Carlyle Group, one of the world’s largest private equity firms, is considering a possible acquisition of Medtronic’s patient monitoring and respiratory care businesses, according to anonymous sources close to the situation. The final deal could be worth more than $7 billion.
Reuters reported on the news first, emphasizing that no deal is final at this time.
If the two sides do reach an agreement, Reuters wrote, the two Medtronic business would be moved to a brand new company. Carlyle Group would own a majority of that new entity, but Medtronic would retain more than 35%.
In October 2022, Medtronic announced its intentions to combine its patient monitoring and respiratory care businesses and spin them off into a new company.
“Looking ahead, we remain focused on active portfolio management with an ongoing process of evaluating potential additions and subtractions to further accelerate Medtronic's growth over the long-term,” Geoff Martha, Medtronic’s chairman and CEO, said at the time.
Medtronic never pulled the trigger on this move, but this news of a Carlyle Group acquisition suggests the basic strategy remained in place as the company focused on the growth of cardiac device business and other known areas of expertise. According to the report from Reuters, one benefit of shifting to this approach could be that Medtronic can skip the potentially risky step of holding an initial public offering.
Carlyle Group currently has approximately $385 billion in assets, according to its website. The firm, founded back in 1987, has a long history of making investments, acquisitions and other key moves in the healthcare industry.
The two companies are not commenting on these rumors at this time.
Michael has more than 16 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.