Grifols sells 20% stake in Shanghai RAAS to Haier for $1.8B

Grifols announced a strategic alliance with Haier Group to develop the Chinese plasma market. “The two companies will explore opportunities to combine Grifols’ industry-leading plasma and diagnostic excellence with Haier’s preeminent portfolio of healthcare solutions. Grifols and Haier envision broad cooperation to contribute to China’s growing and developing healthcare system,” Grifols said in a statement. Through a share purchase agreement Grifols will sell approximately a 20% equity stake in Shanghai RAAS to Haier for a $1.8B cash consideration at a price of RMB 9.405 per share, which represents a premium of 14.96% to SRAAS’ volume weighted average price over 20 prior trading days. The proceeds from the transaction, which is subject to customary closing conditions, will be used to reduce Grifols’ debt. Grifols will still retain a 6.58% stake in SRAAS as well as a seat on its board. As part of the share purchase agreement, Grifols and SRAAS will lengthen their exclusive albumin distribution agreement through at least the next 10 years, and possibly 20, with guaranteed minimum supply volumes over the next five. China’s demand for albumin is expected to continue growing significantly in the coming years, the company adds. Shares of Grifols are up 2% to $17.05 in premarket trading.