Medtronic To Sell Its Medical Supplies Business, Sources Claim
Medtronic PLC may be putting its medical supplies business up for sale.
People familiar with the matter have told Bloomberg that the world’s largest medtech company currently is working with advisors to sell the unit.
Medtronic, which keeps its U.S. operational headquarters in Fridley, has reportedly approached potential buyers, although arrangements for such a deal are still early in the works.
The company’s medical supplies business sells a vast array of products, including catheters, needles and medical instruments, such as surgical scissors and scalpels. The unit is said to bring in earnings of about $500 million before interest, taxes, depreciations and amortization.
However, people familiar with the matter said the unit could fetch eight to 10 times that amount, or as much as $5 billion.
What isn’t certain is whether Medtronic will chose to sell the entire business to one buyer or deal it away in smaller divestitures.