Varex Imaging (NSDQ:VREX) said today it closed its $276 million acquisition of PerkinElmer Inc.‘s (NYSE:PKI) medical imaging business.
The 280-worker PerkinElmer segment is an OEM business that makes digital flat panel X-ray detectors for industrial, medical, dental and veterinary X-ray imaging systems.
Varex financed the buyout of the Santa Clara, Calif.-based operation by expanding its credit line to $600 million, using $207 million to repay existing debt and $286 million for the acquisition and related credit facility fees.
“The sale of Medical Imaging supports our strategy of redirecting our investments towards accelerating growth in key markets,” PerkinElmer CEO & chair Robert Friel said in a press release.
Salt Lake City, Utah.-based Varex Imaging said it expects the acquisition to add approximately $140 million in annual sales and that it will be “transformative” to the company’s digital detector operations. Former PerkinElmer medical imaging biz prez Dr. Brian Giambattista will lead the new combined imaging detector business at Varex, the company said.
“We are very excited about the opportunities and prospects of adding this imaging expertise into the Varex organization. I want to welcome our new employees to Varex and I look forward to having the combined team focused on integrating our operations to achieve our goal of producing the broadest, most cost-effective portfolio of components for the imaging industry. This imaging business is highly complementary to Varex’s imaging detector business and has a similar financial profile. Customer overlap is minimal and we see revenue and cost synergy opportunities that we expect to achieve over time. Some of these opportunities include: adding new digital detector technology to the Varex product portfolio; significant new cross-selling opportunities for X-ray imaging solutions; leveraging combined volumes to gain manufacturing productivity; and further expansion in the Industrial imaging market,” Varex Imaging CEO Sunny Sanyal said in a prepared statement.
In March, Varex Imaging said it inked a renewed 3-year pricing agreement with Canon‘s (NYSE:CAJ) Toshiba Medical subsidiary. Through the deal, Varex will supply Toshiba Medical with its computed tomography tubes for integration into its CT imaging systems.
