MADRID (Reuters) – Spain’s Grifols (GRLS.MC) has agreed to buy Talecris Biotherapeutics (TLCR.O), which produces plasma-based protein therapies, for $3.4 billion in a bold move to expand its business in blood products.
Grifols said on Monday it expected about $230 million annual synergies from the deal, which has been unanimously approved by both companies’ boards and recommended to their shareholders. The deal would boost earnings from the first year, it added.
On Sunday, sources had told Reuters the deal was likely.
Talecris, which went public in October, was formed in 2005 when German drug and chemicals group Bayer AG (BAYGn.DE) sold its blood products unit to private equity firms Cerberus and Ampersand for $590 million.
The U.S. company had in 2008 agreed to merge with larger rival Australian blood products group CSL Ltd (CSL.AX) (CSL.AX), but that deal was terminated last year under pressure from U.S. antitrust regulators.
Grifols is paying a hefty premium for Talecris, offering $19.00 in cash and 0.641 newly-issued non-voting Grifols’ shares for each Talecris share.
Based on Friday’s prices, the deal implies a price of $26.16 per Talecris share — 53 percent above the 30-day average closing price. Talecris shares closed on Friday down 3.4 percent at $15.91.
The total implied offer value is $3.4 billion, or $4.0 billion including net debt.
The combined company will have annual revenue of some $2.8 billion, with 58 percent coming from North America, 28 percent from Europe and 14 percent from the rest of the world.