American Renal Associates Holdings Acquisition, Valuation, Funding & Investors

American Renal Associates Holdings was acquired by Innovative Renal Care for $853M in October 2020, a 1.0x multiple on $816M of revenue.

American Renal Associates Holdings acquisition price

$853M

Acquired by Innovative Renal Care · Oct 2020

American Renal Associates Holdings revenue at acquisition

$816M

Last twelve months · Oct 2020

American Renal Associates Holdings revenue multiple at acquisition

1.0x

EV/Revenue · Oct 2020

American Renal Associates Holdings EBITDA multiple at acquisition

7.4x

EV/EBITDA · Oct 2020

American Renal Associates Holdings Overview

About American Renal Associates Holdings

American Renal Associates Holdings is an operator of dialysis clinics providing outpatient and home hemodialysis treatments. Headquartered in Waltham, Massachusetts, it manages 260 centers in 25 states treating 16,000 patients under Medicare contracts. The company partners with nephrologists for vascular access and EPO therapies. Acquired by Fresenius Medical Care in 2019 for $850 million, it traces origins to 1999.


Founded

1999

HQ

United StatesBoston, MA

Status

Acquired

Customer focus

B2C

Revenue model

Services

Revenue

$816M (Oct 2020)

Valuation

$415M (Jun 2014)

American Renal Associates Holdings Acquisition

American Renal Associates Holdings was acquired by Innovative Renal Care for $853M on 2 October 2020.

The acquisition price implies a 1.0x revenue and 7.4x EBITDA multiple on $816M of revenue.

Before the acquisition American Renal Associates Holdings had raised $15M across 3 funding rounds.

American Renal Associates Holdings (NYSE: ARA) is a leading provider of outpatient dialysis services in the United States. As of June 30, 2020, the company operated 251 dialysis clinic locations across 27 states and the District of Columbia, serving more than 17,300 patients with end-stage renal disease. The company had generated 12-month revenues of $815.8 million with EBITDA of $115.63 million. Innovative Renal Care LLC, an affiliate of middle-market private equity firm Nautic Partners, agreed to acquire American Renal Associates in an all-cash transaction announced on October 2, 2020. The enterprise valuation was approximately $853 million excluding non-controlling interest, with ARA shareholders receiving $11.50 per share in cash—representing a 66% premium to the company's closing stock price on October 1, 2020. Nautic Partners had formed Innovative Renal Care in September 2019 as a platform entity focused on deploying a more comprehensive and integrated renal care model. The transaction closed on January 25, 2021, with ARA becoming a wholly owned subsidiary of Innovative Renal Care. Following the acquisition, ARA ceased trading on the NYSE but continued operations under the ARA name with the same management team, physicians, employees, and patient care commitments.

American Renal Associates Holdings acquisition details
AcquirerDateTypePriceEV/RevenueEV/EBITDA
  • Innovative Renal Care
2 Oct 2020PE buyout$853M1.0x7.4x

American Renal Associates Holdings Valuation

American Renal Associates Holdings is currently valued at $415M, based on its Series A in June 2014.

American Renal Associates Holdings valuation by funding round

American Renal Associates Holdings valuation by funding round
DateStageValuation
Jun 2014Series A$415M

American Renal Associates Holdings Funding History

American Renal Associates Holdings has raised a total of $15M across 3 funding rounds.

American Renal Associates Holdings' first fundraising round was a $9M Series A in January 2013. The most recent completed round was a $200K pre-seed round in May 2015.

American Renal Associates Holdings funding rounds

American Renal Associates Holdings funding rounds
DateStageRaisedValuationDeal Summary
May 2015Pre-seed$200K--
Jun 2014Series A$5M$415MAmerican Renal Associates Holdings operates kidney dialysis clinics through joint ventures with physicians. The company reached a $500 million revenue milestone in 2014. It had previously been taken private by Pamlico Capital in 2010 for $415 million, representing a multiple of 9.2x EBITDA less non-controlling interests. No VC funding round was identified for American Renal Associates Holdings around January 6, 2014. The company continued growing, reaching $400 million revenue by 2012 and $657.5 million in revenues with $113.8 million Adjusted EBITDA-NCI for the year ended December 31, 2015.
Jan 2013Series A$9M--

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American Renal Associates Holdings Competitors

American Renal Associates Holdings competitors include listed companies like Infracore and WELL Health, and private ones like Myhealth Medical Group, Radiant Life Care Private Ltd, Gastro Health and Aster DM Healthcare.

Public and private companies comparable to American Renal Associates Holdings
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Myhealth Medical GroupAustraliaSydneyPrivate-$15M$134M-
Radiant Life Care Private LtdIndiaMumbaiPrivate$64M$11M$816M12.8x
Gastro HealthUnited StatesMiami, FLPrivate--$900M-
InfracoreSwitzerlandSwitzerlandPublicly listed$29K-$903M-
WELL HealthCanadaCanadaPublicly listed$1B$110M$779M1.3x
Aster DM HealthcareUAEDubaiPrivate--$770M-

American Renal Associates Holdings Public Comps

American Renal Associates Holdings is no longer listed, but its public comps include Infracore, WELL Health, Saudi German Health, Al Hammadi Holding, Gushengtang Holdings, Diagnósticos da América, Global Medical Response, Life Healthcare Group, Clinica Baviera and Al-Maidan Dental Clinic.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Infracore$29K-33943.9x---
WELL Health$1B$110M1.4x1.3x12.7x10.1x
Saudi German Health$827M$204M1.7x1.6x6.8x8.3x
Al Hammadi Holding$329M$98M3.1x3.0x10.6x11.7x
Gushengtang Holdings$484M$93M1.6x-8.3x-
Diagnósticos da América$2.2B$346M0.9x1.0x5.6x4.9x
Global Medical Response$5.7B$1.1B0.9x0.9x4.7x-
Life Healthcare Group$1.5B$55M0.8x0.8x23.9x5.2x

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Common questions about American Renal Associates Holdings

When was American Renal Associates Holdings founded?American Renal Associates Holdings was founded in 1999.
Where is American Renal Associates Holdings headquartered?American Renal Associates Holdings is headquartered in Boston, MA, United States.
Is American Renal Associates Holdings publicly listed?No, American Renal Associates Holdings was acquired by Innovative Renal Care in October 2020.
Who acquired American Renal Associates Holdings?American Renal Associates Holdings was acquired by Innovative Renal Care in October 2020.
How much was American Renal Associates Holdings acquired for?American Renal Associates Holdings was acquired for $853M in October 2020, a 1.0x revenue multiple.
What is American Renal Associates Holdings' valuation?American Renal Associates Holdings was last valued at $415M in its Series A in June 2014.
How much funding has American Renal Associates Holdings raised?American Renal Associates Holdings has raised $15M across 3 funding rounds.
What was American Renal Associates Holdings' last funding round?American Renal Associates Holdings' last funding round was a $200K pre-seed round in May 2015.
Which companies are comparable to American Renal Associates Holdings?Companies comparable to American Renal Associates Holdings include Myhealth Medical Group, Radiant Life Care Private Ltd, Gastro Health, Infracore, WELL Health and Aster DM Healthcare.

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