Fresenius Buys Fenwal in Billion-Dollar Deal
Posted on July 25, 2012 @ 12:53 pm
Despite trouble in its attempt at a takeover of Rhoen-Klinikum, Fresenius SE has succeeded in a whopping $1.1 billion acquisition of blood collection equipment company Fenwal Holdings. The deal combines Fresenius’ European supplier of blood bags and filters Fresenius Kabi with the Lake Zurich, Ill.-based Fenwal, giving Fresenius further global reach. The transaction is expected to close by the end of the year.
The $1.1 billion valuation was revealed by anonymous sources, but the neither company has confirmed that number. However, Fresenius has announced that despite this deal, the company still has enough financial power for its desired takeover of German coalition of hospitals and clinics Rhoen-Klinikum.
"Fenwal has built a leadership position centered on separation technology used to collect and process blood and to treat disease," said Rainer Baule, chairman and CEO of Fresenius Kabi. "Like Fresenius Kabi, Fenwal has a unique and long history serving health care, productive relationships with customers and researchers, and a rich pipeline of new products that are essential to patients and those who care for them."
Fenwal is embracing the merger. Said the company’s President and CEO Ron Labrum, “The products, services, technologies and cultures of both companies fit extremely well together."
Although Fresenius seems to be regrouping before it attempts the takeover of Rhoen-Klinikum again, the Chicago Tribune reports that the company may settle for controlling a voting stake of 50 percent plus one share.
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