To streamline operations and pay down debt, Baxter International has agreed to sell its biopharma solutions division to two private equity companies, Advent International and Warburg Pincus, for $4.25B.
Baxter's stock price fell 9.8% to $46 due to the announcement.
- Due to its weak strategic alignment with the rest of its portfolio, Baxter stated in January that it would consider selling its biopharma solutions division.
- Baxter hopes to finalize the transaction in the second half of the year and anticipates receiving net after-tax profits from the sale of around $3.4B.
- About 1,700 people work for the biopharma solutions division, which is projected to bring in about $600M this year.
- Baxter also had plans to separate its renal care and acute therapies divisions into a stand-alone, publicly-traded company earlier this year.