Baxter Sells Manufacturing Unit to Private Firms for $4.25 Billion

Baxter International Inc. agreed to sell its contract medical manufacturing unit to investor Warburg Pincus and private equity firm Advent International for $4.25 billion in cash.

(Bloomberg) — Baxter International Inc. agreed to sell its contract medical manufacturing unit to investor Warburg Pincus and private equity firm Advent International for $4.25 billion in cash.

After-tax proceeds of the transaction, subject to regulatory approvals, are expected to be $3.4 billion, Deerfield, Illinois-based Baxter said in a statement. The deal is expected to close in the second half of this year.

Baxter expects to use the money to reduce its debt, which stood at almost $17 billion at the end of March. The company has also announced a plan to spin off its biggest unit, kidney care, by the middle of 2024, following a trend of paring down units among larger drugmakers including GSK Plc, Pfizer Inc. and Johnson & Johnson.

Perella Weinberg Partners is serving as financial adviser to Baxter. Moelis & Co. and Truist Securities are serving as financial advisers to Advent and Warburg Pincus.

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