PerkinElmer has announced its intention to divest its applied, food and enterprise businesses in a deal worth $2.45 billion.
The deal will see private equity firm, New Mountain Capital, acquire the business. The transaction is expected to close in the first quarter of 2023, with the news coming amid newly updated Q2 earnings which include an increased outlook for the remainder of this financial year.
Prahlad Singh, president and chief executive officer of PerkinElmer comments: ‘Today's announcement is a pivotal step in the significant portfolio transformation we have been executing on over the last several years. Following the close of the transaction, we will be a pure-play, high-growth, high margin Life Sciences and Diagnostics company with unique scale. The Company’s increased financial strength will support accelerated investment into attractive end markets across science and disease, and drive advanced research, discovery, and improve global health.’
This proposal would leave two standalone businesses – a pureplay Life Sciences and Diagnostics business and an Analytical and Enterprise Solutions business. PerkinElmer intends to announce a new name and brand for the Life Sciences and Diagnostics business upon closing of this deal. The Analytical and Enterprise Solutions business will likely retain the PerkinElmer name and brand.
It is expected that the new life sciences and diagnostics business will be a more focused enterprise with a unique portfolio specific to the pre-clinical space that drives its customers’ downstream success. It will be better able to provide solutions faster to accelerate the development of new scientific discoveries and diagnostics. The new business will be better positioned to foster innovation faster and more successfully in both existing and novel areas of science and disease.
Singh continued, ‘This milestone has been made possible by the hard work of our nearly 17,000 employees across the globe. It is a validation of our people and the incredible businesses we have built. With this transaction, the Applied, Food and Enterprise Services businesses are gaining a partner who is committed to building on their record of success. Upon closing of the transaction, I believe both organisations will benefit significantly from increased focus and aligned investment on their unique market opportunities.’
