Helios acquires the DRK (German Red Cross) Kliniken Nordhessen in Kassel with two clinics with a total of 433 beds and an associated outpatient care center (MVZ), which generated sales of around €87 million in 2020. The DRK-Schwesternschaft remains a co-partner. Together with the existing Helios hospital in Warburg, a regional medical cluster shall be formed and expanded over the next few years. The acquisition is expected to be completed in the fourth quarter of 2021. The purchase price is 1 euro and includes the assumption of debts and the securing of liquidity for current operations and for future investments.

• Acquisition adds global network of fertility clinics with sales of approximately €160 million¹
• Fresenius Helios to become a leading international provider of fertility services
• Acquisition complements existing Fresenius Helios footprints in Germany, Spain and Latin America
• Global fertility market offers significant growth opportunities and consolidation potential
• Highly accretive to Group net income² from 2021

Fresenius Helios acquires Luarmia S.L. and NMC Eugin US Corporation (together “Eugin Group”), one of the leading international fertility groups, at a valuation of €430 million³ from NMC Health⁴. Eugin Group’s network comprises 31 clinics and additional 34 sites across 9 countries on 3 continents. With about 1,300 employees, the company offers a wide spectrum of state-of-the-art services in the field of fertility treatments.

¹ 2019 latest actual
² Net income attributable to shareholders of Fresenius SE & Co. KGaA
³ Including approx. €80 million of minority interests and assumed debt
⁴ Consisting of NMC Health Plc (in administration) and NMC Healthcare Ltd (in administration)

The transaction is expected to be highly accretive to Group net income¹ already in 2021. Fresenius Helios does not expect any meaningful integration expenses.

Through healthy organic growth coupled with a series of strategic acquisitions, Eugin Group has grown from a local player in Spain to a global leader within five years. In 2019, Eugin Group acquired the leading U.S. fertility chain Boston IVF, creating one of only two fertility groups with a global footprint.

Demographic and health trends, as well as changing lifestyle choices have proven to be strong and sustainable underlying growth drivers of the fertility market in recent years. Notable scientific advances in this field have led to higher success rates and less strain for patients. The global market for fertility services is highly fragmented, representing an attractive opportunity for consolidation.

Fresenius Helios has already for many years been a well-established provider of fertility treatments in selected hospitals and outpatient centers in Germany, Spain and Latin America. In 2019, Fresenius Helios performed more than 10,000 cycles² for around 7,000 patients, most of them in Spain. In Germany, Fresenius Helios had around 800 referrals related to fertility treatments being performed by external providers. With the acquisition of Eugin Group, Fresenius Helios becomes a leading player in this dynamic growing market and establishes a strong basis for further expansion.

¹ Net income attributable to shareholders of Fresenius SE & Co. KGaA
² One “cycle” can be considered as “one round” of fertility treatment or “one attempt” of becoming pregnant. Not every cycle leads to pregnancy. Therefore, women may undergo more than one cycle. So the number of patients treated is normally smaller than the number of cycles performed by a clinic.

Stephan Sturm, CEO of Fresenius, said: “Eugin and Fresenius Helios are an excellent fit. Eugin is highly profitable and holds excellent positions in attractive country markets. Its proven management team shares our focus on patient well-being and dedication to medical excellence. With this acquisition, we are creating a unique buy-and-build platform that offers substantial organic and non-organic growth opportunities. By bundling existing in- and outpatient services from our network, the new platform will serve as an accelerator for holistic and interdisciplinary patient care, while leveraging significant synergies.”

Dr. Francesco De Meo, CEO of Fresenius Helios and member of the Fresenius Management Board, said: “Eugin is an ideal addition to our portfolio as an integrated healthcare provider. Already, about 70,000 babies are born annually in Fresenius Helios hospitals. Looking at our fertility clinics and Eugin combined, so far almost 200,000 babies have been born, thanks to our expertise and high success rates. Together with Eugin and our comprehensive services – whether inpatient, outpatient or digital – we will be well positioned to help even more people fulfill their wish for a child. We share the same vision of the highest ethical and quality standards, and I am very much looking forward to working with our new colleagues at the Eugin Group.”

Eduardo González, CEO of Eugin Group, said: “With this transaction, the Eugin Group, a leader in assisted reproduction, enters a new phase of its growth agenda with a well-established and prominent player in the field of private health care as is Fresenius Helios. Over the last 5 years, as part of and with the strong support of NMC Healthcare, Eugin has been able to grow and strengthened its position as a leader in the industry, and I would like to express my thanks to Fresenius for their trust in Eugin’s team to continue this growth. I would also like to highlight the dedication and commitment of all our health professionals and staff, who every day give the best of themselves to provide the highest quality service to our patients. We look forward to the next chapter of our growth with Fresenius Helios.”

