Carlyle Group ( CG ) is reportedly in exclusive talks to acquire Baxter International Inc.’s kidney-care spinoff, Vantive, in a deal valued at over $4 billion, including debt.

The companies began exclusive negotiations in late June, the Wall Street Journal reported, citing sources familiar with the matter. An agreement could be announced in the coming weeks, though there’s a possibility that the discussions might fall through or another bidder could emerge.

Baxter had announced plans to spin off Vantive in the second half of this year, intending to separate its acute therapies and renal care business.

In 2023, Baxter reported that Vantive generated approximately $4.5 billion in revenue.

The company intended for the separation to either involve a sale to a private equity firm or a spinoff into a public entity.

This strategic move aligns with Baxter’s efforts to streamline operations and focus on core business areas.

The WSJ report added that acquiring Vantive would mark a significant transaction for Carlyle as there is a gradual revival in private equity deal-making.

Leveraged buyouts in the private equity sector have seen a 45% increase from the previous year, with deals amounting to $109.2 billion as of early July, the WSJ report added, citing data from Dealogic.

This potential acquisition aligns with Carlyle’s ongoing strategic adjustments, including the recent appointment of Steve Wise, the former head of healthcare, as the co-head of Americas Corporate Private Equity.

As Carlyle navigates this evolving landscape, the possible acquisition of Vantive underscores its commitment to expanding its healthcare portfolio and capitalizing on opportunities in the medical device sector.

Industry observers and investors alike will closely watch the outcome of these exclusive negotiations.

Price Action: BAX shares closed at $34.91 on Friday.

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