Medtronic Buys Dialysis Treatment Pioneer Bellco
In its first acquisition of 2016, Medtronic has purchased Bellco, a pioneer in dialysis treatment solutions, for an undisclosed amount.
Dublin-based Medtronic said Bellco’s products, which are available in more than 50 countries, would become a “fundamental component” to its recently formed Renal Care Solutions division. Mirandola, Italy-based Bellco was purchased from Charme Capital Partners, a manager of pan-European Charme Funds.
Bellco’s portfolio includes a line of dialyzers and dialysis machines that treat renal failure, multiply organ failure and sepsis. For patients with end stage renal disease (ESRD), Bellco offers advanced blood purification treatments for chronic and acute kidney injuries. Reports indicate Bellco’s 2014 revenue was roughly $120 million.
“ESRD patients require dialysis for the remainder of their lives, or until a viable kidney transplant becomes available,” said Ven Manda, president of Medtronic’s Renal Care Solutions business, in a statement. The purchase, according to Manda, will allow Bellco’s products to be “more accessible and affordable” while under Medtronic’s ownership. He added, “The integration of Bellco’s portfolio of solutions will help further advance Medtronic’s efforts to provided comprehensive care for dialysis patients worldwide.”
Approximately three million people suffer from ESRD worldwide; however, this number is expected to reach six million over the next decade. The global dialysis market is said to be greater than $75 billion.
Medtronic expects the acquisition’s net impact will be neutral to earnings in its 2016 fiscal year and neutral to accretive to earnings in 2017 and beyond.