Dive Brief:
- Baxter International is considering selling its kidney care business instead of spinning it out.
- The company disclosed in a U.S. Securities and Exchange Commission filing on Monday that it had been in recent discussions with private equity investors about a potential sale of the segment.
- Whether through a spinoff or sale, Baxter plans to separate its kidney care segment in the second half of 2024.
Dive Insight:
Baxter first announced plans last year to spin out its renal care and acute therapies businesses into a separate, publicly traded company. The changes were intended to simplify Baxter’s structure and narrow its focus to hospital solutions and connected care.
The new company, called Vantive, would include dialysis and organ support therapies. Last year, the unit brought in $4.45 billion in sales, about 30% of Baxter’s total revenue.
Baxter has previously said the spinoff would occur by July. The company said it has not made a final decision on the separation structure, and it continues to make progress toward the spinoff that was first proposed.
Last year, Baxter sold its biopharma solutions business for $4.25 billion to private equity firms Warburg Pincus and Advent International.