The United States, Spain, Brazil, Italy and Sweden are Eugin Group’s largest markets. The company also operates clinics in Denmark, Argentina, Colombia and Latvia. The sites are mainly located in large metropolitan areas such as Boston, Barcelona, São Paulo, Milan and Stockholm. In 2019, about 37,000 cycles were performed across the network.

In 2019, Eugin Group generated sales of approximately €160 million and EBITDA of approximately €31 million. In 2020, the company continues to deliver solid financial results despite temporary Covid-19-related restrictions in various countries. For 2021, EBITDA is expected to be in the range of €35 to €40 million. The valuation¹ corresponds to approximately 11.4x at the mid-point of the 2021 EBITDA range. Key drivers of the anticipated EBITDA growth are the strong underlying market fundamentals, efficiency projects related to Eugin Group’s recent acquisitions and ramp-up effects from recent openings of new facilities as well as operating leverage. The 2021 projections do not reflect potential further acquisitions.

¹ Including approx. €80 million of minority interests and assumed debt

Eugin Group will form a new and separate Fresenius Helios business and reporting unit alongside Helios Germany and Helios Spain.

Fresenius Helios acquires 100% of the share capital in Luarmia S.L., Spain, the holding of all global operations of Eugin Group except for the United States. For the United States, Fresenius Helios acquires 100% of NMC Eugin US Corporation, which holds 70% of the shares in Boston IVF; the remainder of which is held by the senior physicians of Boston IVF.

The purchase price will be financed from existing cash and credit lines.

The transaction is, amongst others, subject to regulatory approval by the relevant antitrust authorities and is expected to close in H1/2021.

Fresenius Helios is acquiring three hospitals and four connected medical care centers in the western German cities of Duisburg and Krefeld from the Malteser humanitarian aid group. The facilities have a total of 870 beds, and sales last year were about €160 million. Approximately 2,000 employees treat about 35,000 patients annually at the two locations.

The two Malteser Hospitals in Duisburg cover specialty areas including general surgery; internal medicine; ears, nose and throat medicine; oral and maxillofacial surgery, and geriatrics. Special expertise in hematological oncology is offered. At the Malteser Hospital in Krefeld, a comprehensive range of medical services includes oral and maxillofacial surgery, general surgery and internal medicine as the main specialty areas.

Dr. Francesco De Meo, who is responsible for Helios on the Fresenius Management Board, said: “We welcome the opportunity to acquire three additional Malteser hospitals just shortly after acquiring their hospital in Bonn. When they’re combined with our existing facilities, we will be able to offer the people of this region even better healthcare, tailored to their individual needs and with inpatient and outpatient care that go hand in hand. We are very much looking forward to working with our new colleagues.”

Fresenius Helios expects the acquisition, which is subject to approval by the German antitrust authorities, to close in the fourth quarter of this year. The three hospitals in Duisburg and Krefeld, along with the Malteser Hospital in Bonn, will be integrated into Helios Region West, where Helios already operates 18 acute care hospitals, a rehabilitation clinic and a number of medical care centers.

With approximately 18,000 employees, Helios treats some 300,000 inpatients annually in the region. The company is one of the largest healthcare employers in North Rhine-Westphalia, where Duisburg and Krefeld are situated, and the adjoining state of Lower Saxony.

The parties have agreed not to disclose the purchase price. The acquisition will be accretive to Group earnings starting in 2021.

Fresenius Helios is acquiring the Malteser Hospital (“MKHB”) in the western German city of Bonn. The 400-bed acute care hospital, with approximately 750 employees, treats approximately 13,000 patients annually. Its sales last year were about €66 million. Along with the hospital, Fresenius Helios will acquire two medical centers and a pharmacy with attached logistics center.

The MKHB offers a wide range of medical services, with specialties in general surgery, pulmonology and oncology, including palliative care. With certified centers for prostate, intestinal and lung cancers, it will superbly complement the existing Helios hospital in the neighboring city of Siegburg, which specializes in cardiovascular medicine and oncology.

Dr. Francesco De Meo, who is responsible for Helios on the Fresenius Management Board, said: “We are looking forward to working with the new colleagues, who will greatly strengthen our Helios team in North Rhine-Westphalia. With its medical offering, the MKHB is an outstanding fit for us and for our strategy of building specialized centers within regional clusters. Together with our existing facilities, we will be able to offer patients in this densely populated region even better medicine, tailored to meet their needs and all from a single provider.”

Fresenius Helios expects the acquisition, which is subject to approval by the German antitrust authorities, to close in the third quarter of this year. Following the closing, MKHB will be integrated into Helios Region West, which already includes 18 acute care hospitals, a rehabilitation clinic in Duisburg, several medical centers and three maximum care hospitals – in Duisburg and Krefeld, as well as the Helios University Hospital Wuppertal. Helios treats some 300,000 inpatients annually in the region, and is one of the largest healthcare employers in North Rhine-Westphalia and the adjoining state of Lower Saxony.   

