Corning Expands Life Sciences Segment by Acquiring Majority of BD Discovery Labware
By BiotechDaily International staff writers
Posted on 13 Apr 2012
Corning, Inc. (Corning; NY, USA) has reached a definitive agreement with Becton, Dickinson and Company (BD; Franklin Lakes, NJ, USA) to acquire the majority of its Discovery Labware unit. The acquisition will augment Corning’s global market access and enhance its wide range of life sciences products in the areas of drug-discovery tools, bioprocess solutions, and laboratory research instruments.
Corning will integrate four of BD Discovery Labware’s main product platforms: plastic consumable labware (including tubes, pipettes, petri dishes, tissue culture dishes, and flasks); liquid-handling products; cell-based assays and cell cultureware; and ADME (absorption, distribution, metabolism, and excretion) research into the Corning life sciences business segment upon closing of the acquisition.
“We are [excited] to add these talented people, proven research ability and established and well-respected products to Corning life sciences,” Dr. Richard M. Eglen, vice president and life sciences general manager, said. “We have a history of successfully integrating businesses into our organization and we see multiple synergies that are possible once the acquisition is complete. We look forward to bringing these two dynamic organizations together, and providing a more comprehensive line of products and services to customers worldwide.”
“The Discovery Labware unit’s extensive product portfolio and established dealer network will significantly improve Corning life sciences’ offerings to customers and is a critical part of Corning’s long-term growth strategy,” said Wendell P. Weeks, chairman, chief executive officer, and president. “With sales of approximately USD 235 million, the acquisition will expand Corning life sciences’ annual revenues by 40% and catapult the segment toward its goal of being a USD 1 billion business by 2014,” he added.
The purchase, for approximately USD 730 million in cash, is to take place by end of 2012, and full integration into Corning’s existing business is expected to be completed by 2016. “Life sciences is an attractive growth industry and has low capital intensity. We expect this acquisition to provide a stable stream of incremental cash flow to Corning,” concluded James B. Flaws, vice chairman and chief financial officer.
Corning will use a combination of organic growth and strategic acquisitions in order to reach its revenue goals for the next few years.
Becton, Dickinson and Company