11.18.11
Medical device giant Medtronic Inc. is shedding some weight.
Late on Thursday, Nov. 17., the company announced that private-equity firm Bain Capital agreed to acquire the Minneapolis, Minn.-based firm's Physio-Control external defibrillator business in a deal valued at about $487 million.
The news isn't too shocking (forgive the pun).
Medtronic has been considering a spinoff of the division, which makes professional emergency response products, for several years. In 2006, the company had made plans to spin off the 55-year-old Physio-Control. The plans were derailed by quality problems.
"We are pleased that Physio-Control has found another strong partner to prepare the company for the next stage of its growth," said Omar Ishrak, chairman and CEO of Medtronic. "For more than 55 years, Physio-Control has been developing technologies and designing devices that are legendary among emergency medical response professionals. With an impressive innovation pipeline and backing by Bain Capital, we believe Physio-Control will be well-positioned for growth and to continue its lifesaving mission to serve emergency responders, hospital care teams and their patients around the world."
Earlier this year the divestiture rumors returned.
The deal is expected to close in the first quarter of next year. President Brian Webster will continue to lead the Physio-Control, which is based in Redmond, Wash., and will be named CEO.
"Physio-Control is an impressive market leader that has built an outstanding brand position and loyal customer base by providing high quality, mission-critical tools and superior service," said Chris Gordon, a managing director at Bain Capital in Boston, Mass. "We are extremely enthusiastic about the company's growth prospects."
Late on Thursday, Nov. 17., the company announced that private-equity firm Bain Capital agreed to acquire the Minneapolis, Minn.-based firm's Physio-Control external defibrillator business in a deal valued at about $487 million.
The news isn't too shocking (forgive the pun).
Medtronic has been considering a spinoff of the division, which makes professional emergency response products, for several years. In 2006, the company had made plans to spin off the 55-year-old Physio-Control. The plans were derailed by quality problems.
"We are pleased that Physio-Control has found another strong partner to prepare the company for the next stage of its growth," said Omar Ishrak, chairman and CEO of Medtronic. "For more than 55 years, Physio-Control has been developing technologies and designing devices that are legendary among emergency medical response professionals. With an impressive innovation pipeline and backing by Bain Capital, we believe Physio-Control will be well-positioned for growth and to continue its lifesaving mission to serve emergency responders, hospital care teams and their patients around the world."
Earlier this year the divestiture rumors returned.
The deal is expected to close in the first quarter of next year. President Brian Webster will continue to lead the Physio-Control, which is based in Redmond, Wash., and will be named CEO.
"Physio-Control is an impressive market leader that has built an outstanding brand position and loyal customer base by providing high quality, mission-critical tools and superior service," said Chris Gordon, a managing director at Bain Capital in Boston, Mass. "We are extremely enthusiastic about the company's growth prospects."