Baxter International sells transfusion business

Global healthcare company, Baxter International, has agreed to sell its Transfusion Therapies business to Texas Pacific Group Ventures (TPGV).

The deal worth $540 million will see TPGV acquire the firm’s range of manual and automated blood-collection and storage products, which are used in hospitals and blood banks worldwide, and several manufacturing facilities.

Robert L Parkinson Jr, chairman of Baxter International says the agreement follows “months of strategic and financial reviews” of its current business.

“While the Transfusion Therapies business is a global leader in the blood-collection and processing industry, this divestiture allows us to increase our focus and investment on businesses with more long-term strategic value for Baxter’s shareholders.”

The Texas Pacific Group says it is currently investing in drug discovery and development, pharmaceutical services and personalised medicine as part of its wider programme of funding for biotechnologies.

Commenting on the move, Michael Weinstein, analyst for JP Morgan, told Reuters that it was a “positive step” for Baxter.

“The business has been treading water at $500 million (265 million pounds) to $550 million (291 million pounds) in sales for the past five years and it is the lowest margin contributor at Baxter,” he said.

The proposed deal, which is now subject to “regulatory approvals”, is expected to be finalised during the first quarter of 2007.