Corning to Acquire Majority of BD Discovery Labware
10 Abril 2012 - 9:00AM
Business Wire
Corning Incorporated (NYSE: GLW) announced today that it has
reached a definitive agreement with BD (Becton, Dickinson and
Company) (NYSE:BDX) to acquire the majority of its Discovery
Labware unit for approximately $730 million in cash. The
acquisition is expected to be completed later this year, subject to
customary closing conditions, including receipt of regulatory
approvals.
“The Discovery Labware unit’s extensive product portfolio and
established dealer network will significantly improve Corning Life
Sciences’ offerings to customers and is a critical part of
Corning’s long-term growth strategy,” Wendell P. Weeks, chairman,
chief executive officer and president, said. “With sales of
approximately $235 million, the acquisition will expand Corning
Life Sciences’ annual revenues by 40% and catapult the segment
toward its goal of being a $1 billion business by 2014. And, the
acquisition provides added momentum for Corning to achieve our $10
billion revenue target in the next few years,” he added. Corning
expects to reach this revenue goal through a combination of organic
growth and strategic acquisitions.
When complete, the acquisition will augment Corning’s global
market access and enhance its broad portfolio of life sciences
products in the areas of drug-discovery tools, bioprocess
solutions, and laboratory research instruments. Corning will
integrate four of the Discovery Labware unit’s main product
platforms: plastic consumable labware (including tubes, pipettes,
Petri dishes, tissue culture dishes, and flasks); liquid-handling
products; cell-based assays and cell cultureware; and ADME research
into the Corning Life Sciences business segment upon closing of the
acquisition.
“We are extremely excited and proud to add these talented
people, proven research ability and established and well-respected
products to Corning Life Sciences,” Dr. Richard M. Eglen, vice
president and life sciences general manager, said. “We have a
history of successfully integrating businesses into our
organization and we see multiple synergies that are possible once
the acquisition is complete. We look forward to bringing these two
dynamic organizations together, and providing a more comprehensive
line of products and services to customers worldwide.”
James B. Flaws, vice chairman and chief financial officer, said
Corning will use a portion of its domestic cash balances to fund
the transaction. “We plan to continue our current share repurchase
activity and maintain our ability to provide additional shareholder
distributions in the future, should the board of directors choose
to do so,” he remarked. The company projects that the transaction
will be slightly accretive in 2013. “We expect this to grow to
$0.05 per share, excluding purchased intangibles amortization, when
full integration into our existing business is complete by 2016,”
Flaws said.
“Life Sciences is an attractive growth industry and has low
capital intensity. We expect this acquisition to provide a stable
stream of incremental cash flow to Corning as we become a more
balanced company,” Flaws concluded.
The Discovery Labware unit, headquartered in Billerica, Mass.,
has operations in Massachusetts, North Carolina, and the United
Kingdom, and extensive dealer networks in Asia, Europe and North
America.
Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements” (within
the meaning of the Private Securities Litigation Reform Act of
1995), which are based on current expectations and assumptions
about Corning’s financial results and business operations, that
involve substantial risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties
include: the effect of global political, economic and business
conditions; conditions in the financial and credit
markets; currency fluctuations; tax rates; product demand
and industry capacity; competition; reliance on a concentrated
customer base; manufacturing efficiencies; cost reductions;
availability of critical components and materials; new product
commercialization; pricing fluctuations and changes in
the mix of sales between premium and non-premium products; new
plant start-up or restructuring costs; possible
disruption in commercial activities due to terrorist activity,
armed conflict, political or financial instability, natural
disasters, adverse weather conditions, or major health concerns;
adequacy of insurance; equity company activities; acquisition and
divestiture activities; the level of excess or obsolete inventory;
the rate of technology change; the ability to enforce patents;
product and components performance issues; retention of key
personnel; stock price fluctuations; and adverse litigation or
regulatory developments. These and other risk factors
are detailed in Corning’s filings with the Securities and
Exchange Commission. Forward-looking statements speak only as
of the day that they are made, and Corning undertakes no obligation
to update them in light of new information or future events.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in
specialty glass and ceramics. Drawing on more than 160 years of
materials science and process engineering knowledge, Corning
creates and makes keystone components that enable high-technology
systems for consumer electronics, mobile emissions control,
telecommunications and life sciences. Our products include glass
substrates for LCD televisions, computer monitors and laptops;
ceramic substrates and filters for mobile emission control systems;
optical fiber, cable, hardware & equipment for
telecommunications networks; optical biosensors for drug discovery;
and other advanced optics and specialty glass solutions for a
number of industries including semiconductor, aerospace, defense,
astronomy, and metrology.
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