BarcelonaGrifols already has its own whatever it takes. The formula with which Draghi calmed the markets regarding the future of the euro was the same that the Catalan company of blood derivatives applied this Monday to send a message of tranquility to the markets. After months of viacrucis in the parquets, with a fall in the last year of nearly 60% of its value, the company wanted to make it clear that it will do what is necessary to reassure them. And whatever is needed, as seen this Monday, is practically everything.
At the outset, the historic Víctor Grífols Roura, principally responsible for the company’s meteoric growth from the 80s to the present day, leaves the non-executive presidency and becomes honorary president, although he remains on the board of administration as Sunday adviser. The new chairman will be Steven F. Mayer, who will not only be an executive chairman, but also an outsider to the founding family, from which, until now, all the presidents of the global hemoderivative giant had come. “The message is clear: the council will do everything necessary to regain the confidence of the market”, explained voices in the sector this afternoon.
From his new position, Mayer, who has been an independent director of Grifols for more than ten years, will be above the two co-CEOs, Raimon Grífols Roura and Víctor Grífols Deu, brother and son of the outgoing president respectively. Both see how the current crisis in the company’s listing has put an end to their conditions as top executives of the company. Mayer was co-director of the Cerberus Global Private Equity fund and chairman of the investment committee of Cerberus Capital Management. Mayer and the Grífols met following Grifols’ purchase of Talecris in 2010. At the time, Cerberus was the largest shareholder in the US company, and the Grifols offered Mayer a position to the Grifols board for its deep knowledge of the market.
The decision has been taken after the company’s board saw that the evolution in the stock market would not be reversed without a change of names. It has also helped that Grifols’ market value (about 5.5 billion as of Monday) is lower than that of different parts of the company separately, such as the China business, the diagnostics business or its collection centers of plasma
As reported by the company in a statement, the commitment to an investment banking veteran shows the commitment of the board of directors to the company’s strategic objectives and debt relief. Sources in the sector have again ruled out that there is any plan to make a capital increase, and even less to sell the company.
A historic but not traumatic decision
The sources consulted by the ARA explain that the council has adopted this decision without any internal breakdown. “We wanted to show the markets that we’re not fooling ourselves by putting another Grífols at the helm,” explain sources close to the company. These voices admit that the changes announced this Monday are “a blow” for Víctor Grífols Deu and Raimon Grífols Roura, but only in the short term.
According to them, the chances of both of them to reach the presidency remain intact, and they point out that Mayer could be a president who will be in office for three or four years before possibly giving way to Raimon Grífols Roura, who is 58 years old . The other CEO, Víctor Grífols Deu, has 46.
Calm down with the financial situation
From Grífols they have maintained that despite the high debt of the company, which is around 9,000 million after having carried out an aggressive policy of acquisition of other companies, the situation is good. “We continue to have ebitdas [resultats abans d’interessos, impostos i depreciació] of 1,200 million, few can say that”, these voices explain. They also point out that the first debt maturity is in 2025 (about 1,700 million) and that the next one does not arrive until 2027.
Grifols has approximately 65% fixed rate debt and will therefore not see it increase with the increase in Euribor in recent months.