The seller is the Malteser humanitarian aid group. The parties have agreed not to disclose the purchase price. The acquisition will be accretive to Group earnings starting in 2021.

Curalie, a subsidiary of Fresenius, has acquired Digitale Gesundheitsgruppe (DGG), one of its main competitors in Germany. Curalie and DGG both develop digital healthcare offerings to help patients with chronic illnesses. DGG targets family and specialist physicians with its “TeLiPro” telemedicine platform, while Curalie develops digital solutions for rehabilitation and aftercare. Combining the two companies creates the first provider that in all sectors of healthcare can digitally support patients during outpatient and inpatient care and through to aftercare.

Quirónsalud, the largest private hospital group in Spain and part of Fresenius Helios, has signed an agreement to acquire Clínica de la Mujer in Bogotá, further expanding the company’s presence in Colombia’s attractive private hospital market. Following the acquisitions in Medellin and Cali in the two previous years, this is the company’s first acquisition in Colombia’s capital city.

Clínica de la Mujer is located in a prime residential area of Bogotá, Colombia’s largest city, with a population of 7.4 million. The hospital puts a special focus on gynecology, pediatrics and obstetrics, helping mothers to deliver about 3,000 babies annually, while also offering a broad range of other medical specialties and services. It has approximately 80 beds and five operating rooms, and generated sales of about €20 million in 2019.

Both parties have agreed not to disclose the terms of the acquisition. The transaction is expected to close in the second quarter of 2020, pending antitrust clearance. Fresenius expects the acquisition of Clínica de la Mujer to be accretive to Group net income  in fiscal year 2020.

Fresenius Kabi and Vifor Pharma have formed a joint venture in China to provide patients access to vital blood management treatment. It will combine Vifor Pharma’s leading intravenous drug portfolio for the treatment of iron deficiency with Fresenius Kabi’s strong and long-year presence in the market to benefit both patients and the healthcare system in China. The joint venture will focus on marketing, market access and medical affairs activities whereas Fresenius Kabi will be fully responsible for the commercialization of the intravenous iron portfolio. The joint company will be 55% owned by Vifor Pharma and 45% by Fresenius Kabi. Financial terms were not disclosed.

Quirónsalud, the largest private hospital group in Spain and part of Fresenius Helios, has signed an agreement to acquire Centro Médico Imbanaco (CMI) in Cali, further expanding the company’s presence in Colombia’s attractive private hospital market.

CMI is located in a central district of Cali, the biggest city in southwestern Colombia with a population of 2.4 million. As one of the most prestigious private hospitals in Latin America, repeatedly recognized for its medical quality as well as its state-of-the-art infrastructure and medical technology, CMI offers a comprehensive range of medical specialties and services. The hospital has about 350 beds, 17 operating rooms and 250 consultation rooms, and generated sales of about €130 million in 2018. The total consideration amounts to approximately €300 million.

The purchase of CMI is another important step in strengthening Quirónsalud’s presence in Colombia’s growing and consolidating healthcare services market. With this acquisition, Quirónsalud becomes one of the leading private hospital operators in the country. The transaction is expected to close in the first quarter of 2020, pending anti-trust clearance. Fresenius expects CMI to be accretive to Group net income¹ in fiscal year 2020.

¹Net income attributable to shareholders of Fresenius SE & Co. KGaA

Quirónsalud, Spain’s largest private hospital group and part of Fresenius Helios, has acquired CediMed, a leading medical diagnostics group in Colombia. CediMed operates seven centrally located centers in Medellin, a major city of 2.5 million people. The company offers a comprehensive range of state-of-the-art diagnostic imaging and laboratory services. The total investment is about €40 million.

Following Quirónsalud's entry into Colombia in 2019, this is another step in strengthening the company’s presence in Latin America’s growing and consolidating healthcare services markets. Fresenius Helios expects the transaction to close in the next few months, pending antitrust clearance.

Quirónsalud, Spain’s largest private hospital group and part of Fresenius Helios, has acquired Clínica Las Vegas and Clínica del Prado and further expanded its presence in the attractive private hospital market in Colombia. Clínica Las Vegas and Clínica del Prado are two centrally located hospitals in Medellín, a major city of 2.5 million people. The two facilities have a total of about 300 beds. The total investment for both hospitals is about €50 million.

Following Quirónsalud's entry into Peru in 2017 and the acquisition of Clínica Medellín this year, this is another step in strengthening the company’s presence in Latin America’s growing and consolidating hospital markets. Fresenius Helios expects both transactions to close in Q4 2019, pending anti-trust and regulatory clearance by the Colombian authorities.