Integer (ITGR) to be acquired by KKR (KKR) for ~USD 5.7bln

Integer (ITGR) to be acquired by KKR (KKR) for ~USD 5.7bln.

A take-private of a mid-cap medical device outsourcer by a large sponsor fits the established pattern of private equity targeting steady, contract-driven cash flow businesses where leverage can be carried against predictable OEM demand. Episodes of this kind have tended to clear at or near the announced consideration with the equity drifting to a spread against deal price, the width of that spread reflecting perceived antitrust and financing risk rather than fundamental disagreement. KKR's prior form in healthcare and industrials carve-outs and buyouts is extensive, and deals of this size from mega-funds have historically been financed without strain, though the debt package and any syndication terms are the tell for credit conditions. Worth watching next are the per-share terms, any go-shop provision, the financing structure and the reaction in the peer set of device contract manufacturers, which has tended to re-rate on read-across when one name is taken out at a premium. The FX and metals tags on the wire look incidental to the story.