Fresenius Medical Care AG & Co. KGaA ("the company") (FWB: FME) (NYSE: FMS), the world's largest provider of dialysis products and services, is expanding its dialysis services business in the Russian Federation. The company announced today that it has signed an agreement to acquire KNC (KRAEVOY NEFROLOGICHESKIY CENTR), a private operator of dialysis clinics in Russia's Krasnodar region. The acquired operations will add approximately $25 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.
“We are very pleased that we soon will be able to provide both high-quality dialysis products and services to Krasnodar's patients”
By acquiring KNC, Fresenius Medical Care intends to strengthen its position in the Russian Federation's growing dialysis services market, where today more than 20,000 patients require a regular and life-sustaining renal replacement therapy. Fresenius Medical Care currently operates five dialysis clinics treating around 570 patients and is the leading provider of dialysis products in Russia. KNC currently treats around 1,000 patients in five dialysis clinics located in Krasnodar, a region situated approximately 1,200 kilometers south of Moscow, on the Black Sea. KNC is the only provider of dialysis services in Krasnodar, which at an estimated patient growth of more than 10% per year is one of the regions with the highest demand for dialysis services in the Russian Federation.
In order to meet this rising demand, Fresenius Medical Care plans to expand the capacity of the acquired clinics directly upon closing of the acquisition. "We are very pleased that we soon will be able to provide both high-quality dialysis products and services to Krasnodar's patients," said Dr. Emanuele Gatti, chief executive officer for Europe, Latin America, the Middle East and Africa as well as global chief strategist of Fresenius Medical Care. "While we seek to enhance our presence in Russia on a long-term basis, our first aim will be to accommodate the large number of patients in Krasnodar who until now have been unable to receive treatment due to a lack of capacities."