PerkinElmer is taking the pivotal step to focus solely on life sciences and diagnostics and changing its name in the process. To do so, the Waltham, MA-based company announced it was selling its Applied, Food, and Enterprise Services businesses to New Mountain Capital, a private equity firm, for about $2.45 billion.

Additional details show that $2.30 billion of which will be received at the closing and $150 million of which will be payable contingent on the exit valuation New Mountain Capital receives on a sale or other capital events related to the business.

The deal is expected to close in 1Q23 and the PerkinElmer name and brand are expected to be retained by the Analytical, Food, and Enterprise Services businesses under its new ownership.

PerkinElmer’s life sciences and diagnostics businesse’s new name and stock ticker will be announced later. This science-first Life Sciences and Diagnostics company will continue to be led by the existing PerkinElmer senior management team.

“Today's announcement is a pivotal step in the significant portfolio transformation we have been executing on over the last several years," said Prahlad Singh, president and CEO of PerkinElmer. "Following the close of the transaction, we will be a pure-play, high growth, high margin Life Sciences and Diagnostics company with unique scale. The company’s increased financial strength will support accelerated investment into attractive end markets across science and disease, and drive advanced research, discovery, and improve global health.”

PerkinElmer said the life sciences and diagnostics businesses are expected to generate about $3.3 billion of revenue in 2022, approximately 80% of which is recurring. The company’s revenue is expected to grow over 10% organically per year with top-tier levels of profitability.

PerkinElmer’s move comes at a time when many large medtech companies are undergoing massive changes.

In late July, 3M said it was spinning off its healthcare unit into a publicly traded business. The spin-off is expected to be completed by the end of 2023 and will focus on wound care, healthcare IT, oral care, and biopharma filtration.

Late last year GE announced it was splitting into three units. In July, the company revealed the names and branding of the three businesses. The new companies will be named, GE Healthcare, GE Aerospace, and GE Verona.  GE Vernova has the most radical name change and will focus on Renewable Energy, Power, Digital, and Energy Financial Services.

Around the same time, GE said it was splitting, Johnson & Johnson made a similar move – announcing it would separate its consumer products business from its medical device and pharmaceutical businesses.