Baxter Seals $3.8B Deal With Carlyle For Its Kidney Care Segment
Portfolio Pulse from Vandana Singh
Baxter International Inc (NYSE:BAX) has agreed to sell its Kidney Care segment, Vantive, to The Carlyle Group Inc (NASDAQ:CG) for $3.8 billion. Baxter will receive approximately $3.5 billion in cash, with net after-tax proceeds estimated at $3 billion. The transaction is expected to close in late 2024 or early 2025. Following the sale, Baxter aims for operational sales growth of 4% to 5% annually and an adjusted operating margin of 16.5% for 2025. The company plans to use the proceeds to repay debt and focus on higher-growth opportunities. BAX stock is down 6.9% at $34.37.
August 13, 2024 | 3:07 pm
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POSITIVE IMPACT
Baxter International Inc (BAX) has agreed to sell its Kidney Care segment for $3.8 billion to The Carlyle Group. The transaction is expected to close in late 2024 or early 2025. Following the sale, Baxter aims for operational sales growth of 4% to 5% annually and an adjusted operating margin of 16.5% for 2025. The company plans to use the proceeds to repay debt and focus on higher-growth opportunities. BAX stock is down 6.9%.
The sale of the Kidney Care segment is a significant strategic move for Baxter, expected to enhance future performance and create value. The proceeds will help in deleveraging and focusing on higher-growth opportunities. Despite the initial stock drop, the long-term outlook appears positive.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
The Carlyle Group Inc (CG) has agreed to acquire Baxter's Kidney Care segment for $3.8 billion. The transaction is expected to close in late 2024 or early 2025. This acquisition will expand Carlyle's portfolio in the healthcare sector.
The acquisition of Baxter's Kidney Care segment will enhance Carlyle's healthcare portfolio, potentially driving future growth. The deal's completion is expected in late 2024 or early 2025, providing a positive outlook for Carlyle.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80