Business
Baxter Announces Definitive Agreement to Divest Its Vantive Kidney Care Segment to Carlyle for $3.8 Billion
Establishes Vantive as a leading standalone kidney care business backed by Carlyle’s global investment team and resources Sale follows robust process focused
About this update from The Carlyle Group Inc.
[{"type":"text","content":"\n\nEstablishes Vantive as a leading standalone kidney care business backed by Carlyle’s global investment team and resources\n\n\n\nSale follows robust process focused on maximizing stockholder value\n\n\n\nProvides increased flexibility to deploy capital toward opportunities to accelerate Baxter’s and Vantive’s respective growth objectives\n\n\n\nRepresents key milestone in Baxter’s ongoing business transformation, enabling heightened strategic clarity, operational efficiency and innovation\n\n\n\nBaxter shares preliminary outlook for select financial metrics following completion of pending Kidney Care divestiture\n\n\n\n DEERFIELD, Ill. & NEW YORK--(BUSINESS WIRE)--\nBaxter International Inc. (NYSE:BAX), a global medtech leader, and funds managed by global investment firm Carlyle (NASDAQ:CG) today announced that they have signed a definitive agreement under which Carlyle is to acquire Baxter’s Kidney Care segment, to be named Vantive, for $3.8 billion.\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240812810755/en/\nUnder the terms of the definitive agreement, subject to certain closing adjustments, Baxter will receive approximately $3.5 billion in cash with net after-tax proceeds currently estimated to be approximately $3 billion. Baxter announced its intention to create a standalone kidney care company in January 2023 as part of its broader strategic realignment designed to enhance future performance and create value for all stakeholders. In March 2024, Baxter announced that it was in discussions to explore a potential sale of the segment. After reviewing the financial impact of the potential separation pathways, management and the Baxter Board determined that selling the business to Carlyle should maximize value for Baxter stockholders and best position Baxter and Vantive for long-term success, with enhanced flexibility to deploy capital toward opportunities that seek to accelerate each company’s respective growth objectives. Baxter intends to use after-tax proceeds from the transaction to reduce its debt, consistent with its stated capital allocation priorities.\n\n\nCarlyle has been a leading private equity investor in the medtech sector over the past decade, with investments in medical technology and diagnostic companies totaling over $40 billion in enterp...