(Adds share price movement, analyst's comment)
By Emma Pinedo
MADRID Dec 15 Spain's Grifols, which
said late on Wednesday it would buy U.S. medical device maker
Hologic Inc's side of their joint venture blood
screening business for $1.85 billion, expects to refinance its
debt once the deal is completed, its Chief Financing Officer
said on Thursday.
The Spanish company aims to get its net debt gearing down to
three times earnings before interest, tax, depreciation and
amortisation within a couple of years compared with 4.3 times
after completing the acquisition, which is being financed by a
$1.7 billion term loan.
At the end of September the company's reported net debt
stood at $3.99 billion, 3.3 times its EBITDA.
"Assuming the market is okay ... we're convinced that we
could go to the market and refinance our debt in the first
quarter," Chief Financing Officer Alfredo Arroyo told Reuters.
Grifols' diagnostics division accounted for 11 percent of
the company's core profit, though this will rise to 21 percent
after the acquisition, Arroyo said.
On Wednesday Grifols said it would pay $1.85 billion in cash
for a plant in San Diego, California as well as development
rights, licences to patents and access to product manufacturers
which served its joint venture with Hologic. It also said it
expected the deal to close in the first quarter of 2017.
Shares in Grifols were up 6.2 percent at 18.18 euros by 0934
GMT on Thursday, leading gains on the Spanish Ibex index
, up 0.15 percent.
"This acquisition will generate no sales, as those are
already booked by Grifols, but will significantly increase the
profitability of (its) diagnostic division which will now have
margins of 40 percent (versus 15-20 percent before, on our
estimates)," Broker Haitong said in a note that rated the move
as "neutral to negative".
Under the joint venture Hologic was mainly responsible for
R&D and manufacturing the Procleix blood screening products,
while Grifols, which develops plasma protein therapies, led the
(Writing by Paul Day; Editing by Greg Mahlich)