FRANKFURT, March 13 (Reuters) - German diversified healthcare group Fresenius said that purchase of most of Rhoen-Klinikum’s hospitals would top up its annual core earnings by more than 220 million euros ($306 million).
The acquired hospitals made about 220 million euros in earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2013, but Fresenius said it expected to reap more profit from the assets in the future.
“We valued the acquired hospitals based on their potential earnings contribution within the Helios network,” Fresenius Chief Executive Ulf Schneider told Reuters in a written statement. Helios is Europe’s largest private-sector hospitals chain and a division of Fresenius.
“We expect medical and financial improvements under our management,” he said.
He also confirmed an earlier outlook for the deal to have a positive effect on group earnings per share this year.
The company has forecast annual net profit to jump to between 1.4-1.5 billion euros by 2017, including the hospitals deal.
It has also said that excluding the acquired hospitals, the Helios unit would have earnings before interest and tax (EBIT) of 390-410 million euros in 2014.
Fresenius at the end of last month wrapped up the purchase of 40 hospitals and 13 outpatient facilities for a price of about 3 billion euros.
$1 = 0.7192 Euros Reporting by Andreas Kroener and Ludwig Burger; Editing by Maria Sheahan