New Mountain Capital has agreed to acquire PerkinElmer’s Applied, Food and Enterprise Services businesses (AFES) for $2.45 billion in total consideration including $2.3 billion in cash at closing and up to $150 million of future contingent consideration.
PerkinElmer (NYSE: PKI) is a provider of products and services used by scientists, researchers and clinicians to diagnose disease, discover new drugs, monitor the safety and quality of food, and analyze environmental factors.
PerkinElmer had revenues in 2021 of approximately $5 billion and operates through two segments, Discovery & Analytical Solutions (reagents, informatics, detection and imaging technologies) and Diagnostics (instruments, reagents, and software products to detect genetic disorders and for infectious disease testing). PerkinElmer was founded in 1937 and is headquartered in Waltham, Massachusetts.
The AFES businesses include PerkinElmer’s OneSource laboratory and field services (instrument service and repair, asset procurement and disposition, compliance and calibration, and laboratory relocation), along with a portfolio of atomic spectroscopy, molecular spectroscopy, and chromatography instruments, consumables and reagents that serve the biopharma, food, environmental and safety markets.
The AFES group operates within PerkinElmer’s discovery and analytical solutions segment and employs approximately 6,000 of PerkinElmer’s nearly 17,000 employees.
According to PerkinElmer, the AFES businesses have a combined $1.3 billion of estimated 2022 revenue and operate with a low-to-mid teens adjusted EBITDA margin. Assuming a 12.5% adjusted EBITDA margin and a purchase price of $2.45 billion, this equals a valuation multiple of 15.1x. Click HERE to view a copy of PerkinElmer’s investor presentation on the sale of AFES.
At closing, which is expected in the first quarter of 2023, the PerkinElmer name and brand will be retained by AFES, and PerkinElmer’s remaining life sciences businesses and diagnostics businesses will be rebranded.
“PerkinElmer has a long history of market-leading innovation, and we are excited to partner with this dedicated team to support the next phase of growth,” said Andre Moura, a managing director at New Mountain Capital. “The business we are acquiring provides mission-critical solutions that enable scientists and researchers to perform their important work, including developing and manufacturing biopharmaceuticals, ensuring a cleaner and safer environment and food supply, and helping to provide high-quality products to demanding customers.”
“We view this investment as a platform for growth and business building at the intersection of two long-standing sector efforts, healthcare technology and life science materials & supplies,” said Matt Holt, the president of private equity and a managing director at New Mountain Capital. “We plan to invest significantly in the resources of this business, for the benefit of all stakeholders including customers, the workforce and other business partners.”
“We look forward to supporting the business as we invest in continued product innovation, cutting-edge technology, market expansion, add-on M&A and other strategic partnerships to further expand and build on the business’ strong value proposition to its customers and partners,” said Joe Walker, a managing director at New Mountain Capital.
New Mountain is an industry generalist and invests between $100 million and $500 million per transaction in companies with enterprise values typically between $100 million and $1 billion. The firm, founded in 2000 and headquartered in New York City, manages over $37 billion in aggregate assets in private equity, credit, net lease real estate and public equity funds.
In January 2021, New Mountain closed its newest flagship fund, New Mountain Partners VI LP, with $9.6 billion of capital, and the firm’s first non-control private equity fund, Strategic Equity Fund I LP, with $640 million of capital.
“With this transaction, the AFES businesses are gaining a partner who is committed to building on their record of success,” said Prahlad Singh, the president and CEO of PerkinElmer. “Upon closing of the transaction, I believe both organizations will benefit significantly from increased focus and aligned investment on their unique market opportunities.”
New Mountain Capital was advised by Jefferies, and Goldman Sachs is advising PerkinElmer. Owl Rock Capital, a division of Blue Owl, was the administrative agent and joint lead arranger for the credit facilities used to support New Mountain’s buy of AFES.
© 2022 Private Equity Professional | August 2, 2022
Eureka Equity Partners has sold Jansy Packaging to Berlin Packaging, a portfolio company of Oak Hill Capital Partners and the Canada Pension Plan Investment Board. Oak Hill acquired Berlin Packaging from Investcorp in October 2014 for $1.4 billion.
“It was a true pleasure to partner with Brad Zaikov to carve Jansy out from its holding company and build the team and infrastructure that facilitated the differentiation of Jansy as an innovative packaging solutions provider to its valued brand-owner customers, and to provide a strong return for our investors and management partners,” said Chris Miller, a partner at Eureka. “Working with Brad, we closed four add-on acquisitions into Jansy during our ownership, and Brad and his team executed on specific initiatives that allowed Jansy to continue its growth through the global pandemic and a historically challenging global supply chain.”
Philadelphia-based 
The middle market group of AEA Investors has acquired Burke Porter Group Company a portfolio company of China Everbright. China Everbright acquired Burke Porter in 2015 through its CEL Global Investment Fund LP.
One Equity Partners (OEP) has agreed to acquire a majority equity interest in Clayens from Siparex, a French private equity firm.
“We are eager to embark on this ambitious partnership with OEP, and we welcome them as a new majority shareholder committed to accelerating our growth,” said Mr. Pisani. “OEP distinguished itself through the firm’s partnership approach and its expertise in identifying and executing global transformational combinations.”
“Clayens’ specialized expertise in producing highly engineered products that meet the most rigorous specifications is highly valued by multinationals operating in various end markets,” said Konstantin Ryzhkov, a managing director at OEP. “This capability has produced a loyal customer base that gives the company a significant advantage in a competitive market. OEP has a strong track record of building leading global companies from local champions through cross-Atlantic business combinations, and we believe that in partnership with Siparex and other current shareholders OEP can apply this experience to help Clayens transition from a leading French business to a major global player.”
