(October 23, 2008) EFI, the world leader in customer-focused digital printing innovation, announced today that it has reached an agreement to sell a portion of its Foster City, California campus for $137.5 million to Gilead Sciences, Inc. ("Gilead"). The transaction is expected to close in January 2009, subject to various closing conditions.
On May 29, 2008, EFI announced it had hired Jones Lang LaSalle to explore opportunities related to its Foster City, California campus, consisting of two buildings and approximately 35 acres of land. Under the agreement with Gilead, EFI will retain ownership of the approximately 295,000 square foot building it currently occupies along with the related land. EFI will sell the second, approximately 163,000 square foot building, as well as approximately 30 acres. Subject to the close of the transaction, EFI will lease a portion of 301 Velocity Way from Gilead to assist with the transition and relocation of its employees and labs, from the date of closing through April 15, 2009.
EFI currently expects to use a substantial portion of the after tax proceeds from the sale to fund a share repurchase program subsequent to the close of the transaction.
"Earlier this year we committed to explore opportunities to monetize our unused real estate and use the capital to enhance shareholder value," said Guy Gecht, Chief Executive Officer of EFI. "We are very pleased to make progress on this commitment and remain very focused on restoring shareholder value."
"The Bay Area has long served as a center of excellence for the biotechnology and biopharmaceutical industry, and we remain committed to maintaining our presence in Foster City," said John F. Milligan, PhD, President and Chief Operating Officer for Gilead. "We believe this is an efficient means for expanding our Foster City campus to create flexibility and to accommodate planned long-term growth, as we seek to develop and deliver to patients more novel therapies that address significant unmet medical needs."
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