Medtronic has unveiled plans to separate its combined Patient Monitoring and Respiratory Interventions businesses (NewCo).

The businesses are part of the Medical Surgical Portfolio of Medtronic.

The company has taken this decision in order to create value for all of its stakeholders and focus more on strategic priority areas as well as execute its leadership strategy in the medtech markets that leverage its strengths.

After the separation of NewCo, Medtronic is expected to have a more streamlined portfolio and modestly faster organic revenue growth, as well as an improved balance sheet.

Medtronic believes that the new entity will help deliver expanded value creation through global scale and commercial reach along with connected care solutions.

The Patient Monitoring technology portfolio will consist of Nellcor pulse oximetry, Microstream capnography, BIS brain monitoring, INVOS perfusion monitoring and HealthCast connected care solutions.

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The Respiratory Interventions technology portfolio will comprise Puritan Bennett ventilators, Shiley airway portfolio, McGrath MAC video laryngoscopy and DAR breathing systems, as well as the PAV+, NIV+ and IE Sync ventilation software solutions.

Medtronic chairman and CEO Geoff Martha said: “We are executing on our portfolio management strategy, taking action to create value for Medtronic and our shareholders.

“This separation will allow Medtronic to focus our company and our capital on opportunities better aligned with our long-term strategies to accelerate innovation-driven growth and will position NewCo to unlock value.”

“Independently, NewCo will be a leading connected care company with a compelling leadership position, attractive margins, and potential for growth acceleration with increased investment and dedicated capital allocation.”

Subject to the satisfaction of closing conditions, Medtronic plans to conclude the separation in the next 12 to 18 months.

The conditions include securing final approval from the Medtronic board of directors, receipt of tax opinions and other regulatory approvals.