Zacks_Analysts' Blog : Pall to Acquire ForteBio - Analyst Blog

Pall Corporation (PLL) is all set to acquire ForteBio Inc., a Menlo Park, California based leading provider of advanced analytical systems that accelerate the discovery and development of biotech drugs. The companies have entered into a definitive merger agreement. The acquisition will enable Pall to expand its reach in the more than $1 billion biopharmaceuticals process monitoring market and the protein research market with ForteBio’s wide range of innovative, label-free protein analysis instruments.

ForteBio’s collection of analytical solutions complements Pall’s existing microbiological monitoring platforms. The analytical solutions from ForteBio helps researchers to measure proteins in real time without any risk of contamination by using fluorescent, radio or calorimetric labels or markers. Pall’s BioPharmaceuticals offering from its Life Sciences business will be boosted through the add-on from ForteBio, better serving its customers.

The acquisition is expected to be completed by February 2012, subject to certain customary closing conditions. ForteBio will become a wholly-owned subsidiary of Pall after the closure of the transaction. The terms of the deal were not yet disclosed.

Pall Corporation derives a major portion of its revenue from outside the U.S. The company’s operating results may be materially affected by changes in foreign currency rates. Further, Pall Corp. has a number of longstanding cost reduction and gross margin improvement initiatives.  Unexpected delays or other factors could impact the company’s ability to realize the anticipated savings while improving its financial performance.

Based in New York, Pall Corporation was incorporated in July 1946. Along with its subsidiaries, Pall Corporation is a leading supplier of filtration, separation and purification technologies, having engineering capability and fluid management expertise.

We currently maintain our Neutral rating on Pall Corporation for the long term, with a Zacks #2 Rank (short-term Buy recommendation) over the next one-to-three months.