Shares of Baxter International Inc. BAX rose 1.2% in premarket trading Monday, after the health care products company announced an agreement to divest its BioPharma Solutions business to private-equity investor Advent International and Warburg Pincus. Under terms of the agreement, Baxter will receive $4.25 billion in cash, which the company plans to use to pay down debt. The company expects the deal, which is expected to close in the second half of 2023, to reduce fourth-quarter earnings by about 10 cents a share. “Today represents an important step in Baxter’s ongoing transformation journey as we continue to execute against our strategic priorities, enhance our focus and create additional value for all our stakeholders,” said Baxter Chief Executive Officer José Almeida. Baxter had said in February that it was planning a “series of changes” to “meaningfully simplify” operations, a plan that included the January announcement that it was spinning off its Renal Care and Acute Therapies businesses. Baxter’s stock has dropped 8.5% year to date, and tumbled 36.0% over the past 12 months, while the S&P 500 SPX has gained 7.5% this year and edged up 0.1% over the past year.
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