Topic: How To Invest

Q: Pat, can you give me your recommendation on PerkinElmer? I think it recently made a big acquisition. Thanks.

Article Excerpt

A: PerkinElmer Inc., $188.16, symbol PKI on New York (Shares outstanding: 126.2 million; Market cap: $23.8 billion; www.perkinelmer.com), manufactures analytical instruments, genetic testing, diagnostic tools and other products and services for the life sciences, food, environmental, and other science-based industries. On July 26, 2021, the company announced that it would acquire BioLegend, a leading provider of life science antibodies and reagents. PerkinElmer is paying $5.25 billion for the business. Reagents are an integral part of any chemical reaction. A reagent is a substance or compound that can facilitate a reaction, and they are essential for most widely used tests. BioLegend has more than 10,000 customers from 130 countries worldwide. North America accounts for 55% of sales. Asia Pacific (20%) and the rest of the world, including Europe, account for the rest. By 2022, BioLegend is expected to have $380 million in sales. The purchase should add $0.30 per share to PerkinElmer’s earnings in the first 12 months after the transaction closes and $0.50 per…