Life sciences company PerkinElmer will divest its Applied, Food and Enterprise Services to the private equity firm New Mountain Capital in a potential deal worth $2.45 billion.
PerkinElmer states that the deal comes at a pivotal moment for the company as it transitions to solely focusing on its Life Sciences and Diagnostics businesses. PerkinElmer says that these businesses are expected to generate up to $3.3 billion of revenue in 2022.
“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. “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 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,” Singh added.
For the deal, valuated at $2.45 billion, $2.30 billion will be received at the closing and $150 million will be payable contingent on the exit valuation New Mountain Capital receives on a sale or other capital events related to the business. The transaction is expected to close in the first quarter of 2023.