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Leader in plasma protein therapies created through Grifols/Talecris combination

Posted on 19 May 2010

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It is a rare event to see a multi-billion dollar acquisition take place involving a company outside the bigpharma top 50.

However, that is what happened recently when grifols, the Spanish biotherapeutics company announced the friendly acquisition of Talecris in a deal worth $.4 billion.

The combination creates a global powerhouse in plasma protein therapies to take on other major bigpharma in this growing sector and is a success for Cerberus, the private equity company, in eventually finding buyers for its investment.

View 2010 M&A Scorecard

It is the second time that Talecris has been the subject of a takeover in recent years since its spin-out from Bayer five years ago. CSL attempted to acquire the company back in 2008, only to be halted by the regulators due to antitrust matters. This time round, it is likely the deal will proceed as Grifols has minimal presence in the American market.

Grifols is paying $26 a share in the transaction, an impressive 53% premium over the thirty-day average for Talecris shares. The price represents a 2.3 multiple of annual revenues. In addition, Grifols is taking on Talecris debt of $0.6 billion.

The new company will have a significant presence in both the North American and European markets, providing immediate opportunities for expansion into new markets for the combined company's portfolio, as well as maximising manufacturing capabilities across the two continents.

Grifols has already stated that it intends to achieve significant cost savings in activities from R&D through to manufacturing and marketing. This is the standard reasoning behind such deals and only time will tell whether such savings can indeed be achieved whilst attempting to exploit new opportunities in a competitive market.


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