InsideArbitrage Potential Deal Alert: Grifols Family and Brookfield Provide Takeover Bid to Acquire Grifols (GRFS)

POTENTIAL DEAL DETAILS

Grifols SA (GRFS) announced that Grifols family members and Brookfield Capital Partners (UK) Limited reached an agreement to evaluate a possible joint takeover bid to acquire all the share capital of Grifols.

Grifols SA Investor Relations

Update(s):

July 12, 2024: Grifols (GRFS) announced that the Board approved forming a Special Committee to review the bid from Grifols family members and Brookfield.

August 21, 2024: Bloomberg reported that Brookfield Asset Management (BAM) is asking banks to line up about 9.5 billion euros ($10.6 billion) of debt for its potential take-private deal for Spanish pharmaceutical producer Grifols (GRFS). The Toronto-based investor has asked banks to put up the funds to refinance Grifols’ existing debt, which includes loans and high-yield bonds. If the family and Brookfield go ahead with their plans to take the Barcelona-based firm private, the debt package will likely be 8 billion euros in drawn debt plus a revolving credit facility of as much as 1.5 billion euros.

August 29, 2024: Bloomberg reported that Brookfield Asset Management (BAM) is in talks with several investment funds to join its bid to acquire Spanish blood plasma company Grifols (GRFS). Abu Dhabi sovereign wealth fund ADQ and Singaporean counterpart GIC Pte. are among the investors that Brookfield has held discussions with over a potential partnership. Brookfield and the Grifols family, who are working together to potentially take the company private, have yet to present a formal offer to the Grifols board and are waiting to complete their due diligence. Any proposal could give the company an equity value of around €8 billion ($8.9 billion).

September 19, 2024: Three investment funds with holdings in Spanish drugmaker Grifols (GRFS) have teamed up to ask to fill a vacant seat on the company’s board. Flat Footed LLC, along with Mason Capital Management LLC and Sachem Head Capital Management LP, which hold a combined 7.72% stake in Grifols, picked Paul Herendeen, a former senior executive at other large pharmaceutical companies, to be their representative on the company’s board. They said Grifols had “an attractive growth profile” and its shares were undervalued and they wanted to make sure any takeover offer would include “a price that is fair for all shareholders”.

September 30, 2024: Reuters reported that Canadian fund Brookfield (BN) reaffirmed its interest in a potential takeover of Spanish drugmaker Grifols (GRFS) and requested more time to complete due diligence for its possible bid. Brookfield sent a letter on Monday to the board asking for a few more weeks to complete the process that began this summer.

November 5, 2024: Bloomberg reported that Brookfield Asset Management (BAM) is awaiting information from Grifols (GRFS) about related-party transactions as it seeks to complete its due diligence on the business. That’s a key item among several pending issues that have slowed Brookfield’s process of assessing the value of Grifols ahead of a potential takeover bid. The New York-based asset manager is still pursuing a deal and is confident it has a path to fund a transaction.

November 8, 2024: Mason Capital, which has a 2.1% stake in Grifols (GRFS), said it’s against a potential sale of the Spanish drugmaker to Brookfield Asset Management (BAM). Mason said that a potential deal with Brookfield “dramatically undervalues” the company.

November 18, 2024: Canadian fund Brookfield (BN) plans to offer about 7 billion euros ($7.4 billion) for Spanish drugmaker Grifols (GRFS) after finishing due diligence, Reuters reported citing news website El Confidencial. Brookfield is evaluating offering 10.5 euros per share in a public tender offer.

November 19, 2024: Bloomberg reported that Brookfield Asset Management (BAM) is considering a €6.45 billion ($6.9 billion) bid for Grifols (GRFS). The drug maker’s board is set to meet on Tuesday to discuss the potential offer.

November 19, 2024: Grifols (GRFS) said that Canadian investment fund Brookfield’s (BAM) potential 6.45 billion euro ($6.8 billion) offer significantly undervalued the Spanish drugmaker’s prospects and long-term potential, telling shareholders to stick to their shares. Grifols board met on Tuesday to consider the potential offer, and decided it “would not recommend that the shareholders accept the potential offer at the indicated price”.

November 27, 2024: Bloomberg reported that the Grifols family won’t support a new bid by a third party to take its namesake drug maker Grifols (GRFS) private amid indications that Brookfield Asset Management (BAM) may scrap plans to acquire the company. The family “will not back another take private transaction”. “We are very pleased with all the letters we’ve received from existing shareholders telling us the company is worth more and we will continue working so that the company’s value increases even more.” Brookfield is set to abandon plans to acquire Grifols SA over disagreements with the Spanish company’s board on valuation.

November 28, 2024: WSJ reported that Grifols (GRFS) plans to outline its strategy as a standalone company after Brookfield Asset Management (BAM) dropped out of talks for a 6.45 billion-euro ($6.82 billion) takeover bid. The Spanish pharmaceutical company said late Wednesday that it would soon schedule an investor update at which it would present its strategy under new leadership and its plans to unlock growth opportunities.

Bloomberg reported that Grifols is in talks with banks to refinance bonds due next year and extend a revolving credit line — together about €1.4 billion ($1.48 billion) — as it seeks to quell investor concerns about its ability to meet obligations. “Plan A is to refinance” the €370 million in bonds due in 2025, CEO Nacho Abia said. “We could look at repaying it with our cash flow, but we don’t want to be too tight.” The drugmaker is also in talks about extending a $1 billion revolving credit facility due in November 2025, he said.

December 2, 2024: Bloomberg reported that Mason Capital Management’s Kenneth M Garschina said he wants Grifols’s (GRFS) board replaced. The co-founder of the New York-based hedge fund demanded a seat on the Grifols board during Brookfield Asset Management’s failed attempt to win control of the company. Now he’s orchestrating a campaign to revamp the drug maker’s board, namely by ousting Tomas Daga, a veteran director and long-time friend of the founding family. Garschina accused Daga of conflict of interest and acting at the board as a proxy to the family, which owns about a third of the company. “He is in de facto control of the board,” Garschina told Bloomberg in an interview. “He’s run everything from the capital allocation to choosing directors, to choosing when to finance the balance sheet, and many of those decisions have been value destructive.”

Disclaimer: Our intent with this section of the website is to present potential deals that appear to be in the pipeline. These potential deals are ones where i) the company has indicated that it is "seeking strategic alternatives", ii) there has been an unsolicited bid for a company as mentioned in a press release by the company or iii) news about the deal has been published by a leading news organization like The Wall Street Journal, The New York Times, Bloomberg, Financial Times, The Washington Post, Reuters and The Associated Press. As best as possible we will try to avoid baseless rumors. There is a high probability that many of these potential deals may not materialize and if they do, the terms of the deal may be different from what was initially reported. Please do your own due diligence before buying or selling any securities mentioned on this website. We do not warrant the completeness or accuracy of the content or data provided.