Baxter Buys Gambro
Posted on December 7, 2012 @ 02:53 pm
Deerfield, Ill.-based Baxter International Inc. has agreed to acquire Gambro AB, expanding its renal therapies portfolio with the Swedish company’s dialysis products. The sale is valued at $4 billion. Gambro is a medical technology company focused on developing, manufacturing and supplying dialysis products and therapies for patients with acute or chronic kidney disease. The acquisition gives Baxter a more comprehensive dialysis product portfolio, complements Baxter’s global home dialysis offerings, and positions the company to better meet the evolving needs of the large and growing dialysis market.
“Baxter has a legacy of innovation in dialysis, including the development of peritoneal dialysis for the treatment of end-stage kidney disease patients in the home. This acquisition further strengthens our global dialysis offerings by extending our portfolio in the hemodialysis segment,” said Robert L. Parkinson Jr., chairman and CEO of Baxter. “This transaction will provide attractive returns and enhance Baxter’s sales and earnings growth over the company’s current long-range financial plan.”
“Both companies have a longstanding heritage in kidney care with innovative technologies and a dedication to saving, sustaining and improving the lives of patients worldwide,” said Guido Oelkers, president and CEO of Gambro. “This acquisition responds to the needs of the nephrology community, healthcare providers and patients seeking a comprehensive dialysis offering of proven products and therapies.”
According to Baxter, more than two million patients globally are on some form of dialysis, with dialysis treatment rates increasing more than 5 percent annually in part due to the rising rates of diabetes and hypertension. Additionally, healthcare providers are seeking comprehensive dialysis offerings, which vary by region, to serve patients based on clinical need, existing infrastructure and reimbursement policy.
Outside of a stronger dialysis market foothold, Baxter will also gain access to Gambros’ significant European market presence in the segment. Gambro also has presence in high-growth regions such as Latin America and the Asia-Pacific, where Baxter has been steadily growing its peritoneal dialysis (PD) business. In addition, Baxter will build upon its pipeline of investigational home HD and automated PD systems by adding Gambro’s technology.
The transaction will be financed through a combination of cash generated from overseas operations and debt. Baxter expects to maintain its current dividend payout ratio of approximately 40 percent. The closing of the transaction is subject to regulatory approvals and other customary closing conditions and is expected to occur in the first half of 2013.
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