Life Technologies Corporation (NASDAQ:LIFE) today announced it has signed a definitive agreement to sell its ownership stake in its mass spectrometry business, operated as a joint venture, to Danaher Corporation (NYSE:DHR) for $450 million in cash. Danaher has also signed an agreement to acquire Life Technologies’ joint venture partner in the mass spectrometry business, MDS Analytical Technologies, a division of MDS Inc. (NYSE:MDZ). The transaction is expected to close in the fourth quarter of 2009.
“The sale of our mass spectrometry business will enable us to continue our focus on our core competencies,” said Greg Lucier, Chairman and Chief Executive Officer of Life Technologies. “By concentrating on biological solutions that leverage our expertise in DNA, RNA, proteins and cells, we will continue to drive breakthroughs in life science research, genomic medicine, molecular diagnostics and applied markets.”
Mr. Lucier continued, “Our mass spectrometry joint venture with MDS is a market leader and we are pleased that a strong company like Danaher will integrate the two sides of this excellent franchise into one organization. Customers, employees and business partners will all benefit from now having one company represent this award-winning, revitalized product line in the future.”
Life Technologies does not expect the sale of its mass spectrometry business to affect its previously announced full year 2009 earnings expectations. In addition, the company reiterated its synergy targets for the Invitrogen and Applied Biosystems merger of $95 million in 2009 and $175 million by 2011.
“We are confident the transition of the mass spectrometry business to Danaher will go smoothly, as we plan to use the same rigor and process in this divestiture that we’ve been using for the Invitrogen and Applied Biosystems merger,” said Mark Stevenson, President and Chief Operating Officer of Life Technologies. “The same team that has handled the merger integration process will handle this divestiture.”
The transaction is subject to customary closing conditions, and is also conditioned upon the completion of MDS Inc.’s sale of its Analytical Technologies division, which itself is conditioned upon approval from MDS’ shareholders. The transaction is expected to close in the fourth quarter of 2009 and is not subject to any financing conditions. Moelis & Company and Thomas Weisel Partners are acting as financial advisors and DLA Piper is serving as legal counsel to Life Technologies.
www.lifetechnologies.com
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