Fresenius Medical Care Executes On Its Strategic Portfolio Optimization Program And Announces Key Transactions
Portfolio Pulse from Benzinga Newsdesk
Fresenius Medical Care (FMS) has made significant progress in its Portfolio Optimization Program by divesting noncore assets and exiting certain markets. The company sold its operations in Argentina to Grupo Olmos, its National Cardiovascular Partners (NCP) business in the US, and signed a deal to sell Cura Day Hospitals Group in Australia to ICG and a consortium. These divestitures, which include 127 facilities and over 4,500 employees, are expected to generate around EUR 500 million in proceeds, with EUR 135 million recognized in Q4 2023. The divestments will result in a EUR 50 million operating income impact treated as a special item. The optimization aims to improve the leverage ratio and focus on more profitable and strategically fitting businesses.
January 08, 2024 | 1:37 pm
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Fresenius Medical Care has divested several noncore assets, including operations in Argentina, NCP in the US, and Cura in Australia, to streamline its portfolio and focus on strategic growth. The divestments are expected to generate significant proceeds and impact operating income.
The divestitures are a strategic move to optimize Fresenius Medical Care's portfolio, which is likely to be viewed positively by investors as it indicates a focus on core profitable areas and an improvement in the company's leverage ratio. The expected proceeds from the divestments will contribute to deleveraging, which can be seen as a positive step towards financial stability. However, the impact on operating income and the loss associated with the divestments may cause some concerns in the short term.
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