BARCELONA, Spain, Jan. 31, 2017 /PRNewswire/ --
The company consolidates a leading position of its Diagnostic
Division enhancing its integration
- Grifols completes in record time the acquisition of the
Hologic's (Nasdaq: HOLX) interest in their joint-business under
which Grifols already owns all customer facing activities
- Grifols has acquired the Hologic unit engaged in research,
development and manufacture of assays and instruments based on NAT
(Nucleic Acid Testing) technology for transfusion and
transplantation screening
- Hologic's share of NAT donor screening unit delivers high
margins and substantial cash flows: its EBITDA1
is above USD 160 million. The pro
forma EBITDA margin2 of the Grifols Diagnostic
Division increases to 40% as a result of this vertical
integration
- The assets acquired comprise a plant in San Diego, CA (United States) as well as development rights,
licenses to patents and access to product manufacturers
- This transaction is part of the consolidation and growth
strategy envisaged for the Diagnostic Division and enables Grifols
to continue strengthening its leading position in transfusion
medicine
- This acquisition strengthens cash flows and positively
impacts the group's margins: Grifols' pro forma EBITDA
margin2 increases by more than 350 basis points
- Grifols has financed the acquisition with USD 1,700 million term loan and existing cash on
the balance sheet
- Grifols consolidates itself as one of the only vertically
integrated providers capable of offering comprehensive solutions to
blood and plasma donation centers
- Grifols' investment in the United
States exceeds USD 10,000
million since 2002
Grifols (MCE: GRF, MCE: GRF.P and NASDAQ: GRFS), a global
healthcare company with a track-record of more than 75 years
improving people's health and well-being, has completed the
acquisition of the NAT (Nucleic Acid Testing) donor screening unit
from the U.S. company Hologic for a purchase price of USD 1,850 million (EUR
1,750 million).
This agreement encompasses research, development and manufacture
of assays and instruments activities using NAT technology that
makes possible to detect the presence of infectious agents in blood
and plasma donations, contributing to greater transfusion
safety.
This transaction, announced in mid-December 2016, has been completed in record
time. Based on the existing agreement with Hologic, Grifols already
markets the aforementioned assays and instruments worldwide. The
assets acquired comprise a production plant in San Diego (United
States) as well as development rights, licenses to patents
and access to product manufacturers.
This transaction is part of the growth strategy envisaged for
the Diagnostic Division and enables Grifols to strengthen its
leading position in transfusion medicine through NAT technology,
the manufacture of antigens for immunoassay and blood-typing
products.
In 2014, Grifols acquired certain assets from Novartis, which,
among other things, included the rights to market transfusion
medicine assays and instruments using NAT technology. The
transaction enabled Grifols to enhance its capabilities to be one
of the only companies capable of offering comprehensive solutions
to blood and plasma donation centers, from donation to transfusion.
This new transaction contributes to Grifols vertical integration
process as the company also has control over the production and
R&D phases.
In addition, Grifols' workforce increases by 175 employees from
the acquired unit.
Financial aspects of the transaction
Grifols has acquired Hologic's share of NAT donor screening unit
for USD 1,850 million (EUR 1,750 million).
Hologic's share of NAT donor screening unit is a high margin,
highly generative business with an EBITDA3 above
USD 160 million.
The acquisition has been structured through Grifols Diagnostic
Solutions, a U.S. incorporated, wholly-owned subsidiary of Grifols,
S.A.
Grifols expects the transaction will positively impact group
margins and bolster generation of operating cash flows. The
revenues of the Diagnostic Division will not change as a result of
this acquisition due to the existing joint-business between Grifols
and Hologic in place since 2014. Under the existing arrangement,
Grifols owns customer facing activities and records all revenues.
In this respect, the Diagnostic Division's sales will continue to
represent around 16% of Grifols' total revenue.
The acquisition has been financed with a USD 1,700 million term loan and existing cash on
the balance sheet. The term loan has been arranged and fully
underwritten by Nomura.
Grifols continues with the refinancing process of part of its
financial debt for USD 6,300 million
including a Term Loan A "TLA", a Term Loan B "TLB" and the undrawn
revolving credit facility. The USD 1.700
million term loan is part of the refinancing.
Grifols is committed to rapidly reducing its leverage level. The
company plans to absorb the debt increase through a greater
capability to generate cash flows. Historically, Grifols has a
track record of deleveraging ability post acquisitions.
