CSL to Buy Novartis Influenza-Vaccine Unit for $275 Million

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.

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