Sigma-Aldrich Signs Letter of Intent to Sell Coagulation Product Line
Sigma-Aldrich announced that it has received an offer and signed a non-binding letter of intent to sell its Coagulation product line to Trinity Biotech plc, Dublin, Ireland. This offer resulted from Sigma-Aldrich's previously announced decision to sell substantially all of the assets of and discontinue its Diagnostics business. Terms of the offer were not disclosed. If negotiations are successful, an agreement to consummate the transaction could be reached in the third quarter.
The Coagulation products, which are manufactured at the Company's locations in St. Louis, Missouri and Lemgo, Germany and marketed by the Diagnostics business unit, represented approximately 25% of that unit's sales and about 1.5% of total sales for Sigma-Aldrich in 2001. This product line has had a modest adverse impact on overall Sigma-Aldrich profitability.
"We're encouraged by Trinity Biotech's stated intent to work with us to provide uninterrupted, high levels of service to our Coagulation customers," said Bob Monaghan, President, Sigma Diagnostics.
Due to the non-binding nature of the offer, the previously announced impact on staffing in the Diagnostics unit, one time exit charge of $63 million and results for this discontinued business in the remaining quarters of 2002 remain unchanged. Management does not believe that the proposed Coagulation transaction in and of itself should affect the price of Sigma-Aldrich stock.
Quelle: Sigma Aldrich Corp.