Novartis announced a definitive agreement to divest its blood transfusion diagnostics unit to Grifols for $1.675 billion. This transaction, requiring customary regulatory approvals, is expected to be completed in the first half of 2014.

"The sale of the Novartis blood transfusion diagnostics unit enables us to focus more sharply on our strategic businesses, while providing Grifols with a platform for global expansion," said Joseph Jimenez, CEO of Novartis.

Acquired in 2006 as part of Chiron, the blood transfusion diagnostics unit has formed part of Novartis Vaccines and Diagnostics. The blood transfusion diagnostics unit is dedicated to increasing transfusion safety worldwide with nucleic acid testing, blood testing products and immunoassay reagents that detect infectious disease. Headquartered in Emeryville, Calif., its net sales in 2012 were approximately $565 million. Not included in the sale is the Novartis companion diagnostics unit that is integrated into the pharmaceuticals business, nor the Genoptix business, as these are closely linked to the pharmaceuticals pipeline.

Headquartered in Barcelona, Spain, Grifols is the world's third largest producer of plasma-derived therapies.