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NEW YORK (Reuters) – Private equity firm Carlyle Group (NASDAQ:CG) Inc has entered into exclusive negotiations to acquire a majority stake in two medical device businesses of Medtronic (NYSE:MDT) Plc 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 spinning off. Medtronic is seeking to streamline its portfolio and focus on its higher-growth assets, such as its heart and diabetes devices.
The units that Medtronic would shed would be moved to a new company majority-owned by Carlyle, the sources said. Medtronic would retain a stake in the new company of more than 35%, the sources added.
The sources cautioned that no deal is certain and requested anonymity because the matter is confidential. Medtronic and Carlyle declined to comment.
