Germany-based Fresenius Medical Care (FMS), the world’s largest provider of services for dialysis patients, recently announced that it has entered into an agreement with Stockholm-based Gambro AB to purchase the latter’s global peritoneal dialysis (PD) business. Gambro is a global medical technology company with leadership in therapies for kidney and liver dialysis and other therapies for chronic and acute patients.
Fresenius is using this opportunity to expand its activities in the homecare market, especially in the European Union and Asia-Pacific regions. According to the company, the proposed transaction still requires requisite regulatory approvals from concerned antitrust authorities. Once the acquisition is closed, the acquired operations from Gambro will add annual revenue of about $60 million to the top line of Fresenius. The transaction is expected to be accretive to earnings in the first year after closing of the deal.
Fresenius believes that Gambro’s PD operations will synergistically fit-in with its own, as it has always been committed to growing its home therapies business, of which PD is a key component. It is expected that Fresenius, by bringing together skilled PD personnel and expertise from both companies, will further enhance its high-quality patient care. Furthermore, the acquisition will bolster the company’s overseas sales and distribution network in the homecare market.
Fresenius is the number one global provider of products and services for patients undergoing dialysis treatment due to chronic kidney failure, a condition afflicting over 1.89 million individuals worldwide. It generated revenues of $2.9 billion, up 7% year over year, in the second quarter of 2010.
The company operated a network of 2,599 dialysis clinics (up 5% year over year) across North America and overseas markets at the end of the second quarter. It has provided dialysis treatment to 202,414 (up 6%) patients worldwide as of June 30, 2010. Fresenius is also the world’s largest provider of dialysis products.
Fresenius’ primary competitor in the US is DaVita Inc. (DVA), which also provides dialysis services for patients suffering from chronic kidney failure or end stage renal disease.
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