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Carlyle Group in talks to acquire Baxter’s kidney care spinoff vantive
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A person familiar with the matter told Reuters on Friday that private equity company Carlyle Group is in exclusive talks to acquire Baxter International’s kidney care spinoff Vantive for over $4 billion, including debt.
Private equity firm Carlyle Group is reportedly in exclusive negotiations to acquire Baxter International’s kidney care spinoff, Vantive, for over $4 billion, including debt. This information comes from a person familiar with the matter, as reported by Reuters on Friday.
Market Reaction and Deal Progress
Shares of Baxter International, based in Deerfield, Illinois, surged by more than 4% following the news. The exclusive talks began in late June, and a formal announcement of the deal could be made in the coming weeks.
Background and Strategic Moves
In March, Baxter disclosed it was in discussions with select private equity investors about a potential sale of its kidney care unit.
This move came more than a year after the company announced plans to separate the unit due to supply chain issues and weak demand for dialysis operations. Baxter’s plan to separate Vantive is expected to be completed in the second half of the year.
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Company Responses
While Baxter declined to comment on the ongoing negotiations, Carlyle has not yet responded to a request for comment from Reuters. The Wall Street Journal was the first to report on the potential deal.
Implications
The acquisition of Vantive by Carlyle Group could significantly impact the medical device market, particularly in the kidney care sector.
It reflects the broader trend of private equity firms investing in specialized healthcare units, potentially driving innovation and growth within the industry.
As the negotiations continue, stakeholders in both Baxter and Carlyle, as well as those in the healthcare sector, will be closely monitoring the developments. The deal could set a precedent for similar transactions in the future, highlighting the growing interest of private equity in healthcare.
