Bank of America Provides Color on Kinetic Concepts

Bank of America provided color on Kinetic Concepts (NYSE: KCI). In a research report published today, Bank of America commented on rumors the company might be acquired by private equity firms.

In the report, Bank of America states, “Last week, several media outlets reported that KCI is in talks with private equity firms to be acquired for an equity value of $5bn or roughly $69 per share… In this note we provide our detailed LBO analysis, which suggests that private equity can afford to pay anywhere in the $69-73 range and still expect a 16-20% IRR.”

At the moment, Bank of America does not have a rating or price target placed on the company's stock. On Monday, Kinetic Concepts lost 0.52% of its value to close the day at $64.65.