Friday, March 31, 2023

Carlyle in Hunt for Medtronic Divisions

The Carlyle Group remains a bidder for Medtronic's patient monitoring and respiratory interventions businesses.  Reuters reported:

Carlyle is bidding through its newly formed healthcare investment platform Atmas Health

Other bidders include ICU Medical, GE Healthcare, Clayton, Dubilier and Rice (a fellow private equity underwriter-PEU).

The patient monitoring technology portfolio includes Nellcor pulse oximetry and BIS brain monitoring, while the respiratory interventions business comprises ventilators and breathing systems.

Carlyle lists its healthcare portfolio on its website.

The portfolio companies listed below have been acquired, invested, or exited within 5 years of the current quarter.

The list does not include ManorCare, the giant nursing home company Carlyle drove into bankruptcy.

ManorCare declared bankruptcy in March 2018, i.e. five years ago.  Yet, Carlyle does not show ManorCare on its healthcare portfolio.  The greed and leverage boys hide their losers.

WaPo did an expose on Carlyle's ownership of ManorCare in November 2018.  Former Medicare Chief and ManorCare board member Gail Wilensky profited mightily from Carlyle's purchase.  She served on a "quality" committee post buyout.   It's not clear how her $3.4 million in share proceeds impacted Wilensky's service on the quality committee.  It certainly raised questions as to her level of independence.

That committee had nothing to say on Carlyle's financial schemes or operational squeezing that choked the life out of ManorCare. 

If Carlyle couldn't take care of society's most vulnerable, why should they be allowed to buy critical healthcare companies for the sole purpose of flipping them for grand returns?   Because elected officials serve the policy making billionaire class, not the average citizen.

Politicians Red and Blue love PEU and increasing;y, more are one.