PerkinElmer's Purchase of Chinese Diagnostic Firm Makes Sense

Sep. 9.09 | About: PerkinElmer, Inc. (PKI)

PerkinElmer, Inc. (NYSE: PKI) completed the acquisition of SYM-BIO Lifescience, a Shanghai company that produces diagnostic instruments and their reagents. The price was $63.7 million (435 million RMB), paid in cash.

The acquisition is a very good fit with PerkinElmer’s existing business. SYM-BIO Lifescience is a major supplier of diagnostics to China hospitals, with an emphasis on infectious diseases. This is complimentary to PerkinElmer’s portfolio of diagnostic devices, which specializes in prenatal and newborn screening. Also SYM-BIO Lifescience has access to double the number of hospitals currently served by PerkinElmer, giving it the opportunity to expand its prenatal/newborn business. The acquisition brings with it diagnostics manufacturing and R&D facilities in China, which PerkinsElmer can use to expand its capacity.

Revenue figures for SYM-BIO were not released. PerkinElmer said the price would not have a material effect on its 2009 financial results, but would be slightly accretive in 2010.

Zhang Sheng, President of SYM-BIO Lifescience, said in a statement, “The acquisition provides an unmatched opportunity for advanced products from China to be introduced to regional and global markets, as SYM-BIO is a recognized national leader in high quality offerings. PerkinElmer also brings significant technology and expertise into the China market.”

SYM-BIO Lifescience’s offerings include optical mechanical technology, electrical automation, chemical synthesis, and cloned antibodies preparation. SYM-BIO has developed China's first Time-Resolved Fluorescence (TRF) detection system, as well as China’s first TRF in-vitro diagnostic kit.

PerkinElmer is a high-tech company with businesses in many different areas of health and environmental quality. Its Human Health division develops research and diagnostic instrumentation technologies, as well as clinical resources and support services to fight illness, provide medical insight, and develop therapies. It also provides umbilical cord blood storage.

Disclosure: none.