Medtronic to add two new directors as Elliott takes major stake
The medical-device maker said veteran med-tech executives John Groetelaars and Bill Jellison would join its board as independent directors.
Medtronic also raised its full-year profit forecast for fiscal 2026 and said it expects a smaller hit of about $185 million from U.S. President Donald Trump's tariffs, versus the $200 million to $350 million it had forecast previously.
Shares of Medtronic, which have risen 16% so far this year, fell 3% in premarket trading.
"Our decision to become one of Medtronic's largest investors was driven by our strong conviction that the company is entering a new chapter of exceptional value creation defined by accelerating growth, operational improvement and enhanced strategic clarity," said Elliott Partner Marc Steinberg.
Elliott has not disclosed the value of its stake in the company and did not immediately respond to a Reuters request for the details.
The Wall Street Journal first reported the news of the board additions on Tuesday.
Medtronic said one of the panels would seek tuck-in mergers and acquisitions, research and development investments and potential divestitures, while the other would look for ways to boost earnings growth.
The committees, to be led by CEO Geoff Martha, will include Groetelaars and Jellison. Groetelaars previously served as interim CEO for Dentsply Sirona (XRAY.O), opens new tab, while Jellison is the former CFO of Stryker (SYK.N), opens new tab.
"We view these changes as an incrementally positive development for Medtronic," Leerink Partners analyst Mike Kratky said in a note, pointing to Elliott's track record of boosting share performance for companies such as Cardinal Health (CAH.N), opens new tab.
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