Baxter to divest biopharma business to Advent International, Warburg Pincus for USD 4.25 billion
United States: Baxter International Inc said on Monday a private-equity group, which includes Warburg Pincus and Advent International, has agreed to buy its biopharma solutions unit for $4.25 billion.
Medical device makers such as Baxter have been grappling with supply-chain shortages that began during the pandemic, while rising costs of raw materials, labor and transportation added more pressure.
Baxter announced its intent to explore alternatives for its biopharma solutions business and spin off its kidney care units in January, stating the restructuring will allow greater alignment with the company's manufacturing footprint.
Read also: Baxter International plans to spin off kidney care units
Reuters was first to report the private-equity consortium was in the lead to acquire Baxter's biopharma solutions business.
Baxter will receive after-tax proceeds of $3.4 billion, which it intends to use to pay down the debt the company incurred when it purchased medical device maker Hill-Rom Holdings for $10.5 billion in 2021. Baxter had a market value of $19 billion and total debt of $16.6 billion, as of Dec. 31.
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