Grifols closes the acquisition of Green Cross fractionation plant in Canada and 11 plasma centers in the U.S.
- The investment includes a fractionation plant with a 1.5 million-liter annual capacity and two purification plants, making Grifols the only large-scale commercial manufacturer of plasma products in Canada
- This transaction highlights Grifols' commitment to supporting countries such as Canada to attain self-sufficiency of essential plasma-derived medicines through collaborations with national healthcare systems to ensure patients have access to these therapies
- The incorporation of 11 U.S.-based plasma centers reinforces Grifols' leadership in plasma collection and ongoing efforts to expand its current plasma-center network
- The investment in the industrial facilities in Canada totals US$370 million and US$90 million the 11 plasma collection centers in the U.S. This transaction does not require external financing
BARCELONA, Oct. 1, 2020 /PRNewswire/ -- Grifols (MCE: GRF, MCE: GRF.P, NASDAQ: GRFS), a global healthcare company and one of world's leading producers of plasma-derived medicines, today announced the closing of its transaction with the South Korean firm, GC Pharma (Group) to acquire a plasma fractionation plant, an immunoglobulin and an albumin purification plants in Montreal (Canada) for US$370 million, and, in a separate transaction, 11 plasma collection centers in the United States property of Green Cross for US$90 million.
This acquisition aligns with Grifols' international sustainable growth strategy, whose core objectives include increasing the company's supply of plasma and reinforcing its global expansion.
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.
As Víctor Grífols Deu, co-CEO of Grifols, notes, "This deal reflects our long-term vision and strategy of sustainable growth, and wholly aligns with our commitment to continue helping countries reach self-sufficiency of life-sustaining plasma-derived medicines, which are critical for patients who need them."
The transaction will also contribute to Grifols' international expansion by strengthening its presence in North America, since Canada is a market with one of the highest rates of plasma consumption per capita in the world and one with significant growth potential.
According to Raimon Grífols Roura, co-CEO of Grifols, "The addition of 11 U.S.-based plasma centers will reinforce our leadership and competitive advantages provided by our plasma-center network. By increasing our plasma collection and fractionation capacity, we are able to continue ensuring that patients worldwide have safe and secure access to these life-saving plasma-derived medicines."
In recent years, Grifols has forged a solid network of 300 plasma centers across the U.S. and Germany in order to diversify and expand its access to plasma. Grifols will continue its efforts to broaden this network through a combination of organic and inorganic growth, while working to attain greater operational efficiencies.
About the transaction
Once it obtains the necessary licenses and authorizations, 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 expects to launch operations in these facilities in 2023, manufacturing IVIG and albumin to supply the Canadian market.
Grifols will also commit to providing GC Pharma (Groups) a determined output of product derived from the plasma donation centers for a 24-month period through a plasma-supply agreement. These centers collected 350,000 liters of plasma in 2019.
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.
About Grifols
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 EUR 8.5 billion. 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.
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.
SOURCE Grifols, SA
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