Carlyle to buy Baxter's kidney-care spinoff Vantive for $3.8 billion

By Echo Wang

NEW YORK (Reuters) -Buyout firm Carlyle Group struck a deal to acquire Baxter’s kidney-care unit Vantive for $3.8 billion, the companies said on Tuesday.

The proceeds from the deal, which is expected to close by early 2025, will help medical-device maker Baxter reduce its debt pile. Baxter, which paid down about $2.8 billion of debt last year after divesting its biopharma unit, had long-term debt of $13.8 billion at the end of 2023.

In 2022, Baxter started exploring options for its kidney-care units after completing its $10.5-billion takeover of medical-equipment maker Hill-Rom. It began the process of carving out Vantive early in 2023.

“Vantive is a strong, growing business with market-leading franchises, and we are delighted to partner with the Vantive team to pursue their strategic vision through the separation from Baxter and transformation into a standalone global business,” said Robert Schmidt, Carlyle’s global co-head of healthcare.

Atmas Health, a healthcare investment platform that was formed by Carlyle in 2022, partnered with the firm on the deal for Vantive.

Baxter’s kidney-care operations generated about $4.5 billion in revenue last year and have more than 23,000 employees.

“This transaction is the right step at the right time for Baxter, capping off a robust process we started in early 2023,” said Baxter CEO Joe Almeida.

The Wall Street Journal reported Carlyle's talks to acquire the Vantive unit in July.

Private-equity dealmaking has rebounded this year as buyout firms have deployed more capital, after a spike in financing costs last year had triggered a slowdown. Global leveraged-buyout volumes jumped 41% to $286 billion during the first half of 2024, according to Dealogic.

Carlyle, which is one of the world's leading buyout firms with $435 billion of assets under management, has been an active acquirer and seller of assets this year.

In July, Carlyle teamed up with KKR to clinch a deal for a $10-billion student loan book from Discover Financial Services.

Carlyle is exploring a sale of StandardAero that could value the U.S. aircraft maintenance services provider at about $10 billion, Reuters has reported.

Perella Weinberg Partners, JPMorgan and Sullivan & Cromwell advised Baxter on the deal. Barclays, Goldman Sachs and Kirkland & Ellis advised Carlyle.

(Reporting by Echo Wang in New York; Editing by Michael Perry and Rod Nickel)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Mizuho bullish on Tower Semiconductor, points to AI optical growth
• Bernstein cuts Deutsche Telekom on T-Mobile U.S. risks; names BT top pick
• B. Riley Securities Names Top Pick in Financial Services Sector