DOW JONES NEWSWIRES
Corning Inc. (GLW) said it acquired a maker of laboratory liquid
handling products from American Capital Ltd. (ACAS) for about $400
million in a move to bolster its life-sciences business.
Shares of American Capital, a publicly traded private-equity
firm, jumped 14% premarket to $2.94 while Corning's stock was flat
at $15.80. American Capital's shares through Tuesday's close were
down 21% this year and 87% from a year earlier.
Corning, whose primary business is making fiber-optic cable and
glass for liquid-crystal displays, said Wednesday the purchase of
California-based Axygen BioScience will allow its life-sciences
revenue to top $500 million by 2011. The figure was $326 million
last year.
Axygen founder Hemant Gupta will continue to lead the
business.
The acquisition comes as Corning struggles with falling glass
sales stemming from customers' inventory cutbacks. In July, Corning
said second-quarter income plunged 81% on a year-earlier gain and
falling margins, although results beat analysts' expectations.
Revenue decreased 18% to $1.4 billion.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com;