CSL Limited
(ASX:CSL) will acquire the global influenza vaccine business from Novartis for $US275 million. The business will combine with CSL subsidiary bioCSL.
The merger will create the number two global player in the $4 billion global influenza vaccine industry achieving sales approaching US$1 billion annually within the next 3-5 years.
CSL CEO Paul Perreault says, “The Novartis influenza vaccine business provides bioCSL with a global leadership position in an attractive sector we understand intimately. It will transform bioCSL by giving it first class facilities and global scale as well as product and geographic diversity.”
The acquisition will be funded through surplus cash and will not impact CSL’s recently announced share buyback scheme. Settlement should occur towards the end of 2015 subject to regulatory approval.
CSL reported a net profit of $1.38 billion for the 2014 financial year.
