December 20, 2016 | San Antonio
ACELITY TO SELL LIFECELL BUSINESS UNIT TO ALLERGAN
Acelity L.P. today announced a definitive agreement with Allergan for the acquisition of Acelity’s LifeCell business unit for $2.9 billion in cash.
Upon completion of the transaction, LifeCell’s industry-leading regenerative medicine and reconstructive surgery portfolio will be combined with Allergan’s leading portfolio of medical aesthetics and breast implants and tissue expanders, enhancing the potential for continued long-term growth of the LifeCell portfolio. The combination will offer Allergan access to a strong commercial channel, robust R&D pipeline and demonstrated manufacturing capability.
LifeCell is recognized for applications in plastic and reconstructive surgeries and abdominal wall procedures. The LifeCell portfolio encompasses regenerative and reconstructive acellular tissue matrices for repair of soft tissue defects, as well as autologous fat grafting solutions. Leading products include ALLODERM™ Regenerative Tissue Matrix, a human allograft tissue matrix which allows for a strong, intact repair in breast reconstruction post-mastectomy procedures and other surgical applications, by providing soft tissue reinforcement; and STRATTICE™ Reconstructive Tissue, a porcine based tissue matrix for reinforcement of soft tissue in challenging hernia repair procedures.
“This strategic transaction will benefit Acelity and the patients, customers and employees of the LifeCell business,” said Joe Woody, Acelity President and Chief Executive Officer. “The sale of LifeCell to Allergan allows Acelity to continue its transformation with increased momentum and investments that focus on developing and commercializing advanced wound therapies and dressings in markets across the globe.” “The LifeCell brand is renowned in the industry for safety, efficacy and superior clinical results, and the Acelity Board is confident that Allergan will lead it into a strong new phase of growth and development. We are equally excited to continue supporting Acelity as it pursues its quest to enhance advanced wound therapy and improve patients’ lives.” said Buddy Gumina, Chairman of the Acelity Board of Directors.
Until the transaction is finalized, Acelity will continue to manage the LifeCell business, providing full product availability and support to surgeons. The transaction is subject to expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and fulfillment of certain other customary conditions to closing. Pending such approvals and fulfillment of other conditions, Acelity anticipates closing the transaction in the first half of 2017.
J.P. Morgan Securities LLC and Goldman, Sachs & Co. are serving as financial advisors to Acelity, and Simpson Thacher & Bartlett LLP is serving as Acelity lead legal counsel.
Acelity L.P. Inc. and its subsidiaries are a global advanced wound care and regenerative medicine company created by uniting the strengths of three companies, Kinetic Concepts, Inc., LifeCell Corporation and Systagenix Wound Management, Limited. Available in more than 80 countries, the innovative and complementary ACELITY™ product portfolio delivers value through solutions that speed healing and lead the industry in quality, safety and customer experience. Headquartered in San Antonio, Texas, Acelity employs more than 5,800 people around the world.