American healthcare company DaVita is set to expand its presence in the Latin American market with a $300m deal, which involves four separate acquisitions of Fresenius Medical Care entities.
Fresenius Medical Care is a provider of dialysis products and services.
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It has a network of 3,925 dialysis clinics catering to nearly 333,000 patients globally.
The latest deals include a total of 154 dialysis clinics and 7,100 employees, catering to around 30,000 dialysis patients. Last year, these operations reported pro-forma revenues of €370m ($401m).
For Fresenius, these transactions represent a key milestone in its portfolio optimisation programme and could lead to the company incurring a net book loss of nearly €200m in the full year 2024, including almost €140m in the first quarter of 2024.
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Fresenius expects net cash proceeds of €250m from these deals in 2024 and will use the proceeds to pay down debt.
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By GlobalDataThis move will mark DaVita’s entry into Chile and Ecuador while bolstering its international footprint in Brazil and Colombia.
DaVita has already finalised the transaction in Chile, effective 5 March.
Meanwhile, the other three acquisitions in Ecuador, Colombia and Brazil are currently pending regulatory approvals, as well as those from respective antitrust authorities.
The three deals are expected to close at different times throughout 2024.
Upon completion, DaVita will significantly increase its Latin American operations and have nearly 15,000 teammates dedicated to providing clinical care to more than 60,000 patients across over 270 clinics.
This growth will position DaVita as the largest dialysis services provider in the region, a substantial leap from serving 23,000 patients in 2017 to a projected 79,000 patients post-acquisition.
Besides, the four deals are also in line with DaVita’s existing disciplined investment strategy.
Fresenius Medical Care CEO Helen Giza said: “We continue to move at pace in optimising our portfolio, to reduce complexity and improve profitability. This is a key element of our transformational journey.”
DaVita International president Robert Lang added: “We look forward to building on our existing market expertise and the established quality of these centres through this transition.”
