April 29 (Bloomberg) -- Haemonetics Corp., a maker of equipment to collect blood and plasma, agreed to buy the blood-collection business of Pall Corp. for $551 million in cash to bolster the products it can offer to blood centers.
Braintree, Massachusetts-based Haemonetics will pay $536 million and the remainder will be paid once it receives certain filter media manufacturing assets by 2016, the company said in a statement.
Pall’s sales for the business excluding revenue from Haemonetics was $210 million for the fiscal year ended July 2011, and today’s purchase price is equal to about eight times earnings before interest, taxes, depreciation and amortization, Haemonetics said.
The company will gain Pall’s manufacturing facilities in Covina, California; Tijuana, Mexico; Ascoli, Italy; and part of Pall’s assets in Fajardo, Puerto Rico. About 1,300 workers are employed at the plants.
Haemonetics said it expects the transaction to be neutral to per-share earnings in fiscal 2013 and to add to earnings in fiscal 2014 and beyond.
Separately, Haemonetics said it will pay as much as $27 million for closely held Hemerus Medical LLC, a developer of technology to collect whole blood, processing and storage of blood components. The payment amount is subject to successful Food and Drug Administration approval of the company’s SOLX whole blood collection system.
Haemonetics said it will host a webcast to discuss the transaction and its fiscal fourth-quarter results tomorrow morning at 8 a.m., two hours earlier than planned. Pall, headquartered in Port Washington, New York, said it will hold a webcast at 10 a.m. to discuss the transaction.
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