Medtronic, DaVita To Jointly Form Kidney Health-Focused Company
Medtronic plc (NYSE: MDT) and DaVita Inc (NYSE: DVA) intend to form a new, independent kidney care-focused medical device company (NewCo).
NewCo will focus on developing a broad suite of novel kidney care products and solutions, including future home-based products.
Medtronic and DaVita will co-own the NewCo, each with equal equity stakes and led by an independent management team.
Also Read: Why Are Medtronic Shares Plunging Today?
Medtronic will contribute to its Renal Care Solutions business, including the current product portfolio (renal access, acute therapies, and chronic therapies), product pipeline, and global manufacturing R&D teams and facilities.
Both companies will provide an initial investment to fund NewCo and future certain operating capital.
NewCo, which will be renamed and rebranded at the close, will operate as an independent company governed by a six-person board of directors composed of two directors, each from Medtronic and DaVita and two independent directors.
The transaction is expected to close in 2023.
Price Action: DVA shares are up 2.23% at $97.55, and MDT shares are down 4.30% at $101.00 on the last check Thursday.
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