US drug and medical-products maker Baxter International Inc today said that it will acquire privately-held Swedish dialysis product company Gambro AB for about $4 billion (26.5 billion SEK ) in cash in order to expand its renal therapies portfolio.

Founded in 1964, and with annual sales of around $1.6 billion, Gambro was acquired by two Nordic private equity firms EQT and Investor AB in 2006 for $4.7 billion, who later sold its CaridianBCT unit to Japan's Terumo Corp for $2.6 billion and another unit that operated dialysis clinics.

Stockholm-based Gambro is a developer, manufacturer and supplier of products and therapies for kidney and liver dialysis, myeloma kidney therapy, and other extracorporeal therapies for chronic and acute patients.

Its portfolio in the traditional chronic care segment consists of HD devices including advanced monitors, dialysers, bloodlines, cyclers and dialysis solutions. Gambro's in-center HD devices include the Artis system and the AK 96 system. In the acute care segment, which includes CRRT and treatment for fluid overload, among others, Gambro offers the Prismaflex system used for the treatment of critically ill patients with acute kidney problem.

It has 13 production facilities in nine countries and sales in more than 100 countries. Around 350,000 chronic renal disease patients are treated with Gambro products every year, or approximately one quarter of all dialysis patients worldwide.

Baxter said that the acquisition will provide it a number of long-term growth opportunities around the world. With Gambro's broad and complementary dialysis product portfolio, Baxter can accelerate product sales in established markets such as Europe, where Gambro has an extensive footprint.

Baxter can also expand Gambro's reach in high-growth regions of Latin America and Asia-Pacific, where Baxter has steadily grown its peritoneal dialysis business.

''Baxter has a legacy of innovation in dialysis, including the development of peritoneal dialysis for the treatment of end-stage kidney disease patients in the home. This acquisition further strengthens our global dialysis offerings by extending our portfolio in the hemodialysis segment,'' said Robert Parkinson, Jr., chairman and CEO of Baxter.

''Both companies have a long-standing heritage in kidney care with innovative technologies and a dedication to saving, sustaining and improving the lives of patients worldwide,'' said Guido Oelkers, president and CEO of Gambro. ''This acquisition responds to the needs of the nephrology community, healthcare providers and patients seeking a comprehensive dialysis offering of proven products and therapies.''

Baxter will fund the acquisition, which is expected to close in the first half of 2013, through a combination of cash generated from overseas operations and debt.

With a market cap of around $36 billion, Deerfield, Illinois-based Baxter is a leading manufacturer of recombinant and plasma-based proteins to treat haemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies, alpha 1-antitrypsin deficiency, burns and shock, and other chronic and acute blood-related conditions, products for regenerative medicine, such as biosurgery products and vaccines.

It also provides renal home-based therapies, such as peritoneal dialysis, and offers other products and services for people with end-stage kidney disease.