Haemonetics to buy Pall Corp blood collection and processing lines for $550 million; and Hemerus Medical

USA-based Pall Corp (NYSE: PLL) has entered into an agreement to sell certain assets of its blood collection, filtration and processing product lines, as well as equipment for transfusion medicine, to Haemonetics Corp (NYSE: HAE) for around $550 million.

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. On closing, about 1,300 employees will transition to Haemonetics.

Under the terms of the deal, approximately $535 million will be paid on closing. Pall estimates that the after-tax proceeds related to this payment will be around $430 million. The balance will be payable upon Pall’s delivery of certain media assets to Haemonetics. The company expects to record an after-tax gain of $230 million to $240 million, or $1.95 to $2.04 per share, on closing.