Pall Strengthens Its LifeSciences Biz


In an attempt to further strengthen its Life Sciences business, Pall Corporation (PLL) on Dec 23, signed an agreement to acquire the ATMI LifeSciences business. The deal is expected to close in the fiscal third quarter and is valued at $185 million. Further, this acquisition is estimated to be immediately accretive to Pall’s revenues while being slightly dilutive to its earnings in fiscal 2014.  

The purchase is a strategic move as it complements Pall’s existing Life Sciences segment business. The acquisition supports Pall’s current offering and broadens its already extensive portfolio of advanced solutions for biopharmaceutical customers.

ATMI, Inc. is a global provider of specialty semiconductor materials, and safe, high-purity materials handling and delivery solutions. ATMI LifeSciences is a technology leader in the area of single-use bioprocess systems and consumables for the pharmaceutical and biopharmaceutical industries. It has an innovative, market-leading portfolio of custom-engineered, flexible packaging solutions, single-use storage systems, mixers and bioreactors. These businesses are driving bioprocess efficiency and delivering value for biopharmaceutical companies across the world.

Pall Corp’s LifeSciences segment is one of the primary contributors to its top-line growth with a 7% year-over-year revenue growth in the last reported quarter.  This increase was driven by a 5% rise in the Biopharmaceuticals segment, which in turn was aided by new products; 6% growth in the Food & Beverage division driven by strong performance across regions; and a 17% improvement in the Medical segment, on the back of strong sales to OEMs.

Pall Corp. has a Zacks Rank #3 (Hold). Investors interested in the pollution control industry may consider stocks like Fuel Tech Inc. (FTEK) and Tetra Tech Inc. (TTEK), both with a Zacks Rank #1 (Strong Buy) and Donaldson Company, Inc. (DCI), carrying a Zacks Rank #2 (Buy).

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