PerkinElmer Accelerates Strategic Focus Toward Health Sciences And Photonics
PerkinElmer, Inc. (NYSE: PKI) announced today 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 Corporation for approximately $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 L. 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.”
Summe continued, “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.”
Merrill Lynch acted as exclusive financial advisor to the Company in the sale of its aerospace business.
The Company will hold a conference call on October 6, 2005 at 5:30PM Eastern Time (ET) to discuss the recent developments. To listen to the call live, please tune into the webcast via www.perkinelmer.com . A playback of this conference call will be available beginning at 7:00PM ET, October 6, 2005. The playback phone number is 617-801-6888 and the code number is 36586090.
Other Information
Health Sciences markets include genetic screening, environmental, service, biopharma, and medical imaging. Photonics markets include sensors and specialty lighting.
PerkinElmer, Inc. is a global technology leader driving growth and innovation in Health Sciences and Photonics markets to improve the quality of life. The Company reported revenues of $1.7 billion in 2004, has 10,000 employees serving customers in more than 125 countries, and is a component of the S&P 500 Index. Additional information is available through www.perkinelmer.com or 1-877-PKI-NYSE.
