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A sign marks the PerkinElmer facility in Boston, Massachusetts, U.S. May 15, 2020. REUTERS/Brian Snyder/File Photo

Aug 1 (Reuters) – PerkinElmer Inc ( PKI.N ) agreed on Monday to sell three of its businesses to private equity firm New Mountain Capital for up to $2.45 billion in cash as it plans to focus on its life sciences and diagnostics businesses. new name.

The latest deal is part of a recent wave of corporate layoffs and exits. Last week, 3M Co ( MMM.N ) said it would spin off its healthcare unit, while Labcorp agreed to spin off its clinical development business. read more

Direct lenders led by Owl Rock Capital Corp ( ORCC.N ) helped fully finance the deal as acquisition financing slowed as both traditional and direct lenders pulled back from leveraged buyout loans in recent weeks.

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Proceeds from the divestiture will be used to invest in the growth of the life sciences and diagnostics segments and to finance future acquisitions, PerkinElmer said. Diagnostics will generate about 60% of the company’s estimated $3. To see also : The mom-and-pop pizzeria business is growing and becoming too much.3 billion in 2022 revenue, with life sciences accounting for the rest.

According to a source familiar with the matter, the sale had concluded a strategic review, which also considered other options, including spin-offs.

The sale process involved both strategic and private equity suitors, the source said, requesting anonymity because those discussions were confidential.

The source said that the price tag for the three units – application, food and corporate services – assumes a valuation of around 14-16 times the company’s 2022 estimated EBITDA (earnings before interest taxes, depreciation and amortization).

Shares of PerkinElmer rose 5% to $160.87 on Monday. The transaction is expected to close in the first quarter of 2023, subject to regulatory approvals.

PerkinElmer will receive $2.3 billion upon closing, with the remaining $150 million paid to the company at a later date, subject to the companies reaching certain revenue milestones under New Mountain ownership.

The divested businesses will continue to use the PerkinElmer brand, while the remaining life sciences and diagnostics businesses will be managed by existing management under a new name and stock index to be announced at a later date, PerkinElmer said.

“The (surface) divestment improves the company’s growth profile,” Evercore analyst Vijay Kumar said in a note.

Goldman Sachs advised PerkinElmer on the deal, while Jefferies advised New Mountain Capital.

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Reporting by Leroy Leo in Bengaluru and David Carnevali in New York This may interest you : New Music Friday – New Albums From Beyoncé, Maxo Kream, Wiz Khalifa, Doe Boy + More.

Editing by Anirban Sen, Philippa Fletcher and Matthew Lewis

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