BAD HOMBURG - Fresenius Medical Care (NYSE:FMS) AG, a global leader in renal care services and products, has reached an agreement to sell its dialysis clinic networks in four Latin American countries to DaVita (NYSE:DVA) Inc. for $300 million. The divestiture includes clinics in Brazil, Colombia, Chile, and Ecuador, and is part of the company's ongoing efforts to optimize its portfolio.
The transaction encompasses 154 dialysis clinics, over 7,100 employees, and serves more than 30,000 patients. In 2023, these operations generated approximately EUR 370 million in pro-forma revenue. However, the sale is expected to result in a net book loss estimated at EUR 200 million for Fresenius in the full year of 2024, with around EUR 140 million impacting the first quarter. This will be recorded as a special item in the company's operating income.
DaVita Inc ., a leading provider of kidney care services in the United States, will be expanding its international presence through this acquisition. The completion of the sale is subject to regulatory approvals in the respective countries and is anticipated to occur progressively throughout 2024.
Fresenius Medical Care's CEO, Helen Giza, expressed gratitude to the staff in the affected regions for their dedication to providing high-quality care. The company expects to use the net cash proceeds, which are estimated to be around EUR 250 million after considering exchange rates, to reduce its debt.
The broader portfolio optimization plan by Fresenius, which includes these transactions, is projected to have a negative impact of approximately EUR 230 million on the company's full-year 2024 financials, with around EUR 145 million affecting the first quarter.
Fresenius Medical Care operates a global network of dialysis clinics and is also a leading provider of dialysis products. The company's shares are traded on the Frankfurt Stock Exchange (FME) and the New York Stock Exchange (FMS).
This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Factors that could cause actual results to differ include changes in economic conditions, regulatory approvals, foreign exchange fluctuations, and other risks outlined in Fresenius Medical Care's filings with the U.S. Securities and Exchange Commission.
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