Corning (NYSE:GLW) has inked a deal with Becton, Dickinson and Co. (NYSE:BDX) to acquire a majority stake in its Discovery Labware unit for about $730 million in cash.
Corning CEO Wendell Weeks said the acquisition gives a boost to Corning Life Sciences’ portfolio and contributes to its long-term growth strategy.
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With Discovery’s $235 million in annual sales, the buy expands annual revenue of the life sciences group by 40%, and puts the company on track to become a $1 billion business by 2014.
“The acquisition provides added momentum for Corning to achieve our $10 billion revenue target in the next few years,” Weeks said. The company has said it plans to reach that goal through both organic growth and strategic transactions.
The deal, which will expand Corning’s global market access and enhance its portfolio of life sciences products in the areas of drug-discovery tools, bioprocess solutions and laboratory research instruments, is slated to close later this year.
Discovery Labware is headquartered in Billerica, Mass. but also has operations in North Carolina and the U.K., as well as a dealer network in Asia, Europe and North America.
The transaction remains subject to customary closing conditions and regulatory approvals.
Corning said that while it will use a portion of its domestic cash balance to fund the transaction it will continue with its stock repurchase activity.
Upon close, Corning said it will integrate four of Discovery’s main platforms, including plastic consumable labware, such as Petri dishes and flaks; liquid-handling products; cell-based assays and cell cultureware; and ADME research, into the life sciences business.