San Clemente-based ICU Medical Inc. (Nasdaq: ICUI) has teamed up with a private equity firm to challenge GE Healthcare Technologies Inc. for two medical technology businesses that Medtronic Plc is seeking to sell for between $8 billion and $9 billion, Reuters said, citing unidentified people familiar with the deal.
ICU Medical, a supplier of infusion therapy-related medical equipment, has submitted an offer for the assets in partnership with buyout firm Linden Capital Partners and is through to the second round of bidding in the auction process, the sources told Reuters.
GE Healthcare and private equity firms Carlyle Group Inc. and Clayton, Dubilier & Rice (CD&R), which have been pursuing rival offers separately, are also through to the second round, the sources added.
Dublin-based Medtronic PLC has been taking offers for its patient monitoring and respiratory interventions businesses that it may spin off if the acquisition offers do not meet its valuation expectations, the sources said. Medtronic, the world’s largest standalone medical device maker, announced in October it would seek to shed its patient monitoring and respiratory interventions businesses to streamline its portfolio and focus on its higher-growth assets, such as its heart and diabetes devices.
Shares of ICU rose 2.3% to $159.63 and a $3.8 billion market cap. ICU Medical reported $2.2 billion in sales last year as it has grown through a series of acquisitions, including Pfizer Inc.’s infusion therapy business and Smith Group PLC’s medical division for $1 billion and $2.5 billion, respectively.
The patient monitoring technology portfolio includes Nellcor pulse oximetry and BIS brain monitoring, while the respiratory interventions business comprises ventilators and breathing systems.
GE Healthcare (Nasdaq GEHC), which spun out of General Electric Co. in January, is a provider of imaging, ultrasound and diagnostics equipment. Its shares rose 2.1% to $78.50 and a $35.6 billion market cap.