Fresenius Sells Its Stake in Investment Firm Vamed

Fresenius, a global healthcare conglomerate, has announced its decision to divest from Investment Company Vamed following the sale of Vamed’s rehabilitation business. An Austrian consortium comprising construction companies Porr and Strabag has agreed to purchase Vamed’s operations in its native Austrian market for a total consideration of 90 million Euros. This transaction encompasses Vamed’s entities responsible for the technical management of the Vienna General Hospital (AKH Wien), the Austrian project business within Vamed’s Health Tech Engineering segment, and stakes in various spas across Austria. The completion of this sale is contingent upon regulatory approvals and standard conditions.

Fresenius will retain Vamed’s High-End Services (HES) business unit, which delivers services to Fresenius Helios and other hospitals. HES, contributing approximately half of Vamed’s revenue and managing facility and medical technology for over 840 hospitals, will be integrated into Fresenius. The profitability of HES stands at the mid-single-digit percentage range with promising growth prospects.

Conversely, the Health Tech Engineering segment, representing approximately 15% of Vamed’s revenue, will undergo a phased reduction until 2026. During this period, it will be classified as a special item outside Fresenius’ core operations, with existing project contracts honored.

These divestments are expected to result in non-cash special items of approximately €0.6 billion, with additional special items in the high triple-digit-million Euro range anticipated over the coming years, primarily affecting cash flow.

Effective from Q2 2024, Vamed will no longer be reported as a segment of Fresenius. This strategic move aims to simplify operations, enhance profitability by over 50 basis points, reduce net debt, and elevate return on invested capital (ROIC). Moreover, it will substantially enhance earnings transparency and quality.

Fresenius CEO Michael Sen expressed satisfaction with the outcome, stating, “We have found a comprehensive and viable solution for Vamed’s businesses, ensuring favorable prospects for all stakeholders. This marks the completion of our strategic portfolio restructuring as planned, making Fresenius a more streamlined, resilient, and innovative entity under the #FutureFresenius initiative.”

Dr. Michael Moser, a member of the Fresenius Management Board overseeing the Vamed business, added, “We are pleased with the outcome for Vamed’s various businesses, which includes a positive resolution for both the rehabilitation and Austrian project segments. This positions us to pursue sustainable growth opportunities in the long term. We remain committed to securing fair outcomes for affected employees as we gradually wind down our project business outside Austria.”

Following the exit from Vamed, Fresenius will comprise two operating companies, Fresenius Kabi and Fresenius Helios, each with a 100% ownership share, along with its Investment Company, Fresenius Medical Care, in which it holds a 32% ownership stake.

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