Baxter Considers Selling Kidney Care Unit to Private Equity Firm: WSJ

Dive summary:

• Baxter is considering the sale of its kidney care business to private equity firm Carlyle Group for more than $4 billion, the Wall Street Journal reported Friday.
• Exclusive negotiations over a possible sale began in late June, the Wall Street Journal reported, citing unnamed sources. A deal could be announced “in the coming weeks,” though talks could still fall apart, the report said. A Baxter spokesperson told MedTech Dive that the company does not comment on rumors or market speculation.
• Baxter announced plans in early 2023 to abandon its renal care and acute therapy activities businesses into a separate, publicly traded company called Vantive. In March, the company said it was also plans to sell the private equity segment.

Dive Overview:

Baxter is pursue “dual tracks” CEO Joe Almeida said on an earnings call in May that there was talk of a planned spinoff or sale of Vantive to a private equity investor. He expects a separation to occur in the second half of 2024.

Vantive focuses on chronic and acute dialysis treatments and services. In 2023, the segment generated approximately $4.45 billion in saleswhich represents nearly a third of Baxter’s total revenue. The segment’s growth remained stable year-over-year.

Carlyle Group could acquire Vantive for more than $4 billion, including debt, according to the Wall Street Journal.

The Washington, D.C.-based private equity firm has interests in other medical technology companiesincluding QuidelOrtho and Medline. Last year, Reuters reported The Carlyle Group was a pioneer to buy Medtronic’s patient monitoring and respiratory care business for more than $7 billion.

Medtronic had considered a sale or spin-off of the segments. However, Medtronic has changed its plans in February, deciding instead to exit the ventilator business and consolidate its remaining patient monitoring and respiratory care assets into a new unit.