KCI to acquire LifeCell

The offer represents an 18% premium over the closing price of LifeCell’s stock on April 4, 2008, and a 26% premium over the 90-day volume weighted average trading price. The boards of directors of both companies have unanimously approved the transaction.

Following the completion of the transaction, LifeCell will operate as a new global biosurgery division within Kinetic Concepts (KCI). Paul Thomas will continue to lead the business as president of the division and will join KCI’s executive committee. LifeCell’s management team and corporate headquarters will continue to be located in Branchburg, New Jersey. Based on existing KCI and LifeCell operations, the combined companies are expected to generate revenue of approximately $2 billion in 2008 and will employ more than 7,000 people.

Catherine Burzik, president and CEO of KCI, said: “The acquisition of LifeCell provides additional long-term growth opportunities, benefiting patients and physicians and delivering sustained value to our shareholders. This combination allows us to accelerate our strategy to increase KCI’s presence in the operating room and will leverage our broad global market reach to drive future growth of LifeCell’s products.”