BAD HOMBURG, Germany—Fresenius Medical Care announced Jan. 4 that it has acquired International Dialysis Centers, which is Euromedic International’s dialysis service business for €485 million.
Euromedic has decided to prioritize its investments in the diagnostics and cancer treatment fields, according to Fresenius, which is taking advantage of this opportunity to expand its activities in the dialysis care market, especially in Eastern Europe.
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.
On completion, the acquired operations will add approximately $180 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.. The transaction will be financed initially from cash flow from operations and available borrowing capacity. After closing, Fresenius expects to refinance the acquisition on a long-term basis.
IDC currently treats more than 8,200 hemodialysis patients predominantly in Central and Eastern Europe and operates a total of 70 clinics in nine countries.
“Eastern Europe is a key component of our overall growth strategy, and we are convinced that Euromedic’s clinic network will be an excellent fit with those of Fresenius Medical Care,” said Ben Lipps, CEO of Fresenius. “Bringing 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.”
