Monday, April 30, 2012

Pall Corporation Sells Part of Puerto Rico Operations

Pall Corporation, a filtration, separation and purification products manufacturer for life sciences industry, has entered into an agreement to sell certain assets of its blood collection, filtration and processing product lines to Haemonetics Corporation for approximately $550 million.

"As a result of the transaction, Pall will increase its focus on businesses and markets where our competitive advantages are greatest,” said Larry Kingsley, President and CEO of Pall. “The impact of this decision is that Pall's overall profitability profile and long-term growth rate will be enhanced."

Assets included in the transaction are Pall’s portfolio of blood collection, processing and filtration systems and equipment for transfusion medicine. The transaction will involve the transfer of manufacturing facilities in Covina, California; Tijuana, Mexico; Ascoli, Italy and a portion of Pall’s operations in Fajardo, Puerto Rico. Separate from these manufacturing facilities, Pall will also transfer related blood media manufacturing capability to Haemonetics.The transfer of the related media lines is expected to be completed by 2016.Until that time, Pall will provide these media products under a supply agreement. Upon closing, approximately 1,300 employees will transition to Haemonetics. 

The transaction, which is expected to close at the beginning of Pall’s fiscal year 2013, is subject to certain closing conditions, regulatory approvals and labor-related notifications. 

Headquartered in Braintree, Massachusetts, Haemonetics is a global healthcare company dedicated to providing innovative blood management solutions. 

"Today manual whole blood collection is a $1.2 billion global market,” said Brian Concannon, Haemonetics' President and CEO. “This acquisition is an important and exciting step toward our objective of serving that market. The Pall business assets provide us with leading filter technology and manufacturing capability, a broad portfolio of manual collection and processing products, a strong and experienced employee base and relationships with major blood authorities and key customers we have in common. Combined with our internal development initiatives to automate whole blood collection and our suite of blood management software, Haemonetics will represent the broadest product offering to address our customers' needs in the whole blood market, a market with more than 60 million procedures per year."

Revenue for the product lines being divested is expected to be approximately $230 million in Pall’s fiscal year 2012.

Pall Corporation, with total revenues of $2.7 billion for fiscal year 2011, is an S&P 500 company with almost 11,000 employees. IN 2006, the company announced its plans to expand its Life Sciences manufacturing operations in Fajardo, Puerto Rico through the establishment of a Life Sciences Center of Excellence.  At the time, Pall expected to invest around $50 million in facilities, machinery and equipment and add more than 250 full-time jobs in Puerto Rico by the year 2010.  Eric Krasnoff, Chairman and CEO of Pall made the announcement at the Pall Fajardo plant 

In 2008, Pall appointed Senior Vice President Felix M. Negron, to lead global manufacturing and supply chain operations for the company's Life Sciences business.


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