Varian, Inc. Acquires Polymer Laboratories For Approximately $42 Million
PALO ALTO, Calif., Nov. 8 /PRNewswire-FirstCall/ -- Varian, Inc. (Nasdaq: VARI - News) today announced that it has acquired PL International Limited, and its subsidiaries including Polymer Laboratories Ltd., a privately owned company based in the United Kingdom, for approximately $42 million in cash net of acquired cash, subject to certain net asset adjustments. The transaction also includes an opportunity for additional purchase price payments over three years, depending on future financial performance. Those future payments could total up to $23 million if aggressive performance targets are achieved. Polymer Laboratories is a leader in the development of consumables and instrumentation for advanced polymer analysis, including columns, standards and specialist chromatography systems dedicated to Gel Permeation Chromatography (GPC) analysis. Polymer Laboratories also manufactures systems for high throughput screening and process monitoring applied to polymeric materials.
For HPLC, Polymer Laboratories manufactures robust polymeric media and columns for biochromatography, and specialist detectors. For the pharmaceutical and clinical diagnostic industries, Polymer Laboratories manufactures resins for drug development and pharmaceutical process applications, and clinical diagnostic polymer particles.
"The acquisition of Polymer Laboratories is strategic to the advancement of Varian's goal to grow the applications-based consumable products to become a larger portion of the business," said Garry W. Rogerson, President and CEO, Varian, Inc. "Polymer Laboratories is a world leader in polymer-based consumables, allowing us to offer customers complete solutions for the purification, separation, and preparation of polymers, including proteins. We are also excited about Polymer Laboratories' HPLC detectors, one of which, the evaporative light scattering detector, is well suited for operation together with mass spectrometers and will enhance our information rich detectors product lines."
Polymer Laboratories generated revenues of approximately $22 million for the twelve months ended September 30, 2005. Added G. Edward McClammy, Senior Vice President, Chief Financial Officer and Treasurer, Varian, Inc., "For the first three to six months, Polymer Laboratories should be neutral to pro forma earnings per share with revenues at historical run rates. After this transition period, we anticipate the acquisition to be accretive and revenues to grow faster than our average."
"The sale of Polymer Laboratories to Varian is a win-win situation for both companies. It has been our intention to be acquired by a company with strategic benefits utilizing the broad spectrum of technologies within our company, and which would give us the opportunity to grow our portfolio and provide greater opportunities to our skilled staff," said Dr. Frank Warner, Chairman of Polymer Laboratories. "I firmly believe that Varian's global infrastructure will provide a platform for maximum growth at a faster rate than might otherwise have been possible."
GPC is an analytical high performance liquid chromatography technique used to separate components based on their molecular size in solution. It is the technique of choice for rapid and reliable characterization of polymer molecular weight and molecular weight distributions. Polymer Laboratories is a leader in the field of GPC, with its world-class consumables, systems and software.
This acquisition is part of Varian, Inc.'s strategy to strengthen the Company's product portfolio, especially in the focus area of laboratory consumables, with internal research and development efforts and strategic acquisitions of complementary products and technologies.
Varian, Inc. will be hosting an investor luncheon in New York on Tuesday, November 15, 2005 at 12:30 p.m. Eastern Time, to discuss the company's strategic direction, including the acquisition of Polymer Laboratories. The meeting will be webcast and may be heard via the Internet by going to http://www.varianinc.com, clicking on the Investors link at the right side of the screen, and then clicking on the Webcasts link at the left side of the screen.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, including those relating to: anticipated revenues and anticipated impact on earnings. These forward-looking statements are based on management's current expectations, are not guarantees of future performance, and involve certain risks and uncertainties that could cause the Company's actual results to differ materially from management's current expectations and the forward-looking statements made in this press release. Those risks and uncertainties include, but are not limited to, the following: whether and how quickly we successfully integrate Polymer Laboratories Ltd. into the Company; whether the acquired business will continue to grow its revenues and maintain its profitability; and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. We disclaim any intent or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise.
About Varian, Inc.
Varian, Inc. is a leading worldwide supplier of scientific instruments and vacuum technologies for life science and industrial applications. The company provides complete solutions, including instruments, vacuum components, laboratory consumable supplies, software, training, and support through its global distribution system. Varian, Inc. employs approximately 3,700 people and operates manufacturing facilities in 13 locations in North America, Europe, and the Pacific Rim. Varian, Inc. had fiscal year 2005 sales of $773 million (excluding the divested Electronics Manufacturing business), and its common stock is traded on Nasdaq under the symbol, "VARI." Further information is available on the company's Web site: http://www.varianinc.com.
About Polymer Laboratories Ltd.
Founded in 1976, Polymer Laboratories Ltd. specializes in the development of techniques and instrumentation for the characterization of polymer systems, and the development of high technology polymer particles for application in the fields of chromatography, diagnostics and life science. The company's main design and manufacturing facilities operate out of Shropshire in the U.K. and employs some 160 people. Additional information about Polymer Laboratories is available at http://www.polymerlabs.com.
For More Information Contact: Lauren Lum Investor Relations Varian, Inc. Varian, Inc. 650.424.5286 650.213.8000, Ext. 3752 lauren.lum@varianinc.com ir@varianinc.com
Source: Varian, Inc.