Deer\u00adfield, Illi\u00adnois; Boston, Massa\u00adchu\u00adsetts; and New York, N.Y. \u2014 Baxter Inter\u00adna\u00adtio\u00adnal Inc. (NYSE:BAX), a leading global medi\u00adcal tech\u00adno\u00adlogy company, today announ\u00adced that it has signed a binding agree\u00adment to sell its BioPharma Solu\u00adti\u00adons (\u201cBPS\u201d) busi\u00adness to Advent Inter\u00adna\u00adtio\u00adnal (\u201cAdvent\u201d), one of the largest and most expe\u00adri\u00aden\u00adced global private equity inves\u00adtors, and Warburg Pincus, a leading global growth investor.<\/p>\n
Baxter will receive $4.25 billion in cash under the agree\u00adment.<\/strong> Net proceeds after taxes are curr\u00adently esti\u00adma\u00adted at appro\u00adxi\u00adm\u00adately $3.4 billion. The tran\u00adsac\u00adtion is expec\u00adted to close in the second half of 2023 and is subject to custo\u00admary regu\u00adla\u00adtory appr\u00adovals and the satis\u00adfac\u00adtion of other closing condi\u00adti\u00adons. Baxter intends to use the after-tax proceeds to reduce debt, consis\u00adtent with the company\u2019s stated capi\u00adtal allo\u00adca\u00adtion objec\u00adti\u00adves. For the full fourth quar\u00adter of 2023, Baxter expects the tran\u00adsac\u00adtion to reduce net income by appro\u00adxi\u00adm\u00adately $0.10 per share, with the total amount depen\u00addent on the timing of the tran\u00adsac\u00adtion closing. It is assu\u00admed that this amount will be parti\u00adally offset by lower inte\u00adrest payments as a result of the expec\u00adted debt repayment.<\/p>\n \u201cToday is an important step in Baxter\u2019s ongo\u00ading trans\u00adfor\u00adma\u00adtion. It enables us to execute on our stra\u00adte\u00adgic prio\u00adri\u00adties, streng\u00adthen our focus and create addi\u00adtio\u00adnal value for all of our stake\u00adhol\u00adders,\u201d said Jos\u00e9 (Joe) E. Almeida, chair\u00adman, presi\u00addent and chief execu\u00adtive offi\u00adcer at Baxter. \u201cBPS has long been reco\u00adgni\u00adzed globally as a trus\u00adted and proven part\u00adner for services in the phar\u00admaceu\u00adti\u00adcal and biotech indus\u00adtries. Advent Inter\u00adna\u00adtio\u00adnal and Warburg Pincus have exten\u00adsive expe\u00adri\u00adence working with inno\u00adva\u00adtive health\u00adcare compa\u00adnies to help them achieve their goals and stra\u00adte\u00adgic prio\u00adri\u00adties. I am confi\u00addent that under their leader\u00adship, BPS will conti\u00adnue to build on its leader\u00adship posi\u00adtion, nurture its world-class work\u00adforce, invest in new skills and capa\u00adbi\u00adli\u00adties, and deli\u00adver modern as well as high-quality solu\u00adti\u00adons to its clients.\u201d<\/p>\n BPS has been a leading provi\u00adder of sterile manu\u00adfac\u00adtu\u00adring solu\u00adti\u00adons, paren\u00adte\u00adral deli\u00advery systems and custo\u00admi\u00adzed services to the phar\u00admaceu\u00adti\u00adcal and biotech indus\u00adtries for deca\u00addes. As a stand-alone company and in part\u00adner\u00adship with Advent and Warburg Pincus, BPS will act as a leading inde\u00adpen\u00addent end-to-end CDMO, offe\u00adring its clients a compre\u00adhen\u00adsive port\u00adfo\u00adlio of services from clini\u00adcal rese\u00adarch to commer\u00adcial explo\u00adita\u00adtion. BPS is well posi\u00adtio\u00adned to acce\u00adle\u00adrate its go-to-market stra\u00adtegy and clini\u00adcal deve\u00adlo\u00adp\u00adment pipe\u00adline, increase manu\u00adfac\u00adtu\u00adring scale and drive further product inno\u00adva\u00adtion. The propo\u00adsed tran\u00adsac\u00adtion includes BPS\u2019 manu\u00adfac\u00adtu\u00adring faci\u00adli\u00adties and appro\u00adxi\u00adm\u00adately 1,700 employees in Bloo\u00adming\u00adton, Indiana, and Halle (West\u00adpha\u00adlia), Germany. BPS is expec\u00adted to gene\u00adrate reve\u00adnues of appro\u00adxi\u00adm\u00adately $600 million in full-year 2023.