The Cambridge, Mass.-based biotech giant said Sekisui will buy "substantially all of the assets" of the unit and agreed to offer its approximately 575 employees jobs when the deal is closed. The Japanese firm also plans to maintain operations in all of the business’s current locations, according to Genzyme.
The companies hope the deal will be concluded by the end of the year, according to a joint statement announcing the deal.
Genzyme has been seeking "strategic alternatives" for three business units as part its plan to increase shareholder value. In September, Laboratory Corporation of America Holdings (NYSE:LH) said it would pay $795 million to purchase Genzyme Genetics, which specializes in reproductive and oncology testing. LabCorp today announced that the planned acquisition cleared customary antitrust review. The company received early termination from the Federal Trade Commission of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and expects to close the deal around Dec. 1.
"With [the diagnostics business] transaction, we are continuing to execute on our plan to increase value for shareholders. This sale is part of our strategy to sharpen the company’s focus and allocate our resources to key areas for our future growth such as manufacturing, our rare disease business, and our product pipeline," Genzyme CEO Henri Termeer said in prepared remarks.
After the acquisition, the Genzyme business will be operated as part of Sekisui Medical Co. Ltd., a division of Sekisui Chemical. The company wants to expand its global presence and has four businesses, which focus on diagnostic reagents, medical devices, pharmaceuticals and fine chemicals, and toxicology research. The Genzyme business makes raw materials and enzymes, clinical chemistry reagents, rapid tests and infectious disease products for healthcare and lab use and other manufacturers.