DOW JONES NEWSWIRES
Corning Inc. (GLW) plans to pay roughly $730 million in cash to
acquire the bulk of Becton Dickinson & Co.'s (BDX) lab products
business, snapping up a portfolio it said will significantly
increase its presence in the life-sciences market.
With sales of roughly $235 million expected this year, Corning
Chief Executive Wendell P. Weeks said the Discovery Labware unit
will expand Corning's annual life-sciences revenue by 40% and move
it closer to its goal of being a $1 billion business by 2014.
"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," Weeks said.
The purchase, seen closing later this year, excludes the unit's
advanced bioprocessing platform. It is expected to begin adding to
Corning's earnings in 2013.
"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 as we become a more
balanced company," said Corning Chief Financial Officer James B.
Flaws.
Corning, the world's largest maker of liquid-crystal-display
glass for TVs has been struggling recently as lackluster television
demand has created a massive headwind for electronics retailers,
set manufacturers and suppliers like Corning. The company in
January reported its fourth-quarter profit slumped 53% and said it
plans to cut capacity in its LCD glass business, as weak demand is
leading to "significant" price declines.
Corning shares were recently up 10 cents to $13.58 in premarket
trading. Shares of Becton Dickinson were also trading slightly
higher at $77.25.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207;
mia.lamar@dowjones.com