Originally Published MX January/February 2005
BUSINESS NEWS
Blood MoneySwedish medical supply giant Gambro has agreed to divest its U.S. dialysis clinics business, Gambro Healthcare U.S., to DaVita Inc. (El Segundo, CA), the largest independent provider of dialysis services in the United States, for approximately $3.05 billion in cash. The move came after Gambro Healthcare pled guilty to felony charges and agreed to pay $350 million in criminal and civil fines to resolve federal healthcare fraud charges. The company's renal products and blood- component business units will be unaffected by the divestiture.
British engineering company Smiths Group plc (London) is acquiring privately held U.S. medical device firm Medex Inc. (Carlsbad, CA) for $625 million in cash, plus the assumption of $300 million in debt. Medex makes equipment used in critical-care settings, specializing in intravenous infusion catheters that prevent needlestick injuries. Smiths expects the deal to boost its position in anesthesia and safety devices, and to increase its medical sales by a third and its profits by nearly a half.
At the end of November, St. Jude Medical Inc. (St. Paul, MN) completed a two-for-one stock split. The move was accomplished through a 100% stock dividend and marked the eighth such split in the company's history.
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