3M is set to acquire Acelity Inc. and the KCI subsidiaries for about $6.7 billion. The deal is set to close in the second half of 2019.

Acelity is focused on advanced wound care and specialty surgical applications marketed under the KCI brand. Acelity was formed in September 2014, when Kinetic Concepts was combined with LifeCell Corp. and Systagenix Wound Management Ltd.

In December of 2016, the company withdrew plans to launch an IPO that could have netted up to $1 billion, citing “public market conditions,” as the reason. The company’s affiliate KCI was planning to file for an IPO in April, according to a report from the San Antonio Business Journal.

“Acelity is a recognized leading provider of advanced wound care technologies and solutions and an excellent complement to our Health Care business,” said Mike Roman, 3M CEO. “This acquisition bolsters our Medical Solutions business and supports our growth strategy to offer comprehensive advanced and surgical wound care solutions to improve outcomes and enhance the patient and provider experience.

St. Paul, MN-based 3M said Acelity had 2018 revenues of $1.5 billion. As a result of the merger, 3M said it now expects full-year 2019 share repurchases to be in the range of $1 billion to $1.5 billion vs. $2 billion to $4 billion previously.

3M will finance the transaction with a combination of available cash and proceeds from the issuance of new debt. Credit Suisse acted as financial advisor to 3M.

About a week ago, 3M said that it was laying off 2,000 employees after a disappointing performance in 1Q19. 3M said the job cuts or restructuring, is expected to have an estimated annual pre-tax savings range of $225 million to $250 million, with $100 million in the remainder of 2019.

The deal also comes on the heels of another big acquisition from 3M. The company said it would shell out $1 billion to acquire M*Modals technology business. The acquisition would give 3M access to a business that specializes in conversational artificial intelligence (AI)-powered systems that can help physicians efficiently capture and improve the patient narrative.