Recent News and Announcements from Centre Partners

February 16, 2006

Centre Partners and DSI to Acquire Over 100 Dialysis Centers from Fresenius Medical Care for Approximately $450 Million

Private Equity Firm Enters Healthcare Sector With Investment in DSI and Definitive Agreement to Acquire Facilities from Worlds Largest Provider of Dialysis Products and Services

New York, New York, February 16, 2006 Centre Partners and DSI Holding Company, Inc. (DSI) today announced that DSIs wholly owned subsidiary, National Renal Institutes, Inc. (NRI), will acquire over 100 dialysis clinics from Fresenius Medical Care Holdings Inc. and Renal Care Group. The transaction will mark the first major acquisition by DSI since its recent investment from Centre Partners, and the private equity firms entry into the healthcare services sector.

Centre Partners is a leading middle market private equity firm with offices in New York City and Los Angeles. Centre Partners managing directors have invested over $3 billion of equity capital in more than 80 businesses in the past 20 years. Centre Partners is investing in DSI through its fourth fund, which has approximately $780 million of committed capital.

Based in Nashville, Tennessee, DSI is involved in the acquisition, development and operation of kidney dialysis clinics, hospitals, and acute care centers. DSI is led by its President and CEO, Jerome Tannenbaum, M.D., Ph.D., FACP. Dr. Tannenbaum was a practicing nephrologist when he founded REN Corporation-USA in 1986, which he grew to become the fourth largest dialysis company in the United States before it was sold to global medical technology company Gambro Group in 1995. Dr. Tannenbaum later founded National Nephrology Associates, a privately held dialysis company that provided services to 5,800 patients across 89 clinics before it was acquired by Renal Care Group in 2004.

DSI is excited about the opportunity to acquire such a significant group of dialysis clinics throughout the U.S., said Dr. Tannenbaum. He added, The support and involvement of Centre Partners in this important deal has been extraordinary. The firm has demonstrated a unique understanding and appreciation for our vision to build a nationwide healthcare services company that works with physicians to bring them the best facilities, equipment, technology and administrative services in an effort to provide the best patient care possible.

The senior management team at DSI includes a number of industry veterans, such as Executive Vice President Stephen Harrison, who brings more than 30 years of experience in developing and opening new locations for healthcare services, and EVP and Chief Surgical Officer, Patrick Maxwell, M.D., FACS, a multiple award winning plastic and reconstructive surgeon and founder of the Nashville Aesthetic Institute.

Centre Partners Managing Partner Bruce Pollack said, We are thrilled to partner with an executive team with the depth of experience of DSIs, and to acquire a significant base of assets in the dialysis sector of the healthcare services industry. We look forward to the successful integration of these clinics into DSI and to working with management to identify future growth opportunities through acquisitions, de novo development and joint venture arrangements.

The approximately 100 dialysis clinics being acquired by DSI are being divested by Fresenius Medical Care Holdings, a subsidiary of the worlds largest provider of dialysis products and services Fresenius Medical Care AG & Co. KGaA, and Renal Care Group as part of an important step toward concluding the review of the U.S. Federal Trade Commission of Fresenius Medical Cares acquisition of Renal Care Group. The sale of the clinics is expected to close shortly after the completion of the acquisition of Renal Care Group.

About Centre Partners

Centre Partners, founded in 1986, with offices in New York City and Los Angeles, is a leading private equity firm focused on making investments in middle market companies alongside management teams who have, or wish to have, meaningful economic stakes in the future success of their business. Centre provides those teams with access to Centres unique resources, which include its extended netwo

Back to News List