By Sam Boughedda
PerkinElmer (NYSE:PKI) announced Monday it has entered into an agreement to sell its Applied, Food and Enterprise Services businesses to private equity firm New Mountain Capital for $2.45 billion in cash.
PerkinElmer said it will receive $2.3 billion when the deal closes, while $150 million is payable contingent on the exit valuation.
The deal is expected to close in the first quarter of 2023.
Once complete, PerkinElmer will consist of its Life Sciences and Diagnostics businesses, which are expected to generate approximately $3.3 billion of revenue in 2022.
"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," said Prahlad Singh, president and chief executive officer of PerkinElmer.
In addition, once the transaction is concluded, the PerkinElmer name and brand are expected to be retained by the Analytical, Food, and Enterprise Services businesses under its new ownership, with PerkinElmer's Life Sciences and Diagnostics businesses adopting a new name and stock ticker.