Fresenius Medical Care (NYSE: FMS) said Tuesday it has bought Euromedic International's dialysis business for EUR485 million.
International Dialysis Centers, as the unit is called, operates a total of 70 clinics in nine countries. It currently treats over 8,200 dialysis patients mainly in Central and Eastern Europe, an area Fresenius Medical Care sees as a key component to its overall growth strategy.
Fresenius Medical Care already operates 2,716 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa.
Fresenius Medical Care said it will use its cash flow and borrowing capacity to finance the acquisition, which is expected to add $180 million in annual revenue and be accretive to Fresenius Medical Care’s earnings in the first year after closing.
Based in Budapest, Hungary, Euromedic International owns and operates 140 medical centers across Eastern Europe. Among its owners are private equity firms Ares Life Sciences, Montagu Private Equity, and Merrill Lynch Global Private Equity, the private equity arm of Merrill Lynch.
The deal, subject to regulatory approvals, is expected to close in the first half of 2011.