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Gambro agrees €4bn EQT/Investor deal

The Northern European private equity firm and founder Investor AB have had a Skr38bn offer for Gambro accepted by the listed Swedish medical technology company’s board.

Nordic private equity firm EQT and Investor AB, Scandinavia’s largest holding company and the founder of EQT, have made a Skr111 per share offer for all outstanding shares in Gambro, a Swedish medical technology company, valuing the business at approximately Skr38 billion (€4 billion; $4.9 billion).
 
The offer was made through acquisition vehicle Indap. EQT was founded by Investor AB in 1994 and both companies are controlled by the Wallenberg family. Indap is indirectly owned 51 percent by EQT and 49 percent by Investor AB.
 
EQT will invest through EQT IV, a €2.5 billion ($3 billion) vehicle closed in August 2004. Debt financing for the offer has been arranged through Citigroup Global Markets and Morgan Stanley Bank. If the bid is successful, Indap intends to de-list Gambro from the Stockholm Stock Exchange.
 
According to Gambro, the offer period runs from April 7 until May 10 and requires acceptances from at least 90 percent of shareholders. The offer has already been accepted by Gambro’s board of directors.
 
Investor is already the largest shareholder in Gambro, currently owning 19.9 percent of the shares and 26.3 percent of the votes. The firm will transfer its shares to Indap if the offer is successfully completed.
 
Gambro said the offer represents a premium of 30.5 percent compared with the company’s average share price of Skr85 over the last three months.
 
In a statement, Claes Dahlbäck said he would not be participating in the handling of the bid due to the conflict of interest arising from his position as chairman of both Gambro and EQT’s investment committee.  
 
Stockholm-headquartered Gambro develops, manufactures and markets in the fields of dialysis, intensive care, blood bank technology and therapeutics. Last year, the company divested its US clinics to DaVita for Skr24 billion, of which Skr10 billion was distributed to shareholders. 
 
Gambro reported revenues of Skr14.6 billion (€1.5 billion; $1.9 billion) in 2005, up seven percent from 2004 figures. The company estimates six percent to nine percent growth for 2006.