Fresenius buys US provider Renal for USD 3.5bn
4 May 2005, BAD HOMBURG - German dialysis services company Fresenius Medical Care announced on Wednesday that it has reached terms to acquire the US company Renal Care Group Inc. for USD 3.5 billion (EUR 2.7 billion).
4 May 2005
BAD HOMBURG - German dialysis services company Fresenius Medical Care announced on Wednesday that it has reached terms to acquire the US company Renal Care Group Inc. for USD 3.5 billion (EUR 2.7 billion).
The company said the definitive agreement to pay USD 48 (EUR 37) per share for all outstanding shares in Renal would be financed through borrowing. The offer represents a 22 percent premium over Renal's share price on Tuesday.
FMC called Renal Care Group, based in Nashville, Tennessee, a "fast-growing, highly profitable dialysis service provider that will be an attractive complement to Fresenius Medical Cares US business".
Renal Care Groups revenues in 2004 came to around USD 1.35 billion (EUR 1.04 billion), with pre-tax earnings of USD 254 million (EUR 196 million) and net income of USD 122 million (EUR 94 million). The company now owns more than 425 dialysis clinics and serves over 30,400 patients.
Combined with Renal's revenues, FMC's pro-forma turnover amounts to around EUR 7.5 billion (EUR 5.8 billion) and more than 156,000 patients served in some 2,000 clinics around the world, FMC said.
"This acquisition solidifies Fresenius Medical Care's position as the leader in dialysis services in the US, " said Fresenius chief executive Ben Lipps.
"With its service network, Renal Care Group provides an excellent strategic and geographic fit to Fresenius Medical Care's operations in the world's largest dialysis market. We are convinced that this acquisition will enhance the company's growth prospects and profitability," he added.
Renal Care chief executive Gary Brukardt said the deal "clearly gives us an opportunity to create a superior platform for innovation in the delivery of services and products and will further enhance the lives of patients entrusted to our care".
FMC said it expects to complete the acquisition during the second half of 2005.
Subject: German news