PerkinElmer has agreed to sell its Illumination and Detection Solutions business to PE firm Veritas Capital Fund III for $500 million in cash ($482 million net of payment for acquired cash balances). The 3,000-employee unit, which includes 14 manufacturing facilities, provides lighting and sensor components, subsystems and integrated solutions to equipment manufacturers serving a various health, environmental and security segments. The business is expected to generate $300 million in 2010 revenue.
PerkinElmer's President and CEO Robert Friel says the sale reduces the company's complexity and frees up capital to invest in human and environmental health markets. "[T]his transaction should reduce the company's exposure to more cyclical end markets and improve our top-line growth profile. Furthermore, we would expect adjusted gross margins to improve by over 200 basis points, contributing to higher earnings growth."
- read PerkinElmer's release
- check out the Mass High Tech article