Siemens, GE Healthcare are interested in Medtronic spinoff units: Bloomberg

Original from: MEDTECHDIVE

Medtronic said in October it plans to divest its patient monitoring and respiratory interventions businesses.

Medtronic’s plan to spin off of its patient monitoring and respiratory interventions businesses is drawing interest from potential buyers including Siemens Healthineers and GE Healthcare, Bloomberg News reported on Thursday citing people familiar with the matter.

Unidentified private equity firms also are considering acquiring the two businesses, Bloomberg said, with the two units together valued at more than $7 billion. 

Medtronic spokesperson Erika Winkels said in an email to MedTech Dive said the company won’t comment on rumors or speculation.

“We have said in the past that this intended separation would result in either the creation of a new standalone company or a sale of these businesses to another company. The details of the intended separation are currently being assessed,” Winkels wrote. 

Medtronic announced plans in October to spin off the two units into a new company focused on connected care with a combined revenue of about $2.2 billion. It would include pulse oximetry, brain monitoring and perfusion monitoring solutions from Medtronic’s patient monitoring portfolio, and ventilators and video laryngoscopy breathing systems from its respiratory interventions portfolio. The spinoff was expected to close in the next 12 to 18 months.

GE declined to comment on the report and Siemens Healthineers didn’t respond to a request for comment by the time of publication. 

Siemens Healthineers, which produces imaging equipment, diagnostics and software solutions for hospitals, had about 1.44 billion euros ($1.53 billion) in cash and equivalents at the end of Sept. 30, according to its most recent quarterly statement.

GE Healthcare, which is expected to spin off from its parent company in early January, had about $1.8 billion in cash, equivalents and restricted cash as of June 30, according to pro forma financial statements in a filingdetailing its own spinoff. The business includes GE’s imaging, ultrasound, patient care solutions and pharmaceutical diagnostics segments.

Source: Siemens, GE Healthcare are interested in Medtronic spinoff units: Bloomberg