KKR fund takes 14% of Integer Holdings through swap settlement ahead of $127-a-share takeover

Tarheel Investors III L.P., a fund affiliated with KKR & Co. Inc., now holds 4,753,677 shares of Integer Holdings Corporation (SEC CIK 1114483), or 14.0% of its common stock, according to a Schedule 13D filed on 13 October 2026.

The fund received the shares on 5 October 2026, when equity swaps it held with an unrelated counterparty were physically settled after regulatory conditions were met. The filing reports an aggregate settlement payment of $428,744,223 (Schedule 13D, 13 October 2026).

The percentage is based on 33,992,048 shares outstanding as of 30 July 2026 (Schedule 13D, 13 October 2026).

The fund also holds a cash-settled swap giving economic exposure to a further 836,392 Integer shares, without beneficial ownership of them. The swap confirmation is dated 7 January 2026 (Schedule 13D, 13 October 2026).

On 2 August 2026 Integer agreed to merge with Armstrong Bidco, Inc., a subsidiary of Armstrong Parent, Inc., which the filing describes as an affiliate of the reporting persons. Under the agreement each Integer share would be converted into $127 in cash. A KKR fund has provided an equity commitment letter to fund the merger consideration and a limited guarantee covering certain obligations of the buyer, including any reverse termination fee (Schedule 13D, 13 October 2026).

The reporting persons say they initially acquired the swaps for investment purposes and, beyond the merger, have no present plans of the kind covered by Item 4 of the form (Schedule 13D, 13 October 2026).

The filings do not state when the merger is expected to complete or the source of the funds used for the swap settlement. Loro has made no approach to the company. Figures are as reported in Integer Holdings' SEC filings.