BRENTWOOD, Tenn. and MERCER ISLAND, Wash., Nov. 4, 2010 /PRNewswire/ -- Renal Advantage and Liberty Dialysis have agreed to combine to form the third largest provider of dialysis services in the U.S., with 5,300 employees serving more than 19,000 patients in 260 locations in 32 states. The transaction – terms of which were not disclosed – is expected to close by Dec. 31, 2010.
Mark Caputo, chief executive officer of Liberty Dialysis, stated, "This merger unites two patient-focused, physician-driven and employee-oriented companies with the autonomy to build their unique brands while taking advantage of the combined financial strength, purchasing power, and systems investment of two leading companies in the dialysis industry."
Caputo continued, "Our guiding principles of focusing on the patient, partnering with talented nephrologists, and recruiting and retaining the best caregivers allow us to optimize patient outcomes through active participation of both patients and caregivers."
"In this changing health care environment, we are very excited about joining with Liberty Dialysis and combining the robust growth that RAI and Liberty have achieved during the past five years," said Michael D. Klein, chief executive officer of RAI. "Our two philosophically aligned cultures will enable us to generate valuable synergies while allowing our exceptional teams to remain nimble and responsive to our customers."
Caputo added, "Our management teams have known each other for years, building consensus on numerous public policy issues. Our full expectation is that our teams will continue to work well together in the years to come."
Liberty Dialysis has been amongst the fastest growing dialysis companies for each of the last eight years, achieving 25 percent annual growth rates. Similarly, RAI has nearly doubled in size since its inception five years ago. To accommodate its rapid growth, RAI is moving into a new 54,000 square foot office building in the McEwen Building in Franklin, Tenn., a suburb of Nashville. RAI will consolidate its existing corporate offices into this one location, improving efficiency while providing for its growth needs for the future. Liberty's existing administrative offices in conjunction with RAI's shall form a shared services organization supporting the two sister companies.
About Liberty Dialysis
With more than 112 dialysis clinics, Liberty Dialysis, is dedicated to providing outstanding care for patients with kidney disease, and a rewarding career experience for its caregivers. Liberty has a history of developing clinics in underserved communities in conjunction with local physicians and non-profit organizations. Liberty partners with local nephrologists and hospitals in developing, owning and operating these centers. Liberty was founded in 2002 by Mark Caputo and Bob Santelli in conjunction with Bain Capital. Liberty's historic rapid growth has been funded, in part, by subsequent equity investments from Bain Capital, KRG Capital Partners, and Ignition Partners, each of whom will continue as equity sponsors of the merged organization. For more information on the company, please visit the website for Liberty Dialysis at www.libertydialysis.com.
Barclays Capital and Bank of America Merrill Lynch served as financial advisors to Liberty Dialysis Holdings, Inc in relation to this merger.
About Renal Advantage
Based in Brentwood, Tennessee, Renal Advantage provides dialysis services to patients with chronic kidney failure, also known as end-stage renal disease (ESRD). RAI delivers quality care to more than 12,000 patients in 150 dialysis centers in 19 states. RAI also advances laboratory services through RenaLab, a state-of-the-art independent clinical laboratory located in Jackson, Miss. Founded by veteran healthcare executives in partnership with Welsh, Carson, Anderson & Stowe, RAI's growth plan began with its acquisition of 73 dialysis centers in October 2005. For more information, visit RAI's website at www.renaladvantage.com.
Raymond James & Associates and Moelis & Company served as financial advisors to Renal Advantage in relation to this merger.
SOURCE Renal Advantage; Liberty Dialysis