Divestment of assets includes four separate country transactions to DaVita Inc. for USD 300 million
Transactions further reduce the Company`s clinic footprint in Latin America, following the exit from Argentina at the end of 2023
Expected to close throughout 2024
Proceeds to be used to reduce debt
Fresenius Medical Care, the world’s leading provider of products and services for individuals with renal diseases announced the sale of its dialysis clinic networks in Brazil, Colombia, Chile and Ecuador to DaVita Inc. for a total transaction price of USD 300 million. Subject to regulatory approvals in Brazil, Colombia and Ecuador, the transactions represent another milestone in Fresenius Medical Care’s portfolio optimization program, with each expected to close throughout 2024.
“We continue to move at pace in optimizing our portfolio, to reduce complexity and improve profitability. This is a key element of our transformational journey,” said Helen Giza, CEO for Fresenius Medical Care AG. “I also wanted to take a moment to thank our teams in Brazil, Colombia, Chile, and Ecuador for their incredible commitment, passion and dedication in serving our patients with the world-class, high-quality care they deserve.”
These four separate transactions in aggregate represent 154 dialysis clinics, more than 7,100 employees, more than 30,000 dialysis patients, and recorded pro-forma revenue of approx. EUR 370 million in 2023.
The associated net book loss for the four Latin America transactions is estimated to negatively impact Fresenius Medical Care by around EUR 200 million in the full year 2024, thereof by around EUR 140 million in the first quarter of 2024, and will be treated as a special item in operating income. Depending on exchange rates, the Company expects net cash proceeds of around EUR 250 million in 2024 from these transactions.
All transactions that are currently signed as part of the Company’s portfolio optimization plan are estimated to negatively impact Fresenius Medical Care by around EUR 230 million in the full year 2024, thereof by around EUR 145 million in the first quarter of 2024, and will be treated as a special item in operating income.
Source & Image Credit: Fresenius Medical Care
