Fresenius Medical Care, Nikkiso enter 10-year exclusive distribution agreement for dialysis products in Japan

Jul 23 2010

Fresenius Medical Care AG & Co. KGaA ("the company") (NYSE: FMS) (FWB: FME), the world's largest provider of dialysis products and services, has entered into a long-term, 10-year exclusive distribution agreement with Japanese-based Nikkiso Co. Ltd. for hemodialysis and peritoneal dialysis products in Japan. With this agreement, both companies aim to further expand their market share of dialysis products, particularly dialyzers and peritoneal dialysis products, in Japan by utilizing Fresenius Medical Care's efficient manufacturing technologies while relying on Nikkiso's strong domestic distribution network.

In addition, the company intends to expand its leadership in the Republic of Korea's dialysis product market by acquiring Nikkiso Medical Korea Co. Ltd., a wholly owned subsidiary of Nikkiso Co. Ltd.

The acquired operations will add approximately $15 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.

"The strategic alliance with Nikkiso will generate significant value to both parties in Japan and Korea, as each company is concentrating on its strengths in these markets," said Roberto Fusté, Fresenius Medical Care's chief executive officer for the Asia-Pacific region.