Baxter in talks to buy Gambro

Published: November 26, 2012 6:00 am ET

Related to this story

Topics Medical, Mergers & Acquisitions

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

Clariant extends reach into Asia with acquisition

September 29, 2014 9:54 am ET

Clariant International Ltd. is buying VitaPac (HK) Industrial Ltd., a Hong Kong-based company which produces desiccant packets for the healthcare...    More

Image

Global giant Foxconn to make, sell molding machines

September 26, 2014 2:48 pm ET

For years, Taiwan's Foxconn Technology Group has been the world's largest contract manufacturer for electronics, with more than 1 million employees...    More

Image

Nypro Healthcare continues to grow following Jabil acquisition

September 26, 2014 1:59 pm ET

Nypro Healthcare's newest medical device manufacturing facility offers 200,000 square feet of carefully configured Class 8 clean room molding and...    More

Image

England's Essentra buying Abric Berhad

September 26, 2014 11:31 am ET

Packaging firm Essentra plc has announced the planned acquisition of Abric Berhad, a Kuala Lumpur-based manufacturer of security sealing products.    More

Image

Bosch taking full ownership of home appliance venture BSH

September 26, 2014 11:11 am ET

Robert Bosch GmbH is set to take full control of Bosch und Siemens Hausgeräte GmbH (BSH), the domestic appliances giant that it formed with engineerin...    More

Market Reports

Plastics in Mexico - State of the Industry Report

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

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

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

More Events