BRENTWOOD, Tenn.—Renal Advantage and Liberty Dialysis have agreed to combine to form the third largest provider of dialysis services in the United States.
The combination will create 5,300 employees serving more than 19,000 patients in 260 locations in 32 states. The transaction—terms of which were not disclosed—is expected to close by Dec. 31, 2010.
The two companies will keep their autonomy, and will continue to operate under their current brand names--Renal Advantage and Liberty Dialysis--in the markets they serve nationwide. The merger creates a shared services organization supporting the two sister companies.
“This merger unites two patient-focused, physician-driven and employee-oriented companies with the autonomy to build their unique brands while taking advantage of the combined financial strength, purchasing power, and systems investment of two leading companies in the dialysis industry,” said Mark Caputo, CEO of Liberty Dialysis. “Our guiding principles of focusing on the patient, partnering with talented nephrologists, and recruiting and retaining the best caregivers allow us to optimize patient outcomes through active participation of both patients and caregivers.”
Liberty was founded in 2002 by Caputo and Bob Santelli in conjunction with Bain Capital and has more than 112 dialysis clinics.
“In this changing healthcare environment, we are very excited about joining with Liberty Dialysis and combining the robust growth that RAI and Liberty have achieved during the past five years,” said Michael D. Klein, CEO of RAI. “Our two philosophically aligned cultures will enable us to generate valuable synergies while allowing our exceptional teams to remain nimble and responsive to our customers.”
RAI has 150 dialysis clinics treating more than 12,000 patients in 150 dialysis centers in 19 states. RAI also advances laboratory services through RenaLab. The company was founded in 2005 after veteran healthcare executives in partnership with Welsh, Carson, Anderson & Stowe acquired 73 dialysis centers.
“Our management teams have known each other for years, building consensus on numerous public policy issues,” Caputo added. “Our full expectation is that our teams will continue to work well together in the years to come.”
RAI is moving into a new 54,000 square foot office building in the McEwen Building in Franklin, Tenn., a suburb of Nashville. RAI will consolidate its existing corporate offices into this one location. Liberty’s existing administrative offices in conjunction with RAI’s will form a shared services organization supporting the two sister companies.
