By David Carnevali
NEW YORK (Reuters) – Private equity firm Carlyle Group Inc has entered into exclusive negotiations to acquire a majority stake in two medical device businesses of Medtronic 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.
(Reporting by David Carnevali in New York)
