Fresenius Kabi to Acquire Fenwal Holdings

Fresenius Kabi will now become a global leader in transfusion technology.

The two companies' business activities complement each other: Fenwal holds a stable position in the market for automated blood collection devices, while Fresenius Kabi is a major supplier of blood bags and filters used for manual blood collection. Combining the two businesses will lead to a comprehensive product portfolio in transfusion medicine.

In addition, the acquisition will enhance Fresenius Kabi's geographical presence. Fenwal, headquartered in Lake Zurich (IL, USA) generates more than half its sales in the United States, where its infrastructure will serve as a platform for further growth opportunities for Fresenius Kabi. Conversely, Fresenius Kabi's international network will expand Fenwal's global product reach. Significant potential for revenue and cost synergies will be created.

In 2011, Fenwal had sales of USD 614 million with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD 90 million. The company runs a state-of-the-art R&D center and operates five manufacturing facilities.

Approximately 92 million whole blood donations are collected annually around the world. The transfusion technology market is mainly driven by demographic developments and the growing demand for products for automated blood component processing. In addition, the increasing demand in emerging markets will lead to further growth in this product segment.

Financial terms were not disclosed. The transaction will be financed initially from existing funds, whereas the enterprise value does not exceed the proceeds of the May 2012 capital increase.

Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and outpatient medical care.

Related Links:
Fresenius Kabi
Fenwal Holdings, Inc.