Medtronic Expands Board, Seeks M&A Opportunities After Elliott Investment Management Engagement

Medtronic has agreed to expand its board of directors in response to engagement with Elliott Investment Management. The move aims to explore cost-cutting measures and tuck-in M&A opportunities. Two new independent directors with medical technology experience will be added, and two focused board committees will be formed. Elliott believes Medtronic is poised for accelerated growth and strategic clarity.

Medtronic has agreed to expand its board of directors and form two focused committees to explore cost-cutting measures and tuck-in M&A opportunities, following a constructive dialogue with Elliott Investment Management. The move comes as Elliott, now one of Medtronic's largest investors, believes the company is poised for accelerated growth and strategic clarity.

Two new independent directors with extensive medical technology experience have been appointed to the board. John Groetelaars, former CEO of Hillrom and Dentsply Sirona, and Bill Jellison, previously CFO of Stryker and board member at Masimo, will join the board effective immediately [1]. The new directors will serve on one or both of the two new committees, which will focus on growth and operations.

The growth committee will consider possible acquisitions, R&D investments, and divestitures, including the planned separation of Medtronic's diabetes unit. The operations committee will evaluate potential efficiencies and ways to simplify the global manufacturing and supply chain. Both committees will be chaired by Medtronic's CEO, Geoff Martha [1].

Elliott Partner Marc Steinberg stated that the decision to become one of Medtronic's largest investors was driven by the conviction that the company is entering a new chapter of value creation. "We believe Medtronic's recent innovations in some of the medical technology sector's most attractive markets have positioned the company for an inflection in organic growth," Steinberg said [1].

Medtronic's second-quarter earnings report showed revenue of $8.58 billion, up 8.4% year-over-year, with strong performance across its cardiovascular, neuroscience, medical surgical, and diabetes business portfolios [2]. The company also raised its 2026 earnings-per-share guidance to about 4.5%, up from the previous projection of 4% [2].

The appointments and committee formations come as Medtronic looks to reshape itself, including through the planned spinout of its diabetes division and the potential exit of its acute care and patient monitoring segments [3].

References:
[1] https://www.fiercebiotech.com/medtech/medtronic-expands-board-chase-ma-efficiencies-activist-investor-takes-stake
[2] https://menafn.com/1109947570/Medtronic-Appoints-New-Directors-After-Elliott-Becomes-Major-Investor-Company-Hikes-FY26-Guidance-After-Q1-Beat
[3] https://www.investing.com/news/company-news/medtronic-appoints-new-directors-forms-committees-to-boost-strategy-93CH-4199665