Pall Corporation, a filtration, separation and purification products manufacturer
for life sciences industry, has entered into an agreement to sell certain
assets of its blood collection, filtration and processing product lines to
Haemonetics Corporation for approximately $550 million.
"As a result of the transaction, Pall will increase its focus on
businesses and markets where our competitive advantages are greatest,” said Larry
Kingsley, President and CEO of Pall. “The impact of this decision is that
Pall's overall profitability profile and long-term growth rate will be
enhanced."
Assets included in the transaction are Pall’s portfolio of blood collection,
processing and filtration systems and equipment for transfusion medicine. The
transaction will involve the transfer of manufacturing facilities in Covina,
California; Tijuana, Mexico; Ascoli, Italy and a portion of Pall’s operations
in Fajardo, Puerto Rico. Separate from these manufacturing facilities, Pall
will also transfer related blood media manufacturing capability to
Haemonetics.The transfer of the related media lines is expected to be completed
by 2016.Until that time, Pall will provide these media products under a supply
agreement. Upon closing, approximately 1,300 employees will transition to
Haemonetics.
The transaction, which is expected to close at the
beginning of Pall’s fiscal year 2013, is subject to certain closing conditions,
regulatory approvals and labor-related notifications.
Headquartered in Braintree, Massachusetts, Haemonetics is a global
healthcare company dedicated to providing innovative blood management
solutions.
"Today manual whole blood collection
is a $1.2 billion global market,” said Brian Concannon, Haemonetics'
President and CEO. “This acquisition is an important and exciting step toward
our objective of serving that market. The Pall business assets provide us
with leading filter technology and manufacturing capability, a broad portfolio
of manual collection and processing products, a strong and experienced employee
base and relationships with major blood authorities and key customers we have
in common. Combined with our internal development initiatives to automate
whole blood collection and our suite of blood management software, Haemonetics
will represent the broadest product offering to address our customers' needs in
the whole blood market, a market with more than 60 million procedures per
year."
Revenue for the product lines being divested is expected to be approximately
$230 million in Pall’s fiscal year 2012.
Pall Corporation, with total revenues of $2.7 billion for fiscal year 2011,
is an S&P 500 company with almost 11,000 employees. IN 2006, the company announced its plans to expand its Life Sciences
manufacturing operations in Fajardo, Puerto Rico through the
establishment of a Life Sciences Center of Excellence. At the time, Pall expected to invest around $50 million in facilities,
machinery and equipment and add more than 250 full-time jobs in Puerto
Rico by the year 2010. Eric Krasnoff, Chairman and CEO of Pall
made the announcement at the Pall Fajardo plant
In 2008, Pall appointed Senior Vice President Felix M. Negron, to lead global manufacturing and supply chain operations for the company's Life Sciences business.
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