Company:

Renal Advantage Inc.

Role:

Financial Advisor

Transaction:

Acquisition of Dialysis Clinics

Closing Date:

October 2005

Transaction Amount:

$327 million

Background:

Renal Advantage provides outpatient dialysis services though 73 locations nationwide. As of September 2005, Renal Advantage was the third largest provider in the country.

Raymond James’ Role:

Raymond James was engaged by the founders of Renal Advantage to assist them in securing equity and debt financing needed to acquire a portfolio of dialysis clinics that were divested by DaVita as part of the merger with Gambro. The FTC required DaVita to sell approximately 5% of the combined company’s facilities to prevent anti-competitive concentrations in certain markets.

Because of DaVita’s desire to move quickly with the transaction, time was of the essence for the Renal Advantage management team. Although DaVita had not disclosed specific information about the clinics to be divested, Raymond James organized a very aggressive time schedule for identifying the best equity partners for the company.

In addition to sourcing the financial sponsor partner, Raymond James assisted Renal Advantage management in negotiating the terms of the WCAS equity investment, preparing detailed projection models, analyzing the financial and operating trends of the clinic package, drafting company presentations for lenders, and providing additional support resources during the crucial company formation and due diligence periods.

Renal Advantage ultimately prevailed from among over a dozen potential acquirers because of the credibility of Welsh Carson as a financial partner and management’s ability to complete due diligence ahead of competing parties, minimizing the closure risk for the sellers.