Fresenius, one of Europe’s largest healthcare providers, has sold part of its stake in dialysis provider Fresenius Medical Care (FME).

The transaction involved selling 10.6 million shares (3.6% of FME’s share capital) at €44.50 per share through an accelerated bookbuilding process, alongside a €600 million senior unsecured exchangeable bond placement covering 3.5% of FME’s share capital.

Total gross proceeds amounted to approximately €1.1 billion.

Michael Sen, CEO and Chairman of Fresenius, said:

“Selling a stake in Fresenius Medical Care marks another key milestone in #FutureFresenius, giving us greater strategic flexibility to strengthen our growth platforms while laying the foundation for long-term, profitable expansion. By capitalising on recent share price gains and structuring the transaction effectively, we have realised value while remaining engaged in FME’s future success. This move brings Fresenius closer to becoming a more focused and resilient company.”

A Fresenius spokesperson told HBI that the transaction strengthens the company’s growth platforms — BioPharma, MedTech, and Care Provision. They added: “We remain a strong and active shareholder in FME, convinced of its long-term potential. Even after the transaction, we will continue as the largest shareholder with no less than 25% plus one share, supporting FME as it executes its transformation.”

Fresenius has agreed to a 180-day lock-up period. The equity offering is expected to settle on 6 March 2025, with the exchangeable bond offering closing on 11 March 2025.

Fresenius recently reported its 2024 annual results, beating market expectations. Its hospital drug unit, Kabi, posted a 21% year-on-year EBIT increase to €340 million, reflecting strong performance under the Future Fresenius strategy.

However, sources HBI spoke to warn that the hospital sector faces long-term challenges, particularly with Germany’s upcoming hospital reform. Investors are closely monitoring private healthcare firms such as Fresenius, Asklepios, and Siemens Healthineers, as demand rises due to an ageing population and the growing prevalence of chronic diseases.

Germany’s hospital reform impact on the healthcare market

Germany’s hospital reform, effective from January 2025, aims to enhance healthcare through greater specialisation. By 2026, federal states will assign hospital specialisations, with full implementation expected by 2029. Click here to read more on the reforms.

According to S&P Global Ratings, larger hospitals such as Helios Germany and Schön Klinik are set to benefit from their scale and the new clustering strategy, which emphasises specialisation.

A Fresenius spokesperson told HBI:

“The aim of the reform is to fundamentally reorganise the hospital landscape in Germany. The reform will promote greater centralisation and specialisation: services will be offered at fewer locations, as complex procedures will only be performed in qualified hospitals in the future. Fresenius Helios considers itself well positioned for the upcoming reform, as the company’s strategy focuses on structural changes, new forms of care and regional health care networks (clusters). Fresenius Helios expects the hospital structural reform to have a rather positive impact.”

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HBI has a market overview on Germany for-profit hospitals. Click here to access the overview.