Fresenius Buys Renal Solutions

Fresenius Medical Care AG (NYSE: FMS) has acquired Renal Solutions Inc., a Warrendale, Penn.-based provider dialysis products and services. The deal is valued at up to $190 million, including $100 million at closing, $60 million after the first year and up to $30 million in milestone payments over the next three years. RSI had approximately $10 million on outstanding net debt at closing, and had raised around $34 million in VC funding from CID Equity Partners, Blue Chip Venture Co., PA Early Stage, Birchmere Ventures, Draper Triangle Ventures, Gazelle TechVentures, Triathalon Medical Ventures and Amkey Ventures.

PRESS RELEASE
Fresenius Medical Care AG & Co. KGaA today announced that it has acquired Renal Solutions, Inc. (RSI). The acquisition agreement provides for total consideration of up to $190 million, consisting of $100 million at closing, $60 million after the first year, and up to $30 million in milestone payments over the next three years. RSI had approximately $10 million of net debt outstanding at closing.

RSI is currently commercializing the Allient Sorbent Hemodialysis System, which is returning sorbent-based technology (SORB) to the dialysis field. The SORB cartridge has a long market history in hemodialysis with over 6 million cartridges sold. As the innovator in the SORB technology field, RSI holds key patents and other intellectual property worldwide related to the SORB technology.

The sorbent technology purifies tap water to dialysate quality and allows dialysate to be regenerated. This reduces the water volume requirement for a typical hemodialysis treatment from 120 liters / 37 gallons of reverse osmosis water to just 6 liters / 1.5 gallons of drinking water per treatment.

The combination of Fresenius Medical Care's leading hemodialysis technology and the SORB technology will provide a platform for superior home products and therapies. Furthermore, the significant reduction of dialysate through SORB technology is one major step towards miniaturization