BAD HOMBURG, Germany - Fresenius Medical Care (NYSE:FMS) AG, a leading global provider of renal disease products and services, today reported the successful execution of strategic divestitures as part of its ongoing Portfolio Optimization Program. The company, which operates a vast network of dialysis clinics worldwide, has completed sales of non-core assets, including its Argentina operations and outpatient cardiovascular clinics in the United States.
The divestment of the Argentina operations was finalized with Grupo Olmos, while the National Cardiovascular Partners (NCP) outpatient cardiovascular clinics in the U.S. were sold in December 2023. Additionally, the company has signed an agreement to sell its Cura Day Hospitals Group in Australia to ICG and a consortium of healthcare professionals, pending regulatory approval.
These transactions, which encompass 127 facilities and over 4,500 employees, are part of Fresenius Medical Care's strategic plan to focus on businesses that align with their strategic fit and growth potential. The divestitures also aim to improve the company's leverage ratio by directing the expected EUR 500M proceeds towards debt reduction.
Helen Giza, CEO of Fresenius Medical Care AG, stated that the company's portfolio simplification would enhance management focus and support financial health in 2024. The divested assets, which catered to more than 10,000 dialysis patients, generated proforma revenue of approximately EUR 600M in 2022. However, the associated net book loss is estimated to impact the company's Operating Income by around EUR 50 million for the fourth quarter of 2023, which will be classified as a special item.
The company anticipates net proceeds of about EUR 135M in the fourth quarter of 2023, with the remaining proceeds expected in 2024. If all current reviews under the Portfolio Optimization Program are executed by the end of 2025, the company projects a negative revenue impact of EUR 1.5B but a positive margin impact for the same year.
Fresenius Medical Care is listed on both the Frankfurt Stock Exchange (FME) and the New York Stock Exchange (FMS) and is recognized as the world's premier provider of dialysis treatments and products. The information in this article is based on a press release statement.
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