The deal, to be paid through a combination of cash and deb, gives Baxter a strong foothold in the dialysis devices arena and complements the company’s existing home dialysis product portfolio, the company noted.
”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,” Baxter chairman & CEO Robert Parkinson, Jr. said in prepared remarks. ”This transaction will provide attractive returns and enhance Baxter’s sales and earnings growth over the company’s current long-range financial plan.”
Gambro’s annual sales amounted to about $1.6 billion in 2011, and Baxter is hoping to use the acquisition as a platform to rocket sales in European markets, where Gambro has a deep footprint, as well as in growing markets such as Latin America and Asia-Pacific, where Baxter has a steady presence.
Deerfield, Ill.-based Baxter also plans to add Gambro innovations to its existing home dialysis platforms, according to a press release.
Baxter expects the transaction to take about 10¢-15¢ from its adjusted bottom line in 2013, modestly accretive in 2014 and increasingly accretive beyond, the company reported.
Confirmation of the deal, of which rumors were spreading in November, didn’t do much for Baxter on Wall Street, where BAX shares were down 0.8% to $65.25 as of about 4 p.m.