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Baxter Completes $4 Billion Renal Acquisition

Baxter International (Deerfield, IL) completed its acquisition of Gambro AB, a Swedish dialysis products manufacturer. With the completion of its latest acquisition, the company is in a strong position to take control of the global renal market.

With Gambro AB, Baxter will be able to improve its sales presence in Europe, the home of its new acquisition. For Baxter, the new deal represents several opportunities too. With Baxter, Gambro will be able to expand into high-growth Asia-Pacific and Latin American regions. In both these areas, Baxter has spent recent years growing its peritoneal dialysis segment.

On top of this, Baxter hopes to improve its core portfolio of automated peritoneal dialysis and hemodialysis systems with the addition of Gambro's dialysis and dialysis systems. In addition, Gambro's next-generation monitoring systems and acute care management systems could prove beneficial to Baxter.

In total, the cash value of the transaction was $3.9 billion. The purchase was made possible through a combination of debt issuances and cash from overseas operations. The impact on Baxter's financials was included in the company's Q3 and full-year guidance.

"The combination of these two respected renal leaders -- Baxter and Gambro -- will enable Baxter to better serve healthcare providers and patients through a collective offering of innovative renal products and therapies," stated Robert L. Parkinson, Jr., CEO of Baxter. "Together, we will advance the state of dialysis care for patients with kidney disease worldwide."

Recently, Baxter has put efforts toward growing it peritoneal dialysis segment. Manufacturing occurs at the company's two dialyzer plants in Hessiga, Germany, and the Alabama location.

Baxter acquired Swedish dialysis company Gambro AB in September 2013. [

] Baxter CEO Robert Parkinson has said the company aims to boost capacity in the dialyzer area to meet demand. Baxter could be realizing the benefits of Gambro's next-generation monitoring systems and acute care management systems .The cash value of the transaction totaled $3.9 billion, facilitated through a combination of debt issuances and cash from overseas operation revenue.

The news of increased dialyzer production follows Baxter's plan to split into two companies last spring between the medical products business and the biopharma business. The company had expected slower growth from the medical products side, expanding by roughly 5.5% compound annual growth rate between 2012 and 2017, than the biopharma business, at 12% CAGR.

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