UPDATE

ATMI sells bioreactor biz to Pall following strategic review

By Dan Stanton

- Last updated on GMT

Related tags: Biotechnology, Biology, Investment

Pall to spend $185m on ATMI's Life Science business
Pall to spend $185m on ATMI's Life Science business
Pall Corporation has acquired ATMI’s Life Science Business for $185m (€135m).

ATMI announced this morning it has reached an agreement with filtration, separation and purification firm Pall who will acquire all assets of the Life Sciences business for $185m, including two facilities in Belgium and a shared site in Minnesota, US.

Troy Dewar, Director of Investor Relations at ATMI, told Biopharma-Reporter.com the sale is part of an ongoing strategic process first announced in November.

“The LifeSciences business is being sold to place it in the hands of a strategic owner who will invest and accelerate the growth of the business, and allow ATMI to realise the value of the business.”

He added: “At the time of the sale, the LifeSciences business had not yet reached profitability levels.”

The business – which makes bioreactors for the biomanufacturing industry, as well as mixers, bioprocess vessels, packaging materials, development services and vials – is expected to be transferred to Pall during the first quarter of 2014, depending on regulatory approvals.

Strategic Review

In November, ATMI began the strategic review of its businesses following a third quarter revenue drop of 7%, mostly from its larger semiconductors business arm 

Barclays Capital was hired as financial advisor and will steer the sale, whilst ATMi has also hired Weil, Gotshal & Manges to act as legal advisor.

ATMI’s CEO Doug Neugold added that whilst the sale was as a result of November’s review, the deal would have significant value for both the business’ customer base and its shareholders.

Single-Use Growth

The company told Biopharma-Reporter.com​ last month that whilst sales were down across the company, its Life Science unit was strong, and though sales were yet to fully materialise, growth was expected to reach 20-30% per year in the next few years due in part to the industry's uptake of disposable technology.

Dewar told Biopharma-Reporter.com at the time: “Our Life Sciences business is doing very well”​ and is “positioned to benefit from the anticipate adoption of single-use technology by the biopharmaceutical industry.”

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