Baxter International (NYS: BAX) announced today that it has agreed to buy privately held dialysis systems maker Gambro AB for approximately $4 billion in total consideration.
In a statement, Baxter noted that globally, more than 2 million patients are on some form of dialysis, with the rate of dialysis treatment expanding more than 5% annually. After acquiring the Swedish medical devices maker, Baxter said, it will have a "comprehensive dialysis product portfolio" enabling it to "better meet the evolving needs of the large and growing dialysis market."
Gambro recorded $1.6 billion in global sales in 2011. Baxter noted that the purchase will subtract approximately $0.10 to $0.15 per share from earnings in 2013 and be "neutral to modestly accretive" to 2014 earnings and "increasingly accretive" thereafter. The company predicts that post-acquisition, it will grow earnings in the 8%-10% range annually over the next five years.
The deal is expected to close in the first half of 2013.
The article Baxter Buying Sweden's Gambro in $4 Billion Deal originally appeared on Fool.com.Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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