Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: US Renal Care agrees to divest three dialysis clinics, (Dec 30, 2015)

By Greg Hammond, J.D.

National kidney-dialysis chain US Renal Care, Inc. has agreed to divest ownership interest in three outpatient dialysis clinics in Laredo, Texas, disposing of FTC claims that US Renal Care’s $640 million acquisition of competitor DSI Renal could substantially lessen competition in the relevant market, in violation of Section 7 of the Clayton Act and Section 5 of the FTC Act (In the Matter of Rangers Renal Holding, LP, File No. 151 0215).

The FTC claimed that the acquisition could eliminate actual, direct, and substantial competition between US Renal Care and DSI in the market for the provision of outpatient dialysis services; increase the ability of the merged entity to unilaterally raise prices for outpatient dialysis services; and reduce incentives to improve service or quality in the relevant market.

According to the terms of the settlement and order, US Renal Care must divest the three DSI Laredo Clinics to Satellite Healthcare, Inc., a company that has been in the outpatient dialysis business since 1973. The FTC believes that Satellite is well positioned to replace the competition that would otherwise have been lost due to the proposed acquisition.

US Renal Care and DSI represent the third-largest and sixth-largest providers of outpatient dialysis services in the United States, respectively.

Attorneys: Amanda P. Reeves (Latham & Watkins LLP) for Rangers Renal Holdings LP and US Renal Care, Inc. Gorav Jindal (Dechert LLP) for Dialysis Parent, LLC and Dialysis HoldCo, LLC. James R. Weiss, Jr., FTC.

Companies: Rangers Renal Holding, LP; US Renal Care, Inc.; Dialysis Parent, LLC; Dialysis HoldCo, LLC; Satellite Healthcare, Inc.

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