German healthcare company Fresenius SE & Co. KGaA (FRE.XE)
said Friday its Helios unit acquired several hospitals from
Rhoen-Klinikum AG (RHK.XE) in a deal that will make Helios the
largest private hospital operator in Europe.
Fresenius will pay 3.07 billion euros ($4.07 billion) for the
assets and expects the acquisition to generate yearly sales of
approximately EUR2 billion and earnings before interest, tax,
depreciation and amortization, or Ebitda, of around EUR250
million.
The deal comes after Fresenius was forced to abandon an attempt
to take over Rhoen-Klinikum entirely last year as the privately
held hospital group Asklepios snapped up shares in
Rhoen--effectively stifling the deal. In June, Rhoen-Klinikum
shareholders voted in favor of changing the company's strict
voting-threshold statutes, making the company more vulnerable to
takeovers.
The supervisory boards of both companies have agreed to the deal
and approval from Rhoen's shareholders isn't necessary, Rhoen
said.
Fresenius expects the 43 new hospitals--including 11,800 beds
and 15 outpatient facilities--to produce synergies resulting in a
potential 1% to 2% increase in the Ebitda margin at Helios. The
transaction will be entirely financed using debt and the company
expects one-time costs associated with the transaction to total
about EUR80 million before tax.
As part of the deal, Helios and Rhoen-Klinikum are planning to
enter into a cooperation agreement covering Rhoen's remaining
hospitals. The cooperation is valued at around EUR40 million, of
which Fresenius will contribute about EUR30 million and Rhoen EUR10
million, Rhoen-Klinikum said.
Following the transaction, Rhoen plans to specialize with its
remaining hospitals on scientific and university medical
programs.
The deal is still subject to antitrust approval and Fresenius
expects the deal to be largely closed by the end of the year.
Write to Shane Strowmatt at shane.strowmatt@dowjones.com
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