<\/p>\n \u201cBPS is a premier company at the fore\u00adfront of the bio-pharma indus\u00adtry that we have been follo\u00adwing closely for a number of years,\u201d said John Maldo\u00adnado, Mana\u00adging Part\u00adner at Advent <\/strong>(Photo \u00a9 Advent) . \u201cWe believe this part\u00adner\u00adship will provide nume\u00adrous growth oppor\u00adtu\u00adni\u00adties through our deep indus\u00adtry know\u00adledge and exten\u00adsive stra\u00adte\u00adgic resour\u00adces. We will help the company realize its full poten\u00adtial and provide a high-quality, specia\u00adli\u00adzed and compre\u00adhen\u00adsive range of services to well-known custo\u00admers, inclu\u00adding Baxter, as a stand-alone company. We are exci\u00adted to part\u00adner with BPS and help its custo\u00admers deli\u00adver life-chan\u00adging thera\u00adpies to pati\u00adents around the world.\u201d<\/p>\n \u201cBPS\u2019 success and excel\u00adlent repu\u00adta\u00adtion in the phar\u00admaceu\u00adti\u00adcal sector posi\u00adtion the company well to further expand its parti\u00adcu\u00adlarly rele\u00advant services in a variety of thera\u00adpeu\u00adtic areas, inclu\u00adding onco\u00adlogy, meta\u00adbo\u00adlic dise\u00ada\u00adses and infec\u00adtious dise\u00ada\u00adses,\u201d said TJ Carella, Mana\u00adging Direc\u00adtor and Head of Health\u00adcare at Warburg Pincus. \u201cWe are plea\u00adsed to be working with Advent and the outstan\u00adding team at BPS, which has impres\u00adsive exper\u00adtise and has built an indus\u00adtry-leading repu\u00adta\u00adtion for quality and relia\u00adbi\u00adlity in the paren\u00adte\u00adral drug supply chain.\u201d<\/p>\n \u201cWe stron\u00adgly believe in the company\u2019s mission to part\u00adner with phar\u00admaceu\u00adti\u00adcal compa\u00adnies around the world to provide the scien\u00adti\u00adfic exper\u00adtise, sterile solu\u00adti\u00adons and perso\u00adna\u00adli\u00adzed support needed to address today\u2019s major health\u00adcare chal\u00adlenges. We look forward to conti\u00adnuing the strong busi\u00adness that Baxter has built at BPS,\u201d added Ruoxi Chen, Mana\u00adging Direc\u00adtor at Warburg Pincus. \u201cThis invest\u00adment unders\u00adcores our commit\u00adment to working with compa\u00adnies deve\u00adlo\u00adping inno\u00adva\u00adtive life scien\u00adces products and services around the world.\u201d<\/p>\n \u201cBPS has been excep\u00adtio\u00adnally successful in provi\u00adding high-quality services and products that meet the unique needs of phar\u00admaceu\u00adti\u00adcal and biotech clients world\u00adwide,\u201d said Carmine Petrone, mana\u00adging direc\u00adtor on Adven\u00adt\u2019s Health\u00adcare team. \u201cToge\u00adther with our part\u00adners at Warburg Pincus, we have an exten\u00adsive track record in carve-outs. We intend to leverage this expe\u00adri\u00adence in crea\u00adting a scalable, diver\u00adsi\u00adfied plat\u00adform to capi\u00adta\u00adlize on the signi\u00adfi\u00adcant market oppor\u00adtu\u00adnity. We look forward to support\u00ading BPS\u2019 contin\u00adued growth as the company does its part to bene\u00adfit pati\u00adents around the world and conti\u00adnues to help its custo\u00admers achieve their commer\u00adcia\u00adliza\u00adtion goals.\u201d<\/p>\n Advent has been inves\u00adt\u00ading in the health\u00adcare sector for over 30 years. The private equity firm has made more than 50 invest\u00adments in 17 count\u00adries world\u00adwide across a range of sub-sectors, inclu\u00adding phar\u00admaceu\u00adti\u00adcals, life scien\u00adces and medi\u00adcal devices. Adven\u00adt\u2019s recent invest\u00adments in the health\u00adcare sector include Iodine Soft\u00adware and RxBe\u00adne\u00adfits. In global phar\u00admaceu\u00adti\u00adcal services, Advent most recently inves\u00adted in BioDuro, GS Capsule, ICE Group, Suven Pharmaceuticals\/Cohance Life\u00adsci\u00aden\u00adces and Syneos Health.<\/p>\n Since its incep\u00adtion, Warburg Pincus has inves\u00adted more than $16 billion in more than 180 health\u00adcare compa\u00adnies, inclu\u00adding Summit Health, Moder\u00adni\u00adzing Medi\u00adcine, Ensem\u00adble Health\u00adcare Part\u00adners and Global Health\u00adcare Exch\u00adange. Warburg Pincus is an active inves\u00adtor in the life scien\u00adces sector and has inves\u00adted in Poly\u00adplus, Norstella, Sotera Health and Bausch + Lomb, among others.<\/p>\n Perella Wein\u00adberg Part\u00adners is acting as finan\u00adcial advi\u00adsor and Sulli\u00advan & Crom\u00adwell is acting as legal coun\u00adsel to Baxter. Moelis & Company LLC and Truist Secu\u00adri\u00adties are serving as finan\u00adcial advi\u00adsors and Cleary Gott\u00adlieb Steen & Hamil\u00adton and Ropes & Gray are serving as legal advi\u00adsors to Advent and Warburg Pincus.