(Reuters) - Spain's Grifols SA (GRLS.MC), which develops plasma protein therapies, said it would buy U.S. medical device maker Hologic Inc's (HOLX.O) interest in their blood screening joint venture for $1.85 billion (1.47 billion pounds) in cash.
Grifols, which owns the customer-facing activities of the venture, said the acquired assets comprise a plant in San Diego, California as well as development rights, licenses to patents and access to product manufacturers.
The deal, which has been approved by boards of both the companies, would be financed in part by a $1.70 billion term loan, Barcelona-based Grifols said in a statement on Wednesday.
As a part of the joint venture, Hologic is mainly responsible for R&D and manufacturing the Procleix blood screening products, while Grifols is responsible for commercialization.
The companies share revenue from the business, whose products are molecular assays and instruments used to screen donated blood for viruses including HIV, hepatitis C and B and Zika.
Hologic's share of the blood screening business for fiscal 2017 was forecast to contribute nearly $240 million of revenue. The company also said it expects to update its forecast for fiscal 2017 after the transaction closes.
Morgan Stanley & Co LLC is Hologic's financial adviser, while Nomura was Grifols' financial adviser.
Reporting by Akankshita Mukhopadhyay in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta