Accessibility StatementSkip Navigation GALWAY, Ireland, Sept. 29, 2025 /PRNewswire/ -- Medtronic plc (the "Company") (NYSE: MDT) announced today that its wholly-owned indirect subsidiary, Medtronic, Inc., has closed a registered public offering (the "Offering") of €750,000,000 principal amount of 2.950% senior notes due 2030 and €750,000,000 principal amount of 4.200% senior notes due 2045 (collectively, the "Notes"). All of Medtronic, Inc.'s obligations under the Notes are fully and unconditionally guarant ...

Core Insights - Medtronic plans to separate its Diabetes business into a new standalone company, enhancing focus on high-margin growth areas and simplifying its portfolio [1][2][3] - The separation is expected to be completed within 18 months, primarily through an initial public offering (IPO) and subsequent split-off, aimed at unlocking value for shareholders [2][9] - The Diabetes business currently represents 8% of Medtronic's revenue and 4% of its segment operating profit for fiscal year 2025, with anticipated improvements in gross and operating margins post-separation [7] Medtronic's Strategy - Post-separation, Medtronic will concentrate on innovation-driven growth and category leadership in healthcare systems, leveraging its core competencies [3][6] - The company is focusing on its highest profitable growth drivers, including advancements in its innovation pipeline and product launches [3][4] - Medtronic expects durable, mid-single digit or higher organic revenue growth and enhanced earnings leverage following the separation [3] New Diabetes Company - The New Diabetes Company will be a leading direct-to-consumer business, uniquely positioned to offer a complete ecosystem for intensive insulin management [4][5] - The separation will allow for more focused investment in the New Diabetes Company's pipeline and manufacturing capabilities, driving margin expansion over time [4][7] - Que Dallara, the current EVP and president of Medtronic Diabetes, will become the CEO of the New Diabetes Company [5] Financial Implications - The separation is projected to improve Medtronic's adjusted gross margin by approximately 50 basis points and adjusted operating margins by about 100 basis points, with immediate accretion to adjusted EPS [7][8] - The transaction is expected to be tax-free for Medtronic shareholders for U.S. federal income tax purposes, facilitating share retirements without cash reduction [8][9] - Medtronic aims to maintain its dividend per share unchanged pre- and post-transaction, ensuring continued shareholder returns [7]