Baxter sells kidney care division to private equity firm for $3.8B
Medical device manufacturer Baxter has entered into a “definitive agreement” to sell its kidney care wing, Vantive, to private equity firm Carlyle Group, the companies announced Tuesday. The sale is set for $3.8 billion.
Vantive produces and sells equipment to manage acute and chronic kidney disease, including dialysis machines. Before the sale was announced, Baxter was expected to spin Vantive off as its own independent company. Now, it will be closely aligned with Atmas Health, which manages a portfolio of healthcare technology companies.
Carlyle formed Atmas with a team of healthcare executives in 2022.
"The Atmas team is excited to support the growth of the Vantive business under the leadership of Chris Toth. We look forward to working together to build upon Vantive's track record of patient-focused innovation and create long-term value in this next phase of the company's development," Kieran Gallahue, co-founder of Atmas and future chairman of Vantive, said in an announcement.
Baxter’s CEO José Almeida said the sale of Vantive will allow Baxter to “emerge a more focused and more efficient company.” It is targeting an annual sales growth of 5% after the Vantive deal is finalized.
The board of directors at Baxter has approved the transaction. After regulatory approval, the sale of Vantive to Carlyle will finalize. The deal is expected to clear by early 2025.
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