Perkin Elmer to raise $2.45 billion in cash by selling Applied, Food and Enterprise Services businesses

Shares of PerkinElmer Inc. rose 1.4% in premarket trading Monday, after the disease diagnosis company announced an agreement to sell its Applied, Food and Enterprise Services businesses for $2.45 billion in cash to private-equity firm New Mountain Capital. As part of the deal, PerkinElmer will receive $2.30 billion at closing, which is expected to occur in the first quarter of 2023, and $150 million will be payable contingent on exit valuation. "Following the close of the transaction, we will be a pure-play, high growth, high margin Life Sciences and Diagnostics company with unique scale," said Chief Executive Prahlad Singh. "The company's increased financial strength will support accelerated investment into attractive end markets across science and disease, and drive advanced research, discovery, and improve global health." The Life Sciences and Diagnostics businesses are expected to generate about $3.3 billion in revenue on 2022. The stock has gained 4.5% over the past three months but has lost 23.8% year to date through Friday, while the S&P 500 has lost 13.3% this year.

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