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by Bryce Trinka
Sep 17, 2021 12:50 PM ET
HY M&A UPDATE: Grifols to Acquire Biotest for EUR$1.6bn - Unsecured Debt Expected
September 17, 2021
Today Grifols SA (MCE:GRF; NASDAQ:GRFS) rated Ba3/BB (n/s) announced that they have agreed to acquire 100% of Tiancheng (Germany) Pharmaceutical Holdings AG, the owner 89.88% owner of Biotest AG voting rights and 1.08% of Biotest preferred shares in exchange for EUR$773m and a EUR$313m loan. Grifols has initiated a concurrent tender offer for the remaining Biotest shares that are not under Tiancheng Pharam’s control in exchange for EUR$43 per common share and EUR$37 per preferred.
The Tiancheng transaction is valued at approximate EUR$1.1bn, putting Biotest’s equity valued at approximately $EUR1.6bn and an enterprise value of approximately EUR$2bn.
Grifols SA has onbtained a EUR$2bn bridge commitment from BofA Securities to finance the transaction which they plan to replace using unsecured debt.
The transaction is subject to regulatory approvals and other conditions. It is expected to close by the end of the first semester of 2022.