Baxter in talks to buy Gambro

Published: November 26, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Medical

DEERFIELD, ILL. (Nov. 26, 10:50 a.m. ET) — Baxter International Inc. is in talks to buy Swedish medical-equipment maker Gambro for roughly $4 billion, according to published reports, an apparent bid to accelerate growth.

While the talks still could collapse, the aim is to have a deal done in two to three weeks, according to the Wall Street Journal, which first reported the transaction.

A takeover of Gambro would be the biggest deal ever for Deerfield-based Baxter, according to the New York Times.

The medical products maker has struck eight deals in the past two years, the Times said, citing data from Standard & Poor’s Capital IQ. But its largest deal to date was a roughly $700 million purchase in 1997.

Both companies have plastics processing operations. The acquisition would help Baxter round out its kidney-dialysis business. Baxter makes machines that perform peritoneal dialysis, which can be done at home. Gambro makes equipment for hemodialysis, which generally is done in a hospital or clinic.

Baxter has been a top performer in the medical products sector, but CEO Robert Parkinson needs to find a way to boost revenue in order to drive the stock price higher, according to a report by analyst Rick Wise of investment firm Stifel Nicolaus & Co., issued before news surfaced of the Gambro negotiations.

“At current share price levels ... we believe in order for the stock to move above the $70 level, we would require greater revenue upside beyond our currently modeled assumptions,” Mr. Wise wrote in the Nov. 19 report.

One person familiar with the companies says Baxter has considered doing a deal with Gambro for years.

Baxter has a market value of about $36 billion and had more than $3 billion in cash as of September. It had sales last year of $13.9 billion and has nearly 50,000 employees.

Gambro, founded in 1964 and owned by two Nordic private-equity firms since 2006, has about 7,500 employees and roughly $1.6 billion in annual sales.

Baxter was founded in 1931 and began trading on the New York Stock Exchange in 1961.


Comments

Baxter in talks to buy Gambro

Published: November 26, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

UK recycler Eco Plastics sold to German investment group

December 12, 2014 11:19 am ET

Recycler Eco Plastics has been bought by Aurelius AG, a Grünwald, Germany-headquartered investment firm, for an undisclosed sum.    More

Image

Baxter expanding Arkansas medical products plant

December 11, 2014 5:50 pm ET

Medical major Baxter International Inc. is expanding its Mountain Home, Ark., medical device plant.    More

Image

Resin distributor Biesterfeld Plastic buys out partner in Biesterfeld Nordic

December 11, 2014 12:21 pm ET

Hamburg, Germany-based Biesterfeld Plastic GmbH, a distributor for the European plastic and rubber industry, announced that it has bought the shares...    More

Image

End of era for DuPont: Chemical company to sell Neoprene unit

December 10, 2014 11:27 am ET

UPDATED — DuPont Performance Polymers has signed a definitive agreement to sell its Neoprene polychloroprene business to Denka Performance...    More

Image

Compounder RTP buys assets of Alloy Polymers

December 10, 2014 6:23 pm ET

UPDATED — Engineering resins compounder RTP Co. has acquired most of the assets of Alloy Polymers, a toll compounder based in Richmond, Va.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events