October 1, 2020
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, October 1, 2020. - 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.