Baxter to divest Kidney Care segment to Carlyle for $3.8B

Baxter (BAX) announced that they have signed a definitive agreement under which Carlyle (CG) is to acquire Baxter’s Kidney Care segment, to be named Vantive, for $3.8B. Under the terms of the definitive agreement, subject to certain closing adjustments, Baxter will receive approximately $3.5B in cash with net after-tax proceeds currently estimated to be approximately $3B. Baxter announced its intention to create a standalone kidney care company in January 2023. In March, Baxter announced that it was in discussions to explore a potential sale of the segment. Baxter intends to use after-tax proceeds from the transaction to reduce its debt. The business has more than 23,000 employees globally and had 2023 revenues of $4.5B. The transaction is expected to close in late 2024 or early 2025, subject to receipt of customary regulatory approvals and satisfaction of other closing conditions.