Fresenius to Acquire Renal Care for $3.5 Billion

In a move to enhance the company's growth, Fresenius Medical Care AG (Bad Homburg, Germany) has agreed to acquire Renal Care Group, Inc. (Nashville, TN, USA) for U.S.$3.5 billion in cash.

Renal Care Group is a dialysis service provider that owns more than 425 dialysis clinics and serves more than 30,000 patients in the United States. The company had sales of $254 million in 2004, with 43% of its revenues coming from private payors. Fresenius, the world's largest provider of dialysis products and services, serves 125,900 dialysis patients. The company owns dialysis clinics in North America, Europe, Latin America, and Asia-Pacific. Fresenius is also the world's leading provider of dialysis products, such as hemodialysis machines, dialyzers, and related disposables.

"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,” observed Ben Lipps, CEO of Fresenius. "We are convinced that this acquisition will enhance the company's growth prospects and profitability.”

"We are very pleased with this arrangement,” commented Gary Brukardt, president and CEO of Renal Care Group. "Both companies, Renal Care Group and Fresenius Medical Care, have three key assets in common: a strong commitment to continuous quality improvement, dedicated and highly motivated people, and experienced and visionary management teams.”





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