Health and Healthcare

American Renal Associates Prepares to Enter the Market With Updated IPO Filing

Chris Lange

Published: April 20, 2016 11:15 am

Last Updated: January 13, 2020 10:33 am

American Renal Associates Holdings has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company expects to price its 7.5 million shares in the range of $20 to $23 per share, with an overallotment option for an additional 1.125 million shares. At the maximum price the entire offering is valued up to $198.375 million. The company intends to list on the New York Stock Exchange under the symbol ARA.

The underwriters for the offering are Merrill Lynch, Barclays, Goldman Sachs, Wells Fargo, SunTrust Robinson Humphrey and Leerink Partners.

This company is the largest dialysis services provider in the United States focused exclusively on joint venture partnerships with physicians. It provides high-quality patient care and clinical outcomes to patients suffering from the most advanced stage of chronic kidney disease, known as end-stage renal disease.

The company’s core values create a culture of clinical autonomy and operational accountability for its physician partners and staff members. The company believes its joint venture model has helped it become one of the fastest-growing national dialysis services platforms, based on the growth rate of non-acquired treatments since 2012.

In the filing, American Renal Associates detailed:

We believe our approach has attracted physician partners and facilitated the expansion of our platform through de novo clinics. Since 2012, we have opened 15 or more de novo clinics each year. As of December 31, 2015, we owned and operated 192 dialysis clinics in partnership with 347 nephrologist partners treating over 13,000 patients in 24 states and the District of Columbia. From 2012 to 2015, our total number of treatments grew at a compound annual growth rate (“CAGR”) of 15.0%, driven primarily by increases in non-acquired treatments, which grew at a CAGR of 11.1%. During the same period, our revenues, Adjusted EBITDA-NCI and net income attributable to us has grown at a CAGR of 15.7%, 11.6% and 28.2%, respectively. For the year ended December 31, 2015, our revenues, Adjusted EBITDA-NCI and net income attributable to us reached $657.5 million, $113.8 million and $18.8 million, respectively.

This company intends to use the net proceeds from the offering for working capital and general corporate purposes.