Grifols’ Board of Directors Announces Termination of Acquisition Discussions with Brookfield

Barcelona, Spain, Nov. 27, 2024 – The Board of Directors of Grifols (MCE:GRF, MCE:GRF.P, NASDAQ:GRFS), a global healthcare company and leading manufacturer of plasma-derived medicines, today announced the termination of discussions with Brookfield Capital Partners (UK) Limited (“Brookfield”) regarding a potential acquisition of Grifols shares.

This followed the statement on November 19 by the Board of Directors of Grifols, based on the recommendation of its Transaction Committee, that it would not recommend shareholders of the company to accept a potential offer from Brookfield with a valuation of €6.45 billion for the entirety of the company’s outstanding share capital (comprising both Class A and Class B shares). This indicative, non-binding valuation from Brookfield implied a price of €10.50 per Class A share, which was deemed to significantly undervalue the company’s fundamental prospects and long-term potential.

This assessment is supported by the company’s robust financial performance, as highlighted in its Q3 2024 results, which demonstrate Grifols’ strong fundamentals and its ability to capture substantial global demand across key markets. Year-to-date revenues increased by 9.1% at constant currency year-over-year, driven by solid results across all business divisions and also maintains a solid financial position. In recent months, Grifols has successfully reduced its leverage, following the repayment of senior secured debt after receiving €1.6 billion from the sale of a 20% equity stake in Shanghai RAAS, along with a notable improvement in EBITDA adjusted, which for the last twelve months reached €1.7bn.

This announcement comes after a comprehensive due diligence exercise has been conducted, with Brookfield granted access to all requested information. Throughout this period, Grifols provided full access to the company’s data and management, which was sufficient to make an informed assessment of the company's fundamental value in the context of a potential public tender offer.

The Board of Directors and management team of Grifols remain fully committed to executing the company’s strategic plan, which is focused on enhancing long-term value. In alignment with this commitment, Grifols will soon announce a Capital Markets Day, where it will present its strategic vision under new leadership, alongside key initiatives designed to unlock growth opportunities and drive sustained performance.