CareFusion (CFN) to Sell Nicolet Business in $58M Deal, Will Take Impairment Charge
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On April 20, 2012, CareFusion Corporation (NYSE: CFN) entered into a definitive agreement to sell its Nicolet neurodiagnostic and monitoring products business to Natus Medical Incorporated for a sale price of approximately $58 million in cash, subject to post closing adjustment related to working capital.
The Company concluded that, because the anticipated sale price for the Nicolet Business represents a discount to the current value of the assets as recorded on its financial statements, the Company will be required to record an impairment charge during the third quarter of fiscal 2012. Based on the anticipated sale price, the Company expects to record a pre-tax impairment charge of approximately $74 million, of which approximately $11 million represents expected future cash expenditures by the Company. The final after-tax charge may fluctuate based on adjustments to the purchase price at closing, as well as any tax impact related to the sale.
The Company concluded that, because the anticipated sale price for the Nicolet Business represents a discount to the current value of the assets as recorded on its financial statements, the Company will be required to record an impairment charge during the third quarter of fiscal 2012. Based on the anticipated sale price, the Company expects to record a pre-tax impairment charge of approximately $74 million, of which approximately $11 million represents expected future cash expenditures by the Company. The final after-tax charge may fluctuate based on adjustments to the purchase price at closing, as well as any tax impact related to the sale.
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