Dialysis provider Fresenius Medical Care & Co., Bad Homburg, Germany, said it has acquired Warrendale, Pa.-based Renal Solutions Inc. for a total value of about $190 million. The acquisition agreement consists of $100 million at the deals closing, as well as $60 million after the first year and up to $30 million in milestone payments over the next three years. RSI had about $10 million in debt at the time of the deals closing, according to Fresenius.
In acquiring RSIwhich will continue operations as a wholly owned subsidiary of Fresenius in Warrendale and Oklahoma CityFresenius said it will advance the technology needed for future growth and extend its reach to home and acute-dialysis products. Currently, RSI holds patents and other intellectual properties related to sorbent-based, or SORB, technology, which purifies tap water to dialysate quality and allows it to be regenerated. Dialysate is a fluid used in dialysis.
By combining our equipment and membrane technology with the SORB technology, we can provide innovative solutions in the future such as a possible wearable kidney, Ben Lipps, chief executive officer of Fresenius Medical Care, said in a news release.
With the acquisition, Fresenius said it expects to increase its annual research and development spending by about $10 million beginning in 2008. -- by Jessica Zigmond