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CSL to buy Talecris Biotherapeutics for US$3.1bn in cash

CSL Ltd, the world’s second-largest maker of specialized blood transfusion products, agreed to buy Talecris Biotherapeutics Holding Corp for US$3.1 billion in cash, boosting sales by more than a third with its biggest acquisition.

The purchase will be partly funded by a US$1.5 billion share sale to shareholders, the Melbourne-based company said in a statement yesterday

CSL yesterday reported net income rose 30 percent to A$701.8 million (US$610 million) in the 12 months to June 30, from A$539.3 million a year earlier.

CEO Brian McNamee is adding Talecris, the US-based maker of therapies, including Gamunex and Prolastin, which are in the fastest-growing segments of the US$15 billion global plasma-products market.

CSL said yesterday it would still trail Baxter International Inc in plasma-derivative sales by about 25 percent.

The acquisition will “provide CSL with the additional scale, breadth of products, geographical presence, low cost base and capacity to increase output to enhance our position in the US$15 billion global plasma products market,” McNamee said.

Trading of CSL shares have been halted ahead of the completion of the stock sale. They last traded at A$39, valuing the company at A$21.5 billion. The shares have gained 7 percent this year, the best-performing healthcare stock on Australia’s benchmark S&P/ASX 200 Index.

Full-year sales rose 15 percent to A$3.8 billion in fiscal 2008, the company said in a statement. In the same period, Talecris generated revenue of A$1.4 billion, CSL said. Research Triangle Park, North Carolina-based Talecris will be bought from Cerberus Partners LP and Ampersand Ventures.

McNamee said yesterday he expected combined sales of about A$3.8 billion for the plasma products unit after the Talecris purchase. Baxter generates revenue of about US$5 billion, he said in a conference call.

CSL will fund the rest of the purchase with cash and a loan from Merrill Lynch & Co, which is advising on the deal, it said in the statement.
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