Gambro Acquires Mercy Health Systems and Nephrology S.A

Business Wire, Nov 13, 1998

STOCKHOLM, Sweden--(BW HealthWire)--Nov. 13, 1998--

Acquisitions include five treatment centers, 670 patients in Michigan and 80% interest in Argentina's leading renal care clinic

GAMBRO AB, a world leader in renal care services, today announced two important acquisitions.

Gambro Healthcare, Inc., a subsidiary of Gambro AB and the second largest provider of kidney dialysis services in the United States, announced its acquisition of five (5) outpatient dialysis clinics from Mercy Health Systems, Inc., based in Farmington Hills, Michigan. Effective October 1, 1998, this acquisition includes five (5) dialysis treatment centers that serve a total of 670 patients in the Michigan communities of Grand Rapids, Wyoming, Zeeland, Muskegon and Grand Haven. All of the acquired centers are wholly owned and operated by Gambro Healthcare of Michigan, Inc.

Dialysis treatment and related patient services will continue to be administered by the medical directors affiliated with West Michigan Nephrology PC, Renal Associates of Grand Rapids PC, and Nephrology Associates of Grand Rapids PC.

Mats Wahlstrom, president of GAMBRO Healthcare, said: "Gambro is committed to being a leading high quality provider of renal treatment services in the United States and in other areas of the world. These acquisitions further reinforce our ability to service patient needs throughout the world and strengthen our leadership positions in renal treatment and disease management."

Gambro Healthcare S.A. of Argentina today announced its acquisition of Nephrology S.A., the country's leading provider of integrated renal care services.

Under terms of this acquisition, effective October 1, 1998, Gambro Healthcare S.A. of Argentina now owns 80% of Nephrology S.A., which specializes in kidney transplantation, in-patient and out-patient services, pediatric kidney dialysis and is a leading training center for nephrologists in Argentina. The remaining 20% interest of Nephrology S.A. is held by Dr. Domingo Casadei, founder of Nephrology S.A., and his son Lcdo. Mariano Casadei. Dr. Casadei has been appointed as Chairman of the 19th World Congress of The Transplantation Society to be held in Buenos Aires in 2002.

With a 13% marketshare throughout Argentina, Nephrology S.A. conducts an average of six to seven kidney transplants monthly and, since its inception in 1978, has performed a total of 867 kidney transplants. Each year, over 460 patients receive pre- and post-kidney transplant care at Nephrology S.A.

"This acquisition pushes Gambro another step forward in its ability to provide comprehensive, high quality renal care services to patients throughout the world," said Juan Carlos Boyadjian, president of Gambro Healthcare S.A. "We look forward to a close association with Dr. Casadei, who is nationally recognized in Argentina for his contributions with INCUCAI, the country's regulatory agency which enforces ethical treatment of transplant patients."

GAMBRO Healthcare, Inc. is a wholly owned subsidiary of Gambro, AB, a world-leading manufacturer of hemodialysis products. GAMBRO Healthcare is a fully integrated service provider in renal replacement therapy. Its activities include:

-- Risk contracting

-- Disease management

-- Physician practice management

-- Dialysis services

-- Clinical laboratory services

GAMBRO Healthcare is the second largest provider of kidney dialysis services in the US. The Company now owns, operates, manages or provides consulting services to 445 dialysis centers in the United States that serve about 33,000 patients. There are patients under treatment in centers across 33 states and the District of Columbia. Several of these centers are associated with prominent academic institutions, such as:

-- Duke University

-- Emory University

-- The Johns Hopkins University Medical School

-- Robert Wood Johnson School of Medicine

-- Joslin Diabetes Center at Harvard University

-- Medical College of Virginia

-- University of Alabama at Birmingham

-- University of California at San Diego

-- University of Colorado

-- University of Miami

-- University of Missouri-Kansas City

-- University of Oklahoma

-- University of Texas/SW Health Systems

-- University of Texas/Houston

-- The George Washington University Medical School

-- Yale University

Gambro had revenues of approximately $2.4 billion in 1997 and has approximately 17,000 employees around the world; it markets its products and healthcare services in 103 countries. Gambro provides dialysis services to approximately 38,000 patients worldwide.