- Medtronic plc (NYSE: 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.
Read at Benzinga