Dialysis provider DaVita said it reached an agreement to sell 70 dialysis centers for $320.5 million as a result of its pending acquisition of Gambro Healthcare US, the U.S. subsidiary of the Sweden-based company, as it reported second-quarter earnings.
DaVita and Gambro reached the deal to sell the free-standing centers to Nashville-based RenalAmerica, which partnered with private equity firm Welsh, Carson, Anderson & Stowe to buy the facilities. DaVita, El Segundo, Calif., agreed with the Federal Trade Commission to sell the centers to settle antitrust concerns, leaving the company about 1,200 centers. In a phone interview DaVita Chief Executive Officer Kent Thiry said the company had expected the FTC to call for some divestitures. DaVita, the second-largest dialysis provider, expects both the $3.05 billion deal to purchase Gambro and the Welsh Carson deal to close in the next two months.
The company also said net income was up about 1%, to $52.9 million, or 51 cents per share, on revenue of $649 million for the second quarter, compared with net income of $52.4 million, or 50 cents per share, on revenue of $551.6 million for the year-ago quarter. For the first half of the year, DaVita reported net income of $109.3 million, or $1.06 per share, on revenue of $1.3 billion compared with net income of $105.3 million, or $1.02 per share, on revenue of $1.1 billion in the first six months of 2004.