Grifols to acquire Green Cross plasma fractionation facility in Montreal and a plasma collection organization in the U.S. for US$460 million
- Grifols makes a significant investment to become the only large-scale commercial manufacturer of plasma products in Canada, with a fractionation capacity of 1.5 million liters/year
- The operation aligns with Grifols' commitment to helping countries reach self-sufficiency of life-sustaining plasma-derived medicines
- The acquisition includes 11 collection centers in the United States
BARCELONA, Spain, July 20, 2020 /PRNewswire/ -- Grifols (MCE: GRF, MCE: GRF.P, NASDAQ: GRFS), a global healthcare company and one of world's top producers of plasma-derived medicines, today announced it has executed purchase arrangements with the South Korean-based GC Pharma (Group) whereby Grifols will acquire the Montreal-based plasma fractionation facility and two purification facilities, along with 11 U.S.-based plasma collection centers for a total amount of US$460 million.
The transaction is part of Grifols' sustainable global growth strategy to expand plasma collection and fractionation capacity to ensure patients worldwide have safe and secure access to life-saving plasma-derived medicines. Most importantly, this strategic acquisition will strengthen Grifols' presence in Canada, building on a legacy of partnership in Canada's blood system.
For more than three decades, Grifols has been a fractionator of Canadian plasma under contract manufacturing services, providing trusted plasma-derived medicines for Canadian patients and their healthcare providers. Throughout these many years Grifols has gained firsthand knowledge of the Canadian healthcare system. This transaction further demonstrates Grifols' commitment to supporting domestic self-sufficiency and security of plasma-protein-product supply.
According to Víctor Grífols Deu, co-CEO of Grifols, "This deal builds on our long-term vision and strategy of sustainable growth, and wholly aligns with our commitment to helping countries reach self-sufficiency of life-sustaining plasma-derived medicines, which are critical for patients who need them."
Added Joel Abelson, President of Grifols' Bioscience Commercial Division: "This transaction represents a unique opportunity for Grifols to intensify our global expansion and presence in North America. Canada is a market with one of the highest rates of plasma consumption per capita in the world and one with significant growth potential."
As Grifols co-CEO Raimon Grífols Roura noted, "It has been a very meditated decision to invest in the midst of these unprecedented circumstances. This pandemic underscores the need to support robust and sustainable health infrastructures that, in case of other emergent pathogens in the future, will help ensure the availability of plasma medicines."
No additional financing will be required for the acquisition. Upon completion of the transaction certain net worth, working capital and cash targets have been guaranteed. Once the facilities are fully licensed and approved, Grifols will become the only large-scale commercial manufacturer of plasma products in Canada, with a fractionation capacity of 1.5 million liters annually. Grifols plans to be ready to manufacture IVIG and Albumin in the facilities to supply the Canadian market starting in 2023.
As part of the transaction, by means of a plasma-supply agreement, Grifols has also committed to supplying certain output of plasma arising out of the Green Cross Collection Centers to GC Pharma (Group) for a 24-month period. The collection centers achieved a collection volume of 350,000 litres of plasma in 2019.
The completion of the transaction is subject to regulatory approvals and is expected to close prior to the end of 2020.
Grifols retained Osborne Clarke, S.L.P and Stikeman Elliott, L.L.P as legal advisors and Nomura Securities International, Inc. as a financial advisor.
Grifols is a global healthcare company founded in Barcelona in 1909 committed to improving the health and well-being of people around the world. Its four divisions – Bioscience, Diagnostic, Hospital and Bio Supplies – develop, produce and market innovative solutions and services that are sold in more than 100 countries.
Pioneers in the plasma industry, Grifols operates a growing network of donation centers worldwide. It transforms collected plasma into essential medicines to treat chronic, rare and, at times, life-threatening conditions. As a recognized leader in transfusion medicine, Grifols also offers a comprehensive portfolio of solutions designed to enhance safety from donation to transfusion. In addition, the company supplies tools, information and services that enable hospitals, pharmacies and healthcare professionals to efficiently deliver expert medical care.
Grifols, with more than 24,000 employees in 30 countries and regions, is committed to a sustainable business model that sets the standard for continuous innovation, quality, safety and ethical leadership.
In 2019, Grifols' economic impact in its core countries of operation was 8.5 billion euros. The company also generated 148,000 jobs, including indirect and induced.
The company's class A shares are listed on the Spanish Stock Exchange, where they are part of the Ibex-35 (MCE:GRF). Grifols non-voting class B shares are listed on the Mercado Continuo (MCE:GRF.P) and on the U.S. NASDAQ through ADRs (NASDAQ:GRFS).
For more information, please visit www.grifols.com
About Green Cross Corporation
GC Pharma (formerly known as Green Cross Corporation) is a biopharmaceutical company committed to delivering life-saving and life-sustaining protein therapeutics and vaccines. Headquartered in Yongin, South Korea, GC Pharma is one of the leading plasma-protein product manufacturers in the world and has been dedicated to quality healthcare solutions for more than half a century.
Green Cross Corporation updated its corporate brand to GC Pharma in early 2018. Green Cross Corporation remains the company's registered, legal name.
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.
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Company Codes: NASDAQ-NMS:GRFS, SpanishCats:GRF, OTC-PINK:GIKLY, SpanishCats:GRF.P