Grifols to buy Talecris Bio for $3.4 billion

Spanish pharmaceutical maker Grifols SA that specialises in blood plasma-based products today said it had enterd into a deal to buy the world's third-largest plasma products manufacturer, Talecris Biotherapeutics, for over $3 billion plus debt.

The acquisition will propel the Barcelona-based Grifols to the second-biggest producer of plasma products in the US, behind Baxter International and ahead of Australia's CSL Ltd.

Grifols, listed on the Madrid stock exchange, which was in talks to buy Talecris (See: Grifols of Spain in talks to acquire Talecris Biotherapeutics for $3 billion) announced today that it has signed a definitive agreement with Talecris, where it will acquire Talecris for a combination of cash and newly-issued Grifols non-voting shares for approximately $3.4 billion), creating a global leader of life-saving and life enhancing plasma protein therapeutics

Grifols will pay $26.16 in cash and stock for each Talecris share - a premium of 64 per cent to Talecris's June 4 closing price on the Nasdaq Stock Market, and 53 per cent above the average close over the last 30 days.

Grifols said that the transaction including net debt is approximately $4.0 billion.

The acquisition is expected to generate approximately $230 million in operating synergies from a more efficient plasma collection network, optimised manufacturing sales, marketing and R&D, which Grifols expects to realise over the next four years with an associated one-time cost of $100 million.