TEXT-S&P: Pall Corp ratings, outlook unchanged by asset sale

Mon Apr 30, 2012 1:57pm EDT

April 30 - Standard & Poor's Ratings Services today said that its ratings
and outlook on U.S.-based filtration equipment manufacturer Pall Corp. 
(BBB/Positive/A-2) are not affected by the company's announcement that it will
sell assets of its blood collection, filtration, and processing product lines to
Haemonetics Corp. (not rated) for approximately $550 million. The company
expects the transaction to close in early fiscal 2013 (fiscal year ends in July)
and for aftertax proceeds to be $430 million at that time. The company has
indicated that acquisitions or 	
share repurchases are some potential uses of proceeds. 	
	
The sale will reduce product diversification. The sold business represents 	
about 10% of the company's trailing-12-month total segment profit. Still, we 	
believe Pall's remaining portfolio of businesses will continue to support a 	
"satisfactory" business risk profile assessment and has the potential to 	
support a higher rating, as we indicate by our positive outlook.