American Renal Associates Holdings, which operates 181 kidney dialysis clinics through joint ventures with physicians, filed on Monday with the SEC to raise up to $100 million in an initial public offering. However, the deal size is likely a placeholder for an IPO that we estimate could raise $300 million.
American Renal Associates competes in an industry dominated by DaVita HealthCare Partners (NYSE: DVA) and Fresenius Medical Care (NYSE: FMS).
The Beverly, MA-based company, which was founded in 1999 and booked $606 million in sales for the 12 months ended June 30, 2015, plans to list on the NYSE under the symbol ARA. American Renal Associates Holdings initially filed confidentially on July 22, 2015. BofA Merrill Lynch, Barclays, Goldman Sachs, Wells Fargo Securities, Suntrust Robinson Humphrey and Leerink Partners are the joint bookrunners on the deal. No pricing terms were disclosed.
