American Renal Associates Files for IPO
August 31 2015 - 8:40PM
Dow Jones News
American Renal Associates Holdings Inc., the largest dialysis
services provider in the U.S., has filed to go public.
But first, the Beverly, Mass., company said it plans to split
its stock, pay a yet-to-be-set dividend to current shareholders and
enter into an agreement to share its tax benefits with the current
shareholders after going public.
The so-called tax-receivable agreements have become increasingly
common in initial public offerings—dubbed supercharged IPOs.
American Renal Associates, much like Shake Shack Inc., would pay
85% of tax benefits it receives to private-equity owners.
Private-equity firm Centerbridge Partners LP, which bought a
majority stake in the company in 2010, would retain a majority of
the voting power, the company said.
American Renal Associates said it planned to use the bulk of the
net proceeds to pay debt and would apply to trade in the New York
Stock Exchange under the ticker symbol "ARA."
In a regulatory filing, the company cited a growing need for
dialysis services in the U.S. with a roughly 57% growth in patients
on dialysis between 2000 and 2012. The number of patients with
end-stage renal disease in the U.S., the company said in a
regulatory filing, has historically increased 3% to 5% a year since
2000 or about 77% between 2000 and 2014.
As of June 30, American Renal Associates had 181 clinics in
partnership with 320 nephrologists treating more than 12,000
patients.
The 320 nephrologist partners, it noted in the filing, represent
less than 3% of full-time practicing nephrologists in the U.S.,
"giving us significant opportunity to grow." It also noted as a
competitive strength the growing physician-centered care management
in the U.S.
For the first six months of the year, the company reported a
profit of $7.9 million on net revenue of $310.8 million, up from
$6.7 million in profit and $269 million in revenue a year
earlier.
Write to Maria Armental at maria.armental@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 31, 2015 20:25 ET (00:25 GMT)
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