Grifols (BME: GRF; NASDAQ: GRFS), a Spanish pharmaceutical company, has announced the formation of an alliance with Haier Group, a Chinese electronics and appliances giant. Under the agreement, Grifols will sell a 20% equity stake in Shanghai RAAS (SRAAS) for RMB 12.5 billion (USD 1.8 billion). Following the transaction, Grifols will maintain a 6.8% stake in SRAAS, and the two companies will collaborate on pharmaceutical solutions and diagnostics integrated with Haier’s technological strengths.
Haier is poised to pay RMB 9.405 per SRAAS share, marking a 14.96% premium on the average trading price over the prior 20 days. The deal is contingent upon customary closing conditions being met.
Grifols and SRAAS initially formed their alliance in 2019, with Grifols investing USD 1.9 billion for a 26.2% stake, making it the largest single shareholder and securing three board seats at SRAAS. SRAAS serves as Grifols’ exclusive distributor of plasma-derived products, particularly albumin, and transfusional diagnostic solutions in the Chinese market, utilizing its network of plasma collection centers. Grifols had previously announced plans to sell part of its SRAAS stake in June 2023 to reduce debt. The COVID-19 pandemic severely impacted Grifols’ plasma collection capabilities, resulting in a debt load of EUR 9.3 billion by Q1 2023, seven times its earnings before interest, taxes, depreciation, and amortisation (EBITDA). The company aims to reduce its debt to a ratio of 4-to-1 versus EBITDA by 2024.
Haier has been expanding its footprint in healthcare, establishing Haier Bio, which focuses on the design, manufacturing, marketing, and sales of low-temperature storage equipment for biomedical samples. Employing IoT concepts, the company has positioned itself as a comprehensive solutions provider for various biotechnological challenges, including cold-chain solutions, storage of biological sample banks, blood safety, vaccine safety, medical supplies, and reagent safety.- Flcube.com
