PerkinElmer to divest some businesses in $2.45 bln cash deal

PerkinElmer to divest some businesses in $2.45 bln cash deal

A sign marks a PerkinElmer facility in Boston, Massachusetts, US, May 15, 2020. REUTERS/Brian Snyder/File Photo

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Aug 1 (Reuters) – PerkinElmer Inc (PKI.N) said it will sell some of its businesses along with the brand name to private equity firm New Mountain Capital for up to $2.45 billion in cash, as it looks to focus on its life sciences and diagnostics businesses under a new name.

Shares of PerkinElmer were up 4% premarket on Monday after the company said it will receive $2.30 billion on closing of the transaction, which will involve the sale of the applied, food and enterprise services businesses.

The transaction is expected to close in the first quarter of 2023, subject to regulatory approvals.

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The remaining amount will be contingent on the exit valuation of the private equity firm when it sells some of the assets related to the businesses it acquires.

The divested businesses will continue to use the PerkinElmer brand, while the life sciences and diagnostics businesses that remain will be run by the existing management under a new name and stock ticker that will be announced later, PerkinElmer said.

“The divestiture on (the) surface improves the growth profile of the company,” said Evercore analyst Vijay Kumar in a note.

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Reporting by Leroy Leo in Bengaluru; Editing by Shinjini Ganguli

Our Standards: The Thomson Reuters Trust Principles.

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