Baxter to expand renal therapies range with $4 billion buy of Gambro

Confirming recent rumors and speculation, Baxter International  (NYSE:BAX ) said yesterday it has entered into a definitive agreement to acquire Gambro AB, a privately held dialysis product company based in Lund, Sweden, for total consideration of 26.5 billion Swedish kronor (around $4.0 billion).

Gambro is a global medical technology company focused on developing, manufacturing and supplying dialysis products and therapies for patients with acute or chronic kidney disease. The acquisition gives Baxter a comprehensive dialysis product portfolio, complements the US firm's global home dialysis offerings, and positions the company to better meet the evolving needs of the large and growing dialysis market.

"Baxter has a legacy of innovation in dialysis, including the development of peritoneal dialysis for the treatment of end-stage kidney disease patients in the home. This acquisition further strengthens our global dialysis offerings by extending our portfolio in the hemodialysis segment," said Robert Parkinson Jr, chairman and chief executive of Baxter, adding: "This transaction will provide attractive returns and enhance Baxter's sales and earnings growth over the company's current long-range financial plan."