KKR will acquire Integer Holdings in an all-cash transaction valued at approximately $5.7 billion, removing the medical equipment maker from public markets after a decade-long run as a supplier to cardiac and neuromodulation device manufacturers. The deal represents a 28% premium to Integer's 30-day volume-weighted average share price and marks KKR's largest healthcare buyout since its $4.9 billion Envision Healthcare take-private in 2018.
Integer manufactures components for implantable cardiac devices, neurostimulators, and portable medical equipment, selling into a customer base that includes Medtronic, Abbott, and Boston Scientific. The company reported $1.6 billion in trailing twelve-month revenue as of its most recent quarter, with adjusted EBITDA margins near 19%. KKR is betting on Integer's embedded position in device supply chains where switching costs run high and contract visibility extends 18 to 24 months. The business generates roughly 73% of revenue from recurring production orders tied to multi-year device platforms already cleared by regulators.
The transaction arrives as large-cap PE firms rotate back into healthcare services and components after two years of compressed multiples. Integer traded at 11.2x forward EBITDA before deal rumors surfaced in late July, below the 13.5x median for publicly traded med-tech suppliers with comparable margin profiles. KKR's thesis hinges on operational leverage in Integer's vertically integrated manufacturing footprint and margin expansion through facility consolidation. The firm has hired former Greatbatch executives—Integer's former corporate identity—into its healthcare operating group, signaling plans to accelerate SKU rationalization and tighten working capital cycles. Private ownership removes quarterly earnings pressure that previously constrained Integer's ability to exit lower-margin legacy product lines.
Allocators should track two follow-on events. First, watch for Integer's customer concentration disclosures in KKR's required HSR filings, due within 30 days of announcement. If Medtronic or Abbott individually represent more than 22% of revenue, pricing power tilts toward the OEM. Second, monitor whether KKR syndicates equity to co-investors or retains full ownership through its Americas XII fund. Sole ownership would indicate confidence in near-term margin improvement without needing liability shields from LP co-sponsors.
The deal closes Integer's $310 million acquisition of Pulse Technologies in April, which KKR will now inherit along with the integration risk. That bolt-on added battery technology for next-generation leadless pacemakers, a category expected to reach $4.2 billion in global sales by 2028.