Full Press Release Details
Fresenius Medical Care
Fresenius Medical Care AG & Co. KGaA
Phone: + 49 6172 609 2601
Fax: + 49 6172 609 2301
E-mail: ir@fmc-ag.com
Phone: + 1 781 402 9000
Fax: + 1 781 402 9741
E-mail: ir@fmc-ag.com
Internet: http://www.fmc-ag.com
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Fresenius Medical Care Announces Closing of the
Renal Care Group Acquisition
Bad Homburg, Germany - Fresenius Medical Care AG & Co. KGaA (FWB: FME, FME3)
(NYSE: FMS, FMS-p), the world's largest provider of dialysis products and
services, and its wholly-owned subsidiary, Fresenius Medical Care Holdings,
Inc., today announced the closing of the acquisition of Renal Care Group, Inc.
(NYSE: RCI) effective March 31, 2006. The closing follows the completion of the
Federal Trade Commission's review of the acquisition and the issuance of a
consent order to permit the closing of the acquisition.
To finance the acquisition, Fresenius Medical Care today entered into and drew
upon a replacement $4.6 billion senior credit facility, with Banc of America
Securities LLC and Deutsche Bank Securities Inc. serving as joint lead
arrangers. The new senior credit facility consists of a five year $1 billion
revolving credit facility, a five year $1.85 billion term loan A facility and a
seven year $1.75 billion term loan B facility.
Fresenius Medical Care AG & Co. KGaA, March 31, 2006 1 of 2
Immediately prior to the acquisition, Florence Acquisition, Inc, a subsidiary of
Fresenius Medical Care, accepted its previously announced tender offer and
consent solicitation for $159,685,000 in outstanding principal amount of 9%
Senior Subordinated Notes of Renal Care Group for a total consideration of
$1,097.95 per $1,000 principal amount of Notes. All of the Notes were tendered
and all obligations of Renal Care Group and its subsidiaries in respect of the
Notes have now been discharged. Credit Suisse Securities (USA) LLC acted as
Dealer Manager for the tender offer and as Solicitation Agent for the consent
Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are
very pleased to complete the acquisition of Renal Care Group. This is a
milestone for our company. Clearly, we create the most valuable vertically
integrated provider of patient care and dialysis products. This makes us unique
and strengthens our position as the world's largest renal therapy company. As we
combine the best of both companies, we do so for the benefit of all - patients,
employees, physicians, customers and shareholders. Along with our commitment to
innovate, we are always seeking to achieve the best-possible quality in every
aspect of renal therapies."
After completion of the divestitures required by the FTC consent order,
Fresenius Medical Care will own and operate approximately 1,500 dialysis clinics
in North America, serving approximately 115,000 patients.
Fresenius Medical Care is the world's largest, integrated provider of products
and services for individuals undergoing dialysis because of chronic kidney
failure, a condition that affects more than 1,400,000 individuals worldwide.
Through its network of approximately 2,000 dialysis clinics in North America,
Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides
dialysis treatment to approximately 157,000 patients around the globe. Fresenius
Medical Care is also the world's leading provider of dialysis products such as
hemodialysis machines, dialyzers and related disposable products.
For more information about Fresenius Medical Care visit the Company's website at
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 certain factors, including
changes in business, economic and competitive conditions, regulatory reforms,
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 AG & Co. KGaA's reports
filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care
AG & Co. KGaA does not undertake any responsibility to update the
forward-looking statements in this release.
Fresenius Medical Care AG & Co. KGaA, March 31, 2006 2 of 2