Medtronic announces intention to separate its combined patient monitoring and respiratory intervention businesses

Medtronic announces intention to separate its combined patient monitoring and respiratory intervention businesses

Separation of Combined Patient Monitoring and Respiratory Interventions Business ("NewCo") Expected to Better Position NewCo and Medtronic for Long-Term Success and Value Creation

Strengthen the strategic and operational priorities of Medtronic and NewCo to meet the needs of their respective patients, physicians, customers and other stakeholders
Advancing Medtronic's portfolio management and capital allocation strategy with a focus on high-growth markets and revenue acceleration
NewCo separation by anticipation of tax-free distributions to Medtronic shareholders for U.S. federal income tax purposes or other alternatives

Medtronic plc, a global leader in healthcare technology, today announced its intention to separate the company's combined Patient Monitoring and Respiratory Interventions business ("NewCo"), which are part of the company's Medical Surgical Portfolio.

"We are executing our portfolio management strategy and taking actions to create value for Medtronic and our shareholders. This separation will allow Medtronic to focus our company and our capital on opportunities that are more aligned with our long-term strategy to Accelerates innovation-driven growth and will position NewCo to unlock value. Independently, NewCo will be a leading connected care company with compelling leadership, attractive profits and acceleration through increased investment and dedicated capital allocation growth potential," said Geoff Martha, Medtronic Chairman and Chief Executive Officer. "Going forward, we will continue to focus on active portfolio management and continue to evaluate potential additions and subtractions to further accelerate Medtronic's long-term growth.

Medtronic - the world's leading healthcare technology company

The decision to seek separation represents an important next step in Medtronic's ongoing portfolio review, demonstrating its commitment to creating value for all stakeholders. The spin-off will allow the company to focus its investments in strategic priority areas and will facilitate the execution of its leadership strategy to leverage the company's strengths in attractive medical technology markets. Following the separation of NewCo, Medtronic will have:

• A leaner portfolio with a greater focus on deploying capital into opportunities that best align with its long-term growth strategy;
• Moderately faster organic revenue growth and higher weighted average market growth rate (WAMGR);
• A strong balance sheet and continued commitment to a strategy that drives durable growth.

NewCo is uniquely positioned to provide a complete suite of connected patient monitoring and respiratory care solutions

NewCo is poised to be the premier partner for connected care solutions, with best-in-class brands and leadership in patient monitoring and critical care:

• The portfolio of patient monitoring technologies includes Nellcor™ pulse oximeters, Microstream™ capnography, BIS™ brain monitoring, INVOS™ perfusion monitoring and HealthCast™ connected care solutions.
• The Respiratory Interventions technology portfolio includes the Puritan Bennett™ Ventilator, Shiley™ Airway Combination, McGrath™ MAC Video Laryngoscope, DAR™ Respiratory System, and PAV+, NIV+ and IE Sync ventilation software solutions designed to improve workflow and care delivery.