Kirkland & Ellis LLP-led private equity firm Carlyle has agreed to acquire the kidney care unit of Baxter International Inc., represented by Sullivan & Cromwell LLP and Baker McKenzie, for $3.8 billion, according to a statement released by Baxter on Tuesday. The high-profile Carlyle-Baxter Kidney Care Deal is expected to close in late 2024 or early 2025, pending regulatory approvals.

Carlyle-Baxter Kidney Care Deal : Baxter's Strategic Move

As part of the Carlyle-Baxter Kidney Care Deal, Baxter will establish the kidney care unit under the new name, Vantive. Baxter also announced that it plans to use approximately $3 billion of the after-tax proceeds from the sale to reduce its debt. This strategic divestment follows Baxter's March announcement of exploring the potential sale of its stand-alone kidney care segment, which it launched just the previous year.

José (Joe) E. Almeida, Baxter's chair, president, and CEO, commented on the Carlyle-Baxter Kidney Care Deal, stating, "As a result of this proposed transaction, Baxter will emerge a more focused and more efficient company, better positioned to redefine healthcare delivery and advance innovation that benefits patients, customers, and shareholders."

Vantive's Future Under Carlyle

The kidney care unit, soon to be known as Vantive, provides products and services for peritoneal dialysis, hemodialysis, and organ support therapies. With over 23,000 employees globally and $4.5 billion in revenue in 2023, the unit is set to be a significant player under its new ownership. Chris Toth, Baxter's executive vice president and group president of kidney care, will take the helm as CEO of Vantive. He expressed enthusiasm for the Carlyle-Baxter Kidney Care Deal, saying, "I look forward to partnering with the combined Carlyle and Atmas team and working with my colleagues to advance Vantive's mission of extending lives and expanding possibilities."

Advisory Teams Behind the Deal

Perella Weinberg Partners LP and J.P. Morgan Securities LLC are serving as financial advisers to Baxter in this major transaction. Meanwhile, Barclays and Goldman Sachs & Co. LLC are advising Carlyle. The legal teams on the Carlyle-Baxter Deal are equally impressive, with Sullivan & Cromwell advising Baxter and Kirkland & Ellis representing Carlyle. The Sullivan & Cromwell team includes corporate partners Melissa Sawyer and Matthew B. Goodman, among others, while the Kirkland team is led by corporate partners Armand Della Monica, Laura Steinke, and Nils Remole.

The Carlyle-Baxter Kidney Care Deal marks a significant shift in the healthcare sector, with Carlyle poised to expand its presence in kidney care through its new venture, Vantive. The deal underscores Carlyle's commitment to innovation and growth in healthcare, as evidenced by its partnership with Atmas Health, a platform established by Carlyle in September 2022.