Masimo Sells Non-Core Businesses for $1.075B

TL;DR

Masimo selling off consumer stuff for $1.075B to focus on medical tech.

AI Summary

Masimo Corporation announced on June 5, 2024, that it has entered into a definitive agreement to sell its Non-Core Businesses to an affiliate of Cerberus Capital Management, L.P. for $1.075 billion in cash. This transaction is expected to close in the third quarter of 2024, subject to customary closing conditions. The sale includes Masimo's Consumer Healthcare business, which encompasses a range of consumer health products.

Why It Matters

This significant divestiture allows Masimo to focus on its core medical technology business and improve its financial flexibility, potentially leading to strategic reinvestment or debt reduction.

Risk Assessment

Risk Level: medium — The sale price is substantial, but the success of the integration and the impact on Masimo's future growth strategy carry inherent risks.

Key Numbers

• $1.075B — Sale Price (Cash proceeds from the sale of Non-Core Businesses.)

Key Players & Entities

• Masimo Corporation (company) — Seller
• Cerberus Capital Management, L.P. (company) — Buyer's affiliate
• $1.075 billion (dollar_amount) — Sale price
• June 5, 2024 (date) — Agreement date
• third quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value MASI The Nasdaq Stock Mar

Filing Documents

• ea0207499-8k_masimo.htm (8-K) — 27KB
• image_001.jpg (GRAPHIC) — 4KB
• 0001213900-24-050527.txt ( ) — 204KB
• masi-20240605.xsd (EX-101.SCH) — 3KB
• masi-20240605_lab.xml (EX-101.LAB) — 33KB
• masi-20240605_pre.xml (EX-101.PRE) — 22KB
• ea0207499-8k_masimo_htm.xml (XML) — 3KB

01. Other Events

Item 8.01. Other Events As previously disclosed, on February 14, 2024, Masimo Corporation ("Masimo") initiated a voluntary recall of select Rad-G products in connection with an issue that can result in an unintentional change in the power state of the device. Masimo previously reported that in the first quarter of 2024, it received a subpoena from the Department of Justice ("DOJ") seeking documents and information related to Masimo's Rad-G and Rad-97 products, including information relating to complaints surrounding the products and Masimo's decision to recall the Rad-G, and a civil investigative demand from the DOJ seeking documents and information related to customer returns of its Rad-G and Rad-97 products, including returns related to its recall of select Rad-G products in 2024. At an investor conference on June 5, 2024, in response to a panelist's question, a representative of Masimo made certain statements about the product recall. Masimo is hereby correcting the statements by clarifying that approximately 7,350 Rad-G units sold in the U.S. are subject to the recall, and approximately 20,250 Rad-G units sold outside the U.S. are subject to the recall. Masimo will continue to cooperate with the government in connection with responding to the subpoena and the civil investigative demand and any related investigation or any other future requests for information, but makes no statement about the resolution of the government's review or the timing thereof.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) The following item is filed as an exhibit to the Current Report on Form 8-K. Exhibit No. Description 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 1

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Masimo Corporation has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MASIMO CORPORATION Date: June 7, 2024 By: /s/ MICAH YOUNG Micah Young Executive Vice President & Chief Financial Officer (Principal Financial Officer) 2

View Full Filing

View this 8-K filing on SEC EDGAR