07.01.06
$2.5 Billion ($41.3B Total)
Key Executives:
Dr. Ben Lipps, Chairman and CEO
Dr. Emanuele Gatti, CEO, Europe, Latin America, Middle East and Africa
Roberto Fuste, CEO, Asia-Pacific
Rice Powell, Co-CEO, North America and President, Products and Hospital Group
Mats Wahlstrom, Co-CEO, North America and President, Medical Services
No. of Employees: 47,521
World Headquarters: Bad Homburg, Germany
Dialysis product giant Fresenius Medical Care continues to break its own records, having experienced $6.8 billion in sales in 2005, a 9% increase over 2004; net income also broke records with a 17% increase to $472 million. Further on the rise, dialysis product revenue, including sales to the company’s own clinics, rose 10% to $2.5 billion, compared to $2.2 billion in 2004. It appears that the company’s goal of reaching $8 billion by the end of 2006 is attainable.
Fresenius underwent an influential change to its structure in 2005 as it voluntarily converted Fresenius Medical Care preference shares into ordinary shares, and additionally changed the legal form of the company from AG to KGaA. (A Kommanditgesellschaft auf Aktien is a partnership limited by shares, an entity with its own legal identity with two groups of shareholders.) The moves are expected to improve the liquidity and financial flexibility to take advantage of future growth opportunities.
In line with its aforementioned 2005 success, Fresenius has had a good start in 2006. Net revenues for for the first quarter increased 9%, to $1.7 million, and net income grew 8% to $116 million. Dialysis Services and Product revenue grew by 9% and 6%, respectively.
Thus far this year, however, the company’s biggest news was that it had completed its largest acquisition to date when it purchased the Renal Care Group (Nashville, TN) for $3.5 billion. As a stipulation of the deal, 105 dialysis centers were divested to DSI Holding Company, which garnered Fresenius $511 million in cash.
“We are very pleased to complete the acquisition of Renal Care Group, and this is a milestone for our company,” said Ben Lipps, Fresenius CEO. “As we combine the best of both companies, we do so for the benefit of all—patients, employees, physicians, customers and shareholders.”
With this transaction, Fresenius now owns and operates approximately 1,500 dialysis clinics in North America, serving approximately 115,000 patients. Gary Brukardt, Renal Care Group’s president and CEO, joined Fresenius and was appointed as a member of the management board of Fresenius Medical Care AG.
Nearly a year before the Renal Care Group acquisition, in April 2005 Fresenius purchased Haemotec, Inc., a Quebec, Canada-based manufacturer of hemodialysis concentrates. The company is a market leader in Canada, having captured more than 40% market share in the hemodialysis segment.
Much of the company’s success achieved in 2005 was attributed to the introduction of the 5008-series dialyzer machines in Europe, Asia and the Middle East in the second half of the year. Designed as a replacement to the 4008 series, the 5008 will build on the previous model’s market base and good reputation. With the 5008 series, the company expects to grow faster in the machine business than the dialysis market, which expands at an average of 7%. In January 2006, the 5008 beat 220 other company submissions to win the 26th German Business Innovation Award.
In its quest for continued growth, in March 2006 Fresenius Medical Care announced the expansion of its Ogden, Utah production facility to increase production capacity from 27 million to more than 33 million dialyzers annually.
Fresenius is looking to reach $10 billion in revenue by 2010, which corresponds with an annual growth rate of 8%. The company is looking to achieve growth organically (in dialysis care) and through acquisitions, horizontal expansion (dialysis medication) and home therapies.
Key Executives:
Dr. Ben Lipps, Chairman and CEO
Dr. Emanuele Gatti, CEO, Europe, Latin America, Middle East and Africa
Roberto Fuste, CEO, Asia-Pacific
Rice Powell, Co-CEO, North America and President, Products and Hospital Group
Mats Wahlstrom, Co-CEO, North America and President, Medical Services
No. of Employees: 47,521
World Headquarters: Bad Homburg, Germany
Dialysis product giant Fresenius Medical Care continues to break its own records, having experienced $6.8 billion in sales in 2005, a 9% increase over 2004; net income also broke records with a 17% increase to $472 million. Further on the rise, dialysis product revenue, including sales to the company’s own clinics, rose 10% to $2.5 billion, compared to $2.2 billion in 2004. It appears that the company’s goal of reaching $8 billion by the end of 2006 is attainable.
Fresenius underwent an influential change to its structure in 2005 as it voluntarily converted Fresenius Medical Care preference shares into ordinary shares, and additionally changed the legal form of the company from AG to KGaA. (A Kommanditgesellschaft auf Aktien is a partnership limited by shares, an entity with its own legal identity with two groups of shareholders.) The moves are expected to improve the liquidity and financial flexibility to take advantage of future growth opportunities.
In line with its aforementioned 2005 success, Fresenius has had a good start in 2006. Net revenues for for the first quarter increased 9%, to $1.7 million, and net income grew 8% to $116 million. Dialysis Services and Product revenue grew by 9% and 6%, respectively.
Thus far this year, however, the company’s biggest news was that it had completed its largest acquisition to date when it purchased the Renal Care Group (Nashville, TN) for $3.5 billion. As a stipulation of the deal, 105 dialysis centers were divested to DSI Holding Company, which garnered Fresenius $511 million in cash.
“We are very pleased to complete the acquisition of Renal Care Group, and this is a milestone for our company,” said Ben Lipps, Fresenius CEO. “As we combine the best of both companies, we do so for the benefit of all—patients, employees, physicians, customers and shareholders.”
With this transaction, Fresenius now owns and operates approximately 1,500 dialysis clinics in North America, serving approximately 115,000 patients. Gary Brukardt, Renal Care Group’s president and CEO, joined Fresenius and was appointed as a member of the management board of Fresenius Medical Care AG.
Nearly a year before the Renal Care Group acquisition, in April 2005 Fresenius purchased Haemotec, Inc., a Quebec, Canada-based manufacturer of hemodialysis concentrates. The company is a market leader in Canada, having captured more than 40% market share in the hemodialysis segment.
Much of the company’s success achieved in 2005 was attributed to the introduction of the 5008-series dialyzer machines in Europe, Asia and the Middle East in the second half of the year. Designed as a replacement to the 4008 series, the 5008 will build on the previous model’s market base and good reputation. With the 5008 series, the company expects to grow faster in the machine business than the dialysis market, which expands at an average of 7%. In January 2006, the 5008 beat 220 other company submissions to win the 26th German Business Innovation Award.
In its quest for continued growth, in March 2006 Fresenius Medical Care announced the expansion of its Ogden, Utah production facility to increase production capacity from 27 million to more than 33 million dialyzers annually.
Fresenius is looking to reach $10 billion in revenue by 2010, which corresponds with an annual growth rate of 8%. The company is looking to achieve growth organically (in dialysis care) and through acquisitions, horizontal expansion (dialysis medication) and home therapies.