Medtronic announces the intention of separating diabetes transactions

Enables intensive focus on the highest margin growth drivers in which Medtronic has leading core competencies

Leading, scaled, directly to consumer diabetes business to become an independent company; The only company with a complete ecosystem to combat intensive insulin management

Galway, IrelandPresent May 21, 2025 / Prnewswire/ – Medtronic PLC (NYSE: MDT), a worldwide leading provider of health technology, announced his intention to separate his diabetes business into a new independent company (“New Diabetes Company”). This strategic decision for both Medtronic and the new company with the new diabetes will create a more focused Medtronic with a simplified portfolio in high margin growth markets. At the same time, it will create an independent, scaled leader in diabetes, who focuses on the acceleration of innovations and is the only company to be differentiated that commercializes a complete ecosystem that deals with intensive insulin management.

The separation is expected to be completed within 18 months by a number of capital market transactions, with a preferred path of a first IPO (IPO) and then divided. The separation is expected to unlock the value for Medtronic and its shareholders, as it creates a new diabetes shareholder base, which is more aligned with its financial profile, and is expected to exceed the Medtronic gross margin, the operating range and the result per share (EPS).

Medtronic
Medtronic, a leading global provider of Medtech, has leading franchise companies in attractive Medtech markets. After this separation, it will focus even more on the innovation -driven growth and category leadership for health systems and customers of doctors. Medtronic took measures with decisive ongoing portfolio management and capital allocation in order to shift more to the highest profitable growth drivers that are bound to its core strengths. The company builds dynamics with its growth strikers, promotes its innovation pipeline and “at the moment” product introductions, including the most powdered field debt, kidney service, implantable tibia neuromodulation and soft tissue robot. After the separation, Medtronic will have an improved advantage of its scale and strategic synergies for commercial, production and technology synergies. In combination, it is expected that these permanent, medium digits or higher organic sales growth growth and profit management are expected.

New diabetes company
The New Diabetes Company will be a leading, scaled direct-to-consumer diabetes business, which is the only company that is the only company that is a complete intensive insulin management ecosystem commercialized with freedom of forgetting diabetes and leading their best life. This separation is expected to enable more focused investments in the pipeline of the new diabetes company as well as the manufacturing scale and automation, whereby the company is positioned for success in automated insulin delivery and intelligent MDI and at the same time drives the expansion of the margin over time. The independent new diabetes company will be organized by a shareholder base with its business and financial profile.

The diabetes company is currently a team of more than 8,000 employees worldwide with global commercial footprint and committed innovations, production, clinical and quality systems. Que Dallara, current EPP and President of Medtronic Diabetes, becomes CEO of the New Diabetes Company.

“This marks a significant milestone in order to drive both Medtronic and the diabetes company in order to achieve a permanent value for Medtronic, our shareholders, customers and patients,” said Geoff MarthaChairman and CEO of Medtronic. “Active portfolio management is an important lever for the provision of our continued growth and success, and this decision changes the Medtronic portfolio to our highest marginal growth drivers, where we have our strongest core competencies.” The globe. “

“I am incredibly grateful for his vision and his commitment to invest in the diabetes business – we would not be where we are without his unshakable support,” said Dallara. “While we embark on this exciting new chapter, we celebrate the tireless efforts and commitment of our teams. Your passion and stamina have brought us to this crucial moment. Together we are ready to change life and give people the freedom to forget diabetes and live their best life.”

Financial details
The diabetes business made 8% of the Medtronic turnover in the 2025 financial year and 4% of the operating profit of the Medtronic segment. After completion, the separation is expected that the medtrically adjusted gross parade will improve around 50 basis points by around 100 basis points and immediately adapted to adapted EPS. It is expected that the separation offers the possibility of retiring Medtronic shares without reducing cash, which leads to EPS acceleration and a reduction in dividend liability for Medtronic, which means that increased growth acriots can be invested. Medtronic expects his dividend to remain unchanged per share per share without changing the dividend policy before and after the transaction.

Transaction details
The separation of capital markets will create an independent, listed company. The preferred path of the company for the separation is a IPO of the new diabetes company with a subsequent split. It is expected to use the new diabetes company appropriately and offer the opportunity to retire shares in Medtronic. The separation for Medtronic shareholders for US federal income tax purposes is generally expected. The separation includes the diabetes business employee, the product portfolio, the pipeline, intellectual property, the strategic partnerships and the global production facilities.

