Corning Life Sciences to Acquire Labware Unit for $730M
CORNING, N.Y., April 11, 2012 — Specialty glass and ceramics manufacturer Corning Inc. plans to buy the majority of Becton, Dickinson and Co.’s (BD) Billerica, Mass.-based Discovery Labware division later this year for approximately $730 million in cash.
When completed, the acquisition will expand Corning’s global market access and enhance its life sciences portfolio in the areas of drug-discovery tools, bioprocess solutions and laboratory research instruments. The company plans to integrate four of the Discovery Labware unit’s main product platforms: plastic consumable labware (including tubes, pipettes, petri and tissue culture dishes, and flasks); liquid-handling products; cell-based assays and cell cultureware; and ADME research into the Corning Life Sciences business segment.
“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,” said Wendell P. Weeks, chairman, chief executive officer and president. “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.”
Corning expects to reach this revenue goal through a combination of organic growth and strategic acquisitions.
Corning will use a portion of its domestic cash balances to fund the transaction, and projects that the transaction will be slightly accretive in 2013, said James B. Flaws, vice chairman and chief financial officer.
“Life Sciences is an attractive growth industry and has low capital intensity,” Flaws said. “We expect this acquisition to provide a stable stream of incremental cash flow to Corning as we become a more balanced company.”
The Discovery Labware unit also has operations in North Carolina and the UK, and extensive dealer networks in Asia, Europe and North America.
For more information, visit: www.corning.com