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Baxter to acquire Sweden's Gambro for $4 billion

  • Baxter International is to acquire privately held Swedish kidney dialysis product company Gambro AB for about $4 billion.

    Baxter will finance the acquisition with debt and cash.

    The deal is expected to close in the first half of next year. It marks Baxter's biggest acquisition since Chief Executive Robert Parkinson took charge in 2004.

    The deal will also see Baxter rise to the number two spot in the dialysis market.

    Baxter manufactures kidney dialysis equipment, drug infusion pumps and blood therapy products.

    Gambro is one of the biggest makers of equipment for hemodialysis, which is usually performed in a hospital or clinic. Baxter’s dialysis machines are called peritoneal and can be used at home.

    Shares in Baxter were down 1 percent at $65.14 on Tuesday afternoon on Wall Street on the back of concerns over the amount the firm will shell out and the possibility that Baxter may cut back on its share buyback program in order to acquire Gambro.