Victor Grifols Roura decides to retire as Chairperson; Grifols appoints private equity veteran Steven F. Mayer as Executive Chairperson

Rhea-AI Summary

Grifols has announced a leadership change, with Victor Grifols Roura retiring as Chairperson and being named Chairperson of Honor after a 50-year tenure. Steven F. Mayer, an experienced private equity executive and Grifols board member since 2011, is appointed as Executive Chairperson. This transition aims to enhance operational excellence and accelerate the company's strategic objectives, particularly focusing on deleveraging the balance sheet and improving cash flow. Mayer's extensive industry knowledge positions him well to lead Grifols forward as it continues to recover from the challenges posed by the pandemic.

Positive

• Appointment of Steven F. Mayer as Executive Chairperson expected to strengthen leadership and operational focus.
• Mayer's experience in the plasma-derived protein therapeutics industry may accelerate strategic goals.
• Commitment to reducing debt levels and improving cash flow can enhance shareholder value.

Negative

• Transition may create continuity concerns due to change in long-standing leadership.
• Experience gap may arise as Victor Grifols Roura steps down from an active role.

• Victor Grifols Roura, who devoted 50 years to building Grifols in senior roles including CEO for 30 years, retires as non-executive Chairperson and is designated as Chairperson of Honor in recognition of his numerous contributions
• Steven F. Mayer, former Co-Head of Global Private Equity and Chairman of the Investment Committee of private investment firm Cerberus Capital Management, L.P., with more than 10 years serving as a Grifols independent board member, is appointed as Executive Chairperson
• Changes further evidence of the Board of Directors' focus on strategic objectives, operational excellence, and deleveraging balance sheet

BARCELONA, Spain, Oct. 3, 2022 /PRNewswire/ -- Grifols (MCE: GRF) (MCE: GRF.P) (NASDAQ: GRFS) announced today changes to its leadership team, appointing Mr. Steven F. Mayer as Executive Chairperson while Mr. Victor Grifols Roura retired as Chairperson and was named Chairperson of Honor. Both changes are effective immediately.

These unanimously approved appointments are evidence of the Board's commitment to reinforce Grifols' leadership; to accelerate the execution of the company's strategic plan; to continue a focus on operational excellence; and to increase value for all shareholders, with emphasis on the reduction of debt levels and the improvement of the company's cash flow profile.

"I have spent most of my adult life actively leading Grifols, and with the company fundamentally solid and in the hands of strong leaders it was time for me to retire.  It has been an honor to chair the Grifols Board and manage the company for so many years.  I have known Steven since he joined our Board upon our acquisition of Talecris in 2011 and know that his experience, insights, skill set, deep knowledge, and significant capital markets expertise will be valuable assets to our management team as he helps lead Grifols forward", said Mr. Victor Grifols Roura, now Chairperson of Honor of Grifols' Board of Directors. 

"It is a privilege to follow Victor as chairperson of this substantial, global healthcare company, and I am eagerly looking forward to taking on this role at such an important time for Grifols. Although Victor's shoes will be impossible to fill, I am thrilled to work alongside the Board, the co-CEOs and the entire management team, using my expertise to help them achieve the company's strategic goals and focus on operational excellence; sustainable growth in revenue, profitability, and cash flow; and strengthening the company's balance sheet.  Of equal importance to me is ensuring that the company's core values of integrity, respect, inclusion, and sustainability that Victor established and invariably adhered to, as well as its commitment to the health and wellbeing of patients worldwide, will continue to guide the company and its entire team going forward," said Mr. Steven F. Mayer, now Executive Chairperson of Grifols' Board of Directors.

Mr. Mayer has extensive knowledge and experience in the healthcare sector and is well-acquainted with the plasma-derived protein therapeutics industry, having led the team that acquired and carved out Talecris Biotherapeutics from Bayer Healthcare, then grew the company's revenues and employee base and dramatically improved its profitability and cash flow until its merger with Grifols in 2011, at which time he joined the Grifols Board. In addition to the Grifols Board, he has served on boards of directors or equivalent bodies of over 30 other public and private companies in a variety of industries.  Before his 2018 retirement from Cerberus, which today manages approximately US$60 billion of capital, as Senior Managing Director, Co-Head of Global Private Equity and Chairman of its Investment Committee, Mr. Mayer focused on opportunities to improve portfolio companies' competitiveness and value through operational planning and execution as well as strategic initiatives and financial discipline.

In parallel, Mr. Victor Grifols Roura will continue to be a member of Grifols' Board of Directors and a valuable resource as "proprietary director" and has also been appointed as Chairperson of Honor due to his invaluable contributions, steadfast leadership and extraordinary dedication to the company.

"It is impossible to say enough about what Victor has meant to Grifols and its entire ecosystem, and especially to the patients whose lives the company improved, around the world" said Carina Szpilka, Lead Independent Director on Grifols' Board of Directors.  "Victor was the man responsible for taking Grifols from a small, primarily Spanish company 20 years ago and, through his vision, passion, expertise, and leadership, turning it into the global, multi-billion Euro healthcare leader it has become today. The entire Board is grateful to Victor and determined to honor his legacy by capitalizing on the company's many strengths and the industry's momentum while overseeing the management team's continued execution on its strategic plan.  We know that appointing Steven as Executive Chairperson will facilitate accomplishment of these goals.  He has the full support of all board members and our commitment to rigorous governance practices."

