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Edwards Lifesciences Corp. said Thursday it plans to form an independent company out of its critical-care unit in a tax-free spinoff transaction by the end of 2024.
With products for surgical patients and the critically ill such as the ForeSight tissue-oximetry sensor and the Acumen IQ arterial-line sensor, the critical-care business is expected to generate about $905 million in sales in 2023.
Katie Szyman will be the chief executive of the new company. She has been corporate vice president of critical care since 2015.
Edwards marks the latest in a flurry of spin-off deals by companies as bigger businesses shed units to boost efficiency and create value in a slowing economy and lackluster environment for M&A.
Also read: IPOs are out of fashion. Here’s what companies are doing instead.
Edwards Lifesciences
EW,
which makes aortic valve replacements and other medical products, also announced plans to buy back $1 billion in stock.
Edwards Lifesciences stock fell 0.7% on Thursday. The stock is down by 7.5% in 2023, compared to a 19.1% increase by the S&P 500
SPX.
Edwards Lifesciences said it expects to generate an adjusted profit of $2.70 to $2.80 a share in 2024, compared to the FactSet consensus estimate of $2.80 a share.
Edwards Lifesciences said it expects 2024 sales of $6.3 billion to $6.6 billion, while analysts are projecting 2024 sales of $6.51 billion.
