1. 3M
1.1. 3M to acquire Acelity Inc.
1.1.1. Acquisition expands presence in advanced and surgical wound care
3M has entered into a definitive agreement to acquire Acelity Inc. and its KCI subsidiaries worldwide from a consortium comprised of funds advised by Apax Partners (the Apax Funds), together with controlled affiliates of the Canada Pension Plan Investment Board (CPPIB) and the Public Sector Pension Investment Board (PSP Investments), for a total enterprise value of approximately $6.7 billion, including assumption of debt, subject to closing, and other adjustments. Acelity is a leading global medical technology company focused on advanced wound care and speciality surgical applications marketed under the KCI brand.
“Acelity is a recognized leading provider of advanced wound care technologies and solutions and an excellent complement to our Health Care business,” said Mike Roman, 3M chief executive officer. “This acquisition bolsters our Medical Solutions business and supports our growth strategy to offer comprehensive advanced and surgical wound care solutions to improve outcomes and enhance the patient and provider experience.”
“We are excited to bring Acelity's technologies and dedicated employees to our team,” Roman continued. “Together, we will apply 3M science to bring differentiated offerings to key wound and operative care solutions worldwide.”
The Acelity business is well known for creating and growing new segments based on the ability to identify and address unmet clinical needs with KCI‐branded products that advance the practice of medicine, beginning with the introduction of V.A.C. Therapy—ground‐breaking Negative Pressure Wound Therapy. Today, the KCI product offering also includes advanced wound dressings and negative‐pressure surgical incision management systems. KCI's solutions contribute to better health outcomes by enhancing wound healing. Acelity had 2018 revenues of $1.5 billion.
3M's Medical Solutions business is focused on applying 3M science to deliver safe and effective solutions that improve clinical outcomes and health care economics. 3M Medical Solutions offers a range of integrated products that include medical tapes, advanced and acute wound care dressings and products, sterilisation products, and patient warming products that are deployed in impactful solutions. These solutions cross the entire continuum of care, enabling better outcomes, improving the patient experience, and delivering a strong economic value in today's value‐based care environment.
On a GAAP‐reported basis, 3M estimates the acquisition to be $0.35 dilutive to earnings per share in the first 12 months following completion of the transaction, including financing costs. Excluding purchase accounting adjustments and anticipated one‐time expenses related to the transaction and integration, 3M estimates the acquisition to be $0.25 accretive to earnings per share over the same period.
The effective enterprise value multiple is approximately 11 times the estimated annual adjusted EBITDA for the first 12 months following completion of the transaction, including expected run rate cost synergies.
As a result of this announcement, 3M now expects full‐year 2019 share repurchases to be in the range of $1.0 billion to $1.5 billion vs $2.0 billion to $4.0 billion previously.
The transaction is expected to close in the second half of 2019, subject to customary closing conditions and regulatory approvals. 3M will finance the transaction with a combination of available cash and proceeds from the issuance of new debt.
2. CONVATEC
2.1. ConvaTec partners with European Wound Management Association to support Research Grants in 2019
ConvaTec Group Plc, a leading global medical products and technologies company, has partnered with the European Wound Management Association (EWMA) to launch three research grants available to nurses, doctors, or scientists working in the field of wound management. The new initiative was launched at the 29th European Wound Management Association Conference in Gothenburg on 5 June 2019 with the aim to offer support to projects that advance the basic and clinical science of wound management. By advancing research and supporting innovation, EWMA and ConvaTec aim to improve the care and quality of life of individuals with acute and chronic wounds. ConvaTec's contribution of €30 000 will be split across three themes: process redesign to improve quality and accessibility in wound care, E‐health and digital solutions for wound management, and solutions to enhance patient safety and compliance in wound management. A wide range of applications are expected across Europe, with the winners of the research grants announced at the EWMA 2020 conference in London. David Shepherd, President of Advanced Wound Care, ConvaTec said: “ConvaTec is committed to working with wound management professionals to improve the lives of people with chronic conditions. In a challenging economic climate where health care systems and budgets are squeezed and the demands upon clinicians increase, it is critical that we invest in further education to support clinicians in better dealing with the challenges they face. This exciting new initiative led by EWMA and exclusively sponsored by ConvaTec offers three individuals the opportunity to study three specific subject areas which we believe will play a big part of the future in wound management.”
Alberto Piaggesi, EWMA Scientific Recorder and President Elect, added: “It is one of EWMA's priorities to promote innovative projects that provide new knowledge and perspectives on the field of wound management. It is of huge importance for EWMA to secure the future of wound management and support new talents in the wound community. EWMA research grants is a timely initiative that aims to make a difference for wound management research and improve the quality of life for the increasing number of patients suffering from acute and chronic wounds throughout Europe.”
3. MÖLNLYCKE HEALTH CARE
Mölnlycke, is acquiring a patent application from Innovation Skåne that will help detect infections in wounds. Once developed, the patent is intended to play a major role in reducing the unnecessary use of antibiotics in wound care.
The incidence of infection in hard‐to‐heal chronic wounds, such as diabetic foot ulcers and venous leg ulcers, is high—and 1 in 20 patients undergoing surgery will develop a surgical site infection. However, infected wounds are costly, difficult to manage, and hard to detect. In many cases, expensive antimicrobials are used prophylactically to prevent infections or to treat them once they have been established.
Mölnlycke has entered into an agreement with the Swedish regional innovation company, Innovation Skåne, and acquired the ownership of the patent application. The purpose of the technology in the invention is to detect infections and alert caregivers that the wound needs attention. It will help to minimise the prophylactic use of antibiotics and reduce the risk of complications related to infections.
Barry McBride, Executive Vice President R&D, said: “Antimicrobial resistance is an increasingly significant threat to public health worldwide. This exciting new technology will help reduce the incidence of serious infection and minimise the unnecessary use of antibiotics.”
Joakim Nelson, CEO of Innovation Skåne, said: “This is an example of innovations originating from employees in Region Skåne and demands in their daily work. We share Mölnlycke's goal of driving innovative improvements in healthcare and we are delighted Mölnlycke will be able to use this patent to help tackle a serious public healthcare issue.”
4. SMITH AND NEPHEW
4.1. Smith and Nephew completes acquisition of Leaf Healthcare, Inc.
Smith & Nephew, the global medical technology business, announces it has completed the acquisition of Leaf Healthcare Inc., the developer of the unique Leaf Patient Monitoring System to monitor the orientation and activity of patients susceptible to pressure ulcers. The transaction follows Smith & Nephew's successful 2‐year partnership with Leaf Healthcare as an exclusive distributor and strategic investor.
The Leaf Patient Monitoring System is a small, lightweight, wearable sensor that wirelessly monitors a patient's position and their mobility while in hospital. The tracking data are used to automate and document compliance with prescribed turn protocols for patients at risk of pressure injuries. Leaf, together with Smith & Nephew's ALLEVYN LIFE and ALLEVYN GENTLE BORDER and SECURA Skin Care products, offers customers a portfolio to help optimise pressure injury prevention protocols.
Int Wound J. 2019;16:881–882. 10.1111/iwj.13167