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PerkinElmer sells off illumination and detection solutions unit

1 September 2010 00:00 in Scientific Company News

PerkinElmer is increasing its focus on the healthcare sector by selling off its illumination and detection solutions business unit.

The division, which supplies lighting, sensors, subsystems and integrated solutions to the health, environmental and security sectors, is being divested to Veritas Capital Fund III in exchange for $500 million (325 million pounds).

PerkinElmer explained that the sale of this business unit allows it to simplify its business strategy and enables greater investment in the human health and environmental health industries.

Robert Friel, chairman and chief executive officer of PerkinElmer, expressed confidence that the business will benefit from a reduced exposure to "more cyclical end markets".

He added: "Furthermore, we would expect adjusted gross margins to improve by over 200 basis points, contributing to higher earnings growth."

Earlier this month, the company reported satisfaction with its financial performance in the second quarter of the year after posting a 14 per cent year-on-year increase in revenue for the period.ADNFCR-8000103-ID-800047456-ADNFCR

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