S&P Rated: Investment Grade BB+
Current Annual Revenue: $14.6 billion
Current Gross Profit: $4.7 billion
Current Annual Net Income: $1.1 billion
2013 Fiscal Yr. Revenue Growth: 5.87%
Fresenius is a Germany-based company that is diversified across a wide range of integrated medical products and services, and which owns and operates its own medical facilities. Fresenius employs over 170,000 individuals in approximately 100 countries, including nearly 2,000 scientists. Its assets total over $42.68 billion. It consists of Fresenius Medical Care AG & Co. KGAA (NYSE: FMS), Fresenius Helios, Fresenius Kabi, and Fresenius Vamed. Fresenius Medical Care provides dialysis and related products, inpatient/outpatient care products, and services such as engineering to hospitals and related facilities. Fresenius Helios owns over 100 of the most advanced hospitals in the world, including six maximum care facilities. Fresenius Kabi specializes in lifesaving medicines and technologies for infusion, transfusion, and clinical nutrition. Fresenius Vamed consults for, plans, engineers, renovates, constructs, maintains, and manages large hospitals, medical facilities, and wellness facilities in Central Europe. In September of 2013, Fresenius purchased the majority of the hospitals owned by its rival, Rhoen-Klinikum, for $4.1 billion.
In North America, Fresenius operates more than 2,100 dialysis centers. These facilities provide renal care to hundreds of thousands of patients requiring dialysis because of chronic kidney failure, a condition that affects more than 2.1 million individuals globally. Dialysis is a medically necessary and routine procedure that typically requires three visits per weak. Demand is projected to grow due to the increasing rate of obesity in America, which leads to kidney failure in approximately 44% of cases. Leases to Fresenius dialysis centers in the United States are typically long-term, corporate-backed, double-net and triple-net leases with rent increases built into the terms.Written By: Louis Swingrover