Fresenius has approached potential buyers about his blood transfusion business. The medical company had commissioned for a possible sale, the investment bank Goldman Sachs, the F.A.Z. from circles that are familiar with addressing potential prospects. If it were for sale, Fresenius would use it to turn back a takeover that was only made in 2012.
For the equivalent of 900 million to 1 billion euros, the Bad Homburg Dax Group had then acquired the American supplier Fenwal: The makes up a large part of the business now in the pipeline. Fresenius has been considered the world's largest provider of blood transfusion technology since the Fenwal acquisition. The acquisition is one of the Fresenius acquisitions that have long been viewed with skepticism by critical group insiders (F.A.Z., January 17, 2018).
The approach of interested parties and the selection of an investment bank show that Fresenius is now specifically exploring a sale – after the CEO Stephan Sturm months ago has made any hints about the future of the division. In the February financial statement, he said that Fresenius wanted to think about its "strategic options." This also includes the intra-group transfusion of blood transfusions: combining them with an adjoining business ("apheresis") of the Fresenius subsidiary Fresenius Medical Care (FMC). Likewise, joint ventures are possible. Often, however, selling is the preferred solution when a company is considering "strategic options."
Business belongs to the Fresenius division Kabi
Major competitors in this business are Haemonetics, Macopharma and Terumo. As a buyer not only suppliers of the industry in question, but also private equity houses. Such have also been addressed. Fresenius and Goldman Sachs declined to comment.
The business in question is part of the Fresenius Kabi division, which offers, inter alia, hospital nutrition and liquid medications for infusion. So far, Kabi has hung it up in a unit called "Medical Devices / Transfusion Technology", which generated just under 1.1 billion in sales last year, the same amount as in the previous year. How much is attributed to the transfusion part is unclear. But the 2012 Fenwal alone had reported $ 614 million in sales the year before the acquisition.
In a first step, Fresenius will separate the transfusion business as an independent unit. In this process, "good progress," said Sturm earlier this month to bank analysts. When Fresenius acquired Fenwal, the Dax company became, according to its own statements, the global leader in transfusion technology. The new world market share was around one third. Not much has changed since then. The transfusion division sells products that are used to extract blood, separate it into components and process it. Customers are, for example, blood banks.
900 million to 1 billion euros purchase price
The purchase price 2012 was not officially announced, but amounted according to data from the environment of the said 900 million to 1 billion euros. As integration costs later fell 104 million euros. An earlier annual report shows that the acquisition included substantial intangible assets: essentially 70 million euros for customer relationships and 237 million euros for technology. Sturm certified that the Fresenius transfusion business in February was "growing sustainably and has a very interesting profitability". He did not name numbers.
The market volume seems to be stagnant: The latest annual report still puts it at about 2 billion euros – as it did at the time of the acquisition. Growth is due to increasing demand for blood products in emerging countries, it said. In recent years, the demand for blood bags for new treatments in the United States and Europe has fallen, which has also weighed on prices. This effect comes to an end, it says in the annual report for the past year.
Fenwal was founded in 1949 and was once part of the Fresenius rival Baxter. He had sold the unit in 2007 to the financial investors Texas Pacific Group (TPG) and Maverick, which they then passed on to Fresenius more than five years later.
. (tagsToTranslate) Stephan Sturm (t) Fresenius SE (t) ISIN_DE0005785604 (t) Fenwal (t) Goldman Sachs (t) ISIN_US38141G1040 (t) F.A.Z.