MINNEAPOLIS—Medtronic is selling its business that makes heart monitors and external defibrillators to Bain Capital for $487 million in cash, the company said Thursday.
Physio-Control also produces external defibrillators, a chest compression system, and data management devices. The division reported $103 million in revenue during Medtronic's first quarter, which represented less than 5 percent of the company's cardiac and vascular revenue and about 2.5 percent of its total sales. The business had $425 million in revenue in each of the company's last two fiscal years.
Medtronic and Bain Capital LLC said the sale should close by March. Medtronic plans to use some of the proceeds from the sale to counteract any reduction in its fiscal-year profit.
Physio-Control is based in Redmond, Wash., and it has close to 1,000 employees. The companies said division president Brian Webster will stay with the company and will be named CEO.
Medtronic Inc. is the world's largest medical device company. It is scheduled to report its fiscal second-quarter results Tuesday. Its shares lost 59 cents to $33.67 in afternoon trading as part of a broader market sell-off.