2013 M&A Review: A Big Dialysis Deal for Baxter International

By Clyde A. Burkhardt

Baxter International completed its biggest deal ever with the $3.9 billion acquisition of privately-held Gambro AB, a leading producer of dialysis products and therapies. Based in Sweden, Gambro was owned by the country’s wealthy Wallenburg Family and EQT, a private equity firm that had a 51% ownership. Gambro is one of the largest producers of equipment for hemodialysis, which is generally performed in a hospital or clinic, whereas Baxter’s dialysis equipment is generally used in the home.

The transaction substantially enhances Baxter’s global renal leadership position with a broad and complementary dialysis portfolio and global footprint. Baxter should now be able to accelerate it sales efforts in established markets, including Europe, where Gambro has an extensive distribution presence. Also, Baxter will now be in a position to build on its core portfolio and pipeline of investigational home dialysis and automated peritoneal dialysis systems by adding Gambro dialyzers, highly innovative next-generation monitors, and acute therapies to treat serious kidney, liver, and lung conditions.

Clyde A. Burkhardt is senior managing director of HT Capital Advisors LLC (New York City), a private investment banking firm. He leads HT Capital Advisors' groups focusing on the medical device, healthcare services, and precision component industries. Contact Burkhardt at [email protected].