<\/p>\n About Baxter<\/strong><\/p>\n Every day, milli\u00adons of pati\u00adents, care\u00adgi\u00advers and health\u00adcare provi\u00adders rely on Baxter\u2019s leading port\u00adfo\u00adlio of diagno\u00adstic, criti\u00adcal care, renal, nutri\u00adtion, hospi\u00adtal supplies and surgi\u00adcal products used in homes, hospi\u00adtals, physi\u00adci\u00adans\u2019 offices and long-term care faci\u00adli\u00adties. For more than 90 years, we have been at the criti\u00adcal inter\u00adsec\u00adtion where medi\u00adci\u00adnes and systems that save and sustain lives meet health\u00adcare provi\u00adders who make them happen. With products, digi\u00adtal health solu\u00adti\u00adons and thera\u00adpies available in more than 100 count\u00adries, Baxter employees world\u00adwide are buil\u00adding on an exten\u00adsive legacy of medi\u00adcal inno\u00adva\u00adtion and driving the deve\u00adlo\u00adp\u00adment of impro\u00adved thera\u00adpies. To learn more, visit www.baxter.com and follow us on Twit\u00adter, Linke\u00addIn and Facebook.<\/p>\n About Advent International After 35 years in the inter\u00adna\u00adtio\u00adnal invest\u00adment busi\u00adness, Advent conti\u00adnues to take the approach of working with manage\u00adment teams to deli\u00adver sustainable reve\u00adnue and earnings growth for its port\u00adfo\u00adlio compa\u00adnies. www.adventinternational.com<\/p>\n About Warburg Pincus Deer\u00adfield, Illi\u00adnois; Boston, Massa\u00adchu\u00adsetts; and New York, N.Y. \u2014 Baxter Inter\u00adna\u00adtio\u00adnal Inc. (NYSE:BAX), a leading global medi\u00adcal tech\u00adno\u00adlogy company, today announ\u00adced that it has signed a binding agree\u00adment to sell its BioPharma Solu\u00adti\u00adons (\u201cBPS\u201d) busi\u00adness to Advent Inter\u00adna\u00adtio\u00adnal (\u201cAdvent\u201d), one of the largest and most expe\u00adri\u00aden\u00adced global private equity inves\u00adtors, and Warburg Pincus, a leading [\u2026]<\/p>\n","protected":false},"author":2,"featured_media":48529,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wp_typography_post_enhancements_disabled":false,"footnotes":""},"categories":[886,1364,1365,1366,1368,1369,1377],"tags":[],"class_list":["post-48538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-en","category-featured-en","category-private-equity-en","category-news-en","category-lawyers-tax-consultants-auditors","category-investors","category-corporate-finance-ma"],"yoast_head":"\n
\n<\/strong>
\nFoun\u00added in 1984, Advent Inter\u00adna\u00adtio\u00adnal is one of the largest and most expe\u00adri\u00aden\u00adced global private equity inves\u00adtors. The firm has inves\u00adted in more than 405 private equity invest\u00adments in 42 count\u00adries and had more than $92 billion in assets under manage\u00adment as of Decem\u00adber 31, 2022. With 15 offices in 12 count\u00adries, Advent has built a globally inte\u00adgra\u00adted team of more than 290 private equity invest\u00adment profes\u00adsio\u00adnals in North America, Europe, Latin America and Asia. The company focu\u00adses on invest\u00adments in five core sectors, inclu\u00adding busi\u00adness and finan\u00adcial services, health\u00adcare, indus\u00adtrial, retail, consu\u00admer goods and leisure, and technology.<\/p>\n
\n<\/strong>
\nWarburg Pincus LLC is a leading global growth inves\u00adtor. The company has more than $80 billion in assets under manage\u00adment. The company\u2019s active port\u00adfo\u00adlio compri\u00adses more than 250 compa\u00adnies and is highly diver\u00adsi\u00adfied by growth phase, indus\u00adtry and region. Warburg Pincus is an expe\u00adri\u00aden\u00adced part\u00adner for manage\u00adment teams seeking to build long-lived busi\u00adnesses with sustainable value. Foun\u00added in 1966, Warburg Pincus has laun\u00adched 21 private equity and 2 real estate funds that have inves\u00adted more than $109 billion in over 1,000 compa\u00adnies in more than 40 count\u00adries. The company is head\u00adquar\u00adte\u00adred in New York and has offices in Amster\u00addam, Beijing, Berlin, Hong Kong, Hous\u00adton, London, Luxem\u00adbourg, Mumbai, Mauri\u00adtius, San Fran\u00adcisco, S\u00e3o Paulo, Shang\u00adhai and Singa\u00adpore. www.warburgpincus.com<\/p>\n","protected":false},"excerpt":{"rendered":"