DaVita to Acquire Gambro Healthcare
NEW YORK (December 7, 2004) — McDermott Will & Emery client DaVita Inc. (NYSE: DVA), announced that it has entered into a definitive agreement to purchase the U.S. renal care business of Sweden's Gambro Healthcare, for a total consideration of approximately $3.05 billion in cash. Completion of the transaction is subject to customary closing conditions including Hart-Scott-Rodino antitrust clearance.
DaVita intends to finance the acquisition through a new credit facility and the issuance of notes. JPMorgan Chase Bank has committed financing for the transaction. DaVita will also enter into a 10-year supply agreement with Gambro Renal Products Inc. to provide a significant majority of its hemodialysis product supply and equipment requirements.
The acquisition will add approximately 565 dialysis centers to DaVita's operations, a total census of approximately 43,200 patients. As a result of this transaction DaVita will serve approximately 96,000 patients at more than 1,200 clinics in 41 states and the District of Columbia.
McDermott Will & Emery served as M&A counsel on the transaction and JPMorgan Securities Inc. acted as financial advisor. The McDermott team advised on M&A, regulatory, tax, health law, litigation issues and employee benefits issues.
DaVita is a leading provider of dialysis services for patients suffering from chronic kidney failure. The Company currently operates and provides administrative services to kidney dialysis centers and home peritoneal dialysis programs in 37 states, as well as Washington, D.C.
Gambro, a Swedish corporation controlled by the Wallenberg family, is a global medical technology and health care company organized into three medical technology and health care services: Gambro Healthcare, Gambro Renal Products and Gambro BCT. Gambro Renal Products develops, manufactures and supplies hemodialysis, peritoneal dialysis and acute dialysis equipment. Gambro Renal Products provides products and services under the Gambro and Hospal brands and has production facilities in 12 countries and sales companies in 28 countries.
