Baxter
(NYSE: BAX)
today shared an update on the planned separation of its Kidney Care business as it looks at a potential sale instead of a spinoff.
In January 2023, Baxter announced plans to spin its renal care and acute therapies units into an independent, publicly traded company. It said at the time that it expected the company to stand alone in the next 12 to 18 months. In July, Baxter picked “Vantive” as the name of the proposed business.
At the time, Baxter expected Vantive to launch as an independent, publicly traded company by July 2024 or earlier. It maintains the expectation for a completed separation in the second half of 2024. However, the method of separation may be different than initially suggested.
In an SEC filing, the company wrote: “Consistent with Baxter’s commitment to evaluate strategic options in the interest of maximizing stockholder value, Baxter disclosed that it has been in recent discussions with select private equity investors to explore a potential sale of the Kidney Care asset in lieu of the proposed spinoff of that business.”
The company said it’s yet to reach a final decision on the separation structure. However, Baxter maintains that it “continues to make progress” on the spinoff.
When Vantive finally separates, Chris Toth, Baxter EVP and group president, kidney care, will serve as CEO of the new company. The company said it expects Vantive to carry forward its nearly 70-year legacy in kidney disease and organ support therapies. The company serves more than 1 million patients annually across more than 70 countries.
The move, once completed, creates competition for another recent kidney care spin. In May 2022, Medtronic and DaVita announced a plan to create a new kidney care company. GE, BD and Zimmer Biomet, among others, also recently completed spinoffs of major business units.