Medtronic is aimed at completion of the planned separation within 18 months, subject to favorable conditions, including favorable market conditions, consultations with work councils and other representatives of the employees, the final approval of the Medtronic Board of Directors, the input of a favorable statement on the tax-free type of transaction for US federal income tax purposes and receipt of the applicable regulating Regulatory systems.

Goldman Sachs & Co. LLC and Bofa Securities, Inc. act as a financial advisor for Medtronic in the review of strategic alternatives for the new diabetes company. Cleary Gottlieb Steen & Hamilton LLP and Baker McKenzie act as a legal advisor, and skadden, arps, slate, Meagher & Flom LLP act as special tax consultants for Medtronic and act Davis Polk & Wardwell LLP acts as the legal advisor for the financial advisor.

presentation
A presentation with details on the proposed separation can be viewed by clicking on the quarterly pay link at investorelations.medtronic.com. Click here to display a PDF of the separation presentation.

Video -Webcast information
Medtronic will host a video webcast today. May 21at 8:00 a.m. Edt ((7:00 a.m. CDT) To discuss this planned separation together with the fourth quarter and the 2025 financial year. This webcast can be accessed by clicking on the quarterly winning symbol at investorelations.medtronic.com. Within 24 hours after the webcast, a repetition of the webcast and the copy of the prepared remarks of the company will be available by clicking on the past events and presentations under the dropdown news & events at investorelations.medtronic.com.

About Medtronic
Brave thinking. Courageous actions. We are medtron. Medtronic PLC, headquarters in Galway, Irelandis the leading global health technology company that bravely attacks the most difficult health problems for humanity by searching and finding solutions. Our mission – relieve pain, restore health and extend life – combines a global team of more than 95,000 passionate people in more than 150 countries. Our technologies and therapies treat 70 health conditions and include heart devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems and more. We will provide innovative technologies from our diverse knowledge, insatiable curiosity and the desire to help all those who change the life of two people every second, every hour, every day. Expect more from us when we enable the inspection, experience that people bring in the first place and better results for our world. In everything we do, we develop the extraordinary. Further information on Medtronic (NYSE: MDT) can be found at www.medtronic.com and follow under LinkedIn.

Prevention measures in relation to future -oriented statements
This press release contains forward-looking statements with the meaning of the private securities litigation reform act of 1995, which are subject to risk and uncertains, including risk related to medtronic’s ability the Necessary Conditions to consummation of it diabetes Business on a timely base or at all, Medtronic’s Ability to Successfully Separate Its Diabetes Business and Realize the Anticipated Benefits From The Separation (Including Consumming The Transaction on A Basis that General Tax-Free to Shareholder), New Diabetes Company’s Ability to Suc ped A Standalone Publicly Traded Company, Competitives Factors, Difficulties and Delays Inherent in the Development, Manufacturing, Marketing and Sale of Medical Products, Government Regulation, Geopolitical Conflicts, Changing Global Trade Policies, General Economic Conditions, and Other Risks and Uncertainties Descredbed in the Company’s Periodic Reports on File with the Us Securities and Exchange Commission Including the Most Recent Annual Report on Form 10-K from the company. In some cases, you can do these statements by future -oriented words or expressions such as “anticipated,” believe “,” “,” estimate “,” expect “,” predict “,” intend to “appreciate”, “may appreciate”, “plan,” possible “,” possible “potential”, “should”, “should”, “sotter”, “expression” and “impression” and “,”, “,”, “,”, “em”, “em” and the expressions “and”, “and the”, “to”-“-antus- and-Annegier- und-Annegier- und-Annegier- und-Annegier- und-Annegier- und-Anlier- und-expression” and “Anger” and “Wut” and “with” and “and” “and” “” “” ” “” “” “” “” “” “” “” “identify. The actual results can differ significantly from the expected results. Medtronic does not undertake to update his future -oriented statements or one of the information contained in this press release, including the reflective future events or circumstances. While a gap is the current preferred separation structure, this was not Final decision is made.

Contacts
Erika Winkels
Public relations
+1-763-526-8478

Ryan Weispenning
Investor relationships
+1-763-505-4626

Source Medtronic PLC