© Reuters. Baxter (BAX) sells BioPharma to Advent and Warburg for $4.25 billion in cash
Baxter (NYSE:) announced today a deal to divest its BioPharma Solutions business to private equity firms Advent International and Warburg Pincus in a deal worth $4.25 billion in cash.
The transaction is expected to close in the second half of 2023. Baxter said it intends to use the generated proceeds to reduce its debt.
“Today represents an important step in Baxter’s ongoing transformation journey as we continue to execute against our strategic priorities, enhance our focus and create additional value for all our stakeholders,” said José (Joe) E. Almeida, Chairman, President and Chief Executive Officer at Baxter.
The medtech company sees the deal resulting in dilution of approximately $0.10 per share to the company’s earnings. BPS is seen generating about $600 million in 2023 sales, Baxter said.
“BPS is a premier asset at the forefront of the biopharma industry, and one we’ve been closely following for a number of years,” said John Maldonado, a Managing Partner at Advent.
Baxter stock is moving higher on Monday.
This story originally appeared on Investing