Two Sidley Austin LLP offices and Gómez-Pinzón in Bogotá have assisted Colorado-headquartered kidney healthcare company DaVita in the acquisition a portfolio of Latin America-based dialysis clinics from German counterpart Fresenius Medical Care for US$300 million.
Fresenius relied on several Cleary Gottlieb Steen & Hamilton LLP offices, Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) and Pérez Bustamante & Ponce (PBP) in Quito for the deal.
The transaction was signed on 4 March and is expected to close later this year.
DaVita, which made the acquisition through its Dutch arm, will incorporate Fresenius’ network of kidney dialysis services in Brazil, Colombia, Chile and Ecuador, comprising 154 dialysis clinics, over 7,000 employees and more than 30,000 patients.
As a result, DaVita will consolidate its existing kidney care operations in Brazil and Colombia and enter the Chilean and Ecuadorean healthcare markets – establishing itself as the largest provider of dialysis services in Latin America.
Fresenius will use the proceeds from the sale to reduce its debt pile. The German company’s divestment comes just months after it sold its Argentine operations to local healthcare-focused investment group Grupo Olmos in December.
Several other M&A transactions have taken place in Latin America’s healthcare sector recently. In December, London-based chemicals company Linde acquired the Colombian operations of Canada’s Maple Respiratory for US$56 million. That same month, Brazilian entrepreneur José Seripieri Filho purchased the country’s largest health insurer, Amil, from US counterpart UnitedHealth for US$2.2 billion. Brazilian digital healthcare group Conexa Saúde Servico Medicos also merged its operations with Portuguese counterpart Zenklub in October.
Founded in 1994, DaVita provides transplantation support, acute hospital care and at-home dialysis treatment to around 250,000 patients worldwide. Following this acquisition, it will operate a network of more than 270 clinics spanning 11 countries.
Fresenius was established in 1996 and is the world’s leading provider of kidney care services and products for those with chronic renal diseases. Before this latest divestment, the company supported around 340,000 patients through its network of 4,000 dialysis clinics, which span Latin America, Europe, the Middle East, Africa and Asia.
Counsel to DaVita and DaVita Care Netherlands
In-house counsel – Jeroen Holland, Darab Khan, Jyotsana Gupta and Daniela Rivera Diaz
Sidley Austin LLP
Partner Sharon Flanagan in San Francisco, and partner Aaron Rigby and counsel Jocelyne Kelly in Dallas
Gómez-Pinzón
Partners Lina Uribe García and Mauricio Jaramillo, and associates Paola Valderrama Ortiz, Juan Felipe Sáenz Dussán and Cristina Uribe Riaño in Bogotá
Counsel to Fresenius Medical Care
Cleary Gottlieb Steen & Hamilton LLP
Partner Marcela Robledo in San Francisco; partners Chantal Kordula, Michael Albano, Joseph Lanzkron and Jason Factor, and associates Kiki Manzur, Jaehwan Park, Natalie Curry, Rémi Gagnon and Gretchen Dougherty in New York; partners Jeremy Calsyn and Beau Sterling and associate Madison Bush in Washington, DC
Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)
Partner Felipe Cuberos and associates David Beltrán and Maria Paula Angarita in Bogotá
Pérez Bustamante & Ponce (PBP)
Partner Juan Manuel Marchán, director Mario Navarrete and associate David Carrera in Quito.
