Mergers and acquisitions in the Laboratories, MRI and Dialysis sector increased nearly 30% through late June, compared with the same time last year. Fourteen acquirers inked 22 acquisitions, and most of the deal making was done by publicly traded companies, with financial buyers only accounting for four of the deals.
PerkinElmer, Inc. (NYSE: PKI) has been involved in several deals as a result of undergoing some business changes. The company traded in its medical imaging business to bolster a stronger position in diagnostic screening in several global regions, with an emphasis on infectious diseases.
Late in December 2016, it announced the divestiture of its Medical Imaging business, a supplier of flat panel X-ray detectors that serve as components for industrial, medical and dental X-ray imaging systems, to Varian Medical Systems (NYSE: VAR), for $276 million. Management stated that the sale would allow PerkinElmer to focus its investments in higher priority areas.
Just a few weeks later, it did just that. On January 9, 2017, PerkinElmer purchased India-based Tulip Diagnostics Private Ltd., for a total consideration of $127.3 million. Tulip Diagnostics provides in-vitro diagnostic reagents, kits and instruments. Its solutions include products for the prevention, screening and diagnosis of infectious diseases such as malaria, HIV and hepatitis.
In-vitro diagnostics is one of the fastest growing vertical segments in India, and the deal provides the key enablers for PerkinElmer to broaden its infectious disease screening menu and capabilities throughout the region.
Then, on June 19, 2017, PerkinElmer purchased Germany-based EUROIMMUN Medical Laboratory Diagnostics AG, for approximately $1.3 billion in cash, or roughly 4.19x revenue.
EUROIMMUN specializes in autoimmune testing and is emerging in the areas of infectious disease and allergy testing.
The combination expands PerkinElmer’s reach into autoimmune and allergy diagnostic markets, while offering new infectious disease capabilities to customers in China. In addition, as a market leader in the United States for reproductive health, PerkinElmer will have the opportunity to drive EUROIMMUN’s solutions into this channel.
