Baxter Sells Transfusion Unit

The deal is worth $540 million.
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Baxter International

(BAX) - Get Report

is selling its transfusion business for $540 million to a group that includes private equity firm Texas Pacific.

Texas Pacific and Maverick Capital will acquire the assets of Baxter's Transfusion Therapies group, including its manual and automated blood-collection products and storage equipment, as well as five international manufacturing facilities.

"This decision is one that comes after months of strategic and financial reviews of our business portfolio," said Robert Parkinson Jr., chairman, president and CEO of the medical-supplies maker. "

This divestiture allows us to increase our focus and investment on businesses with more long-term strategic value for Baxter's shareholders."

Pending regulatory approvals and other customary closing conditions, the transaction should be complete by the first quarter of 2007.

Shares of Baxter were up 24 cents, or 0.5%, to $45.42.