Investor Warburg Pincus and private equity firm Advent International have bought the contract medical manufacturing unit of Baxter International Inc. for $4.25 billion in cash.

Baxter looks to use the money to reduce its debt, which stood at almost $17 billion at the end of March 2023. The company has also announced a plan to spin off its kidney care unit by the middle of 2024, following a trend of paring down units among other drugmakers including GSK Plc, Pfizer Inc. and Johnson & Johnson. According to Baxter, after-tax proceeds of the transaction, subject to regulatory approvals, are expected to be $3.4 billion, reported Bloomberg News.

Perella Weinberg Partners is serving as financial adviser to Baxter. Moelis & Co. and Truist Securities are serving as financial advisers to Advent and Warburg Pincus.