DGAP-Ad hoc: Fresenius SE & Co. KGaA (St.)

DGAP-Adhoc: Fresenius SE & Co. KGaA: Fresenius Helios acquires largest private Spanish hospital group Quirónsalud

Fresenius SE & Co. KGaA / Key word(s): Mergers & Acquisitions

05.09.2016 21:34

Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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Fresenius Helios acquires largest private Spanish hospital group Quirónsalud

Fresenius Helios acquires IDC Salud Holding S.L.U. ("Quirónsalud"), Spain's largest private hospital operator, for a purchase price of EUR5.76 billion (on a cash and debt-free basis). Quirónsalud's network is comprised of 43 hospitals, 39 outpatient centers and around 300 Occupational Risk Prevention ("ORP") centers located in all economically important areas in Spain. The company has about 35,000 employees and offers the full spectrum of inpatient and outpatient care. Quirónsalud was created by the merger of IDC Salud ("IDC") and Grupo Hospitalario Quirón ("GHQ") in 2014.

Quirónsalud has posted organic sales growth of more than 5% p.a. in recent years. Growth is driven by an above-market increase of patient admissions due to excellent quality of care combined with consistently short waiting times.

For 2016, Quirónsalud expects sales of approximately EUR2.5 billion and EBITDA of EUR460 to EUR480 million. In 2017, EBITDA is expected to be in the range of EUR520 to EUR550 million. The purchase price corresponds to approximately 10.8x at the mid-point of the 2017 EBITDA range.

Key drivers of the anticipated EBITDA growth are already implemented synergy projects related to the 2014 merger of IDC and GHQ, recent acquisitions, well-advanced efficiency projects as well as operating leverage. Neither greenfield projects, further acquisitions nor synergies with HELIOS are included in the 2017 projections. In the medium-term, the merger of HELIOS and Quirónsalud is expected to lead to incremental pre-tax synergies of approximately EUR50 million p.a. without meaningful implementation expenses.

Fresenius Helios acquires 100% of the share capital in Quirónsalud. Sellers are the private equity group CVC Capital Partners, the founder and CEO of Quirónsalud Víctor Madera, as well as other members of Quirónsalud's management board.

Fresenius will issue 6,108,176 shares valued at EUR400 million to Víctor Madera who has agreed to a two year lock-up period. The balance of the purchase price will be debt-financed.

Group net debt/EBITDA will temporarily increase to approximately 3.1. Already in mid-2017, the leverage ratio is expected to return to the 2.5 to 3.0 target range.

The transaction is subject to regulatory approval by the relevant antitrust authorities and is expected to close in Q4/2016 or Q1/2017.

The transaction is expected to be accretive to Group net income attributable to shareholders of Fresenius SE & Co. KGaA and earnings per share attributable to shareholders of Fresenius SE & Co. KGaA already in 2017.

Given the expected meaningful accretion to Group sales and earnings, Fresenius will publish new mid-term targets as part of its full-year 2016 reporting.

Fresenius SE & Co. KGaA, represented by Fresenius Management SE, Board of Management

Bad Homburg v.d.H., 5 September 2016

For additional information on the performance indicators used please refer to pages 25, 40, 56f., 100f. and 194 of the Annual Report 2015 of Fresenius SE & Co. KGaA.

Contact: Markus Georgi Senior Vice President Investor Relations T: +49 (0) 6172 608-2485 markus.georgi@fresenius.com

End of note

05.09.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

--------------------------------------------------------------------------- Language: English Company: Fresenius SE & Co. KGaA Else-Kröner-Straße 1 61352 Bad Homburg v.d.H. Germany Phone: +49 (0)6172 608-2485 Fax: +49 (0)6172 608-2488 E-mail: ir-fre@fresenius.com Internet: www.fresenius.com ISIN: DE0005785604 WKN: 578560 Indices: DAX Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Hamburg, Hanover, Stuttgart, Tradegate Exchange End of Announcement DGAP News-Service ---------------------------------------------------------------------------