Fresenius Helios Unit to Acquire Rhoen Hospitals

In a move designed to create Europe’s biggest chain of private hospitals, Fresenius (Bad Homburg, Germany) has agreed to pay Rhoen-Klinikum (RHK; Bad Neustadt, Germany) the sum of EUR 3.07 billion.

The acquisition will make Fresenius Helios, the company’s healthcare arm, the largest private hospital operator in Europe, with 117 hospitals across Germany and nearly EUR 5.5 billion in sales. The purchase adds a further 43 hospitals with a total of approximately 11,800 beds, as well as 15 outpatient facilities. Under the terms of the agreement, The University Hospital Giessen and Marburg, the hospitals in Bad Neustadt (including the RHK headquarters), Bad Berka, and Frankfurt/Oder will remain with RHK. These hospitals will enter into a cooperation agreement with Fresenius, becoming part of a network offering innovative care models across Germany.

The agreement follows a failed 2012 bid to gain at least 90% of RHK share, which was foiled by minority shareholder Asklepios Kliniken (Hamburg, Germany). The new deal, however, is for a smaller portion of the company, and will leave RHK with 5,300 hospital beds, generating about EUR 1 billion in annual revenue. The sale proceeds will enable RHK to repay debt and about EUR 200 million will be left over for investments. RHK is also proposing a special dividend to shareholders of as much as EUR 1.9 billion.

“This compelling transaction provides a unique opportunity to create a nationwide hospital network and to establish Europe’s largest private hospital operator,” said Ulf Mark Schneider, CEO of Fresenius. “The clinics we are acquiring from Rhön-Klinikum are a perfect strategic and geographic fit with Helios’ existing portfolio, and will allow us to develop innovative approaches to health care. We are looking forward to working with the employees of the newly acquired clinics to advance our joint commitment to high-quality patient care.”

“With the support of the supervisory board, we have made a ground-breaking and at the same time extraordinarily sustainable decision. Through its critical mass, the ‘new Rhön’ is well positioned to deliver significant additional medical and economic growth,” said Martin Siebert, MD, PhD, CEO of RHK. “We are starting from a stable earnings position and believe that this can be considerably increased. The ‘new Rhön’ with its unique structure and offering will be even more attractive in the future.”

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Asklepios Kliniken