Summary:
Quest Diagnostics will acquire select assets of Fresenius Medical Care’s Spectra Laboratories, expanding its capabilities in renal-specific laboratory and dialysis-related water testing while enabling Fresenius to focus on core dialysis care.

Takeaways:

  1. Strategic Divestment: Fresenius Medical Care is optimizing its portfolio by selling non-core assets to improve operational efficiency and focus on dialysis care.
  2. Expanded Capabilities for Quest: Quest Diagnostics will gain new expertise in dialysis-related water testing, enhancing its chronic kidney disease diagnostics portfolio.
  3. Improved Service Efficiency: The acquisition will leverage Quest’s national scale to provide faster and more efficient laboratory testing for dialysis patients across the U.S.

Fresenius Medical Care, a provider of products and services for individuals with renal disease, and Quest Diagnostics, a provider of diagnostic information services, announced that, under terms of a definitive acquisition agreement, Quest will acquire select assets of FME’s wholly owned Spectra Laboratories, a leading  provider of renal-specific laboratory testing services in the U.S.  

In addition, under a separate agreement, Quest will provide comprehensive laboratory services related to end-stage kidney disease (ESKD) and specialized water testing for patients and providers served by dialysis centers operated by Fresenius Medical Care and its wholly owned and joint-venture partners in the United States.

“This transaction is part of our comprehensive portfolio optimization strategy to drive operational efficiencies and will provide enhanced experiences for patients and our clinical employees by integrating Quest Diagnostic’s industry-leading expertise in laboratory medicine into our dialysis centers. This agreement is a step forward to allow us to remain focused on our core business of providing world-class dialysis care to every patient, every day,” says Helen Giza, chief executive officer of Fresenius Medical Care.  “Much like Fresenius Medical Care, Quest Diagnostics is passionate about creating a healthier future for patients. These shared values, along with Quest’s proven track record for quality care and service, make us confident that they are the right company to continue to deliver a high-quality experience to our patients, physician partners, and clinical staff.”

By acquiring select laboratory assets from FME, Quest will add dialysis-related water testing, a new capability, to Quest’s comprehensive portfolio. The arrangement will enable Fresenius Medical Care to gain operational efficiencies and allow FME and other providers and patients at dialysis clinics to benefit from Quest’s clinical leadership and diagnostic innovation in chronic kidney disease and transplantation services. It will also leverage Quest’s national scale, as multiple Quest laboratories spread across the U.S. will provide testing for nearby dialysis clinics, reducing transportation time and speeding results reporting for some test services. Quest expects to perform testing across several of its laboratories during lower-volume daytime hours, optimizing the return on capital invested into its laboratory network.

Financial terms were not disclosed. The acquisition is expected to close in the second half of 2025, pending customary state regulatory reviews. The transition of services is expected to be complete by early 2026.

“Our relationship with Fresenius Medical Care will extend our industry-leading test portfolio in chronic kidney disease, one of the nation’s most prevalent chronic diseases, to include dialysis-related laboratory and water testing,” said Jim Davis, Chairman, CEO and President, Quest Diagnostics. “It will also optimize Quest’s national scale to bring high-quality laboratory services closer to FME’s dialysis clinics and the patients under their care across the United States.”

Strategic Turnaround Successful

Fresenius Medical Care recently successfully finished year two of a three-year strategic turnaround and transformation plan. Focusing on businesses and markets with the best strategic fit and greatest scale and sustainable profitable growth potential, Fresenius Medical Care is continuing to execute against its portfolio optimization plan to divest non-core and dilutive assets.

Chronic kidney disease affects about 35.5 million people, or 14%, of the U.S. population, making it one of the nation’s 10 most prevalent and costly chronic diseases in the U.S. Up to 9 in 10 adults who have CKD are not aware that they have the disease. Once the disease has progressed to end-stage kidney disease (ESKD), patients typically require transplant or dialysis. More than 800,000 people in the U.S. receive dialysis. Dialysis requires periodic lab testing to manage the disease as well as testing water for contaminants.

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