Carlyle Acquires Baxter's Renal Care Unit
Baxter Sells Kidney Care Unit to Carlyle
Overview of the Transaction
On August 13, 2024, the Carlyle Group announced its intention to acquire Baxter International Inc.'s (NYSE:BAX) global kidney care unit. Funds managed by global investment firm Carlyle will purchase the unit, which is a leading provider of dialysis and renal care products and services.
The acquisition is valued at approximately $38 billion. The transaction is expected to close in the first half of 2025, subject to regulatory approvals and customary closing conditions.
Benefits for Both Parties
The acquisition is expected to benefit both Baxter and Carlyle. For Baxter, the sale of its renal care unit will allow it to focus on its core businesses in biopharmaceuticals and medical products.
For Carlyle, the acquisition will expand its presence in the healthcare sector. The company believes that the renal care market offers significant growth opportunities, and it plans to invest in the unit's products and services to drive future growth.
Market Reaction and Implications
The news of the acquisition was well-received by investors. Baxter's stock price rose by 3% in early trading on Tuesday, while Carlyle's stock price also gained ground.
The acquisition is expected to have a significant impact on the healthcare industry. Baxter is a major player in the renal care market, and its sale of the unit will create opportunities for other companies in the sector.
The transaction also highlights the growing interest of private equity firms in healthcare. Carlyle is one of several private equity firms that have recently acquired or invested in healthcare companies.
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