Grifols retained Osborne Clarke, S.L.P and Proskauer Rose, L.L.P
as legal advisors and Nomura as a financial advisor.
Grifols strengthens its investments in the U.S.
United States is a priority for
Grifols. Since 2002, the company has invested over USD 10,000 million, including capital expenditure
(CAPEX) and strategic acquisitions. Over 60% of the group´s
revenues come from the United
States.
Currently, Grifols employs more than 10,500 people in the U.S.,
where the company has two production facilities in Los Angeles (California) and one in Clayton (North Caroline) to produce
plasma-derived medicines; two centralized plasma analysis
laboratories in San Marcos and
Austin (Texas); and a network of over 160 plasma donor
centers distributed throughout the United
States.
The company also has a manufacturing plant in Emeryville (San
Francisco, California) for the production of antigens for
immunological diagnostic. Following the acquisition of the
Hologic's share of the NAT donor screening unit, it also has a
manufacturing plant in San Diego
(California).
Additionally, Grifols is committed with the training and
professional development of its employees. For these purposes, the
company has "The Grifols Academy of Plasmapheresis", with two
branches in the United States
(Arizona and Indianapolis), as well as one in Barcelona (Spain). In 2015, the training programs of the
Grifols Academy of Plasmapheresis were awarded accreditation by the
Accrediting Council for Continuing Education and Training (ACCET).
It also collaborates with College for America to promote Grifols'
employees access to knowledge as part of a
university degree
About Grifols
Grifols is a global healthcare company with a track-record of
more than 75 years improving people's health and well-being through
the development of plasma protein therapies, hospital pharmacy
products and diagnostic technology for clinical use.
The company is present in more than 100 countries worldwide and
its headquarters are located in Barcelona, Spain. Grifols is a leader in
plasma collection with a network of 160 plasma donation centers in
the U.S., and is a leading producer of plasma-derived medicines. As
a recognized leader in transfusion medicine, Grifols offers a
comprehensive range of transfusion medicine, hemostasis, and
immunoassay solutions for clinical laboratories, blood banks, and
transfusion centers.
In 2015, sales exceeded EUR 3,930
million with a headcount close to 14,700 employees. Grifols
demonstrates its commitment to scientific progress by allocating a
significant portion of its annual income to R&D.
The company's class A shares are listed on the Spanish Stock
Exchange, where they are part of the Ibex-35 (MCE: GRF). Its
non-voting class B shares are listed on the Mercado Continuo (MCE:
GRF.P) and on the U.S. NASDAQ via ADRs (NASDAQ: GRFS). For more
information, visit www.grifols.com
LEGAL DISCLAIMER
The facts and figures contained in this report that do not refer
to historical data are "future projections and assumptions". Words
and expressions such as "believe", "hope", "anticipate", "predict",
"expect", "intend", "should", "will seek to achieve", "it is
estimated", "future" and similar expressions, in so far as they
relate to the Grifols group, are used to identify future
projections and assumptions. These expressions reflect the
assumptions, hypotheses, expectations and predictions of the
management team at the time of writing this report, and these are
subject to a number of factors that mean that the actual results
may be materially different. The future results of the Grifols
group could be affected by events relating to its own activities,
such as a shortage of supplies of raw materials for the manufacture
of its products, the appearance of competitor products on the
market, or changes to the regulatory framework of the markets in
which it operates, among others. At the date of compiling this
report, the Grifols group has adopted the necessary measures to
mitigate the potential impact of these events. Grifols, S.A. does
not accept any obligation to publicly report, revise or update
future projections or assumptions to adapt them to events or
circumstances subsequent to the date of writing this report, except
where expressly required by the applicable legislation. This
document does not constitute an offer or invitation to buy or
subscribe shares in accordance with the provisions of the following
Spanish legislation: Royal Legislative Decree 4/2015, of 23
October, approving recast text of Securities Market Law;
Royal Decree Law 5/2005, of 11 March
and/or Royal Decree 1310/2005, of 4
November, and any regulations developing this legislation. In
addition, this document does not constitute an offer of purchase,
sale or exchange, or a request for an offer of purchase, sale or
exchange of securities, or a request for any vote or approval in
any other jurisdiction. The information included in this document
has not been verified nor reviewed by the external auditors of the
Grifols Group.
1 Figures from the last 12 months to September 2016
2 Pro forma figures from the last 12 months to
September 2016
3 Figures from the last 12 months to September 2016
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SOURCE Grifols