December 4, 2012 2:24 pm

Baxter in $4bn deal for Sweden’s Gambro

Baxter International has fulfilled a long-held ambition of boosting its presence in the kidney dialysis market by buying Sweden’s Gambro from Investor, the holding company of the powerful Wallenberg family, and EQT, their main investment vehicle.

The deal, announced on Tuesday, gives Gambro an enterprise value of SKr26.5bn ($4bn) and signals a revival of consolidation in the fast-expanding dialysis sector.

Guido Oelkers, Gambro chief executive, said the Swedish group and US-based Baxter shared a strong heritage in renal care and that the move would give them the muscle “to shape our industry for the future”.

Baxter, which is headquartered in the pharmaceuticals hub of Deerfield, Illinois, specialises in medical devices and treatments for other conditions including haemophilia, infectious diseases, immune disorders, kidney disease and trauma.

Gambro, based in Lund in southern Sweden, was acquired by the Wallenbergs in 2006 for SKr35bn and subsequently delisted. It is now a leading manufacturer of kidney and dialysis equipment and technologies.

EQT and Investor have successfully demerged and sold off two of Gambro’s three main business activities in recent years. They sold Gambro Healthcare to the private equity fund Bridgepoint in 2007 for an enterprise value of SKr6.1bn while CaridianBCT was bought by the Japanese medical technology company Terumo Corporation in 2011 for $2.6bn.

EQT and Investor on Tuesday put the total transaction value of the three divestments at close to SKr50bn.

Baxter’s acquisition of Gambro is subject to approval from the relevant competition authorities and is expected to be completed in the first half of 2013.

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