The Burrill Report

German healthcare company Fresenius said that its Fresenius Kabi unit would acquire American blood collection specialist Fenwal Holdings for an undisclosed amount. The deal will allow Fresenius to combine Fenwal’s automated blood collection devices with its blood bags and filters used in manual infusion therapies. The transaction is expected to close by year-end.

The financials of the deal have been kept under wraps but sources close to the acquisition approximate the value to be around $1.1 billion according to multiple sources. Fresenius has said, however, that the enterprise value of the deal does not exceed the proceeds generated from its May capital increase and will be financed from existing funds. The transaction is expected to close by year-end.

Fresenius has actively pursued takeovers in recent weeks. It failed in its attempt to garner enough shareholder support to acquire rival hospital operator Rhoen-Klinikum last month, though it still believes it has enough left in the bank to revive the deal.

“Fenwal gives Fresenius Kabi broader access to the U.S. transfusion-technology market and adds new momentum to building a global market presence in this segment,” says Fresenius CEO Ulf Schneider.

Blood transfusion is a process conducted in the laboratory to separate collected blood into its separate components: red blood cells, platelets, plasma, or therapeutic proteins. According to Fresenius, transfusion technology allows blood centers to optimize each donation and ensure that the correct blood components are readily available for patients in need.

The global market for transfusion technology is estimated to be about $2.25 billion, with an annual growth rate of 4 to 6 percent. The Fenwal acquisition now gives Fresenius approximately 32 percent of the total market share.


July 26, 2012
http://www.burrillreport.com/article-fresenius_kabi_plans_to_acquire_fenwal.html