UPDATE 4-PerkinElmer to buy Caliper for $600 mln

Thu Sep 8, 2011 11:57am EDT

Related News

* To pay $10.50 per share for Caliper Life Sciences

* To cut PerkinElmer 2012 net EPS by 5 cents per share

* Could add as much as 20 cents per share to 2013 earnings

* Deal, approved by both boards, seen closing in 4th qtr

* Caliper shares jump 41 percent, PerkinElmer down 2.9 pct (Updates share prices, adds Caliper revenue)

By Bill Berkrot

NEW YORK, Sept 8 (Reuters) - PerkinElmer Inc (PKI.N) agreed to buy Caliper Life Sciences Inc CALP.O for $600 million to broaden its product offerings in molecular imaging and genomic detection technologies.

The deal marks the biggest acquisition for PerkinElmer under Robert Friel, who became its chief executive in 2008.

PerkinElmer, which sells scientific instruments, environmental safety monitoring products and medical testing equipment, said on Thursday it would pay $10.50 per share for Caliper, which represents a 42 percent premium over its Wednesday closing share price of $7.39 on Wednesday.

Caliper shares jumped 41 percent to $10.39 on Nasdaq, while PerkinElmer shares were down nearly 3 percent at $21.40 on the New York Stock Exchange..

"The most attractive part of Caliper is the terrific technology and intellectual property that they bring," Friel said in a telephone interview.

The acquisition "allows us to take their products through our distribution to markets outside the U.S. and Europe," said Friel, who has his sights on Asia and other emerging markets for Caliper offerings.

The deal, which has been approved by both boards and is expected to close in the fourth quarter, will cut about 5 cents per share from PerkinElmer's 2012 net earnings, the company said. It could add about 8 cents per share to adjusted 2012 earnings, excluding special items.

The acquisition could add as much as 20 cents a share to PerkinElmer earnings in 2013, Friel said.

Caliper had 2010 sales of about $124 million and forecast 2011 revenue would increase between 12 percent and 20 percent.

Caliper products include DNA sequencing equipment, reagents and microfluids used for gene and protein detection, preclinical imaging instruments and automated laboratory equipment.

"It is highly complementary to the logistics of their current portfolio," said Mizuho Securities analyst Peter Lawson. "It fits in very neatly with lots of recent acquisitions that PerkinElmer made."

Cash on hand will be used to pay for about a third of the deal, with the rest to be financed through a public bond offering, Friel said.

Kevin Hrusovsky, chief executive of Hopkinton, Massachusetts-based Caliper, is expected to join PerkinElmer's senior management team following the close of the deal.

PerkinElmer, which is based outside Boston, has been acquisitive in recent years, typically making several deals a year in the $50 million to $100 million range.

In its more recent acquisition, PerkinElmer in June bought London-based Dexela Ltd, a maker of X-ray detection technologies, for about $30 million.

Published reports in February had PerkinElmer close to acquiring Beckman Coulter in what would have been by far its biggest deal, but PerkinElmer never confirmed that it was in the bidding for the medical diagnostics company. Danaher Corp (DHR.N) bought Beckman for $5.8 billion -- nearly three times PerkinElmer's annual revenue.

PerkinElmer shares are off more than 14 percent year to date, with most of the decline coming over the past two months. (Reporting by Bill Berkrot and Anand Basu; Editing by Derek Caney, Maureen Bavdek, Dave Zimmerman)

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