Baxter in talks to buy Gambro

Published: November 26, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions Medical
Companies & Associations

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

McClarin doubles in size, reach with Amtech acquisition

April 1, 2015 10:57 am ET

From Washington to Pennsylvania to Alabama, the new McClarin Plastics LLC will be twice as big and provide fiber-reinforced plastic components as...    More

Image

Bloomer Plastics takes Optimum name

April 1, 2015 10:25 am ET

Optimum Plastics is the new name of two film companies that combined their businesses in October.    More

Image

Amcor buys Nampak Flexibles

March 31, 2015 3:31 pm ET

Australian packaging giant Amcor Ltd. has bought South African-based Nampak Holdings Ltd.'s Nampak Flexibles division.    More

Image

Uponor sells plastic pipe machinery business to focus on core units

March 30, 2015 2:13 pm ET

Uponor Corp., the Finland-based maker of plastic pipe systems for plumbing, underfloor heating and cooling and infrastructure, announced March 30...    More

Image

Dow Chemical to merge chlorine operations with Olin

March 27, 2015 12:43 pm ET

Dow Chemical Co. is combining a large part of its chlorine value chain with specialty chemicals and ammunition maker Olin Corp. to create a global mat...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

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

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

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

More Events