By Diagnostics World News Staff
August 1, 2022 | PerkinElmer announced this morning its intent to divest its Applied, Food, and Enterprise businesses through an agreement with New Mountain Capital. At the close of the deal, expected in the first quarter of 2023, the Analytical and Enterprise Solutions business will likely retain the PerkinElmer name and brand. The Life Sciences and Diagnostics business will be rebranded.
According to the deal details, New Mountain Capital, a growth-oriented private equity firm, will acquire the Applied, Food and Enterprise Services businesses for total consideration of $2.45 billion in cash: $2.30 billion to be received at the closing and $150 million to be payable contingent on the exit valuation New Mountain Capital receives on a sale or other capital events related to the business.
“Today's announcement is a pivotal step in the significant portfolio transformation we have been executing on over the last several years," said Prahlad Singh, president and chief executive officer of PerkinElmer, in the announcement. "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 science-first Life Sciences and Diagnostics company will continue to be led by the existing PerkinElmer senior management team and will be acutely focused on driving accelerated innovations for customers leading to faster growth, elevated profitability, and a best-in-class financial profile overall. The Life Sciences and Diagnostics businesses are expected to generate approximately $3.3 billion of revenue in 2022, approximately 80% of which is recurring, and account for about 11,000 current PerkinElmer employees.
The company believes this streamlined mission will make it better able to provide solutions faster to accelerate the development of new scientific discoveries and diagnostics.
“Upon closing of the transaction, I believe both organizations will benefit significantly from increased focus and aligned investment on their unique market opportunities,” Singh added.