With the agreement, both companies aim to further expand their market share of dialysis products, particularly dialyzers and peritoneal dialysis products, in Japan by utilising Fresenius Medical Care’s efficient manufacturing technologies while relying on Nikkiso’s strong domestic distribution network.

In addition, Fresenius intends to acquire Nikkiso Medical Korea, a wholly owned subsidiary of Nikkiso to expand its presence in the Republic of Korea.

The acquired operations are expected to add Fresenius approximately $15m in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.

Roberto Fuste, chief executive officer of the Asia-Pacific region at Fresenius Medical Care, said: “The strategic alliance with Nikkiso will generate significant value to both parties in Japan and Korea, as each company is concentrating on its strengths in these markets.”

Fresenius Medical Care said that it is active in the dialysis product business by means of its own sales and marketing channels as well as through distribution partners. It also provides consulting services for dialysis clinics.

Fresenius Medical Care through its partnership with the Yeolin-Medical Foundation, has been currently treating more than 850 patients in 16 dialysis clinics in the Republic of Korea.