Kinetic Concepts Plans to Go Private

Kinetic Concepts Inc. agreed to sell most of the company to two San Francisco investor firms in a deal worth $850 million to $875 million, allowing founder and Chairman James Leininger to cut his stake in the company. Kinetic Concepts, based in San Antonio, makes and rents therapeutic beds for patients who are paralyzed or suffer from serious illnesses. The agreement calls for Richard C. Blum & Associates and Fremont Partners to pay $19.25 a share, or 3.4% more than Thursday’s closing price of $18.63. Fremont Partners will own 40% of the company, and Blum 26.5%. Leininger, Kinetic’s largest shareholder, will own 33.5%, down from 43%. Kinetic’s stock rose 38 cents to close at $19 on Nasdaq.