Haemonetics (NYSE:HAE) said today that it agreed to sell a plant in South Carolina to CSL Plasma for $10 million.
The Union, S.C., facility makes the liquid saline and sodium citrate solutions used in plasma collection. CSL Plasma, the supplier for CSL Behring, will own and operate the plant, taking on “substantially all” of the roughly 200 Haemonetics employees there.
“This facility transfer is an important step in our asset optimization strategy, allowing us to improve our operating performance and focus on our core competencies. We will continue to redeploy our resources to invest in areas that hold the greatest potential for growth as we develop medical technology products and services that improve the quality, effectiveness and efficiency of patient care,” president & CEO Chris Simon said in prepared remarks.
“This transaction is an additional step to vertically integrate our supply chain, but more importantly, it provides CSL Plasma the ability to continue to deliver on its promise to patients who depend on life-saving therapy derived from plasma,” added CSL Plasma SVP & GM Mike Deem.
The deal, slated to close this quarter, prompted Haemonetics to cut its top-line growth forecast for fiscal 2020 to 3% to 5%, down from 5% to 7% previously. Adjusted earnings per share are still pegged to be $2.80 to $3.00, the Braintree, Mass.-based company said.
The deal does not include other assets in Union, including accounts receivable, customer contracts and FDA product approvals. The companies agreed to a transition services agreement that calls for CSL to make the solutions under the Haemonetics approvals until it wins regulatory nods of its own, according to a regulatory filing. Haemonetics said it would continue to supply the products to contract manufacturer customers.
The sale will also mean a $49 million impairment charge during its fiscal first quarter, the company said.
HAE shares were up 4.4% to $98.66 apiece today in late-morning trading.