Grifols' co-CEO's, Victor Grifols Deu and Raimon Grifols Roura, also commented on the appointments.  "Victor has always inspired us and served as our role model as we have led the company over the last five years, which included the challenges posed by the coronavirus pandemic from which the company is rapidly recovering.  We have also long admired Steven both for what he and his team accomplished at Talecris and for his insights and contributions while serving on our Board.  We are excited about introducing him to our broader team of world-class management and employees, and about working together with him to drive value for all constituents through a continued laser focus on our strategic plan, on operational execution, and on deleveraging our balance sheet."

About Steven F. Mayer

Steven F. Mayer has served as director of Grifols, S.A. since January 2011. He is currently the Chief Executive Officer of Iron Horse Acquisition Corp. and of Dedication Capital, LLC, private investment firms that he founded. From 2002 until 2018, he held a variety of senior positions with Cerberus Capital Management, L.P. and Cerberus California, LLC, affiliated private investment firms, culminating with serving as Senior Managing Director, Co-Head of Global Private Equity, and Chairman of the Cerberus Investment Committee. He began his private equity career as a principal with Apollo Advisors, L.P. in 1992.

He holds a Bachelor of Arts degree, cum laude, from Princeton University and a Juris Doctor degree, magna cum laude, from Harvard Law School and has taught courses at both those institutions as well as at LUISS, a university in Rome.

Mr. Mayer has been a member of the Board of Directors or equivalent body of a large number of companies in a wide variety of industries in the U.S. and Europe. He is currently a member of the Board of Supervisors of Syntellix, AG and a director of PrettyParty, LLC and of 9Squared, LLC.

About Grifols

Grifols is a global healthcare company founded in Barcelona in 1909 committed to improving the health and well-being of people around the world. Its three main business units - Biopharma, Diagnostic and Bio Supplies - develop, produce and market innovative solutions and services that are sold in more than 110 countries.

Pioneers in the plasma industry, Grifols operates a growing network of donation centers worldwide. It transforms collected plasma into essential medicines to treat rare, chronic and, at times, life-threatening conditions. As a recognized leader in transfusion medicine, Grifols also offers a comprehensive portfolio of solutions designed to enhance safety from donation to transfusion. In addition, the company supplies tools, information and services that enable hospitals, pharmacies and healthcare professionals to efficiently deliver expert medical care.

Grifols, with more than 27,000 employees in more than 30 countries, is committed to a sustainable business model that sets the standard for continuous innovation, quality, safety and ethical leadership.

In 2021, Grifols' economic impact in its core countries of operation was EUR 7.7 billion. The company also generated 141,500 jobs, including indirect and induced jobs.

The company's class A shares are listed on the Spanish Stock Exchange, where they are part of the Ibex-35 (MCE: GRF). Grifols non-voting class B shares are listed on the Mercado Continuo (MCE: GRF.P) and on the U.S. NASDAQ through ADRs (NASDAQ: GRFS). For more information, please visit www.grifols.com

LEGAL DISCLAIMER

The facts and figures contained in this report that do not refer to historical data are "future projections and assumptions". Words and expressions such as "believe", "hope", "anticipate", "predict", "expect", "intend", "should", "will seek to achieve", "it is estimated", "future" and similar expressions, in so far as they relate to the Grifols group, are used to identify future projections and assumptions. These expressions reflect the assumptions, hypotheses, expectations and predictions of the management team at the time of writing this report, and these are subject to a number of factors that mean that the actual results may be materially different. The future results of the Grifols group could be affected by events relating to its own activities, such as a shortage of supplies of raw materials for the manufacture of its products, the appearance of competitor products on the market, or changes to the regulatory framework of the markets in which it operates, among others. At the date of compiling this report, the Grifols group has adopted the necessary measures to mitigate the potential impact of these events. Grifols, S.A. does not accept any obligation to publicly report, revise or update future projections or assumptions to adapt them to events or circumstances subsequent to the date of writing this report, except where expressly required by the applicable legislation. This document does not constitute an offer or invitation to buy or subscribe shares in accordance with the provisions of the following Spanish legislation: Royal Legislative Decree 4/2015, of 23 October, approving recast text of Securities Market Law; Royal Decree Law 5/2005, of 11 March and/or Royal Decree 1310/2005, of 4 November, and any regulations developing this legislation. In addition, this document does not constitute an offer of purchase, sale or exchange, or a request for an offer of purchase, sale or exchange of securities, or a request for any vote or approval in any other jurisdiction. The information included in this document has not been verified nor reviewed by the external auditors of the Grifols group.

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SOURCE Grifols

FAQ

Who is the new Executive Chairperson of Grifols?

Steven F. Mayer has been appointed as the new Executive Chairperson of Grifols.

What is the significance of Victor Grifols Roura's retirement?

Victor Grifols Roura's retirement marks the end of a 50-year leadership era at Grifols, transitioning to a role as Chairperson of Honor.

How might Steven F. Mayer's appointment impact Grifols?

Mayer's extensive experience in private equity and the healthcare sector could drive operational improvements and strategic execution.

When did the leadership changes at Grifols take effect?

The leadership changes at Grifols were effective immediately as of October 3, 2022.

What are Grifols' strategic goals following the management changes?

Grifols aims to enhance operational excellence, reduce debt, and improve cash flow under the new leadership.