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Medtronic in talks to sell monitoring, respiratory interventions units to Carlyle for $7 billion: reports

by John R. Fischer, Senior Reporter | October 04, 2023
Business Affairs
Medtronic is reportedly in talks to sell its patient monitoring and respiratory interventions business units to Carlyle for $7 billion.
Anonymous sources say that Medtronic is in exclusive talks to sell its patient monitoring and respiratory interventions businesses to private equity firm Carlyle for more than $7 billion.

According to Reuters, if it agreed to the sale, Medtronic would spin off the units into a new company majority-owned by Carlyle and would retain a stake of more than 35%.

Its decision to part with the units, which together made approximately $2.2 billion in revenue in 2022, stems from its desire to focus on higher-growth businesses, such as its heart and diabetes devices.

The company originally said last October that it would spin off the businesses into a stand-alone company in the next 12 to 18 months as part of its restructuring, and began a review of both that has now spanned a year, reported Reuters.

"The process continues. This is a next step. This isn't necessarily the last step," chairman and chief executive officer Geoffrey Martha said in a conference call at the time.

Medtronic is based in Dublin and has a market value of $105 billion. It develops medical devices used to treat more than 70 health conditions within the cardiovascular, diabetes, surgical, and neuroscience spaces. Last month, it announced that its all-in-one, disposable Simplera continuous glucose monitor received CE Mark approval, providing users with a no-fingerstick sensor that is integrated with the InPen smart insulin pen for real-time, personalized dose guidance.

Its patient monitoring portfolio includes Nellcor pulse oximetry and bispectral (BIS) brain monitoring technologies, and its respiratory interventions business is made up of ventilators and breathing systems.

The sources told Reuters that no deal has been finalized yet and requested anonymity because the alleged sale is confidential.

Medtronic and Carlyle declined Reuters’ request for comment.

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