FMC to buy Renal Care

BERLIN — Fresenius Medical Care AG, which has a dialysis filter manufacturing plant in Ogden, said Wednesday it will acquire U.S.-based Renal Care Group Inc. in a $3.5 billion deal that would make it one of the world's biggest dialysis care companies. Shares of Renal Care set a new high for the year in New York trading.

Fresenius said it would pay $48 a share for Renal Care, based in Nashville, Tenn. The deal is subject to regulatory approval in the United States and Europe.

"This acquisition solidifies Fresenius Medical Care's position as the leader in dialysis services in the U.S.," said FMC Chief Executive Ben Lipps. "With its service network, Renal Care Group provides an excellent strategic and geographic fit to Fresenius Medical Care's operations in the world's largest dialysis market."

But analysts worried that Fresenius may have overpaid, and shares in the Bad Homburg-based company fell 3.5 percent to 60.29 euros ($78.09) in late afternoon trading on the Frankfurt exchange.

Fresenius said it hopes to close the deal by the second half of 2005, adding that it would create a company with estimated annual global revenue of $7.5 billion.

The deal came as Fresenius reported that its first-quarter profit rose 18 percent to $107 million for the January-March quarter. Revenue was up 10 percent to $1.61 billion.

FMC is one of the biggest dialysis providers worldwide, treating nearly 126,000 patients at more than 1,630 clinics in Europe, Asia, Africa and Latin and North America. It also provides outpatient service in 1,200 clinics and operates a joint venture for renal care with Kaiser Permanente, the U.S.-based health maintenance organization.

The deal will also let FMC increase its share of the U.S. dialysis service market to about 35 percent from its current 27 percent, Lipps said.