Grifols issues response to Gotham City Research report

Grifols, in response to a report published by Gotham City Research, said “Grifols acquired Haema AG on June 4, 2018 and Biotest US Corporation on June 1 and August 2018 for an amount of EUR 220 million and $286 million, respectively. Scranton Enterprises B.V., through its subsidiary Scranton Plasma B.V., purchased the 100% of the shares of Biotest and Haema. The assets purchased included 60 centers plasma and 1.7M liters of plasma collected. The global price for the purchase of the two companies, Biotest and Haema, was $538M, which is the same price paid by Grifols for the acquisition of these companies in August 2018 and in June 2018, respectively, in the third-party market. There is no variable amount subject to the achievement of any milestone. Under a management contract, Grifols continues to manage the plasma centers of Biotest and Haema, maintaining the same quality and safety standards that characterize it. Likewise, Grifols purchases all the plasma obtained in these companies.” Grifols continued: “The contract for the sale and purchase of Biotest and Haema shares by Scranton includes an option purchase in favor of Grifols over all of the shares of said companies. This option grants Grifols an irrevocable and exclusive right to purchase. The purchase option can be exercised by Grifols at any time from the date effective sale, and simultaneously for both companies. The exercise price of the option is equal to the greater of: (i) the same price for which they were sold the shares to Scranton, adding the expenses related to the transaction and the increase of circulating capital from the moment of exercise of the option and the moment in which it is the sale occurred, and (ii) the amount necessary to pay off the debt contracted by Scranton with the financing entity of the transaction.” It added: “Scranton Plasma B.V. (buyer), requested financing from credit institutions to be able to carry out the transaction. Grifols is not affected in any way by said loan, nor has it participated in its negotiation, nor does it have the power to refinance it and is not its guarantor.”