PerkinElmer has announced its intention to divest the fluid sciences business segment to increase the strategic focus on its higher-growth health sciences and photonic markets
As part of the divestiture process, the company has signed a definitive agreement to sell its aerospace business to Eaton for approximately US$333 million, subject to regulatory approval and customary closing conditions.
The company also reported that it is in discussions to sell its semiconductor and fluid testing businesses.
All of the planned divestitures are expected to be completed in the fourth quarter of 2005 with aggregate proceeds of approximately $400 million from the sale of the fluid sciences business segment.
"The divestiture of our fluid sciences business segment will allow us to better focus our leadership and financial resources on our most promising growth opportunities," said Gregory Summe, chairman and CEO of PerkinElmer.
"The proceeds will help us build our growth platforms, with particular emphasis on genetic screening, medical imaging, molecular medicine and service.
"While expected to be modestly dilutive, about 5%-7% in 2006, the divestitures should reduce our exposure to more cyclical markets and position PerkinElmer to deliver higher revenue and EPS growth.
"While fluid sciences is an excellent business, it does not fit with our long-term strategy.
"We remain committed to supporting the business through the divestiture process and anticipate no interruptions in customer service."
