Post by icemandios on Aug 1, 2022 15:24:24 GMT
PerkinElmer Divests Other Businesses to Become Life Sciences, Dx Firm
Aug 01, 2022 | staff reporter
NEW YORK — PerkinElmer is divesting its applied, food, and enterprise businesses, with plans to form a separate high-margin life sciences and diagnostics firm, the company announced early Monday.
The Waltham, Massachusetts-based company also announced its second quarter revenues were flat year over year.
The $2.45 billion sale of its applied, food, and enterprise services to New Mountain Capital will split the company into two businesses: a life sciences and diagnostics firm that will operate under a yet-to-be-announced name and an analytical and enterprise solutions business that is expected to retain the PerkinElmer name and brand. PerkinElmer and New Mountain Capital expect to close on the deal in the first quarter of 2023.
PerkinElmer President and CEO Prahlad Singh said in a conference call that the change would make the company faster and more flexible in responding to customer needs and able to work with customers on drug discovery, translational medicine, and disease detection. The company is expected to have 11,000 employees and $3.3 billion in revenue from products in areas including infectious disease, autoimmune, reproductive health, medical research, biologics, and cell and gene therapy.
"After the transaction, our company will have a compelling revenue growth rate in the double digits, largely in line with our new higher-value peers," Singh said. "We will have stronger margins and differentiated scale with total revenues that well exceed the average of our peers."
PerkinElmer also announced that its second quarter revenues were flat year over year at $1.23 billion, beating the consensus Wall Street estimate of $1.20 billion. Revenues from its Diagnostics segment declined 20 percent to $569.0 million from $715.8 million, which company officials attributed to lower COVID-19–related income.
The company also reported net income for the quarter of $179 million, or $1.42 per share, compared to $246 million, or $2.19 per share, a year earlier. It also reported adjusted EPS of $2.32, which beat the consensus Wall Street estimate of $2.02.
It ended the quarter with $360.9 million in cash and cash equivalents.
PerkinElmer raised its revenue forecast for the year to $4.60 billion-$4.64 billion, which is slightly higher than analysts' estimate for the year, and adjusted earnings per share of $7.80-$7.90, which beats analysts' prediction of $7.33 per share for the year.
In morning trading on the New York Stock Exchange on Monday, shares of PerkinElmer were up 9 percent to $166.81.