Baxter Completes Acquisition of Gambro AB

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Baxter Completes Acquisition of Gambro AB and Enhances Global Leadership in Renal Therapies

Baxter International Inc. (BAX) announced that the company has successfully completed the acquisition of Gambro AB, a privately held global medical technology company and leader in dialysis products based in Lund, Sweden. The transaction further enhances Baxter’s global renal leadership and provides the company with a comprehensive product and therapies portfolio to meet the needs of patients in the large and growing dialysis market.

''The combination of these two respected renal leaders – Baxter and Gambro – will enable Baxter to better serve healthcare providers and patients through a collective offering of innovative renal products and therapies,'' said Robert L. Parkinson, Jr., chairman and chief executive officer of Baxter. ''Together, we will advance the state of dialysis care for patients with kidney disease worldwide.''

The acquisition provides a number of long-term growth opportunities for Baxter around the world. With a broad and complementary dialysis product portfolio and global footprint, Baxter can accelerate product sales in established markets such as Europe, where Gambro has an extensive presence. Baxter will also expand Gambro’s reach in high-growth regions of Latin America and Asia-Pacific, where Baxter has steadily grown its peritoneal dialysis (PD) business. In addition, Baxter will build upon its core portfolio and pipeline of investigational home hemodialysis (HD) and automated PD systems by adding Gambro’s dialyzers, devices and dialysis solutions, highly innovative and next-generation monitors, and acute therapies to treat patients with serious kidney, liver and lung conditions.

Brik Eyre has been named president of the combined Renal business and has been elected a corporate officer of Baxter by the company’s Board of Directors. In his role, he will report to Robert M. Davis, president of Baxter’s Medical Products business. Eyre joined Baxter in 2008 and previously served as the general manager of U.S. Medication Delivery. Prior to this role, Eyre served as general manager for Baxter’s BioPharma Solutions business.

The total cash consideration for the transaction was approximately $3.9 billion USD. The transaction was financed through a combination of cash generated from overseas operations and debt issuances. The impact of the acquisition was included in Baxter’s third quarter and full-year 2013 guidance.