WASHINGTON (dpa-AFX) - Pall Corp. (PLL) announced that it has entered into an agreement to sell certain assets of its blood collection, filtration and processing product lines to Haemonetics Corp. (HAE) for about $550 million.
The company stated that its portfolio of blood collection, processing and filtration systems and equipment for transfusion medicine are some assets included in the transaction.
Pall added that separate from these manufacturing facilities, the company 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, about 1,300 employees will transition to Haemonetics.
Under the terms of the agreement, about $535 million will be paid upon closing. The Company estimates that the after-tax proceeds related to this payment will be approximately $430 million and the balance will be payable upon Pall's delivery of certain media assets to Haemonetics.
The company expects to record an after-tax gain of $230 million to $240 million, or $1.95 to $2.04 per share, upon closing.
Pall noted that revenue for the product lines being divested is expected to be about $230 million in Pall's fiscal year 2012, inclusive of OEM sales to Haemonetics and operating profit for fiscal 2012 is expected to be about $60 million. The company estimates that the blood product line will contribute approximately $0.38 to EPS in fiscal year 2012, net of pro forma tax effect.
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