Baxter, a medical device manufacturer based in Deerfield, Illinois, announced this week that it had signed a deal to acquire Gambro AB, a dialysis device manufacturer based in Sweden, for approximately $4 billion. According to a press release by the company, Baxter will pay for the acquisition with both cash and debt.
With the new acquisition, Baxter will gain a strong position in the dialysis market. Many of Gambro AB’s products also complement Baxter’s existing product line.
Robert Parkinson, Jr. is CEO and chairman at Baxter. In prepared remarks, he stated, ''Baxter has a legacy of innovation in dialysis, including the development of peritoneal dialysis for the treatment of end-stage kidney disease patients in the home. This acquisition further strengthens our global dialysis offerings by extending our portfolio in the hemodialysis segment.”
According to regulatory filings, annual sales at Gambro were approximately $1.6 billion last year. The Swedish manufacturer has a very strong foothold in the European dialysis market. With the acquisition, Baxter will have a powerful platform to boost sales of its internal and newly-acquired product lines. In addition, Baxter can use its existing presence in Asia-Pacific and Latin American markets to boost sales of its Gambro AB product line.
Baxter also announced in a press release that it would incorporate existing innovations by Gambro AB into its own home dialysis system. Baxter expects the new acquisition to pull an estimated $0.10 to $0.15 from its adjusted 2013 bottom line.