Baxter in Talks to Purchase Company for $4 Billion

Deerfield based ., a maker of blood therapy, kidney dialysis and other products, is close to a deal to purchase Swedish kidney dialysis maker Gambro AB for $4 billion, according to a report on MoneyNews.

Gambro is owned by two Nordic private equity firms, according to the MoneyNews article. That report indicates the two businesses want to ink the deal in two to three weeks. The deal transaction will enhance Baxter’s kidney dialysis efforts.

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If the deal is completed, which is not definite based on a report on Reuters, it would boost Baxter’ share of the renal business market. The renal portion of the Deerfield based company is approximately 20 percent of its revenue.

Baxter has been in talks with Gambro for approximately a year and was weighing a bid for the company for several years before that, according to a Business Week article. Baxter is the world’s second largest provider of kidney dialysis and Gambro is third.

Most of Baxter’s dialysis equipment can be used in homes while the Gambro’s products are used in hospitals and clinics, according to the Business Week report. The acquisition will help Baxter cut costs in research and development.

Baxter reported sales of $13.89 billion in 2011 and had $3.91 billion cash on hand at the end of the third quarter of this year, according to Reuters.

Over the last five years, the company has averaged an annual cash flow of $2.7 billion and has returned $11.4 billion to shareholders through dividends and share repurchases, according to a company news release.

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