China’s Creat Group to buy German blood plasma products maker Biotest for $1.4 bn

Chinese investment firm Creat Group Corp yesterday struck a deal to buy Germany's Biotest AG in a transaction that values the blood plasma products maker at €1.3 billion ($1.4 billion), including debt.

The deal comes a year after Creat Group acquired British blood plasma company Bio Products Lab, for over $1 billion.

Under the terms of the deal, Beijing-based Creat Group has offered to pay €28.50 per ordinary share and €19.00 per preference share in cash.

The offer represents a premium of 55 per cent per ordinary share and 15 per cent per preference share to the three month volume weighted average share price prior to the announcement on 29 March 2017.

The offer will be subject to a minimum acceptance threshold of 75 per cent of all ordinary shares as well as regulatory approvals.

Biotest's majority shareholder, OGEL GmbH, which holds 50.61 per cent of ordinary shares, has said that it will tender its shares to the offer.

OGEL is the investment vehicle of late company founder Hans Schleussner's family.

Biotest and Creat have entered into an agreement for five terms of five years each, in which Creat will maintain Biotest's corporate headquarters in Dreieich, to keep Biotest's corporate name, brand and product names, and also to increase jobs consistent with the current management business plan and to adhere to existing shop and collective bargaining agreements and employee co-determination.

Biotest is a provider of plasma proteins and biological drugs. It specialises in the areas of clinical
immunology, haematology and intensive medicine.

Biotest develops and markets immunoglobulins, coagulation factors and albumins based on human blood plasma. These are used for diseases of the immune and haematopoietic systems.

Biotest also develops monoclonal antibodies in the indications of cancer of plasma cells and systemic lupus erythematosus which are produced by recombinant technologies.