CSL to Buy Nabi's Antibody Assets for $152 Mln
Ka-ching. quote.bloomberg.com
06/25 23:09
CSL to Buy Nabi's Antibody Assets for $152 Mln (Update4)
By Richard Noonan
Melbourne, June 26 (Bloomberg) -- CSL Ltd., the third-largest maker of blood-plasma products, agreed to buy most of Florida- based Nabi's blood collection assets for $152 million, giving it 15 percent of the world's biggest market.
The Melbourne-based maker of medical supplies hired Merrill Lynch & Co. to sell A$320 million of new stock to fund the purchase of 47 of Nabi's 56 antibody collection centers in 22 U.S. states and a Miami, Florida testing laboratory.
CSL needs to boost sources of human blood, the raw material for its products, to compete with Baxter International Inc. and Aventis SA, the largest and second-largest plasma product makers, at a time supplies are dwindling. Last year it bought Swiss Red Cross's ZLB plasma unit for A$1 billion ($517 million) and today said that purchase will boost profit 40 percent this year.
``There's a lot of competition for these assets,'' said Wayne Gentle, a biotechnology analyst at J.P. Morgan in Sydney. The price agreed with Nabi ``isn't a steal, but it does leave them well placed for long-term growth.''
The Nabi purchase comes as the U.S. market for plasma supply has been consolidating. At the same time, U.S. blood donations have slowed as demand has increased. Earlier this month, SeraCare, Inc., which operates 42 blood plasma centers in the U.S., agreed to sell its plasma business for $147.5 million in cash and assumed debt to closely held Grupo Grifols of Spain.
Nabi has an estimated 15 percent of the U.S. plasma supply, analysts said.
Share Sale
``The growth of plasma donation throughout the world is probably flat to declining,'' said J.P. Morgan's Gentle. ``That's what is driving consolidation.''
CSL's share sale ends 8 a.m. tomorrow Sydney time, allowing investors to buy shares for an unspecified price. Merrill Lynch officials weren't immediately able to comment on the sale.
Investors said local and international institutions will likely rush to buy more shares in CSL, which returned 75 percent last year. A year ago, CSL increased the size of its equity raising for ZLB to A$363 million from A$300 million after it met better-than-expected demand for that share sale.
The Nabi purchase ``is a very positive development because it does fill a gap which the market was concerned about,'' said Robert Hook, who helps manage A$2.8 billion at National Asset Management, which hasn't yet decided whether to participate in the CSL equity sale.
Chief Executive Brian McNamee said the acquisition will give the company enough plasma supply to expand its ZLB processing plant in the U.S., where it currently collects most of its plasma from non-for-profit groups such as the American Red Cross. Nabi's 47 collection centers, which employ 1,300 staff, produce about 1.3 million liters of plasma.
Separately, CSL said profit in the year ending June 30, 2001 is forecast to rise 40 percent to A$76 million because of ZLB's contribution. The Nabi acquisition, scheduled to be completed in September, will add to earnings in the year ending June 30, 2004, it said.
CSL last traded at A$38.994 Monday. The shares have been halted pending the completion of the share sale. CSL said its shares will recommence trading Wednesday with an announcement made on the outcome of the equity raising.
``Indications are that (CSL shares) will open higher because of the acquisition,'' said National's Hook. |
