As part of a continued restructuring, Baxter International, a medical technology and healthcare company, has agreed to sell its Kidney Care segment to the global investment firm, Carlyle, for $3.8 billion. 

Vantive, the new name of Baxter’s Kidney Care segment pending its sale, offers products and services for peritoneal dialysis, hemodialysis, and organ support therapies, including continuous renal replacement therapy. The business has more than 23,000 employees globally and had 2023 revenues of $4.5 billion. 

This news is part of a larger strategy by Baxter, which announced in early 2023, a series of actions to improve the company’s financial performance, which included evaluating strategic alternatives for its CDMO business, Baxter BioPharma Solutions. Baxter completed the sale of its CDMO business last October (October 2023) to two investment firms, Advent International, a global private equity investor, and Warburg Pincus, a global growth investor, for $4.25 billion. Under the new owners, Baxter’s former CDMO business was renamed Simtra BioPharma Solutions.  

For its pending sale of its kidney-care business, Baxter will receive approximately $3.5 billion in cash with net after-tax proceeds currently estimated to be approximately $3 billion. Baxter intends to use the after-tax proceeds from the transaction to reduce its debt, consistent with its stated capital allocation priorities. 

Following the completion of the pending sale of its Kidney Care segment, Baxter is targeting operational sales growth of 4% to 5% annually. For 2025, the company anticipates an adjusted operating margin of approximately 16.5% on a continuing operations basis, which reflects an anticipated 100 basis point negative impact due to stranded costs, net of anticipated transition service agreement (TSA) income, and a manufacturing supply agreement the company will enter into upon the completion of the divestiture of its Kidney Care segment.  

The transaction is expected to close in late 2024 or early 2025, subject to receipt of customary regulatory approvals and satisfaction of other closing conditions.  

Source: Baxter