LONDON, UK / ACCESSWIRE / August 9, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Fresenius Medical Care AG & Co. KGAA (NYSE: FMS), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/'symbol=FMS. The Company announced on August 07, 2017, that it has entered into a definitive agreement to acquire NxStage Medical, Inc. (NASDAQ:NXTM), a US home dialysis device maker, for approximately $2 billion in cash. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Terms of the Acquisition
Fresenius Medical Care would acquire all outstanding shares of NxStage through a merger for $30.00 per common share. The transaction has been approved by NxStage's Board, but approval of NxStage's stockholders, receipt of regulatory approvals, and other customary closing conditions is pending. The acquisition is expected to close in 2018.
Fresenius Medical Care plans to finance the acquisition with cash and debt. Cost synergies potential of approximately $80 million to 100 million per annum before tax over three to five years is expected. The acquisition will likely involve integration costs of around $150 million in the first three years from the announcement. Fresenius Medical Care expects the acquisition to be accretive to net income and EPS within three years from closing.
Benefits of the Acquisition
- Enhance Clinical Outcomes and Patient Empowerment: Rice Powell, Chairman and CEO of Fresenius Medical Care, stated:
"The acquisition supports our 2020 strategic initiative of driving growth in the core business with innovation, better clinical outcomes through Care Coordination and improving the patient experience. Combining our two companies would strengthen and diversify our business in the U.S. and help meet the evolving needs of our patients."
- Support Strategic Initiative of Vertical Integration: The transaction facilitates Fresenius Medical Care to further support its manufacturing, supply chain and marketing competencies across the dialysis products, services, and care coordination businesses in a less labor and capital-intensive care setting.
- Advance Standard of Care for Patients: Commenting on the acquisition, Jeff Burbank, Founder and CEO of NxStage, stated:
"The combination of Fresenius Medical Care's industry leadership with NxStage's innovative products and employees has the potential to significantly advance the standard of care for patients around the world. Fresenius Medical Care would like us to continue doing what we do best and a lot more of it. I strongly believe our opportunities would be greater working together for the benefit of patients, customers, and shareholders."
- Acquisition Help Accelerate Growth and Innovation: Bill Valle, CEO of Fresenius Medical Care North America, mentioned,:
"Home dialysis is a critical component of renal care, and this acquisition would help us accelerate growth and innovation in this important modality. I look forward to teaming up with Jeff Burbank and his highly talented team to transform the delivery of home dialysis care in the US."
About Fresenius Medical Care
Founded in 1996, Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases. Through its network of 3,690 dialysis clinics, the Company provides dialysis treatments for 315,305 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Fresenius Medical Care's corporate headquarters are in Bad Homburg, Germany.
About NxStage Medical, Inc.
Headquartered in Lawrence, Massachusetts, NxStage Medical, Inc. is a leading medical technology company that develops, manufactures and markets innovative products for the treatment of end-stage renal disease (ERSD) and acute kidney failure. NxStage also has established a small number of dialysis clinics committed to the development of innovative care delivery models for patients with ESRD. The Company was founded in 1998.
Last Close Stock Review
Fresenius Medical Care's share price finished yesterday's trading session at $45.82, slightly down 0.69%. A total volume of 292.57 thousand shares have exchanged hands, which was higher than the 3-month average volume of 140.23 thousand shares. The Company's stock price surged 12.55% in the past six months. Additionally, the stock gained 8.55% since the start of the year. Shares of the Company have a PE ratio of 21.64 and have a dividend yield of 1.11%. The stock currently has a market cap of $28.04 billion.
At the closing bell, on Tuesday, August 08, 2017, NxStage Medical's stock fell 1.18%, ending the trading session at $29.32. A total volume of 12.20 million shares have exchanged hands, which was higher than the 3-month average volume of 963.02 thousand shares. The Company's stock price surged 27.73% in the last three months, 5.54% in the past six months, and 21.91% in the previous twelve months. Moreover, the stock rallied 11.87% since the start of the year. The stock currently has a market cap of $1.93 billion.
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