Fresenius Medical Care to Buy NxStage Medical

By William Wilkes Features Dow Jones Newswires

Fresenius Medical Care AG & Co. KGaA said on Monday it would acquire NxStage Medical Inc. for around $2 billion to boost its kidney dialysis business.

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The German company, which is the world's largest provider of dialysis products and services, said it would acquire all outstanding shares of NxStage for $30 a share. The deal has been approved by NxStage's board, but still requires approval by NxStage stockholders and regulators, Fresenius Medical Care said in a statement.

NxStage, headquartered in Lawrence, Massachussetts produces products aimed at the treatment of end-stage kidney disease and acute kidney failure. The company posted revenues of $366 million in 2016.

Fresenius Medical Care said the deal would be cash and debt financed, with before-tax cost synergies of around $80-$100 million expected over three to five years. The acquisition will likely involve intergration costs of around $150 million, the German company said.

Fresenius Medical Care is part of German healthcare company Fresenius SE & Co. KGaA (FRE.XE).

Write to William Wilkes at william.wilkes@wsj.com

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(END) Dow Jones Newswires

August 07, 2017 02:27 ET (06:27 GMT)