Fresenius to Acquire Euromedic's Dialysis Service Business
The transaction remains subject to necessary regulatory approvals by the relevant anti-trust authorities and is expected to close in the first half of 2011.
Euromedic has decided to prioritize its investments in the diagnostics and cancer treatment fields. Fresenius Medical Care is taking advantage of this opportunity to expand its activities in the dialysis care market, especially in Eastern Europe.
On completion, the acquired operations will add approximately $180m in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.
The purchase price will be E485m. The transaction will be financed initially from cash flow from operations and available borrowing capacity. After closing, Fresenius Medical Care expects to refinance the acquisition on a long-term basis.
Ben Lipps, CEO of Fresenius Medical Care, said: â€œEastern Europe is a key component of our overall growth strategy, and we are convinced that Euromedicâ€™s clinic network will be an excellent fit with those of Fresenius Medical Care.
â€œBringing together the experienced teams of both companies and our focus on high-quality patient care will give us a unique opportunity to meet the growing needs of the public sector in these fast-growing markets.â€
Richard di Benedetto, CEO of Euromedic, said: â€œWe are very proud of what we have built up in the dialysis services space. We strongly believe that Fresenius Medical Care will be an excellent home for IDC and will enable IDC to build on its current strength across Eastern Europe and to continue its longstanding track record of success.â€
Will the acquisition benefit Fresenius Medical?
Have your say and discuss with your peers on the InfoGrok community.
Participate by posting your comments now.