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Biotech / Medical : Trickle Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (1088)	3/12/2002 4:00:10 AM
From: nigel bates	Read Replies (1) \| Respond to of 1784

Amersham plc Announces Agreement to Purchase Pharmacia's Shares In Amersham Biosciences LONDON, March 12 /PRNewswire/ -- Amersham plc announces that it has reached an agreement in principle to purchase Pharmacia Corp's 45 per cent shareholding in Amersham Biosciences, taking Amersham's ownership of the business to 100 per cent. The cash consideration is 704 million pounds sterling (pounds). The transaction is subject only to finalisation of a definitive contract that will have no regulatory or other conditions to closing. Sir William Castell, Chief Executive of Amersham, said: ``I am delighted that our shareholders will now be able to participate fully in the future growth of Amersham Biosciences. We are very excited about the prospects for the business. The protein separations area is targeting long-term growth in the mid-teens founded on its leadership position in chromatography and its broadening technology base. Discovery systems is benefiting from the substantial investment made in previous years and from a strong product range.'' Sir William added: ``For the first time we will have the opportunity to share managerial skills and technical competence across the whole of Amersham. This will enhance our ability to create value from the emerging possibilities in personalised medicine. The simplified structure will increase our flexibility and speed of decision making, which is key to success in today's fast changing market environment.'' The purchase will be financed from the proceeds of an issuance of new shares together with existing cash resources and drawings under Amersham's committed bank facilities. At 31 December 2001 Amersham had net debt of 25 million pounds. The transaction is expected to be at least earnings neutral before goodwill amortisation in 2003 and accretive thereafter. The future performance of Amersham Biosciences will be driven by top line growth and operating margin improvement, of which up to 2 percentage points will arise this year as indicated in the preliminary results on 26 February 2002. The increase in operating margins will be helped by modest growth in R&D spend and the Applied Biosystems settlement. Full ownership of Amersham Biosciences will facilitate a lower tax rate in this business. In 2001 Amersham Biosciences generated sales of 681 million pounds and operating profits before exceptional items and goodwill amortisation of 72 million pounds. At the year-end net assets were 120 million pounds and net debt was 240 million pounds. This announcement includes ``forward-looking statements''. All statements other than statements of historical fact included in this announcement including, without limitation, those regarding Amersham's financial position, business strategy, plans and objectives of managements for future operations (including development plans and objectives relating to Amersham's products and services), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Amersham or those markets and economies to be materially different from future results, performance or achievements expressed or implied by such forward- looking statements. Such forward-looking statements are based on numerous assumptions regarding Amersham's present and future business strategies and the environment in which Amersham will operate in the future. You should not place undue reliance on forward-looking statements which speak only as at the date of this announcement. Amersham expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Amersham's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. SOURCE: Amersham plc