April 3, 2023 : ICU Medical Inc has collaborated with a private equity company to fight GE Healthcare Technologies Inc in its purpose of two medical technology businesses that Medtronic Plc is aiming to sell for between $8 billion and $9 billion, according to individuals familiar with the procedure.
A U.S. medical device maker, ICU Medical has presented an offer for the assets in partnership with buyout corporation Linden Capital Partners and is via to the second round of bidding in the auction process, the sources told.
The sources also stated that GE Healthcare and private equity companies Carlyle Group Inc and Clayton, Dubilier & Rice (CD&R), which have been following rival offers differently, are also through to the second round.
As per one of the sources, Carlyle is bidding through its recently formed healthcare investment platform Atmas Health.
Medtronic has been taking submissions for its patient monitoring and respiratory interventions companies even as it presses on with preparations to whirl them off to its shareholders. The sources said the Dublin-based business would opt for the spin-off if acquisition bids for the assets in the coming days do not meet its valuation anticipations.
The sources demanded anonymity because the matter is confidential. A Medtronic spokesperson said the company would provide details on the hereafter of the two units “in due course” and declined to comment additionally.
GE Healthcare, ICU Medical, Carlyle, and CD&R declined to comment. Linden did not reply to requests for comment.
Medtronic, the world’s biggest standalone medical device maker, announced in October it would desire to shed its patient monitoring and respiratory interventions companies to streamline its portfolio and concentrate on its higher-growth assets, such as its heart and diabetes instruments.
The patient monitoring technology portfolio contains Nellcor pulse oximetry and BIS brain monitoring, meanwhile the respiratory interventions business includes ventilators and breathing techniques.
ICU Medical, whose market capitalization is almost $4 billion, has been on an acquisition binge, most newly buying Pfizer Inc’s infusion therapy business and Smith Group Plc’s medical division for $1 billion and $2.5 billion, respectively.
GE Healthcare, created by General Electric Co in January, provides ultrasound, imaging, and diagnostics equipment with a market worth of $35 billion.