A Medical Device Daily

Kinetic Concepts (KCI; San Antonio) reported that it has completed its acquisition of LifeCell (Branchburg, New Jersey). LifeCell is now a direct, wholly owned subsidiary of KCI.

Last week, the company reported that it had acquired more than 91% of LifeCells outstanding shares via a tender offer making LifeCell a majority owned subsidiary of KCI (Medical Device Daily, May 20, 2008).

KCI reported last month that it would acquire LifeCell, a maker of tissue-repair products for use in reconstructive, urogynecologic and orthopedic surgical procedures, for about $1.7 billion in cash (MDD, April 8, 2008).

KCI develops wound care and therapeutic support systems.

Draxis Health (Mississauga, Ontario), a supplier of radiopharmaceuticals, reported that it has obtained a final order from the Quebec Superior Court in connection with its previously disclosed sale to Jubilant Organosys (Noida, India) for $6 per common share, or a total of about $255 million (MDD, April 7, 2008).

The arrangement was approved by 99% of the votes cast by holders of Draxis common shares, which was in excess of the 66-2/3% required, at the annual and special meeting of its shareholders held this past Friday.

The transaction is expected to close shortly.

In other dealmaking news:

• Crimson (Austin, Texas), a provider of data, analytics and business intelligence software to hospitals, health systems and physician clinics, reported that it was acquired by the Advisory Board Co. (Washington), which provides best practices research, decision-support tools and analysis to the U.S. healthcare industry. Crimson said it will continue all operations as a subsidiary of Advisory Board and will leverage its resources to enhance its existing platform and develop new products.

"We are very excited to work as part of the Advisory Board team and to continue building innovative physician management solutions for hospital and physician organizations," said Crimson CEO Michael Kadyan.

"We are [pleased] to join forces with Crimson to help our members improve clinical resource utilization and outcomes in a healthcare market that is increasingly focused on value-based purchasing, pay-for-performance, and enhanced physician management," said Frank Williams, CEO/chairman of Advisory Board

• The Ensign Group (Mission Viejo, California), parent company of the Ensign group of skilled nursing, rehabilitative care services and assisted-living companies, reported that it has completed the purchase of an 83-bed skilled nursing facility in Draper, Utah, for about $3 million.

The facility was acquired from an affiliate of Westcare Management (Salem, Oregon).

The deal was struck in mid-2007, but closing was delayed while title issues on the real estate were resolved. An Ensign operating subsidiary has been operating the facility under a short-term lease since July 2007, pending the real estate closing. The operating subsidiary will continue to operate the facility under a new long-term lease with the acquiring entity.

Proceeds of Ensigns recent IPO were used to complete the transaction. Work already is underway on substantial renovations and other improvements to the facilitys physical plant, staffing patterns and clinical systems, as the facilitys leaders and staff reposition it to serve a larger skilled nursing population.

Ensign affiliates currently operates 62 facilities in six Western states. The Draper acquisition brings the total number of owned facilities in Ensigns combined portfolio to 28, with Ensign affiliates holding purchase options on eight of the companys 34 leased facilities.

• Lockheed Martin (Bethesda, Maryland) reported that it has completed its previously disclosed acquisition of Eagle Group International (Atlanta), which provides logistics, information technology, training and healthcare services to the U.S. Department of Defense (MDD, April 29, 2008).

All obligations associated with Eagle Groups U.S. Department of Labor Job Corp contract were excluded from the transaction. Other terms of the transaction were not disclosed.

Eagle employs more than 1,350.