Baxter to Sell Vantive Kidney Care Biz to Carlyle for $3.8B

Baxter began a deal to sell its Kidney Care segment—to be named Vantive—to global investment firm Carlyle for $3.8 billion.
 
The company had originally intended to spin off its Renal Care and Acute Therapies businesses into the new Vantive company as an independent, publicly traded company by July 2024. Baxter said after reviewing the separation pathway’s financial impact, management and the board determined selling the business to Carlyle would maximize value for shareholders and best position Vantive for long-term success.
 
Carlyle’s investment in Vantive was made in collaboration with Atmas Health, a partnership among three industry executives founded in September 2022 to focus on acquiring and building a market-leading healthcare business. The partnership consists of Kieran Gallahue, Jim Hinrichs, and Jim Prutow.
 
Kieran Gallahue will become Vantive’s chairman, working with CEO Chris Toth and Vantive management.
 
“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,” said Chris Toth, executive vice president and group president, Kidney Care at Baxter, who will serve as Vantive’s CEO. “Today’s announcement signals a new chapter in innovation on behalf of the patients and care teams around the world who rely on our solutions. Through this transaction, Vantive will be well-positioned to deepen our commitment to elevating dialysis through digital solutions and advanced services, while looking beyond kidney care to invest in transforming vital organ therapies.”
 
Vantive offers products and services for peritoneal dialysis, hemodialysis and organ support therapies, including continuous renal replacement therapy (CRRT). It has over 23,000 employees around the globe and had $4.5 billion in 2023 sales.
 
“Today’s announcement represents another critical step forward in the strategic transformation process we announced in early 2023. 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,” said José (Joe) E. Almeida, chair, president and chief executive officer at Baxter. “I am confident that, under Carlyle’s stewardship and Chris Toth’s leadership, the Vantive team will continue to build on the business’s 70-year legacy as a pioneer in kidney disease and vital organ therapies.”