BLOOD PLASMA: Singapore’s GIC Makes $1 Billion Investment in Biomat USA

Posted on 06/30/2021

Singapore’s GIC Private Limited will invest approximately US$ 1 billion to acquire a minority stake in Grifols’ U.S. subsidiary Biomat USA, which manages 296 U.S.-based plasma collection centers. As part of the transaction, GIC will become a strategic investor in Grifols’ business, holding a minority stake in Biomat USA through the acquisition of newly issued non-voting stock. Grifols will maintain control over Biomat’s management and operations, and all plasma collected by Biomat will continue to be supplied to Grifols to produce its plasma-derived medicines. All proceeds from the investment will be used to repay debt, reflecting Grifols’ firm commitment to reduce its leverage levels. This transaction supports Grifols’ strategy to expand and strengthen its U.S. plasma center network.

Grifols will apply all proceeds from GIC’s investment to repay debt as part of its ongoing commitment to gradually reduce financial leverage.

The closing of GIC’s strategic investment in Grifols is subject to certain conditions, including applicable regulatory authorizations, such as the Committee on Foreign Investment in the United States (CFIUS).

Grifols retained Osborne Clarke, S.L.P and Proskauer Rose, L.L.P as legal advisors for the transaction, and Nomura Securities International, Inc. as sole financial advisor. GIC retained Dechert LLP as legal advisor.

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