DGAP-Adhoc: Fresenius Medical Care AG & Co. KGaA: Fresenius Medical Care sells Sound Inpatient Physicians Holdings for $2.15 billion

Fresenius Medical Care, the world's largest provider of dialysis products and services, today has signed a definitive agreement to divest its controlling interest in Sound Inpatient Physicians Holdings, LLC ("Sound") to an investment consortium led by Summit Partners, L.P. for total transaction proceeds of $2.15 billion (EUR 1.76 billion¹). The divestment is expected to generate a pre-tax book gain of approximately EUR 800 million^1,2.

In 2014, Fresenius Medical Care invested in becoming the majority shareholder in Sound, which thereafter acquired Cogent Healthcare, Inc. The investments by Fresenius Medical Care were targeted to learn about and broaden its experience in value-based care programs of those businesses. Following the successful application of this knowledge relevant for value-based programs and efficient patient coordination into Fresenius Medical Care, the Company is now in a position to divest the shareholding and free up the invested capital for further growth investments.

Closing of the transaction is subject to regulatory approvals and anticipated to occur late in 2018. The financial targets for 2018 and 2020 do not include the effects of this divesture.
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^[1] EUR/USD 1.22
^[2] based on the company's latest available valuation of the North American business segment