Invitrogen Announces Completion of Detailed Integration Plans Relating to Applied Biosystems Combination
October 09 2008 - 9:15AM
Business Wire
Invitrogen Corporation (NASDAQ:IVGN) today announced that the
company has completed a significant milestone in the integration
planning for the Applied Biosystems combination. The company has
finalized the synergy targets by identifying specific actions and
timing to achieve the synergies for all functions within the new
company. �The synergy work we�ve had underway for the last three
months has led to a very comprehensive and robust plan that is now
locked in by each operational area,� said Greg Lucier, Chairman and
Chief Executive Officer of Invitrogen. �I am extremely pleased with
the progress we are making. To have a week-by-week integration plan
a full month before the expected close date and implementation of
the plan puts us in a strong position to deliver the financial
benefits of this merger.� The company provided an update on the
amount of synergies it expects to achieve in the first year after
close. The original expectation for year one synergies was $60
million. The company now expects this synergy realization to be at
least $80 million, mostly attributable to cost savings. The higher
amount of synergies, as well as a lower than expected share count
of 179 million shares, will lead to higher earnings per share
growth than originally anticipated. These positive benefits will be
partially offset by recent fluctuations in currency exchange rates
and an increase in the expected interest rate on the new debt.
Given these changing factors, the company provided updated earnings
per share guidance for fiscal year 2009, assuming today�s exchange
rates and LIBOR rates, of at least $2.65 as compared to the
original expectation of at least $2.60. In addition to an update on
2009 financial expectations, the company provided a preview into
preliminary 2008 third quarter financial results. Third quarter
total revenue growth was in the mid-teens including several points
of growth attributable to foreign currency exchange. Non-GAAP
earnings per share grew more than twenty percent as a result of
increased volume and continued operating margin expansion. The
company will provide more detailed financials after markets close
on its previously scheduled announcement date of October 21st. The
company will host a call immediately following this announcement,
which will include operational and financial highlights for the
quarter. �Invitrogen is in a unique position, largely insulated,
although clearly not immune, from economic turbulence and our end
markets remain stable,� said David Hoffmeister, Chief Financial
Officer of Invitrogen. �As it relates to the financing of the
Applied Biosystems transaction, we are well situated with our
syndication complete amongst a strong group of lenders.� �While we
continue to invest significant time and resources in our
integration efforts, we are not taking our eye off our day-to-day
business,� Lucier said. �We remain very operationally focused so
that we can deliver on the promise of our combination with Applied
Biosystems, and we�re gratified by the positive sentiment our
shareholders have expressed regarding the short-term and long-term
value of the deal.� About Invitrogen Invitrogen Corporation
(NASDAQ:IVGN) provides products and services that support academic
and government research institutions and pharmaceutical and biotech
companies worldwide in their efforts to improve the human
condition. The company provides essential life science technologies
for disease research, drug discovery, and commercial bioproduction.
Invitrogen�s own research and development efforts are focused on
breakthrough innovation in all major areas of biological discovery
including functional genomics, proteomics, stem cells, cell therapy
and cell biology � placing Invitrogen�s products in nearly every
major laboratory in the world. Founded in 1987, Invitrogen is
headquartered in Carlsbad, CA, and conducts business in more than
70 countries around the world. The company employs approximately
4,700 scientists and other professionals and had revenues of
approximately $1.3 billion in 2007. For more information, visit
www.Invitrogen.com. ADDITIONAL INFORMATION AND WHERE TO FIND IT In
connection with the proposed transaction, Invitrogen and Applied
Biosystems have filed a joint proxy statement/prospectus as part of
a registration statement on Form S-4 regarding the proposed
transaction with the Securities and Exchange Commission, or
SEC.�The final joint proxy statement/prospectus has been mailed to
shareholders of both companies. Investors and security holders are
urged to read it in its entirety because it will contain important
information about Invitrogen and Applied Biosystems and the
proposed transaction. Investors and security holders may obtain a
free copy of the definitive joint proxy statement/prospectus and
other documents at the SEC�s website at www.sec.gov. The definitive
joint proxy statement/prospectus and other relevant documents may
also be obtained free of charge from Invitrogen by directing such
requests to: Invitrogen Corporation, Attention: Investor Relations,
5791 Van Allen Way, Carlsbad, CA 92008, and from Applied Biosystems
Inc. at: Applied Biosystems Inc., Attention: Investor Relations 850
Lincoln Center Drive, Foster City, CA 94404. PARTICIPANTS IN THE
SOLICITATION Invitrogen their directors, executive officers and
certain other members of their management and employees may be
deemed to be participants in the solicitation of proxies in
connection with the proposed transaction. Information concerning
all of the participants in the solicitation is included in the
joint proxy statement/prospectus relating to the proposed merger.
This document is available free of charge at the Securities and
Exchange Commission�s Web site at http://www.sec.gov and from:
Invitrogen Investor Relations, telephone: 760-603-7200 or on
Invitrogen�s website at http://www.invitrogen.com. Safe Harbor
Statement Certain statements contained in this press release are
considered "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, and it is
Invitrogen's intent that such statements be protected by the safe
harbor created thereby. Forward-looking statements may be
identified by words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," "will," or words of
similar meaning and include, but are not limited to, statements
about the expected future business and financial performance of
Invitrogen and the combined company. Such forward looking
statements include but are not limited to, statements relating to
financial projections, including pro forma EPS projections; cost
and revenue synergies; and efficiencies. A number of the matters
discussed in this press release that are not historical or current
facts deal with potential future circumstances and developments, in
particular, information regarding the combined company, including
expected synergies of the combined company and combined financial
data. The discussion of such matters is qualified by the inherent
risks and uncertainties surrounding future expectations generally
and other factors that could cause actual results to differ
materially from future results expressed or implied by such
forward-looking statements. Such risks and uncertainties include,
but are not limited to: the failure to realize capital and
operating expense synergies; the volatility of the financial
markets; and other risks and uncertainties detailed from time to
time in Invitrogen's Securities and Exchange Commission filings.
Invitrogen (NASDAQ:IVGN)
Historical Stock Chart
From Nov 2024 to Dec 2024
Invitrogen (NASDAQ:IVGN)
Historical Stock Chart
From Dec 2023 to Dec 2024