21.04.2018
Fresenius Medical Care AG & Co. KGaA DE0005785802
DGAP-News: Fresenius Medical Care optimizes its U.S. Care Coordination portfolio and sells Sound Inpatient Physicians Holdings for $2.15 billion
DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s):
Disposal/Investment
Fresenius Medical Care optimizes its U.S. Care Coordination portfolio and
sells Sound Inpatient Physicians Holdings for $2.15 billion
21.04.2018 / 15:08
The issuer is solely responsible for the content of this announcement.
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April 21, 2018
Fresenius Medical Care optimizes its U.S. Care Coordination portfolio and
sells Sound Inpatient Physicians Holdings for $2.15 billion
Fresenius Medical Care, the world's largest provider of dialysis products
and services, today announced an important strategic step to sharpen its
U.S. Care Coordination profile with the signing of a definitive agreement to
divest its controlling interest in Sound Inpatient Physicians Holdings, LLC
(Sound) to an investment consortium led by Summit Partners (Summit), for
total transaction proceeds of $2.15 billion (EUR 1.76 billion [1]). Sound is
a physician organization providing services across the acute episode of care
- through emergency medicine, critical care, hospital medicine, transitional
care and advisory services (www.soundphysicians.com).
To gain a deeper understanding and expertise on the highly efficient
coordination of patients while improving the quality outcomes and reducing
total cost to the health care system at the same time, Fresenius Medical
Care invested to become majority shareholder in Sound in 2014. In the same
year, Sound expanded its footprint with the acquisition of Cogent
Healthcare, Inc. Due to the participation in the major value-based program
BPCI (Bundled Payments for Care Improvement) focusing on improving quality
while lowering costs, Fresenius Medical Care was able to learn and
significantly broaden its experience in value-based care programs in the
U.S.
In 2017, Sound generated revenues of around EUR 1.25 billion and EBIT of
around EUR 90 million with 3,500 employees.
"In the previous years we have gained insight and successfully applied the
knowledge on efficient patient coordination and on value-based programs in
our unit called Fresenius Health Partners where we run the ESCOs, our own
Medicare Advantage plan and various sub-capitated arrangements. This was an
important milestone in the execution of our Care Coordination strategy,"
said Rice Powell, Chief Executive Officer of Fresenius Medical Care. "As we
are now very well positioned in the U.S. to ensure high quality outcomes for
our dialysis patients in a health care system that is moving towards
value-based care, we are enabled to divest Sound and release the invested
capital for further focused growth investments to add value for our
shareholders."
"The acquisition by Summit provides Sound with the opportunity to expand its
existing service lines in a rapidly changing market and tap into new areas.
This is a great chance for Sound's employees to be part of this next
development step," said Bill Valle, Chief Executive Officer of Fresenius
Medical Care North America.
The divestment is expected to generate a pre-tax book gain for Fresenius
Medical Care of approximately EUR 800 million[1,2 ]. Closing of the
transaction is subject to regulatory approvals and anticipated late in 2018.
The financial targets for 2018 and 2020 do not include the effects of this
divesture or the planned acquisition of NxStage Medical, Inc.
[1] EUR/USD 1.22
[2] Based on the company's latest available valuation of the North American
business segment
Fresenius Medical Care is the world's largest provider of products and
services for individuals with renal diseases of which around 3.2 million
patients worldwide regularly undergo dialysis treatment. Through its network
of 3,752 dialysis clinics, Fresenius Medical Care provides dialysis
treatments for 320,960 patients around the globe. Fresenius Medical Care is
also the leading provider of dialysis products such as dialysis machines or
dialyzers. Along with the core business, the company focuses on expanding
the range of related medical services in the field of Care Coordination.
Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME) and
on the New York Stock Exchange (FMS).
For more information visit the company's website at
www.freseniusmedicalcare.com.
Disclaimer
This release contains forward-looking statements that are subject to various
risks and uncertainties. Actual results could differ materially from those
described in these forward-looking statements due to certain factors,
including changes in business, economic and competitive conditions,
regulatory reforms, foreign exchange rate fluctuations, uncertainties in
litigation or investigative proceedings, and the availability of financing.
These and other risks and uncertainties are detailed in Fresenius Medical
Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange
Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any
responsibility to update the forward-looking statements in this release.
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21.04.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: Fresenius Medical Care AG & Co. KGaA
Else-Kröner-Straße 1
61352 Bad Homburg
Germany
Phone: +49 (0) 6172- 609 2525
Fax: +49 (0) 6172- 609 2301
E-mail: [email protected]
Internet: www.freseniusmedicalcare.com
ISIN: DE0005785802
WKN: 578580
Indices: DAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange; NYSE
End of News DGAP News Service
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677305 21.04.2018
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