Baxter Sells BioPharma to Private Equity

10.05.2023 - Confirming media reports, Baxter International announced it has agreed to sell its BioPharma Solutions (BPS) business to a private equity consortium of Warburg Pincus and Advent International for $4.25 billion in cash.

The deal includes BPS’ manufacturing facilities and approximately 1,700 employees in Bloomington, Indiana, USA, and Halle, Germany. BPS is expected to generate revenues of approximately $600 million on a reported basis for full year 2023.

“Leveraging our deep sector expertise and significant strategic resources, we believe this partnership can unlock multiple opportunities for growth and help the business realize its full potential by serving blue-chip customers, including Baxter, with high-value, specialized and end-to-end capabilities as a standalone company,” said John Maldonado, a managing partner at Advent.

TJ Carella, managing director and head of healthcare at Warburg Pincus, added that BPS was well positioned to grow its services across a variety of therapeutic areas, such as oncology, metabolic disease and infectious disease, among others.

The transaction is expected to close in the second half of 2023, subject to regulatory clearance and other customary conditions. Baxter said it intends to use the after-tax proceeds of $3.4 billion to pay down debt, noting that the sale is “an important milestone in its ongoing business transformation.”

Author: Elaine Burridge, Freelance Journalist