GIC to invest US$1B for stake in Grifols’ US subsidiary Biomat USA

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Singapore sovereign wealth fund GIC plans to invest around US$1 billion to acquire a minority stake in Biomat USA, a U.S. subsidiary of Spanish pharmaceutical company Grifols, the company said in a press release on its website Wednesday.

“Grifols’ leadership in the manufacture of plasma-based medicines, extensive expertise in the expansion and management of plasma centers, market know-how, and outstanding reputation were all key factors in GIC’s decision to invest in the company,” the statement said.

Victor Grifols Deu, co-CEO of Grifols, said having GIC as a strategic investor would help the company expand its U.S. plasma center network.

“This transaction supports Grifols’ business model and our strategy in plasma collection, together with a solid innovation portfolio focused on disease management beyond the therapies based on plasma-derived medicines,” Grifols Deu said in the statement.

Grifols will retain control of Biomat USA, which manages 296 plasma collections centers in the U.S., and all plasma collected by the U.S. subsidiary will continue to be supplied to the Spanish company for producing its plasma-derived medicines, the statement said.

The proceeds will be used to repay debt as part of a commitment to reduce leverage, Grifols said, noting that in the first quarter of this year, the company’s net financial debt was 6.20 billion euros following the acquisition of plasma centers from BPL and Kedrion and a deal with GigaGen.

The deal is contingent on conditions including regulatory approvals, such as the Committee on Foreign Investment in the United States (CFIUS).