Renal Care Group bought for $3.5 billion

News

Fresenius Medical Care, the world’s largest provider of dialysis products, is to acquire the Renal Care Group for $3.5 billion.

Germany

’s Fresenius Medical Care, the world’s largest provider of dialysis products and services, has entered into an agreement to acquire Renal Care Group,

Nashville, Tennessee

, for $48.00 per share in cash.

The total net consideration for the acquisition of all outstanding shares of Renal Care Group is $3.5 billion (on a fully diluted basis), which will be all-debt financed.

In 2004, Renal Care Group’s revenue was approximately $1.35 billion with an EBIT (Earnings Before Interest and Tax) of $254 million and a net income of $122 million. As of March 31, 2005, Renal Care Group owned more than 425 dialysis clinics and served over 30,400 patients.

The 2004 pro forma combined revenue of Fresenius Medical Care and Renal Care Group was approximately $7.5 billion. On a pro forma combined basis as of March 31, 2005, Fresenius Medical Care and Renal Care Group served approximately 117,000 patients in over 1,560 clinics in North America and more than 156,000 patients in over 2,000 dialysis clinics worldwide.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: “This acquisition solidifies Fresenius Medical Care’s position as the leader in dialysis services in the US. With its service network, Renal Care Group provides an excellent strategic and geographic fit to Fresenius Medical Care’s operations in the world’s largest dialysis market.”

The transaction is subject to the approval of Renal Care Group’s shareholders and other customary closing conditions. Fresenius anticipates closing the transaction in the second half of 2005.