dressings products.

3M is buying the company and some of its units from a consortium of funds advised by Apax Partners, affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board.

The deal is expected to close in the second half of 2019.

3M also said it now expects full-year 2019 share repurchases to be in the range of $1 billion to $1.5 billion, compared with a prior range of $2 billion to $4 billion.