CSL TO PAY $3.1bn FOR TALECRIS PLASMA BUSINESS
August 17th 2008 05:21
Wednesday August 13, 2008
Daily news on ASX-listed biotechnology companies
* ASX, BIOTECHS DOWN: PEPLIN UP 10%, LIVING CELL DOWN 7%
* CSL TO PAY $3.1bn FOR TALECRIS PLASMA BUSINESS
* CSL PROFIT UP 30% TO $702m ON REVENUE UP 15%
* STARPHARMA TRIALS VIVAGEL’S ANTIVIRAL RETENTION
* ANTISENSE LOSS DOWN 50% ON REVENUE UP 1300%
* CIRCADIAN’S VEGENICS WINS US ANGIOGENESIS INHIBITOR PATENT
* SUNSHINE HEART RESPONDS TO FDA QUERIES
* ARANA EGM FINALLY BACKS PERFORMANCE PLAN
* PROF IAN CHUBB APPOINTED TO CSIRO BOARD
* PROF PETER COLMAN WINS $50k VICTORIA, $100k SMORGON PRIZE
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CSL
CSL will acquire Talecris Biotherapeutics for $US3.1 billion ($A3.5 billion) from Cerberus Partners and Ampersand Ventures.
CSL told the ASX that Talecris was “one of the world’s leading manufacturers and marketers of plasma-derived protein therapies”.
CSL’s managing director Dr Brian McNamee said Talecris was “highly complementary to CSL’s existing business”.
“The acquisition will …provide CSL with the additional scale, breadth of products, geographical presence, low cost base and capacity to increase output to enhance our position in the $US15 billion global plasma products market,” Dr McNamee said.
The purchase price comprises a cash payment of $US$3.1 billion less any net debt that may be assumed by CSL, payable on completion of the acquisition.
CSL said the acquisition, subject to regulatory approvals, would combine Talecris’ products and manufacturing capabilities with its own plasma collection business, commercial platform, production capabilities and product portfolio.
CSL said the acquisition was expected to deliver additional, scale-efficient manufacturing facilities; integration between all the manufacturing sites to maximize the number and yield of plasma products; an enhanced portfolio of plasma and recombinant products, with a strong market presence and broad geographical registrations, achieved by adding Talecris’ liquid intravenous immunoglobulin (IVIG) Gamunex and Alpha1-PI therapy Prolastin, to CSL’s product range; enhanced positions in key geographies, including the US, providing a platform to increase diversity and volume of product sales; a more flexible, higher capacity and efficient plasma collection business, integrated with the manufacturing spine, operating a common automated system and capable of meeting plasma needs across a range of geographical markets; and a highly optimized supply chain to ensure timely, adequate, secure and reliable supply at lowest cost.
CSL said Talecris had 56 US plasma collection centres and two manufacturing facilities.
For the year to June 30, 2008, Talecris generated sales of $US1.2 billion and adjusted earnings before interest taxation depreciation and amortization of $US258 million.
Talecris is headquartered in Research Triangle Park, North Carolina.
If CSL does not receive anti-trust approval to complete the acquisition within twelve months, the acquisition may be terminated, resulting, under certain circumstances, in CSL incurring a $US75 million break fee to be paid to the vendors.
The acquisition is being funded through equity and debt. The equity funding comprises an underwritten placement to raise $US1,500 million and a share purchase plan for shareholders to buy up to $5,000 in shares. The record date is August 22, 2008.
The balance of the cash and transaction costs will be funded through cash balances, undrawn bank facilities and a bridge facility from Merrill Lynch International (Australia), expected to be replaced with longer term debt financing within 12 months.
CSL is being advised by Merrill Lynch, Simpson Thacher & Bartlett LLP and Allens Arthur Robinson.
The business to be acquired includes manufacturing facilities at Clayton, North Carolina which fractionates 2.5 million plasma equivalent litres a year and Melville, New York which has a front-end fractionation capacity of approximately 1.0 million plasma equivalent litres a year and specialty products.
Talecris has invested $US563 million in acquiring its plasma collection centres and upgrading facilities. CSL also acquires all of Talecris’ inventory and other working capital as well as regional offices in Canada and Germany.
CSL was in a trading halt for the placement and last traded at $39.00
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