Fresenius Medical Care, a German healthcare company, is set to receive approximately €500 million ($547 million) as a result of the sale of three businesses. These sales are part of the company’s efforts to simplify its portfolio.
The company has recently concluded the sale of National Cardiovascular Partners, a U.S.-based business, as well as its operations in Argentina. Additionally, Fresenius Medical Care has agreed to sell its Cura Day Hospitals Group in Australia to Intermediate Capital Group, a London-listed company, and a consortium of healthcare professionals. However, this agreement is still subject to regulatory approval.
The assets being sold include 127 facilities and over 4,500 employees. In 2022, these businesses generated approximately €600 million in revenue.
Out of the expected €500 million proceeds from these sales, Fresenius Medical Care predicts that €135 million will be recorded in the fourth quarter of fiscal 2023, with the remainder being recognized in 2024. The company plans to use these funds to reduce its debt, as previously stated.
However, the company expects these sales to have an impact on its operating income in the fourth quarter of 2023. It anticipates a decrease of around €50 million, which will be treated as a special item.
Fresenius Medical Care has also confirmed that all divestments made as part of its portfolio optimization program will lead to a reduction in revenue by €1.5 billion in 2025. Nevertheless, these actions are expected to improve the company’s profit margin if they are successfully executed by the end of that year.
