Baxter International Inc. announced that it has entered into a definitive agreement to sell its Transfusion Therapies business to Texas Pacific Group for $540 million.

Subject to regulatory approvals and other customary closing conditions, the companies expect to close the transaction by the first quarter of 2007.

Under the terms of the agreement, Texas Pacific Group and Maverick Capital, Ltd. will acquire the assets of the Transfusion Therapies business, including its global product portfolio of manual and automated blood-collection products and storage equipment, as well as five manufacturing facilities located in Haina, Dominican Republic; La Chatre, France; Maricao and San German, Puerto Rico; and Nabeul, Tunisia.

"This decision is one that comes after months of strategic and financial reviews of our business portfolio," said Robert L. Parkinson, Jr., Baxter's chairman, president and chief executive officer. "While the Transfusion Therapies business is a global leader in the blood-collection and processing industry, this divestiture allows us to increase our focus and investment on businesses with more long-term strategic value for Baxter's shareholders."

Under transition and manufacturing agreements negotiated by the companies, Baxter will provide manufacturing and a variety of support services to the business. "We will be working closely with the Transfusion Therapies leadership team and Texas Pacific Group in the coming months to ensure a smooth transition," Parkinson continued.

Transfusion Therapies products are used by hospitals, blood banks and plasma-collection centers throughout the world to collect and process blood and blood components for therapeutic use. The business has approximately 3,500 employees worldwide, with sales of more than $500 million.

Texas Pacific Group is a global private equity investment firm founded in 1992. The firm manages approximately $30 billion in assets spanning a variety of industries, including healthcare, retail/consumer, airlines, media and communications, industrials, technology and financial services.

Dallas and New York-based Maverick Capital, Ltd., a manager of private investment funds, is also an investor in this transaction.

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