- Divestments in 2023 are important milestones of the Company's
execution against its Portfolio Optimization which are part of the
set strategic aspirations
- Delivers on commitment to improve leverage ratio by allocating
expected EUR 0.5 billion proceeds from divestments to
deleverage
BAD HOMBURG, Germany, Jan. 8, 2024
/PRNewswire/ -- Fresenius Medical Care, the world's leading
provider of products and services for individuals with renal
diseases, today announced updates from transactions in 2023 as part
of the Company's ongoing Portfolio Optimization Program. Refocused
on businesses and markets with the best strategic fit and greatest
scale and sustainable profitable growth potential, Fresenius
Medical Care continues exiting unsustainable markets, divesting
noncore and dilutive assets and prioritizing deleveraging as part
of a disciplined and stringent approach to capital allocation.
"We have made significant progress in our Portfolio Optimization
Program efforts with the recent divestitures, which will further
simplify Fresenius Medical Care´s portfolio and allow even greater
management focus in 2024. The execution against our strategic plan
will additionally support the improvement of our leverage ratio in
2024," said Helen Giza, CEO of
Fresenius Medical Care AG. "At the heart of these transactions are
the best interests of the patients we serve, our employees,
shareholders and the parties involved."
Since announcing its intent to optimize its product
portfolio, divest noncore business assets and exit certain markets
as part of its strategic plan, Fresenius Medical Care has now
signed and closed transactions exiting its Argentina operations with the sale to
Grupo Olmos. The Company also closed
the already announced sale of its National Cardiovascular Partners
(NCP) outpatient cardiovascular clinics business in the United States in December 2023. Additionally, Fresenius Medical
Care has signed the divestment of its Cura Day Hospitals Group in
Australia (Cura) to global
alternative asset manager ICG and a consortium of healthcare
professionals, subject to regulatory approval.
In aggregate, the three divested assets include 127 facilities,
more than 4,500 employees and more than 10,000 dialysis patients.
The three divestments represented in 2022 a total proforma revenue
of around EUR 600 million. The
associated net book loss for the sale of NCP, the sale of the
Argentina operations and other
assets held for sale by the end of 2023 as part of the Portfolio
Optimization Program is estimated to impact the Operating Income of
Fresenius Medical Care in the fourth quarter of 2023 by around
EUR 50 million and will be treated as
a special item.
Depending on exchange rates the Company expects net proceeds of
around EUR 500 million from the
divestment of NCP, Cura and the Argentinian operations with net
proceeds of around EUR 135 million in
the fourth quarter 2023 and the remainder to occur in 2024.
All assets currently under review as part of the Portfolio
Optimization would, if executed by the end of 2025, negatively
impact 2025 revenue by EUR 1.5
billion and positively impact 2025 margin.
About Fresenius Medical Care:
Fresenius Medical Care is the world's leading provider of products
and services for individuals with renal diseases of which around
3.9 million patients worldwide regularly undergo dialysis
treatment. Through its network of 4,014 dialysis clinics, Fresenius
Medical Care provides dialysis treatments for approximately 342,000
patients around the globe and is the leading provider of dialysis
products such as dialysis machines and dialyzers. Fresenius Medical
Care is listed on the Frankfurt Stock Exchange (FME) and on the New
York Stock Exchange (FMS).
For more information visit the Company's website
at www.freseniusmedicalcare.com.
Disclaimer:
This release contains forward-looking statements that are subject
to various risks and uncertainties. Actual results could differ
materially from those described in these forward-looking statements
due to various factors, including, but not limited to, changes in
business, economic and competitive conditions, legal changes,
regulatory approvals, impacts related to the COVID-19 pandemic
results of clinical studies, foreign exchange rate fluctuations,
uncertainties in litigation or investigative proceedings, and the
availability of financing. These and other risks and uncertainties
are detailed in Fresenius Medical Care's reports filed with the
U.S. Securities and Exchange Commission. Fresenius Medical Care
does not undertake any responsibility to update the forward-looking
statements in this release.
About ICG:
ICG is a member of the FTSE 100 and listed on the London Stock
Exchange (ticker symbol: ICP). Further details are available
at www.icgam.com. You can follow ICG on LinkedIn, X
(Twitter) and Instagram.
Media contact
Christine Peters
T +49 151 215 275 19
christine.peters@freseniusmedicalcare.com
Contact for analysts and investors
Ilia Kürten
T +49 6172 6089 6253
ilia.kuerten@fmc-ag.com
www.freseniusmedicalcare.com
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SOURCE Fresenius Medical Care Holdings, Inc.