Hologic Inc. has completed the sale of its blood screening business to Grifols SA for $1.85 billion in cash.
The deal, first announced in December 2016, transferred ownership of Hologic's patents and development rights for nucleic acid testing, used to detect infectious agents in blood and plasma donations. Grifols also acquired Hologic's California-based blood screening lab and R&D unit.
Grifols financed the acquisition through its existing cash on balance sheet and a $1.70 billion term loan arranged and underwritten by Nomura. The new loan is part of the refinancing of its $6.3 billion debt including two term loans and an undrawn revolving credit facility.
The company's workforce increases by 175 employees from the acquired unit.
Grifols said the acquisition was structured through Grifols Diagnostic Solutions, a U.S. incorporated unit of the company. The EBITDA margin of the diagnostic division increases to 40% as a result of the deal.
The Spanish healthcare company first acquired marketing rights for Hologic's NAT technology from Novartis AG in 2014. The blood testing division's sales will continue to represent around 16% of Grifols' total revenue as Grifols owns customer facing activities and records all revenues under the existing joint business between Grifols and Hologic.
Grifols retained Osborne Clarke SLP and Proskauer Rose LLP as legal advisers and Nomura as a financial adviser.