Medtronic acquires Italian hemodialysis player as part of newly formed renal care biz

Medtronic ($MDT) has acquired Italian hemodialysis treatment solutions company Bellco from private equity firm Charme Capital Partners, which acquired it in 2012. The medical device giant is folding the acquisition into its newly formed Renal Care Solutions business. This is just the latest in a series of diabetes-related deals for Medtronic, which last year also bought Netherlands-based diabetes clinic and research center Diabeter.

The company expects its Renal Care Solutions business will support its strategy of delivering economic value. The financial details of the Bellco acquisitions, now and in 2012, were undisclosed.

At the time of the Charme acquisition, Bellco had 364 employees and €108 million ($118 million) in annual revenues, with almost half coming from Italy. Bellco was founded in 1972 and was considered by Charme to be among the top 5 leading providers of hemodialysis systems when it acquired the firm.

The company's end stage renal disease (ESRD) products are aimed at renal failure, multiple organ failure and sepsis treatment. Its chronic and acute dialysis machines are designed for adult, pediatric and neonatal patients; it also markets dialyzers for the machines. This fits well with Medtronic's strategy to focus on its sales into hospitals.

"ESRD patients require dialysis for the remainder of their lives, or until a viable kidney transplant becomes available. We believe Medtronic's Renal Care Solutions can offer better, more accessible and affordable solutions to the growing population of people living with ESRD," said Medtronic Renal Care Solutions President Ven Manda in a statement. "The integration of Bellco's portfolio of solutions will help further advance Medtronic's efforts to provide comprehensive care for dialysis patients worldwide."

Medtronic first entered the hemodialysis business in 2013 with a partnership to develop a portable kidney dialysis system with India's Apollo Hospitals Enterprise that maintains hospitals across the country. The device was slated to launch in 2016. There are about 3 million ESRD patients globally, with that figure expected to double in the next decade.

The Bellco acquisition is expected to be earning neutral for fiscal 2016 and accretive to earnings thereafter, Medtronic said. The new Renal Care Solutions business will report as part of Medtronic's Minimally Invasive Technologies Group's Patient Monitoring & Recovery division.

- here is the announcement