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Asset sales include a US$300 million, four-country transaction to DaVita Inc.;
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The transaction will further reduce the company’s clinic footprint in Latin America following its exit from Argentina at the end of 2023.
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Scheduled to close in 2024
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The funds raised will be used to reduce debt.
Bad Homburg, March 5, 2024 — Fresenius Medical Care, the world’s leading provider of products and services for individuals with kidney disease, today announced the acquisition of its network of dialysis clinics in Brazil, Colombia, Chile and Ecuador to DaVita Inc. announced that it would be sold. The total transaction value is $300 million. Subject to regulatory approvals in Brazil, Colombia and Ecuador, the transaction marks another milestone in Fresenius Medical Care’s portfolio optimization program, each expected to close in 2024.
“We will continue to accelerate the optimization of our portfolio to reduce complexity and increase profitability. This is a key element of our transformation journey,” said Fresenius Medical Care AG. said Helen Giza, CEO of. “I also wanted to thank our teams in Brazil, Colombia, Chile, and Ecuador for their incredible dedication, passion, and commitment to providing the world-class quality care our patients deserve. ”
These four separate transactions collectively represent 154 dialysis clinics, more than 7,100 employees, and more than 30,000 dialysis patients, with estimated revenues of approximately 100 billion yen. 370 million euros in 2023.
The net book losses related to the four Latin American transactions will have a negative impact on Fresenius Medical Care of approximately EUR 200 million for the full year 2024, of which approximately EUR 140 million in the first quarter of 2024. It is presumed that they will be given special treatment. This is an item of operating income. Depending on exchange rates, the Company expects these transactions to generate net cash proceeds of approximately EUR 250 million in 2024.
All transactions currently concluded as part of our portfolio optimization plan will result in Fresenius Medical Care receiving approximately EUR 230 million for the full year 2024, of which approximately EUR 145 million in the first quarter of 2024. is estimated to have a negative impact and will be addressed. This is recorded as a special item in operating income.
