Fresenius Medical buys NxStage for $2 billion
The vertically integrated dialysis segment of Fresenius Medical Care AG Co. KGaA will be bolstered, the company said on Monday as it announced it agreed to take over NxStage Medical Inc. from Massachusetts. The deal is worth $2 billion. The management highlighted the potential for positioning in home dialysis and presence in the United States in the area of critical care, alongside strengthening in clinical outcomes and patient empowerment.
The Frankfurt-listed division of Fresenius SE Co. KGaA is acquiring the peer with 3,400 employees, who manufacture medical devices. The target entity had $366 million revenue last year, the statement said. The total price is translated from $30 per common share, financed with cash and debt. The German investor expects the deal to close next year.
"Fresenius Medical Care would like us to continue doing what we do best, and a lot more of it. I strongly believe our opportunities would be greater working together for the benefit of patients, customers and shareholders," said Jeff Burbank, Founder and chief executive of NxStage. Initial net cost synergies potential is estimated to be between $80 million and $100 million before tax over three to five years. Integration costs are seen at $150 million in the first three years, the press release adds.