Medtronic To Spin Off Its Combined Patient Monitoring & Respiratory Interventions Businesses

Medtronic plc MDT intends to pursue a separation of the company's combined Patient Monitoring and Respiratory Interventions businesses (NewCo), which are part of its Medical Surgical Portfolio.
Following the separation of NewCo, Medtronic will have a more streamlined portfolio, modestly faster organic revenue growth, increased weighted average market growth rate, and a strong balance sheet.
In FY22, the combined business generated approximately $2.2 billion in global revenue. The combined business has a constant currency revenue growth profile and gross margin profile slightly below Medtronic overall and an operating margin profile slightly higher than Medtronic overall.
The combined business has a global commercial footprint and a team of more than 8,000 employees worldwide.
Medtronic expects the separation to be completed in the next 12 to 18 months, subject to the satisfaction of closing conditions.
Just before Q1 earnings, Needham noted that CEO Geoff Martha indicated that Medtronic would seek M&A and/or divestitures to drive its weighted average market growth rate higher.
Price Action: MDT shares are up 0.87% at $83.99 on the last check Monday.