Fresenius Sells Controlling Stake in Vamed Rehab Business to PAI

Tim Loh, Bloomberg News

Fresenius CEO Michael Sen has sought to simplify its strategy after years of complaints from investors that it was too complex. Photographer: Arne Dedert/picture alliance/Getty Images , Photographer:Arne Dedert/picture alliance /Getty Images

(Bloomberg) -- Fresenius SE has agreed to sell a controlling stake in the rehabilitation business of its Vamed unit to French private equity firm PAI Partners as the German healthcare company further trims its portfolio.

PAI will own 67% of the entity, which has an enterprise value of €853 million ($914 million), Fresenius said in a statement on Thursday.

Since taking the helm of the company in October 2022, Fresenius Chief Executive Officer Michael Sen has sought to simplify its strategy after years of complaints from investors that it was too complex. He’s given priority to its Kabi intravenous-drug unit and Helios division, which owns and operates hospitals in Europe and Latin America.

The Vamed business being sold includes 67 rehabilitation facilities located in central Europe and the UK. It posted sales of about €1 billion and was profitable in 2023, Fresenius said. The deal is expected to close in the second half of the year, and the German group will keep a 33% share.

This isn’t the first time Fresenius has retained a stake in a business after giving up control. Last year, it separated from its kidney-dialysis services division, Fresenius Medical Care AG, but kept a 32% holding.

The overall Vamed division is home to a number of business areas, including hospital project development and services for nurses. It had about €2.4 billion in total sales last year.