Please login to the form below

Not currently logged in

Grifols to buy Talecris for $3.4bn

Grifols SA, Europe's largest maker of blood-plasma products has agreed to buy US biotherapeutics company Talecris for approximately $3.4bn

Grifols SA, Europe's largest maker of blood-plasma products has agreed to buy US biotherapeutics company Talecris for approximately $3.4bn in cash and stock to expand its share to almost a third of the US market.

Under the deal, Grifols will pay $19 in cash and 0.641 shares of Grifols for each of Talecris' shares. The price represents a 533 per cent premium to the average closing price of Talecris common stock over the last 30 days. The total offer, including net debt, is approximately $4bn.

The acquisition will add to Grifols' earnings in the first year, with a 'meaningful' boost beginning in the second year, a company statement announced yesterday.

The deal gives Grifols the same share of the $7bn US market for blood-based infusions as Baxter International and more than CSL's 29 per cent share, according to analysts.

In 2008, Australia's CSL entered into an agreement to buy Talecris in an all-cash deal valued at $3.1bn. However the companies cancelled the merger after the US Federal Trade Commission (FTC) failed to approve the deal based on anti-trust grounds.

Victor Grifols, CEO of Grifols, said he didn't foresee any problems with regulators this time round: "This operation is very different from the previous one," he said.

"Grifols is a much smaller competitor than CSL in the US and we don't see any conflict that may leave the FTC uncomfortable about the combination of the two companies."

Talecris recorded a 12 per cent rise in sales last year, reaching $1.53bn, while the company's profit more than doubled to $153.9m. Grifols said the combined company will have annual revenue of about $2.8bn.

The transaction is expected to close in the second half of 2010.

8th June 2010


Featured jobs

Subscribe to our email news alerts


Add my company
Life Healthcare Communications

Life is a creative communications agency offering multi-channel solutions for the healthcare industry. We use a storytelling approach to turn...

Latest intelligence

Empowered patients: shaking the foundations of healthcare
Precision medicine represents a new paradigm in healthcare.This new approach to treating and preventing disease views the patient holistically, analysing their genes, environment and lifestyle, and using this information to...
A uniquely English genomic medicine service
The UK National Health Service is developing one standardised approach to embedding precision medicine across the whole of England. Blue Latitude Health speaks to Dr Tom Fowler, Deputy Chief Scientist...
Blended Intelligence
Data is the most valued commodity of the modern world. For P&P it's all about the application....