Grifols reaches strategic alliance with Haier Group and raises approximately USD 1.8 billion

Barcelona, Spain, December 29, 2023 - Grifols (MCE:GRF, MCE:GRF.P, NASDAQ:GRFS), a global healthcare company and leading manufacturer of plasma-derived medicines, today announced a strategic alliance with Haier Group (Haier) to develop the Chinese plasma market. Haier is a global leader in innovation.

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.

Through a share purchase agreement Grifols will sell approximately a 20% equity stake in Shanghai RAAS (SRAAS) to Haier for RMB 12.5 billion (approximately USD 1.8 billion) 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, which is RMB 8.181.

The proceeds from this transaction, which is subject to customary closing conditions, including regulatory approvals, will be used to reduce Grifols’ debt.

Grifols will still retain a significant ~6.58% stake in SRAAS as well as a seat on its Board of Directors. SRAAS’ 45% economic and 40% voting rights in Grifols Diagnostic Solutions (GDS), agreed to in 2020, stay the same.

Since establishing their alliance three years ago, Grifols and SRAAS have collaborated successfully in the booming Chinese hemoderivatives market.

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 (2024-2028). China’s demand for albumin is expected to continue growing significantly in the coming years. It currently accounts for more than 50% of global albumin consumption.

They will also strengthen their existing strategic collaboration.

“China remains core to our growth strategy. We are extremely pleased to establish an alliance with Haier, a global leader in innovation that shares our commitment to innovation, quality and safety,” said Raimon Grifols, Grifols Chief Corporate Officer. “Through this groundbreaking alliance we expect to be able to further support China’s healthcare system needs and offer innovative medicines and diagnostic solutions for patients. Moreover, this agreement marks another major step forward as we meet our commitments, and will contribute to our growth momentum heading into 2024.”

“We are delighted to join hands with Grifols. The strategic partnership formed today marks an important milestone for Haier as we expand across the entire value chain of the plasma industry and will broaden our portfolio and capabilities in healthcare,” said Lixia Tan, Vice Chairwoman and Executive Vice President of Haier Group.

“SRAAS is committed to the pursuit of safety, quality, and innovation, and we share the same vision of putting people at the center of everything we do and always striving for excellence. We look forward to working together with SRAAS and Grifols further to drive integration and innovation of the plasma value chain and contribute to the sustainable development of China’s healthcare industry,” Tan added.

Both parties, Grifols and Haier, commit not to transfer any portion of their shares within three years following the completion of the transaction.

Grifols retained Osborne Clarke, S.L.P. and JunHe LLP. as legal advisors. Nomura Securities International, Inc. serves as the lead financial advisor to Grifols.

Happy New Year.

About Haier Group

Founded in 1984, Haier Group is a leading global provider of better life and digital transformation solutions. With users always at the center of its businesses, Haier has built 10 R&D centers, 71 research institutes, 35 industrial parks, 138 manufacturing centers and a sales network of 230,000 nodes around the world. Haier is the world's only IoT Ecosystem Brand that has been ranked in the Kantar BrandZ Top 100 Most Valuable Global Brands for five consecutive years. For more information about Haier Group, visit www.haier.com