Rheometric Scientific, Inc. recently announced that it has signed an asset purchase agreement with Waters Corp. Under the terms of the agreement, the TA Instruments Division of Waters will acquire Rheometric Scientific's rheology instruments and services business for $17 million in cash and the assumption of up to $6 million in liabilities. Rheometric Scientific retains its life sciences business. This transaction, which is subject to stockholder approval, certain material third party consents and customary closing conditions, is expected to close before the end of 2002. Proceeds from the sale will be used in part to retire all of the company's bank debt, pay down certain other obligations, buy out the company's lease obligation at its Piscataway, N.J., headquarters and fund the working capital needs of the company's life sciences business.
"The board of directors unanimously approved this course of action, which allows us to focus on the more attractive growth prospects of our life sciences business," said Robert M. Castello, chairman of the board and chief executive officer of Rheometric Scientific. "Entering that business was fundamental to our original strategic plan and was accomplished through two key acquisitions. The global capital equipment recession of the past two years has placed a significant strain on our ability to adequately fund both our core rheology and new life sciences businesses. With their commitment to the physical properties measurement business, Waters is better positioned to provide to our existing customers, suppliers and employees the resources necessary to carry on and build upon our leadership position in rheology."