Kinetic Concepts, Inc. = Done Deal

Last week I took a small position in Kinetic Concepts, Inc. (Ticker: KCI) at $65.80. At that time, there were reports that the company was in exclusive talks with two private equity firms. One of the names floated around at that time was Blackstone. Today, the company announced that it agreed to a deal with Apax Partners and two Canadian pension funds to take the company private for $68.50. This is a potential return of 4.1% over an 8 day period (184.5% annualized). I wasn’t as aggressive in this one as the high yield debt market was starting to close, which could have nixed the deal. I’m getting a bit more cautious on any private equity plays.

Edit:

I sold my position in Kinetic Concepts this morning at $68.02 generating a 3.37% gain (151.6% annualized).