NEW YORK, Aug 13 (Reuters) - Buyout firm Carlyle Group ( CG )

struck a deal to acquire medical-device maker Baxter's

kidney-care unit Vantive for $3.8 billion, the companies said on

Tuesday.

The proceeds from the deal, which is expected to close by

early 2025, will help Baxter reduce its debt pile. Baxter, which

paid down about $2.8 billion of debt last year after divesting

its biopharma unit, had long-term debt of $13.8 billion at the

end of 2023.

Baxter started exploring options for its kidney-care units

after its $10.5 billion takeover of medical-equipment maker

Hill-Rom in 2022. It began the process to carve out Vantive

early in 2023.

"Vantive is a strong, growing business with market-leading

franchises, and we are delighted to partner with the Vantive

team to pursue their strategic vision through the separation

from Baxter and transformation into a standalone global

business," said Robert Schmidt, Carlyle's global co-head of

healthcare.

Atmas Health, a healthcare investment platform that was

formed by Carlyle in 2022, partnered with the firm on the deal

for Vantive.

Baxter's kidney-care operations generated about $4.5 billion

in revenue last year and has more than 23,000 employees.

The Wall Street Journal reported Carlyle's talks to acquire

the Vantive unit in July.

Private equity dealmaking has rebounded this year as buyout

firms have deployed more capital, after a spike in financing

costs last year triggered a slowdown in dealmaking. Global

leveraged buyout volumes jumped 41% to $286 billion during the

first half of 2024, according to Dealogic.

Carlyle, which is one of the world's leading buyout firms

with $435 billion of assets under management, has been an active

acquirer and seller of assets this year.

In July, Carlyle teamed up with KKR to clinch a deal

for a $10-billion student loan book from Discover Financial

Services ( DFS ).

Carlyle is currently exploring a sale of StandardAero that

could value the U.S. aircraft maintenance services provider at

about $10 billion, Reuters has reported.

Perella Weinberg Partners, JPMorgan and Sullivan & Cromwell

advised Baxter on the deal. Barclays, Goldman Sachs and Kirkland

& Ellis advised Carlyle.