07:17 AM EDT, 08/13/2024 (MT Newswires) -- Baxter International ( BAX ) said Tuesday that it has sold its kidney care segment to private equity firm Carlyle Group ( CG ) for $3.8 billion.

Under the terms of the deal Baxter will receive approximately $3.5 billion in cash with net after-tax proceeds estimated at approximately $3 billion. In January, Baxter said it was planning to create a standalone kidney care company, which will be named Vantive after the sale.

"After reviewing the financial impact of the potential separation pathways, management and the Baxter Board determined that selling the business to Carlyle should maximize value for Baxter stockholders," the company said in a release.

Shares of Baxter International ( BAX ) were up 1.2% in recent premarket activity.

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