New Speculation Emerges Around Baxter's Plans for Kidney Care Business

While on track to separate from its kidney care business before the end of 2024, the company is mum on the latest market rumor about a potential sale.

Amanda Pedersen

July 9, 2024

1 Min Read
Close-up photograph of a dialysis machine in use in a hospital setting. Patient blurred in background.
Image credit: Pijitra Phomkham/iStock via Getty Images

Baxter may be gearing up to sell its kidney care business to private equity firm Carlyle Group for more than $4 billion, according to the latest market rumor.

Baxter initially reported plans in January 2023 to spin off its kidney care and acute therapies businesses into a separate, publicly traded company later dubbed Vantive. But earlier this year the company disclosed in an SEC filing that it had been in discussions with private equity investors about a potential sale of the kidney segment, but that "no final decision on the separation structure" had been made.

According to a recent Wall Street Journal report citing unnamed sources, exclusive negotiations between Baxter and Carlyle Group began late last month. Baxter declined to comment on the latest market rumor surrounding its kidney care business.

In May, during Baxter's first-quarter earnings call, CEO Joe Almeida acknowledged the company was "pursuing dual pathways in the proposed separation" of the kidney care business.

"The ultimate path forward will be determined consistent with our objective to accelerate performance for both entities and maximize shareholder value. We currently expect the separation to take place in the second half of 2024," Almeida said.

When pressed by analysts on the pros and cons of a spin off versus a sale of the business, Almeida declined to comment on which path might be a better option than the other.

"Whatever option we choose is going to be one of the two, we will separate first of all," he said. "Second, when we separate, we will separate with maximization of shareholder return in mind."

About the Author(s)

Amanda Pedersen

Amanda Pedersen is a veteran journalist and award-winning columnist with a passion for helping medical device professionals connect the dots between the medtech news of the day and the bigger picture. She has been covering the medtech industry since 2006.

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