Fresenius (FMS) Unit to Acquire Quirónsalud in ~$6.4B Deal

September 6, 2016 8:16 AM EDT
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Fresenius Medical Care Ag & Co. Kgaa (NYSE: FMS) Helios unit is moving to acquire Spain's Quirónsalud in a deal valued at around €5.76 billion, or $6.42 billion. The following was on the Quirónsalud website on Tuesday (translated via Google Translate):

Hospital major European companies, the German Helios (owned by Fresenius) and Spanish Quironsalud have reached an integration agreement which results in the creation of the first European operator and one of the most important in the world. The new group will have more than 100,000 employees, 155 health centers will manage and maintain both brands, Helios Quirónsalud in Spain and in Germany.

The transaction is subject to regulatory approval by competition authorities, and will close by the fourth quarter of 2016 or the first quarter of 2017.

The commitment to health care of the highest quality, commitment to research and patient care as the linchpin, have been the hallmarks of both groups and will remain the new European leader in the sector.

Fresenius, founded in 1912, is the largest European healthcare group with more than 220,000 employees in 100 countries and a market capitalization of close to 36,000 million euros. Fresenius activity is divided between the American markets (45%), Europe (39%) and Asians (10%). The main shareholder of Fresenius is a non-profit, called Else Kröner-Fresenius-Stiftung, which aims to medical research and development of medical and humanitarian projects.

Fresenius replace CVC as a shareholder in the new group. The German group, long considered as the number one industry in Europe, has valued Quirónsalud as a reference in the sector at international level, since the Spanish company soon managed to consolidate among the best in Europe.

Given the importance of integration, with a corresponding increase in activity and results, Fresenius make public new targets in a few weeks and will publish full results for the year 2016 in late February 2017.

Quirónsalud management remain in the hands of the current team, which will be integrated into the new company to be part of the draft international consolidaciónn. In this sense Quironsalud direct the project for Latin America.

Helios Quironsalud and share sensitivities, historical trajectory and similar strategies, so that the integration of both companies will be carried out quickly and efficiently. The new group will also provide greater range of services to patients both Spanish and German, as they will have access to the best professionals, hospitals, and research facilities.

Moreover, employees of both companies will have new opportunities for professional development and to be a leader in innovation of medical treatments.

CVC Quirónsalud reached in 1998 when the company managed only 4 hospitals with a few hundred workers. The company currently manages 43 hospitals, 39 day care centers and more than 300 occupational risk prevention centers throughout Spain, with 35,000 employees.

After 18 years of effort and commitment, the group recently became one of the most important in Europe, and now considers the birth of a world leader in the sector, with a partner like Fresenius undisputed prestige, contribute to the development and the pursuit of excellence in the health system in Spain and in Germany.

Therefore, CVC is satisfied with the achievements after years of efforts, but especially by the high level of professionalism, excellence and innovation that all employees and members of Quirónsalud have contributed and achieved.

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