Friday, 13 September 2013

Baxter closes deal for Gambro

Baxter, the dialysis American specialist, has completed a deal with Gambro, a deal that started quite some time ago, one they have been after for even longer.

Baxter International Inc. said on 6th September that it has completed its $3.9 billion acquisition of Gambro AB, a private Swedish medical technology company founded in 1964.

This is the biggest acquisition for Baxter, making it an even bigger player in the large and expanding kidney dialysis market.

Baxter has tried for some time to arrange a tie-up with Gambro, the world's third-largest dialysis equipment maker, to help it broaden its kidney business. Baxter's dialysis business is focused on peritoneal dialysis, a treatment that can be performed at a patient's home, while Gambro makes equipment for dialysis performed in a hospital or health clinic (Baxter dropped out of this market in 2005). This means Baxter are now active in all the major forms of dialysis treatment. They can expand their current product range in to Europe, Gambro's territory, and Gambro can expand their equipment into Latin America and Asia.

The acquisition started with an offer accepted on 4th December 2012, and regulators in different areas have gradually given their approval. Gambro was a privately held company. Combined manufacturing and marketing should cut costs dramatically for the new joint business. The acquisition deal is valued at $3.9 billion, so it will be a while before the costs are recovered.