Carlyle Group in Exclusive Talks to Acquire Majority Stake in Medtronic’s Medical Device Businesses

Private equity firm Carlyle Group is currently in exclusive negotiations to acquire a majority stake in two medical device businesses of Medtronic, a leading medical technology company. The deal, valued at over $7 billion, would be the result of Medtronic’s year-long review of its patient monitoring and respiratory interventions businesses, which it considered spinning off into a standalone public company.

By divesting these two units, Medtronic aims to streamline its portfolio and focus on its higher-growth assets, such as heart and diabetes devices. The businesses being shed generated approximately $2.2 billion in revenue during the 2022 fiscal year. Under the proposed agreement, Carlyle would establish a new company majority-owned by itself, while Medtronic would retain a stake of over 35%.

While no deal is certain at this stage, both Medtronic and Carlyle declined to comment on the negotiations. Medtronic, with a market value of $105 billion, is known for its wide range of medical devices that address more than 70 health conditions across various divisions.

This move by Medtronic follows a trend in the healthcare industry, with companies like Baxter International also divesting non-core assets to focus on growth. Carlyle, a prominent player in the private equity space with $385 billion in assets under management, has a strong track record in healthcare investments. Notable examples include its involvement in primary care clinic operator One Medical and medical screening business Ortho Clinical Diagnostics.

The potential acquisition of Medtronic’s medical device businesses by Carlyle Group highlights the ongoing evolution and strategic realignment within the healthcare sector. As the demand for medical devices continues to rise, this deal could pave the way for further advancements and innovations in patient care.