February 15, 2006
Fresenius Medical Care Announces Signing of Definitive Agreement to Divest Facilities in Connection with Renal Care Group Acquisition
Fresenius Medical Care AG & Co. KGaA (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS-p), the world's largest provider of dialysis products and services, today announced that its wholly-owned subsidiary Fresenius Medical Care Holdings, Inc. and Renal Care Group, Inc. (NYSE:RCI) have entered into a definitive agreement to sell approximately 100 dialysis clinics serving on average approximately 60 to 65 patients per clinic to National Renal Institutes, Inc., a wholly owned subsidiary of DSI Holding Company, Inc. (DSI). The execution of this agreement is an important step toward concluding the review by the United States Federal Trade Commission (FTC) of Fresenius Medical Care's acquisition of Renal Care Group.
The purchase price for the divested clinics is approximately $450 million to be paid in cash, subject to post-closing adjustments for working capital and other routine matters. The sale of the clinics is expected to close shortly after the completion of Fresenius Medical Care's acquisition of Renal Care Group, Inc.
Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are very pleased to have reached an agreement with such a qualified and committed buyer at a facility valuation that is comparable to recently announced transactions in the renal industry. We are confident that DSI is as committed as Fresenius Medical Care and Renal Care Group to continuing to provide high-quality care for our patients while we accomplish a smooth and prompt transition that supports our employees and affiliated physicians. We look forward to completing our merger with Renal Care Group, which is targeted to close on or before March 31, 2006, subject to meeting all closing conditions including final approval by the FTC."
Fresenius Medical Care is hosting a conference call to be broadcast live via the Internet on Wednesday, February 22, 2006, at which time the Company will present its full year 2005 financial results. During the call, the Company will also discuss the divestiture of the clinics.
Following the completion of the acquisition of Renal Care Group, Fresenius Medical Care will own and operate approximately 1,500 dialysis clinics in North America, which will serve approximately 115,000 patients.
Banc of America Securities LLC acted as financial advisor to Fresenius Medical Care in connection with this transaction.
About National Renal Institutes, Inc.
National Renal Institutes, Inc., is a wholly-owned subsidiary of DSI Holding Company, Inc. (DSI), a healthcare services company based in Nashville, Tennessee, that operates kidney dialysis treatment clinics, hospitals and acute care centers. By placing emphasis on specific areas of medicine and surgery, DSI facilities can focus on delivering comprehensive care that carefully coordinates all the disciplines in one setting. The DSI concept is designed to provide excellent patient care and improve the quality of life for the patients, patients' families, employees, and physicians at DSI facilities.
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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 1,300,000 individuals worldwide. Through its network of approximately 1,670 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to approximately 130,400 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 www.fmc-ag.com.