Bloomington operation part of $4.2B divestiture
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Illinois-based medical technology company Baxter International Inc. this week announced plans divest its BioPharma Solutions business to Advent International and Warburg Pincus, private equity firms headquartered in Boston and New York, respectively, in a $4.25 billion deal.
The divestiture includes BPS manufacturing facilities in Bloomington and Halle, Germany, which employ a total of about 1,700 people.
BPS provides sterile contract manufacturing services, parenteral delivery systems and customized support services for the pharmaceutical and biotech industries. Once the deal is complete, BPS will operate as an independent contract development manufacturing organization.
Advent International said in a news release that BPS is expected to generate about $600 million in revenues in 2023.
“BPS is a premier asset at the forefront of the biopharma industry, and one we’ve been closely following for a number of years,” Advent Managing Partner John Maldonado said. “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.”
Advent did not specify if any jobs would be negatively affected by the deal.
The divestiture is expected to close in the second half of 2023. Baxter said it plans to use its after-tax proceeds, totaling about $3.4 billion, to reduce its debt.
“Advent International and Warburg Pincus have extensive experience helping innovative healthcare companies advance their mission and strategic priorities,” said Baxter CEO Joe Almeida. “I am confident that under their stewardship, BPS will continue to build on its leadership position, foster world-class talent, invest in new capabilities and capacity, and provide leading-edge, high-quality solutions for its clients.”
Baxter is no stranger to Indiana. In 2021, the company acquired Hill-Rom Holdings Inc. for $10.5 billion. Hill-Rom, which was headquartered in Chicago at the time of the acquisition, was previously based in Batesville when it was a part of Hillenbrand Inc. and still employs some 1,900 people in Indiana.