Private equity firm Carlyle Group Inc. has entered into exclusive talks to acquire a majority stake in two medical device businesses of Medtronic Plc (MDT.N) at a valuation of more than $7 billion, according to people familiar with the matter. Were an agreement to be reached in the coming weeks, it would mark the culmination of Medtronic’s 12-month review of its patient monitoring and respiratory interventions businesses that it also considered a spinoff.
The deal could be the latest sign that investors are shifting their focus to healthcare as a sector with strong growth potential and favorable fundamentals. It is also part of a trend of corporate spinoffs occurring more frequently in recent years, with investors increasingly seeking to diversify their holdings.
A Carlyle spokesperson declined to comment on the reports. The firm has been looking for opportunities to invest in the healthcare space. It has made several healthcare-related acquisitions in the past year, including a $16 billion acquisition of the European business of U.S. medical technology company Covidien last month.
Mr Lee will continue to serve as a member of Carlyle’s Executive Committee, which consists of Messrs. Conway, D’Aniello, and Rubenstein, and is empowered to act on behalf of, and at the direction of, the Board of Directors when it is not in session. He is also a member of the Board of Directors of many Carlyle portfolio companies and sits on several fund investment committees.
During his tenure, Carlyle has grown its assets under management by more than tenfold. He has become the world’s largest global alternative asset manager, with $210 billion in assets across 335 investment vehicles as of June 30, 2018. The firm specializes in managing investments for its clients, which include pension funds, endowments, foundations, sovereign wealth funds, and family offices. Carlyle’s strategies include global private equity, tangible assets, credit, and investment solutions.
The tender offer is being conducted by its indirect subsidiary, Carlyle Holdings Finance L.L.C. The complete terms of the tender offer are outlined in the Offer to Purchase, dated September 7, 2018, and the related Letter of Transmittal. Neither Carlyle nor the dealer manager, information agent depositary, or trustee for the Notes recommends whether holders should tender or refrain from tendering their Notes in the tender offer. The tender offer has not been filed with approved or reviewed by any country’s federal or state securities commission or other regulatory authority. The tender offer may be withdrawn at any time. The Offer to Purchase and related documents are available on the Company’s website at www.carlylegroup.com. 2019 Carlyle Group. All Rights Reserved.