NN&I - May 2010
Business 24 Nephrology News & Issues May 2010www.nephronline.comAmerican Renal Associates sells to private equity firmA private equity firm agreed March 25 to purchase American Renal Holdings Inc., the parent company of American Renal Associates. The selling price was not revealed. The transaction is expected to close in the second quarter of 2010. New York-based private equity firm Centerbridge Partners, LP was founded in 2006 and has $11 billion in assets under management. The agreement between Amer-ican Renal and Centerbridge marks the first major acquisition of a dialy- sis provider since Renal Advantage Inc. acquired National Renal Alliance in November 2008. As of April 2010, American Renal and its physician partners own and operate 83 dialysis clinics in 17 states and Washington, D.C., the company said. They ranked sixth in Compiled by Thomas Keatingthe United States in overall patients with 5,000 patients (4,618 hemodialy-sis, 370 peritoneal, and 12 home hemo-dialysis), according to NN&I's annual renal provider ranking, published in July 2009. How will this affect the clinics? "The most important news is no news," American Renal Associates CEO Joseph A. Carlucci told NN&I. He said that the same management team would remain in place. "Essentially, one finan-cial investor will exit and a new one will enter." Pamlico Capital was previ-ously the prominent financial investor in American Renal Holdings. Centerbridge's Senior Managing Director Steven Silver said in a press release that American Renal Associates "is uniquely positioned to benefit from the dynamic state of our nation's health care system." NxStage expands supply agreement with Renal AdvantageNxStage Medical Inc. said April 12 that its Medisystems division has expanded the scope of its existing long-term product supply agreement with Renal Advantage, Inc. to include 43 additional facilities acquired from National Renal Alliance. NxStage will supply the Streamline airless blood tubing set, as well as MasterGuard needles and other products to these additional facilities in RAI's dialysis center network. "We originally implemented Streamline into 45 of our facilities," said Renal Advantage Chief Oper-ations Officer Dean Weiland. "After reviewing the clinical and opera-tional data we collected from those centers, we determined that the KT/V improvement, operational cost savings, and staff satisfaction were significant."Amgen Chairman and CEO Kevin Sharer's compensation rose 11% to just over $15.3 million in 2009, The Associated Press reported March 29. The AP's executive pay calcula-tion, based on a regulatory filing, aims to isolate the value the com-pany's board placed on the CEO's total compensation package. The figure includes salary, bonus, incen-tives, perks, and the estimated value of stock options and awards. Sharer's compensation boost came as shares dropped 2% to close the year at $56.75, while annual rev-enue fell 2%. The company expects a U.S. Food and Drug Administration decision on its osteoporosis drug by July 25, and hopes sales will revive revenue growth.U.S. Renal Care acquires Dialysis Corporation of America for $112MU.S. Renal Care, Inc. has acquired Dialysis Corporation of America for $112 million, both companies said April 14. The publically-traded Dialysis Corp. entered into a definitive merger agree -ment with the privately-held U.S. Renal Care, which will pay $11.25 a share, a 72% increase in share price for Dialysis Corp.'s stockholders. over the April 13 closing stock price of $6.52 on Nasdaq.Under the terms of the agree- ment, U.S. Renal Care, through a sub- sidiary, commenced a tender offer for all of the outstanding common shares of Dialysis Corp. for $11.25 per share in cash, followed by a merger to acquire all remaining outstanding Dialysis Corp. shares at the same cash price paid in the tender offer. The two companies "each have built strong regional operations and this transaction permits us to build a more efficient and stronger national operation," U.S. Renal Care CEO Chris Brengard, said in a statement.As of May 2010, U.S. Renal Care pro-vides dialysis services to about 3,000 patients through 55 outpatient dialysis facilities in Texas and Arkansas. DCA operates 37 dialysis clinics in Virginia, Pennsylvania, New Jersey, Ohio, Georgia, South Carolina, and Maryland. Three of U.S. Renal Care's existing equi-ty sponsorsSV Life Sciences, Cressey & Company, and Salix Venturesare providing additional equity financing to support the acquisition.Amgen CEO gets 11% pay raise Business0510_7.indd 24 4/19/10 2:10:32 PM
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