Grifols, a global healthcare company and one of world’s top producers of plasma-derived medicines, today announced it has executed purchase arrangements with the South Korean-based GC Pharma (Group) whereby Grifols will acquire the Montreal-based plasma fractionation facility and two purification facilities, along with 11 U.S.-based plasma collection centers for a total amount of US$460 million.
The transaction is part of Grifols’ sustainable global growth strategy to expand plasma collection and fractionation capacity to ensure patients worldwide have safe and secure access to life-saving plasma-derived medicines. Most importantly, 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. Throughout these many years Grifols has gained firsthand knowledge of the Canadian healthcare system. This transaction further demonstrates Grifols’ commitment to supporting domestic self-sufficiency and security of plasma-protein-product supply.
According to Víctor Grífols Deu, co-CEO of Grifols, “This deal builds on our long-term vision and strategy of sustainable growth, and wholly aligns with our commitment to helping countries reach self-sufficiency of life-sustaining plasma-derived medicines, which are critical for patients who need them.”
Added Joel Abelson, President of Grifols’ Bioscience Commercial Division: “This transaction represents a unique opportunity for Grifols to intensify our global expansion and presence in North America. Canada is a market with one of the highest rates of plasma consumption per capita in the world and one with significant growth potential.”
As Grifols co-CEO Raimon Grífols Roura noted, “It has been a very meditated decision to invest in the midst of these unprecedented circumstances. This pandemic underscores the need to support robust and sustainable health infrastructures that, in case of other emergent pathogens in the future, will help ensure the availability of plasma medicines.”
No additional financing will be required for the acquisition. Upon completion of the transaction certain net worth, working capital and cash targets have been guaranteed. Once the facilities are fully licensed and approved, 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 plans to be ready to manufacture IVIG and Albumin in the facilities to supply the Canadian market starting in 2023.
As part of the transaction, by means of a plasma-supply agreement, Grifols has also committed to supplying certain output of plasma arising out of the Green Cross Collection Centers to GC Pharma (Group) for a 24-month period. The collection centers achieved a collection volume of 350,000 litres of plasma in 2019.
The completion of the transaction is subject to regulatory approvals and is expected to close prior to the end of 2020.