Fresenius Medical Care (NYSE:FMS; ETR:FRE) said late last week it closed its divestiture of its Sound Inpatient Physician Holdings to an investment consortium led by Summit Partners for approximately $2.2 billion (EU €1.9 billion).
Bad Homburg vor der Höhe, Germany-based Fresenius said that the divestiture is part of the company’s overall goal of “sharpening the profile of the company’s care coordination portfolio,” according to an SEC filing.
The company said it expects the divestiture to improve net income by approximately $752 million, which includes the half-year impact from the increase in valuation of Sound’s share-based payment program.
Fresenius said that its financial targets for 2018 and 2020 do not include effects from the divestment, and that it expects to see a reduction to its revenue of approximately $754.5 million (EU €650 million) and net income by $46.4 million (EU €40 million), according to an SEC filing.
Last month, Fresenius said it inked a $150 million strategic partnership deal with Humacyte through which Fresenius will gain exclusive rights to commercialize Humacyte’s Humacyl bioengineered blood vessel technology.