Kinetic Concepts, a multinational corporation based in San Antonio, Texas, recently announced that it would sell its Therapeutic Support Systems division to Getinge. Kinetic Concept’s Therapeutic Support Systems division manufactures specialized hospital beds and other products for healthcare facilities. Getinge, a medical device manufacturer based in Sweden, will pay $275 million for the division.
The sale covers Kinetic Concept’s therapeutic bed unit. The 1300-employee unit manufactures specialty therapeutic beds and other health management products. Since the transition will be a large step forward for Getinge, Kinetic Concepts will provide “certain transition services” to facilitate the sale. According to a separate press release from the company, the TSS division of the company had $247 million in total sales for the 2011 fiscal year.
According to a press release issued by Getinge, the takeover will help the Swedish company improve its extended care division. This will allow it to balance recurring revenues with equipment sales. Approximately 60 percent the company’s business is based on sales in the United States.
Kinetic Concepts will use the proceeds to “reinvest in its core business and look for new growth opportunities.” In a press release, the company stated, "To the extent KCI has not reinvested proceeds from the TSS sale within 12 months, it will use any remaining funds to repay long-term debt obligations.”