By Rebecca Thurlow
SYDNEY--Blood products and vaccine maker CSL Ltd. (CSL.AU) has
agreed to buy Novartis AG's (NVS) influenza-vaccine business for
US$275 million, as the Australia-based company continues its global
expansion.
Combining the Novartis unit with CSL subsidiary bioCSL will
create the No. 2 global player in the US$4 billion global
influenza-vaccine industry with manufacturing plants in the U.S.,
U.K., Germany and Australia, CSL said.
"The Novartis influenza vaccine business provides bioCSL with a
global leadership position in an attractive sector we understand
intimately," said CSL Chief Executive Paul Perreault in a
statement. "It will transform bioCSL by giving it first class
facilities and global scale as well as product and geographic
diversity."
CSL said it would fund the deal with surplus cash, and estimated
acquisition synergies will reach US$75 million a year by
fiscal-year 2020. Integration costs are estimated at US$100
million.
CSL operates in more than 20 countries, and last year began
reporting in U.S. dollars because the bulk of its profits are
earned overseas. The Australian company has expanded globally and
grown its market share in recent years, making acquisitions and
capitalizing on difficulties such as product recalls and plant
closures faced by its competitors.
Write to Rebecca Thurlow at rebecca.thurlow@wsj.com
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