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Deal done: Why the CSL (ASX:CSL) share price is in focus

The CSL Limited (ASX: CSL) share price is making headlines today after ASX healthcare share announced it can finally acquire Vifor.

Vifor deal done

CSL said that all regulatory clearances have been received to close the acquisition for Vifor Pharma.

Completion of the acquisition is expected to take place by 9 August 2022.

This deal has been a long time in the making. It was first announced in December 2021.

As readers can imagine, with how long the deal has taken, planning for the integration of Vifor is “well advanced”.

Management comments

The CSL CEO and Managing Director Paul Perreault said:

We are excited to complete the acquisition of Vifor Pharma – enhancing CSL’s well-established patient focus and ability to protect the health of those facing a range of rare and serious medical conditions. I would like to thank our employees, strategic partners and shareholders who have shown their unwavering support throughout the acquisition process.

Joining CSL, the Vifor business adds near-term value along with a clear path to long-term sustainable growth. It also adds an outstanding management team, along with a high-value and complementary portfolio of products and market leading position in the nephrology and iron ore deficiency spaces.

What does Vifor do?

Vifor Pharma is a global leader in iron deficiency, nephrology and renal disease with a portfolio of current and future therapies.

Vifor will reportedly add $2 billion in revenue and an additional $400 million in free cash flow to CSL.

CSL expects to extract $75 million in synergies over the three years post completion of the deal. In other words, they are better together than apart.

Final thoughts on the CSL share price and this deal

This could be a useful boost for CSL into the future. But, I’m not a healthcare expert, so I’m not exactly sure how good this will be.

CSL said that it will provide guidance to include Vifor as soon as it can. It’s going to hold a briefing for investors on 17 October 2022 to discuss the Vifor growth strategy and insights into its product portfolio and financials.

However, due to CSL’s enormous size, I think there are some other ASX growth shares that could have more growth potential.

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