ICU Medical to compete against GE Healthcare for Medtronic units -sources

ICU Medical

29/03/2023 14:40

By David  Carnevali
       NEW YORK, March 29 (Reuters) - ICU Medical Inc  ICUI.O 
has teamed up with a private equity firm to challenge GE
Healthcare Technologies Inc  GEHC.O  in its pursuit of two
medical technology businesses that Medtronic Plc  MDT.N  is
seeking to sell for between $8 billion and $9 billion, according
to people familiar with the process. 
    ICU Medical, a U.S. medical device maker, has submitted an
offer for the assets in partnership with buyout firm Linden
Capital Partners and is through to the second round of bidding
in the auction process, the sources said.
    GE Healthcare and private equity firms Carlyle Group Inc
 CG.O  and Clayton, Dubilier & Rice (CD&R), which have been
pursuing rival offers separately, are also through to the second
round, the sources added.
    Carlyle is bidding through its newly formed healthcare
investment platform Atmas Health, according to one of the
sources. 
    Medtronic has been taking offers for its patient monitoring
and respiratory interventions businesses even as it presses on
with preparations to spin them off to its shareholders. The
Dublin-based company will opt for the spin-off if acquisition
offers for the assets in the coming weeks do not meet its
valuation expectations, the sources said.
    The sources requested anonymity because the matter is
confidential. A Medtronic spokesperson said the company will
provide details on the future of the two units "in due course"
and declined to comment further.
    ICU Medical, GE Healthcare, Carlyle and CD&R declined to
comment. Linden did not respond to requests for comment.
    Medtronic, the world's largest standalone medical device
maker, announced in October it would seek to shed its patient
monitoring and respiratory interventions businesses to
streamline its portfolio and focus on its higher-growth assets,
such as its heart and diabetes devices. 
    The patient monitoring technology portfolio includes Nellcor
pulse oximetry and BIS brain monitoring, while the respiratory
interventions business comprises ventilators and breathing
systems.
    ICU Medical, whose market capitalization is just shy of $4
billion, has been on an acquisition spree, most recently buying
Pfizer Inc's  PFE.N  infusion therapy business and Smith Group
Plc's  SMIN.L  medical division for $1 billion and $2.5 billion,
respectively.
    GE Healthcare, which spun out of General Electric Co  GE.N 
in January, is a provider of imaging, ultrasound and diagnostics
equipment that has a market value of $35 billion.

 (Reporting by David Carnevali in New York
Editing by Matthew Lewis)
 ((David.Carnevali@thomsonreuters.com;))