Medtronic plc cancelled the Spin-Off of Combined Patient Monitoring and Respiratory Interventions businesses.
January 25, 2024
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Medtronic plc (NYSE:MDT) announced the spin off of its combined Patient Monitoring and Respiratory Interventions businesses on October 24, 2022. The separation shall be pursued via a distribution that is expected to be tax-free to Medtronic shareholders. In fiscal year 2022, the combined business generated global revenue of approximately $2.2 billion. The separation is subject to the satisfaction of closing conditions, including obtaining final approval from the Medtronic Board of Directors, receipt of tax opinions and receipt of other regulatory approvals. Medtronic expects the separation to be completed in the next 12 to 18 months. As of August 22, 2023, transaction is expected to close in the first half of fiscal year 2025. Medtronic plans to redeploy any net proceeds consistent with the capital allocation priorities. Medtronic's financial advisors on the transaction are Perella Weinberg Partners LP and Goldman Sachs & Co. LLC. Its legal advisors on the transaction are Wachtell, Lipton, Rosen & Katz and Baker McKenzie. B. Chase Wink and Trevor R. Allen of Skadden, Arps, Slate, Meagher & Flom LLP acted as legal and tax counsel to Medtronic.
Medtronic plc cancelled the Spin-Off of Combined Patient Monitoring and Respiratory Interventions businesses during third quarter of fiscal year 2024 ended on January 26, 2024. Rather than hiving off the two segments for either an acquisition or a new life as a standalone combined company, Medtronic has decided to keep hold of them.
Medtronic plc is one of the world leaders in designing, manufacturing and marketing of medical equipment. Net sales break down by sector of activity as follows:
- general and minimally invasive surgery (28.8%): surgical equipment, intra-operative monitoring systems, ventilation systems, etc.;
- cardiac rhythm management (18.6%): implantable cardiac pacemakers, implantable defibrillators and automatic external defibrillators, cardiac ablation probes, etc.;
- vascular diseases and cardiac surgery (17.4%): coronary stents, endoprostheses for aortal pathologies, distal protection systems, catheters, heart valve prostheses, auto-transfusion equipment, cardiac ablation devices, etc.;
- spinal disorders (14.1%): spinal prostheses, disc prostheses, cerebral stimulation systems, bone graft technologies and mini-invasive spinal surgery, etc. The group also develops medical imagery-guided surgical navigation systems activity;
- neurovascular, ear, nose and throat (ENT) and pelvic diseases (8.2%);
- diabetes management (7.4%): internal and external glycemia monitoring systems and insulin pumps;
- neurological disorders (5.5%): neurostimulation and pumped medication administration products, diagnostic tools, etc.
Net sales are distributed geographically as follows: Ireland (0.3%), the United States (50.9%) and other (48.8%).
MEDTRONIC PLC 
