CSL to Buy Aventis Plasma Business for up to $925 Million

In a transaction that will complement the company's own plasma business, CSL Limited (Parkville, Australia) has agreed to acquire Aventis Behring (King of Prussia, PA, USA), the therapeutic proteins business of Aventis (Strasbourg, France) for an up-front payment of U.S.$550 million plus deferred payments and a contingent payment that could result in a total of up to $925 million.

CSL will combine Aventis Behring with its own plasma businesses, ZLB Bioplasma and Plasma Services. Aventis Behring is the second largest participant in the global plasma therapeutics industry, with a market share of about 15%. In 2002, the company had sales of $1 billion. New products include the Alpha 1-proteinase inhibitor treatment for the prevention of hereditary emphysema.

The new combined plasma operations will be called ZLB Behring. ZLB and Aventis Behring are highly complementary in terms of product portfolio, manufacturing, geography, R&D, and sales and marketing, states CSL. ZLB Behring will combine ZLB's IVIG business, plasma fractionation, and production with the coagulation products, hemophilia expertise, and specialty products of Aventis Behring. Thus, ZLB Behring will have a more diverse and highly competitive product portfolio, will enjoy production efficiencies, and a lower cost plasma sourcing and manufacturing process.

"Demand for both plasma-derived and recombinant products is expected to continue to grow at stable and attractive rates,” said Dr. Brain McNamee, managing director of CSL.
"The key attributes for success in the plasma products industry include cost effective infrastructure, high-yielding manufacturing processes, a broad product range, and strong marketing reach. Following the acquisition of Aventis Behring, CSL will have all of these attributes.”




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